Why BlueBet (ASX: BBT) shares are up 6% today

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NS BlueBet Holdings Ltd (ASX: BBT) Stock prices are skyrocketing on Friday morning.

In early trading, sports betting company shares were up 6% to $ 2.37.

This means that BlueBet’s share price has risen by more than 100% since its initial public offering (IPO) Early this month.

Why is BlueBet’s stock price soaring again?

Investors are bidding on BlueBet’s share price today after the release of the fourth quarter update.

According to the release, BlueBet achieved quarterly sales of $ 96.5 million, an increase of 39.8% over the previous corresponding period. For the full year, the company’s sales were up 83.2% to $ 344.7 million.

This strong growth is partly due to the 45.7% increase in active customers to 32,472 in 12 months. This is well above the prospectus’ forecast of 27,925.

In 2021, the company’s NetWin increased significantly. It increased 20.9% to $ 10.1 million in the fourth quarter and increased 92.4% to $ 35.6 million annually.

As a result of the above, BlueBet expects to report annual net sales of $ 32 million in 2021. This is slightly above the prospectus’ forecast of $ 31.4 million.

Operating cash flow for the quarter was $ 1.8 million and annually was $ 8.3 million. This brought BlueBet’s cash balance to $ 56.1 million at the end of the fiscal year. Management states that this will provide fuel to fund growth opportunities.

US expansion speeds pace

This includes expanding into the huge US market, boosted by an agreement with this month. Dubuque.. The skin agreement allows BlueBet to operate online sportsbooks in Iowa as an extension of Dubuque’s existing casino license.

But that’s not all. The company has identified up to five priority states in the United States (Virginia, Iowa, Colorado, Tennessee, and Maryland) for its first market entry as a gambling provider.

Like a rival PointsBet Holdings Ltd (ASX: PBH), BlueBet believes the market has significant growth opportunities as regulations change. This helps explain why investors are bidding on BlueBet’s share price this month.

BlueBet CEO Bill Richmond said on expanding its business in the United States. I talked to The Motley Fool earlier: “Invasion of the United States is a once-in-a-lifetime opportunity. It’s rare for the United States to come across an industry that isn’t the first in both humans and technology, but until recently it was underground, so it’s the case for sports betting.”

“We have the technology and expertise to leverage this Greenfield outlook. With the help of significant investors, we have a very large amount of growth capital to attack the emerging US market. This could be ordered or larger than the Australian market, according to some estimates. We feel we are at the forefront of something very big here. ” He added.

Why BlueBet (ASX: BBT) shares are up 6% today

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