BlueBet’s swift US market exit provides A$11m boost to annual EBITDA
Capital saved from the group rapidly winding down US operations is expected to strengthen next year’s earnings, with full focus now on native Australia
BlueBet is expecting its full-year (FY) 2025 EBITDA to be boosted by an additional A$11.2m (US$7.4m) as a result of its full exit from the US market.
In late August, the company announced its plans to call time on its US operations to devote full focus on achieving market growth targets in Australia, following April’s merger with Betr.
That deal prompted BlueBet to conduct a strategic review into its US operations, where it oversaw the ClutchBet brand.
Following the decision to exit, BlueBet has revealed it closed all three of the ClutchBet online sportsbooks on September 16 “without any material regulatory or customer issues.”
BlueBet said further cost savings had been achieved as a result of reaching an agreement with its three US B2C market access partners to terminate all existing agreements in Iowa, Colorado, and Louisiana with what the operator described as “favorable financial and payment terms.”
Bosses of the ASX-listed group cited the company’s “Capital-Lite” market entry strategy as a factor in its limited investment in the US.
Andrew Menz, BlueBet CEO, reflected on the departure from the US as he explained: “Today’s announcement is evidence of decisive action and swift execution, as we seek to grow our core business and create meaningful shareholder value.
“Our staged entry into the US was differentiated by its disciplined and ‘Capital Lite’ nature, which has continued as we exit the market on favorable financial terms.”
He added: “Having announced A$6m to A$8m in annualized savings from our US exit that we are redeploying towards profitable growth in Australia, we have released a further A$11.2m provision following positive commercial negotiations with our market access partners in Iowa, Colorado, and Louisiana.
“This will directly benefit our FY2025 EBITDA, as well as our cash position, as we focus on building a leading Australia-focused online wagering operator.”
With emphasis now firmly on growth Down Under, BlueBet’s stated strategic objective is to exceed 10% market share in Australia in the short-to-medium term through a “combination of organic and inorganic growth.”
At the time of writing, three days after the firm’s update, Bluebet’s share price sat at A$0.24 pre-market open on Tuesday, October 29.