BlueBets expansion plans in the United States have commenced, but its net income for the 2023 financial year has slightly decreased.
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BlueBets expansion plans in the United States have begun, but its net income for the 2023 financial year has slightly decreased.
In the 12 months ending June 30, BlueBets revenue was A$49 million (GBP25.1 million/EUR29.3 million/USD31.7 million), down 1.3% from the 2022 financial year. However, its turnover increased by 4.8% to A$536.6 million.
BlueBet noted that its performance in Australia was a key highlight of the year. However, just days after announcing its full-year results, it was fined A$945,187 by the Victorian Gambling and Casino Control Commission (VGCCC). The amount could change depending on further legal proceedings. BlueBet displayed three advertisements on billboards between August 29 and September 11 last year, violating state regulations on marketing.
BlueBets active users in Australia surged by 22.7% to 65.4 million. Turnover increased by 3.5% to A$530 million, accounting for the majority of the total turnover for the year. BlueBet attributed this growth to a 24.0% increase in marketing expenditures, driven by increased investment in the first half of the year.
BlueBet noted that it expects to achieve positive EBITDA in Australia in the 2024 financial year.
US Status
In the last twelve months, BlueBet has made strides in its long-term expansion plans across the United States, introducing its ClutchBet brand in Iowa in August of 2022 and Colorado in April of 2023. The Iowa launch centered primarily on product enhancements.
BlueBet’s Chief Executive Officer, Bill Richmond, stated that the past year has been about establishing a foundation for BlueBet’s expansion in the United States and driving growth in Australia.
“Fiscal 2023 was a year of strategic execution, setting the stage for long-term growth in both Australia and the United States,” Richmond stated. “Product is BlueBet’s key differentiator and a significant driver of our substantial market share expansion in Australia, and it’s also driving our early success in the United States.”
BlueBet also announced that it will launch in Louisiana in October 2023 and Indiana in January 2024.
“We are thrilled to be taking bets in Colorado and Iowa during this period, and we look forward to doing the same in Louisiana and Indiana in fiscal 2024.”
Net Loss Expands in Fiscal 2023
BlueBet’s total payments were $465 million, a 5.3% increase year-over-year. This resulted in total revenue of $71.5 million, a 1.5% increase year-over-year.
Net revenue came from $17.6 million in promotional expenses and $4.9 million in goods and services tax. $24.1 million in cost of sales resulted in a net profit of $24.8 million for the year.
Among other expenses, the highest was $19.2 million in advertising and marketing expenses. Employee benefits expense was $12.4 million. Other expenses included IT, stock-based payments, and administrative expenses.
This led to an operating profit loss of $18.2 million, a rise from the $5.4 million loss in the previous year. Depreciation and amortization costs were $2.7 million, while total financing charges were $517,000. These expenses resulted in a pre-tax loss of $21.5 million.
BlueBet paid $2.7 million in taxes during the financial year. Taking this into consideration, along with a $152,000 foreign exchange adjustment, the total loss for the year was $18.6 million. This is an increase of $12.8 million compared to the previous year.
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