Two ASX gambling stocks are experiencing notable increases in their share prices today, reflecting strong investor interest and enthusiasm. This surge follows positive updates and strong quarterly performance reports from these companies. As of Wednesday morning, the All Ordinaries Index (ASX: XAO) has risen by 0.6%, indicating a general upward trend in the market. Notably, this movement also highlights the broader impact on the ASX consumer stock sector, where gains in gambling shares are contributing to overall market gains.
Bluebet Holdings Ltd (ASX: BBT) The share price of Bluebet Holdings Ltd has climbed 2.4% to 22 cents per share. This uptick follows the company’s recent quarterly update and significant developments. Bluebet’s recent merger with betr, completed on 1 July, has proven to be a pivotal event. The merger is set to establish Bluebet as a leading player in the Australian wagering market, with the realization of $14 million in annual cost synergies expected. The remaining synergies will be realized upon the completion of customer migration to the Bluebet platform, which is scheduled for September.
In addition to the merger, Bluebet's financial results have contributed to the positive share movement. The company reported record quarterly turnover of $162.5 million and a 14% increase in active customers, totaling 76,300. The net win for the quarter was also a record at $17.7 million, with a net win margin of 10.9%. Furthermore, the successful completion of a $20 million placement has bolstered Bluebet’s balance sheet.
Andrew Menz, Bluebet’s CEO, highlighted the strategic advantages of combining Bluebet's technology with betr's customer base and teams. Bluebet’s Chief Operating Officer, Bill Richmond, noted ongoing efforts to scale and enhance the company’s global platform, including a strategic review of its US operations.
Pointsbet Holdings Ltd (ASX: PBH) Meanwhile, Pointsbet Holdings Ltd has seen its share price surge by 8.2% to 53 cents per share, following a robust quarterly update. Pointsbet reported an "outstanding finish" to FY 2024, with a normalized EBITDA loss of $1.8 million. This result significantly improved upon the company’s earlier guidance of a $4 million to $6 million EBITDA loss for the fiscal year. It represents a substantial improvement from the $49 million EBITDA loss reported in FY 2023.
The company's net win for the fourth quarter was $68.4 million, reflecting a 12% increase year on year. The full-year net win of $267.1 million also marked a 16% rise compared to the previous year. Pointsbet achieved a record quarterly net cash flow of $7.1 million and ended June with $28.1 million in cash, following the return of $442.4 million to shareholders.
Management emphasized that Pointsbet is well-positioned for future growth and is focused on executing its operational and strategic plans.
Market Impact Despite the impressive quarterly results and positive share price movements, both Bluebet and Pointsbet face broader market dynamics. Bluebet’s share price has increased by 8% in 2024, while Pointsbet’s share price remains down 40% year to date, indicating varied investor sentiment across the sector.