Australia-based BetMakers Technology Group Ltd has released its latest quarterly financials, revealing a continued focus on operational efficiency through reduced staff costs.
For the three months ending 30 September (Q1 FY25 in Australia), BetMakers achieved a 6.4% QoQ reduction in staff costs and brought them down to AU$11.7m (£5.9m) from the previous AU$12.5m (£6.4m).
EBITDA stood at a AU$1.2m loss for the quarter, which in turn is a “material improvement” QoQ compared to the AU$3.2m loss in Q4 FY24 (Australia).
This is all on par with the company’s transformation strategy, which includes initiatives to boost its gross margin and accelerate growth, with a specific focus on achieving positive operating cash-flow in FY25.
To reach the required financial outcomes aligned with this transformation and deliver long-term value for shareholders, a total of 57,000,000 Performance Rights were issued by BetMakers as Management Incentives under the Long Term Incentive Plan.
A 9.6% QoQ decline was highlighted with the cash receipts (AU$23.2m), with the offset attributed to the global racing calendar at that time, as well as the difference in the amounts received by BetMakers from betr in that quarter – with both companies now officially exiting their agreement.
A US fixed odds deal dating back to July where BetMakers made a payment of $3m minimum guarantee to Darby Development LLC and the New Jersey Horsemen bumped the firm’s Q1 product and operating costs by 21.9% to $11.9m compared to Q3 2024.
When adjusted for this specific payment, product and operating costs went down 8.9% driven by “efficiencies derived in Global Tote”.
BetMakers reorganised its corporate structure at the start of the year to start reporting on both Global Tote and Global Betting Services as principal segments, completely assimilating the previous Global Racing Network revenue results.
The firm’s closing cash-on-hand balance as of 30 September was AU$21.2m, of which AU$9.7m unrestricted. BetMakers initially targeted “at least AU$20m” of unrestricted cash reserves in FY24, after the company brought its unrestricted cash balance up to AU$18.1m at the end of 2023.
In terms of corporate relations, the ongoing high profile partnership with bet365 is being finalised for entry into the New Jersey fixed odds horse racing market. Colorado is already an active market.
Sportingtech has also been highlighted as a key partner, with BetMakers supplying its racebook for fixed odds and tote betting on racing to Sportingtech’s LatAm-facing operators.
Matt Davey, Executive Chair of BetMakers, commented: “BetMakers today unveiled its transformation strategy which is described in our investor presentation. The strategy is designed to get the business into a positive cash flow position, drive profitable operations, and in the long term, transform the business into a ‘Rule of 40’ Company.
“Alongside this transformation strategy, the Board has issued new LTIP equity performance hurdles designed to incentivise management to execute on the strategy and deliver value for shareholders.
“These are bold targets, but ones that we feel are achievable given BetMakers’ leading technology, the operational leverage in the business, and the substantial growth opportunities that are likely to be available to the Company through increased market penetration and international expansion.
“We are pleased with the progress made in Q1 FY25, and look forward to delivering on our strategy.”