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BetMakers Technology Group has enhanced its reorganisation strategy to lower operating expenses and improve cost controls of the ASX-listed betting systems supplier.
Thanks to a series of implemented initiatives to generate further operational efficiencies, BetMakers is now expecting operating expenses to drop below the previously outlined $60m target.
Some of the initiatives include reductions in staff costs, corporate function centralisation for streamlined operations, and the onboarding of customers and products to the company’s Next Gen technology platform.
The expected result is an operating cash-flow break-even in Q3 FY25, as well as positive operating cash-flow for the six months prior to 30 June 2025.
Additionally, BetMakers has also secured a new 24-month, $3m debt facility with the Matthew Davey-controlled Tekkorp Holdings, which would provide additional financial flexibility and boosted funding capacity.
Investments will cover one-off costs associated with the reduction in staff costs, Next Gen product and customer integration acceleration, and the provision of strategic working capital.
In detail, BetMakers has cut total annualised staff costs by $5.1m since 30 June 2024, with the results expected to take full effect in Q3 FY25 and bring operating expenses below the $60m target for next year projected by the company’s FY24 statements.
The technological aspect of the transformation strategy includes the onboarding of BetMakers’ Australian platform customers to its Next Gen platform, with management targeting the end of H1 FY25 as the deadline to complete all updates. Four new Australian platform brands will also be launched on Next Gen by the end of H1 FY25.
Going to trading, BetMakers expects higher H2 FY25 revenues than H1 FY25, with other benefits from lower cloud costs and ongoing cuts in operating expenses realised in the same period.
The aim now is to achieve operational cash-flow break-even in Q3 FY25 and positive operating cash-flow for the six months leading up to 30 June, 2025.
Davey, who is also the Executive Chair of BetMakers, commented: “I am excited to see the impact our transformation strategy is already having on the business, and importantly, that management have been able to accelerate this strategy.
“We are extremely pleased with the technology upgrades and the benefits this is delivering through both performance and lower costs. Coupled with other cost reduction initiatives, we have a clear line of sight to profitability. Executing the new debt facility provides us with the added flexibility to implement some of these initiatives.
“BetMakers is on a financial transformation journey, which is designed to deliver long term value for shareholders. We are making strong early progress in this endeavour.”
