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BlueBet Holdings Ltd Initial Public Offer to raise $80.0 million at $1.14 per share
BlueBet Holdings Ltd (“BlueBet” or the “Company” is an Australian wagering operator founded in 2015 by Michael Sullivan. The Company was founded as a mobile-first, online bookmaker with the vision to provide more innovative wagering products to customers of Australian and international racing and sports.
Morgans is a Joint Lead Manager and Underwriter to the Initial Public Offer.
Investment Highlights
Track record of sustainable profitable growth
BlueBet has a demonstrated track record of consistent growth across key financial and operational metrics
Bet Count – 6 million in the 12 months to 31 March 2021 (+129.6% on prior corresponding period (“pcp”);
Turnover - $390.0 million forecasted in CY21 (+46.5% on pcp);
Registered Customers – >88,000 Total Registered Customers as at 31 March 2021 (+51.6% on pcp);
Active Customers – 26,826 Active Customers as at 31 March 2021 (+32.7% on pcp);
Net Win - $39.8 million forecasted in CY21 (+39.6% on pcp);
An Average Annual Customer Value ($1,117) to Cost Per First Time Depositor ($170) of 6.6x in CY20; and
Estimated online wagering market share in Australia of approximately 1.2%, as at 31 December 2020 (Frost & Sullivan, 2021 ).
Scalable business model and technology platform
Powered by its custom-built technology suite that includes both customer facing technology, driving strong customer metrics, and non-customer facing technology enabling BlueBet to increase scale and innovate efficiently and in a cost-effective manner.
The automated nature of BlueBet’s platform allows it to scale without the requirement to dramatically increase headcount.
Dual growth strategy tartgeting Australian expansion and US entry
Dual growth strategy focused on increasing market share in Australia (through a targeted, multichannel approach) and seeking to enter the attractive US online sports betting market.
BlueBet’s US market entry strategy is targeting five priority states for its initial market entry as a B2C wagering provider in order to establish an initial footprint.
Once established, the Company intends to launch its Sportsbook-as-a-Solution offering through partnerships and joint ventures with US entities, reducing capital required and risk in major states.
Strong industry fundamentals
According to Frost & Sullivan, Australia has the highest per capita gambling expenditure in the world and sports betting is forecast to reach $5 billion in FY21, of which mobile betting is forecast to account for $3.9 billion.
Analysts are variously forecasting that by 2025, the US market will be worth US$8.5 billion ($10.9 billion) to US$13.5 billion ($17.3 billion).
If all 50 states were to fully legalise mobile sports betting, it is estimated that the market would be worth at least US$22 billion ($28.2 billion) in annual revenue.
Highly experience board and management team
BlueBet boasts a high-quality management team, led by Founder Michael Sullivan, with significant experience in, and knowledge of, the wagering industry.
BlueBet also has an experienced Board and senior management team, including several key executives who have held senior management or other leadership positions with well-known wagering companies including Sportingbet, Centrebet and Aristocrat.
Key offer statistics
Column 1
Column 2
0
Offer summary
1
Number of Shares available under the Offer
70.2 million
2
Offer Price
$1.14
3
Gross proceeds from the Offer
$80.0 million
4
Number of Shares to be held by Existing Securityholders at Completion of the Offer1
129.9 million
5
Total number of Shares on Issue on Completion of the Offer (undiluted)
200.1 million
6
Total Number of Shares on issue on Completion of the Offer (fully diluted)2
210.4 million
7
Indicative market capitalisation at Completion3
$228.1 million
8
Enterprise Value4
$178.5 million
9
Enterprise Value / CY21 Net Revenue
4.9x
10
Proposed ASX Code
BBT
Use of funds
Column 1
Column 2
0
Use of Funds
$m
1
Marketing spend in Australia
10.0
2
Establish US business and acquire initial licences
is an Australian wagering operator founded in 2015 by Michael Sullivan. The Company was founded as a mobile-first, online bookmaker with the vision to provide more innovative wagering products to customers of Australian and international racing and sports.
