BetMakers Q2 FY24 – financial resilience and restructuring

Lea Hogg February 1, 2024

BetMakers Technology Group Limited, a prominent sports betting supplier, has reported a notable upswing in its Q2 FY24 financial results, triggering a 25 percent surge in its shares from A$0.08 to A$0.10. The three-month period ending 31 December, 2023, showcased a resilient performance, marked by a 10 percent YoY increase in revenue, totalling A$25.1 million. The positive momentum is attributed to strategic measures, including a substantial reduction in staff costs (29.2 èercent down to A$12.3 million) and operating expenses (27.7 percent down to A$5 million), contributing to a significantly reduced EBITDA loss of A$1.2 million compared to the previous year’s A$9.1 million loss in Q2 FY23.

Strategic restructuring and key partnerships

BetMakers’ commendable cost-cutting initiatives were a result of a business restructure undertaken in the preceding year, leading to a reduction in headcount from 568 in December 2022 to 412 in December 2023. With an ambitious target to further reduce costs by 10% in the latter half of the financial year, the company aims to fortify its financial position. The reporting period showcased the renewal of crucial client contracts with industry leaders such as The Meadowlands in New Jersey, ZeTurf in the Netherlands, William Hill in the UK, and PointsBet in Australia. Additionally, BetMakers expanded its global footprint by onboarding new clients like the Selangor Turf Club in Malaysia and enhancing its collaboration with the Argentina Jockey Club.

Despite BetMakers falling short of its minimum unrestricted cash target of A$20 million, holding A$18.1 million in unrestricted cash, the company remained optimistic about its financial trajectory. The share price, although historically low since its peak at A$1.50 in May 2021, exhibited a positive uptick post the Q2 FY24 results, suggesting a potential recovery in investor confidence.

CEO comment

The management, led by CEO Jake Henson, emphasized the continuous efforts to streamline operations, defining the business across two operating segments – Global Betting Services and Global Tote. The focus on operational savings and scalability through technology, coupled with renewed contracts and new customer acquisitions, positions BetMakers for robust growth in the second half of FY24.

Jake Henson stated, “While we have made significant progress over the last 12 months, we’re conscious that the job is not finished. We remain very focused on achieving positive underlying EBITDA and operational cash flows, to provide a sustainable foundation for future growth.” BetMakers Technology Group Ltd (BET.AX) is currently trading at $0.12, reflecting a notable 15 percent increase.

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