2 ASX betting shares surging on quarterly updates

These shares are having a strong session. Why are investors betting on them today?

| More on:
a man in a green and gold Australian athletic kit roars ecstatically with a wide open mouth while his hands are clenched and raised as a shower of gold confetti falls in the sky around him.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There have been a couple of big moves in the betting industry on Wednesday following the release of quarterly updates.

Let's dig a little deeper into these releases now and see what's getting investors excited:

Bluebet Holdings Ltd (ASX: BBT)

The BlueBet share price is up 4.5% to 23 cents.

This morning, the ASX betting share released its third quarter update and revealed a 26.1% increase in turnover to $151.6 million. Management advised that this was driven partly by continued market share gains in Australia.

Growing at an even stronger rate was its key net win metric. BlueBet reported a 36.7% increase in its net win to a new quarterly record of $16.4 million. This reflects a 0.8 percentage point increase in its net win margin to 10.8%.

This ultimately led to BlueBet achieving its first cash flow positive quarter since its IPO.

BlueBet's CEO, Bill Richmond, was pleased with the company's performance during the quarter. He commented:

BlueBet reached a major milestone in Q3, with our first cash flow positive quarter since IPO, driven by accelerating growth and a strong focus on profitability, as we continue to rapidly gain market share and outperform the market in Australia and continue to scale the US.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up 5% to 83 cents. This follows the release of a couple of announcements from the ASX betting share.

The first was its third-quarter update, which revealed a 7% increase in turnover to $676.4 million.

Like BlueBet, things were even better for the company's net win. PointsBet advised that its Sports Betting net win increased to $65.1 million for the three months.

Combined with its iGaming net win of $5.5 million, the company's total net win grew 24% in the third quarter to $70.6 million.

PointsBet also separately announced plans for its second capital return following the completion of the sale of its US business earlier this month.

The company will be returning $127 million or $0.39 per share to shareholders via the capital return. This means that a total of $442.37 million will have been returned across its first and second capital returns.

Its shares will trade ex-capital return on Tuesday 30 April. After which, eligible shareholders can look forward to being paid this capital return on 16 May.

Based on its current share price, this return equates to a mouth-watering yield of approximately 47%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

supermarket asx shares represented by shopping trolley in supermarket aisle
Consumer Staples & Discretionary Shares

Is the Coles share price a buy amid its 2025 outlook?

With its outlook in mind, are Coles shares a bargain?

Read more »

asx company executive with multiple fingers all pointing at him
Consumer Staples & Discretionary Shares

Woolworths shares slip amid criminal charges laid in NZ

The supermarket is in hot water across the ditch.

Read more »

Woman and 2 men conducting a wine tasting
Consumer Staples & Discretionary Shares

Treasury Wine share price jumps on big China news

The popular Penfolds brand may have found its home in China.

Read more »

I young woman takes a bite out of a burrito n the street outside a Mexican fast-food establishment.
Consumer Staples & Discretionary Shares

How spicy is the 2025 outlook for Guzman y Gomez shares?

Let’s look at how exciting 2025 could be.

Read more »

A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.
Consumer Staples & Discretionary Shares

Should I buy Woolworths shares today?

After getting hammered in 2024, are Woolworths shares now a buy?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock is sinking to a new all-time low

This continues a long downtrend.

Read more »

A photo of a young couple who are purchasing fruits and vegetables at a market shop.
Consumer Staples & Discretionary Shares

21% in a year: Have Coles shares become too expensive?

Brokers give their verdict on Coles for 2025.

Read more »

Young couple at the counter of a hardware store.
Consumer Staples & Discretionary Shares

Wesfarmers shares in 2025: What to expect, growth forecasts

Retail is in for an interesting year in 2025.

Read more »