The BlueBet Holdings Ltd (ASX: BBT) share price is flat this afternoon after posting strong gains early in the session.
BlueBet shares caught a bid at the open and soared 8% following the release of the company's quarterly results for the period ended 30 June 2022.
However, the BlueBet share price has since retreated and is now back to where it ended Thursday's session — at 59.5 cents.
BlueBet revenue, net win gains year on year
Key takeouts from the quarter for the sports betting company include:
- Revenue up 31.3% to $126.7 million, driven by strong customer and Betcount growth
- Net win up 27.3% to $12.8 million
- Net win margin 10.1% in Q4 and 10.7% for FY22
- Total 53,328 active customers at the end of June, up 64.2% on the prior corresponding period (PCP)
- Rolling 12-month first-time depositors (FTD) up 60.8% on PCP in Q4
- Cost per FTD (CFTD) of $386 being 2.7x annual customer value
- Corporate cash balance at the end June of $43.7 million
What else happened this quarter for BlueBet?
The company secured its fourth US market access agreement, partnering with Caesars Entertainment Inc on a 10-year term.
It will operate a new business-to-consumer (B2C) online sportsbook in Indiana under the recently announced ClutchBet brand.
This marks the first stage of BlueBet's two-stage "capital lite" strategy for US entry — that being to launch ClutchBet and "demonstrate the capability of its technology and team to run profitable sportsbooks in the US".
The company also left the quarter with 53,328 active customers, representing a 64% increase on the PCP.
Within this group, average annual customer value is above $1,000, "providing a 2.7x return on our marketing investment to acquire these customers," BlueBet says.
What's next for BlueBet?
With the first stage of its capital light strategy nearing completion, it can now focus on looking ahead. It said:
While there remains significant opportunity for B2C expansion into other target U.S. states, BlueBet's focus and capital will now be directed towards executing in each of the four initial states, alongside seeking partners nationwide for the launch of its white-labelled Sportsbook-asa-Solution B2B offer, the second stage of its US entry strategy.
BlueBet is ready to go-live in Iowa under the ClutchBet brand pending final approvals. With platform testing successfully completed and final certification from GLI to shortly follow, the final step before receiving licence approval from the Iowa regulator is to complete geo-location testing. Once complete, the company expects to have its license approved in the coming weeks.
In the last 12 months, the BlueBet share price is down more than 73%. It has also fallen around 60% this year to date.
