Shares of BlueBet Holdings Ltd (ASX: BBT) have slipped into the red today following the release of its FY22 results.
At the time of writing, BlueBet is trading more than 7.5% into the red at 43 cents apiece.
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BlueBet shares dip as profit slumps in FY22
Key takeaways from the company's results include:
- Turnover of $511 million, up 48.5% from FY21's result
- Wagering revenue of $54.6 million, a gain of more than 53% from the year prior
- Gross profit growth of nearly 48% for the 12 months
- EBITDA loss of $5.5 million, down from a $4.7 million profit a year earlier
- Net loss after tax of $6.1 million, down from $3 million profit in FY21
- Net cash from operations down 84.7% year on year to $1.5 million
What else happened for BlueBet in FY22
After listing in July 2021, BlueBet saw strong results that outpaced forecast in its prospectus.
It maintained an "attractive 2.7x ratio of annual customer value to the cost of a first time depositor" by year's end as well.
The company saw its net win margin grow by 10.7% year on year, and secured market access in 4 US states.
Furthermore, 3 additional platforms were launched in the Australian business to assist with the company's US technology operations.
Despite incurring a loss after tax of $6.1 million, BlueBet notes that "[initial public offering] IPO proceeds largely intact due to cash generation from Australian business".
Management commentary
Speaking on the announcement, BlueBet CEO, Bill Richmond said:
I am very proud of the progress we have made in our first year as a listed company, having achieved a number of major strategic milestones, including touching down in the US, developing a leading technology platform and continuing to grow our market share in Australia.
Our IPO provided us with the financial firepower to invest for growth. With our US B2C brand ClutchBet now live in the US, having taken our first bets in Iowa in this month, we are committed to executing the first stage of our differentiated 'Capital Lite' US strategy. The strength of our technology and our team is now on display as we move towards our B2B Sportsbook-as-a-Solution model in FY23.
BlueBet share price snapshot
In the past 12 months, the BlueBet share price is down nearly 83% as well as 70% this year to date. It trades in the red across all time frames.
