The Australian wagering firm, BlueBet, witnessed a substantial surge in sports betting revenue during the latter half of 2022. This upswing was attributed to the FIFA World Cup and attractive promotional offers extended in the United States.
BlueBet’s financial report for the final quarter of 2022 revealed a total revenue of A$147.7 million, representing a 6.6% increase compared to the corresponding period in the previous year. This growth was primarily driven by sports betting and mobile wagering activity.
The majority of BlueBet’s revenue originated from Australia, reaching A$146.3 million, a 5.6% rise year-on-year. The company attributed its strong performance to promotional campaigns, the World Cup, and adjustments to its horse racing earnings. Despite a slight decline in horse racing revenue, BlueBet still achieved a favorable profit margin.
The number of active BlueBet users in Australia expanded by 32.3% compared to the previous year, reaching 59,632. This figure also exhibited a 10% increase compared to the preceding three-month period.
BlueBet commenced offering its wagering services in the United States in August under the brand name ClutchBet. The company secured the ninth position in the US market based on revenue generated during the final quarter.
BlueBet recorded a profit of A$18.3 million, slightly lower than the previous year. This reduction was attributed to increased expenditures on advertising, promotional offers, and pricing strategies aimed at competing with other wagering companies in Australia.
BlueBet anticipates that marketing expenditures and promotional endeavors will revert to their usual levels in the latter half of the year, with product enhancements driving customer loyalty. BlueBet stated that it has reinvested the advantages of increased marketing outlays in fiscal year 2022 into product development, including an improved BlueBet global platform slated for release in the middle of 2023.
Chief Executive Officer Bill Richmond remarked: “Despite fierce market rivalry, BlueBet delivered another robust quarter in the second quarter, with sustained market share expansion in Australia fueled by robust growth in sports wagering.
“Following supplementary seasonal and strategic marketing investments in the first quarter, quarterly cash outflows are anticipated to revert to normal in the second half of the year, and our Australian enterprise is projected to return to generating positive operating cash flow as we continue to gain market share with our distinctive brand and offerings.
“In the United States, ClutchBet is now operational in Iowa and received its inaugural wager in late August, with highly favorable initial customer feedback,” he stated. “We are presently concentrating on refining our product to align with the US market and anticipate going live in Colorado in mid-March.
“We have initiated discussions with prospective B2B partners concerning our white-label sports wagering-as-a-service B2B product in the US and expect to make further progress in the latter half of the year.”
In the preceding year, BlueBet made a strategic investment of $500,000 in Low6, a provider of free-to-play sports gamification platforms.
The firm revealed in a trading update that its inaugural free-to-play game will be launched during the Super Bowl in the United States.
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