The newly merged BlueBet Holdings has hailed the integration of the previous two BlueBet and betr businesses as highly successful, as it charts towards an ambitious goal to take 10 per cent of the Australian wagering market.
BlueBet PLC will look to build its market share in the competitive Australian landscape, both through the Betr brand and other mergers and acquisitions, backed by the same processes it executed during the recently completed amalgamation.
It recently reported the addition of betr into the business had helped it double turnover and gross win compared to the first quarter of FY23.
Overall turnover across the company, which migrated under the one brand in September, was $287 million, up from $144 million for the BlueBet-only aspect of the business on the same time last year.
To give context, market leader Sportsbet’s reported turnover for the first quarter was US$2.7 billion, while PointsBet, BlueBet’s nearest rival, was $550 million.
Gross win for BlueBet/betr grew to $38.8 million, from $18.8 million, while net win went to $27.9 million from $14.5 million. The Australian business was net cash positive by $1.4 million.
“Our first quarter as a combined business has been highly successful, with the re-brand of BlueBet to betr and customer migration executed in just 59 days following completion of the merger,” BlueBet CEO Andrew Menz said earlier this month.
“This is a record for the sector and evidences the well-oiled and repeatable M&A machine we have developed.”
Bren O’Brien
The integration saw existing betr customers transferred across to Bluebet’s platform, and then Bluebet rebranded as Betr.
“With the strength of our platform delivering strong revenue outcomes for migrated betr customers, the transaction rationale is playing out exactly as we expected, and the reactivation opportunity for the remaining betr customers over the next 12 months is material,” Menz said.
“Importantly, our Australian business was operating cash flow positive in Q1, reflecting our disciplined approach to reactivating the betr customer base and efficiencies enabled by the market-leading BlueBet technology platform.”
Bren O’Brien
Significantly, Bluebet exited its American businesses in October, which is something that it says will deliver up to $8 million in annualised savings.
“We are now a much larger, leaner and Australia-focused business, with a strong and united team aligned behind our relentless pursuit of profitable growth and market share gains in the Australian market,” Menz said.
BlueBet shares currently sit at 26 cents, giving it a market cap of $141 million.
