BetMakers pon ‘path to profitability’ with restructuring and cost reduction

BetMakers declares AU$41m in Q4 FY23 cash flow after cost reductions

A succession of new partnerships and continuing of long-term client relationships has driven  strong trading performance for BetMakers Technology Group during Q4 of the 2023 financial year.

At the close of the three month period ending 30 June 2023, the ASX-listed betting technology supplier declared cash flow of $41m, driven by a 5% quarter-on-quarter increase in cash receipts to AU$24.8m ($23.5m).

This means that the group has closed the 2023 financial year (1 July 2022-30 June 2023) with cash receipts from customers of $99.1m, up 6% on $93.1m recorded in full year 2022.

From a commercial standpoint, notable partnerships clinched during the quarter included a deal with the Stronach Group’s 1/ST Content brand, distributing racing content from BetMakers’ Global Racing Network (GRN) to various international markets.

The partnership commenced on 1 May and will see racing fixtures from major US tracks such as Kentucky Downs, Charles Town, Mahoning Valley, Penn National, Sam Houston, Zia Park and Monmouth Park delivered in a range of markets, including the UK and Ireland via Sky Sports Racing – although BetMakers did note that the agreement is ‘subject to completion of long-form agreements’.

Commenting at the time, BetMakers CEO Jake Hansen – who assumed duties at the start of the year, taking over from Todd Buckingham in a board reshuffle, said: “The partnership with 1/ST Content is designed to be an important addition to BetMakers’ Global Racing Network, further broadening our global racing distribution base with a strong and credible partner in expansive markets, which can deliver enhanced returns to our racetrack partners.”

Further US developments included the launch of MonmouthBets in May, which marked the first time a fixed odds horse racing product has gone live in a US market. So far, parimutuel betting has dominated the stateside horse racing scene.

Meanwhile, on the developmental and organisational side of business, BetMakers also concluded a strategic restructuring of its business during the quarter, reducing costs by 39% from Q3.

Cost reductions – partially achieved by cutting down the company headcount from 568 employees to 485 – saw operating expenses fall from AUS$91.5m in H1 FY2023 (June 2022-June 2024) to $70m as of May 2023.

Hansen remarked at the time: “The company’s cost base has been reset on the back of the deployment of proprietary technology and a strategic review of our operating model. BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal.”

SBC News BetMakers declares AU$41m in Q4 FY23 cash flow after cost reductions

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