BLUEBET HOLDINGS LIMITED (BBT)
Share Price Analysis and Chart

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31/10/2024

1

Buy

$0.38

31.03%

The 1Q net win margin for BlueBet Holdings of 9.7% beat Ord Minnett's 8.75 forecast and exceeded management's expectation as the BlueBet platform provided a material uplift in customer experience.

The broker also attributes the beat to the new app driving higher engagement and targeted generosities on the platform enabling an efficient use of marketing spend and reactivation of higher-spending customers.

Buy and 38c target retained.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.50 cents.
Ord Minnett forecasts a full year FY26 dividend of 0.00 cents and EPS of 1.80 cents.

04/12/2024

2

Initiation of coverage with Outperform

$0.30

3.45%

Taylor Collison initiates coverage of BlueBet Holdings with a valuation of 30c and an Outperform rating.

The merger between BlueBet's technology platform and betr's customer base is expected to generate margin uplift, with the broker pointing to evidence of improvements as customers migrate.

After 59 days, betr's customer base is producing approximately 10% net win margins compared to the previous level of around 7%.

The analyst is positive on new management and concurs growth for the company will require "inorganic opportunities," with a tripling of M&A activity anticipated. BlueBet is expected to be part of the tier-two industry consolidation.

Free cash flow from the exit of the US markets will be redeployed in Australia, the broker explains.

FORECAST
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of minus -0.10 cents.
Taylor Collison forecasts a full year FY26 dividend of 0.00 cents and EPS of 2.60 cents.