BlueBet Holdings reported a 12.6% increase in revenue during the first half of 2024 on the back of record turnover, but higher costs led to a wider net loss.
Revenue for the six months to 31 December hit AU$27.8m (£14.3m/€16.7m/US$18.1m), up from $24.7m in H1 of 2023 at BlueBet. This, BlueBet said, was driven by record wagering turnover of $319.5m for the half.
The six-month period saw BlueBet further grow its Australian business, with revenue rising 13.0% to $27.9m. Active customers in the country were also up 13.0%, which in turn helped pushed turnover up 6.9% to $298.7m.
However, against this background of growth in Australia was some bad news for BlueBet. In August, the Victorian Gambling and Casino Control Commission charged BlueBet for breaching state rules on advertising. If found guilty BlueBet could face a fine of up to AU$945,187.
US expansion continues for BlueBet
Over in North America, BlueBet posted a loss of $131,000 for H1. This was wider than the $71,000 loss reported in the same period in the previous year as costs rise amid its ongoing expansion efforts in the country.
However, the important news for BlueBet is the significant rise in turnover, with this hiking by 1,050.0% to $20.7m. Active customers also jumped during H1 in line with expansion into new states.
BlueBet is now operating in four US states: Colorado, Indiana, Iowa and, as of last month, Louisiana. The ClutchBet B2C brand is active in Louisiana via a partnership with Louisiana Downs casino and horseracing track.
Speaking last month, BlueBet CEO Bill Richmond said continues progress continues towards the second stage of its US market entry. This focuses on launching a white-labelled B2B sportsbook-as-a-solution offer, with discussions ongoing with potential B2B partners.
Cost increase hits bottom line
Looking at spending in H1, BlueBet said costs were higher across several areas. This includes cost of wagering, which climbed 12.9% to $13.1m in line with revenue growth.
As for other expenses, staff benefits costs were the main outgoing here at $8.5m. However, advertising and marketing, previously the core area of spending, was reduced by 27.2% to $8.3m.
Higher spending on the whole offset revenue growth and left a pre-tax loss of $12.1m, wider than $11.4m in 2023. BlueBet did receive $1.8m in tax benefits but, after also accounting for a $61,000 negative impact from foreign currency translation, this did not stop net loss rising.
For H1, net loss amounted to $10.4m, compared to $9.9m in the previous year. However, the operator was able to reduce consolidated EBITDA loss from $10.5m to $9.2m during the half.
