Last close As at 05/08/2026
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BlueBet’s (BBT’s) two-prong strategy is to build on its core online betting brand in Australia and develop the US market. Funded by positive operating cash flow from the Australian business and the July 2021 A$80m (gross) initial public offering (IPO), BBT is investing in its proprietary gaming platform and is increasing marketing spend, to build on the current strong growth in active customers and revenue and to further its US ambitions. BBT’s share price has declined by 74% since IPO, against a backdrop of share price volatility in the gaming sector and despite reported FY22 KPIs exceeding targets set out at the time of the IPO.
BlueBet Holdings |
Dual-track growth strategy
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Travel & leisure |
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30 September 2022 |
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BlueBet’s (BBT’s) two-prong strategy is to build on its core online betting brand in Australia and develop the US market. Funded by positive operating cash flow from the Australian business and the July 2021 A$80m (gross) initial public offering (IPO), BBT is investing in its proprietary gaming platform and is increasing marketing spend, to build on the current strong growth in active customers and revenue and to further its US ambitions. BBT’s share price has declined by 74% since IPO, against a backdrop of share price volatility in the gaming sector and despite reported FY22 KPIs exceeding targets set out at the time of the IPO.
Core Australian business executing on growth
BBT aims to continue taking market share (currently c 1%) in its core geography, Australia, by strengthening the brand and growing its active customer base. BBT’s FY22 results demonstrated strong growth (in revenue, active customers and betting volume), still bolstered by the pandemic as users shifted to online platforms and gambled more frequently. Despite a highly competitive environment, management notes it is gaining market share from domestic incumbents due to its localised brand and increased marketing spend (FY22 +191% y-o-y to A$14m). In FY22, BBT reported growth of 64% in active customers to 53k (FY21: 33k), 49% in turnover to A$512m (FY21: A$345m) and 48% in gross profit to A$27m (FY21: A$18m).
Recent expansion into the US to propel business
BBT recently entered the US market with its B2C brand (ClutchBet) as it took first bets in Iowa, with three other target states undergoing the licensing process. The four states have been initially chosen based on the competitive opportunity and relatively low taxes and licensing fees. BBT will subsequently look to roll-out its B2B ‘sportsbook-as-a-solution’ business once ClutchBet is established, leveraging its proprietary platform and the partner’s customer base to reduce its risk profile and capital requirements. Revenues are yet to be reported in the US, but Refinitiv consensus expects US revenue to grow from A$1m in FY23 to A$30m in FY25.
Valuation: Discount to established peers
BBT trades on consensus FY23e and FY24e EV/sales multiples of 0.76x and 0.59x, discounts of 48% and 55% to our peer group. The discount likely reflects its early-stage nature and relatively low free float (28.6%). End FY22 net cash of A$47m should provide the means to invest to grow its market position, product and technology offerings, as well as to ramp up the US operations. Consequently, management points to an FY23 peak in net cash burn (A$8.8m in FY22).
BlueBet Holdings is a client of Edison Investment Research Limited
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Consensus estimates
Source: Refinitiv, BlueBet. Note: *Revenue is wagering revenue (net win less general sales tax). |
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Research: Healthcare
Scandion Oncology has announced top-line data from part 2 of the Phase II CORIST trial, investigating the company’s sole clinical asset, SCO-101, as a treatment for chemotherapy resistant metastatic colorectal cancer (mCRC). The results confirm the safety and tolerability of SCO-101 in combination with FOLFIRI; however, the drug did not meet the 30% reduction in tumour size threshold required for clinical proof-of-concept (PoC). The company notes that tumour reductions have been seen in some patients and there is evidence of prolonged progression-free survival and stable disease in this population. Although the failure to demonstrate PoC at this stage is a disappointing result, we expect longer-term treatment data will need to be assessed before definitive conclusions on SCO-101’s efficacy can be drawn. In the absence of detailed clinical data, we maintain our valuation of Scandion Oncology at SEK609.5m or SEK15.0 per share; however, we will revisit this as more information on the top-line results is made public, expected on 4 October.