SBC News Voice of the Sports Betting Industry
BetMakers details that it has benefitted from executing its restructuring plans to simplify its operating structure and commercial operations for its business units of Global Betting Services, Global Tote and Corporate (B2B).
Publishing its interim H1 2024 results (period up to 31 December), the ASX wagering technology group registered corporate revenues of AU$ 51m (€30m), up 10% on H1 2023 results of AU$ 47m.
Reorganising its corporate structure, BetMakers reports across Global Tote and Global Betting Services as principal segments – assimilating its Global Racing Network revenue results from FY23 into ‘Global Betting Services’.
Global Betting Services revenue has increased despite a “downward shift” witnessed in the Australian market. Segment revenue in H124 was up 5.6% to AU$ 26.8m (H123: $ 25.4m).
Global Tote was up 15% to AU$ 25.6m in H124 (H123: $21.4m). Total interim revenue across both verticals reached AU$ 51.4m – up 9.9% YoY (H123: $46.7m).
For the remainder of FY24 trading, BetMakers will take aim at lower double digit revenue growth compared to pcp, while also targeting key market activations with Caesars Entertainment and Norsk Rikstoto.
TECHNOLOGY
BetMakers’ tech stack has seen continued investments for its ‘Next Gen’ sportsbook software to optimise its compatibility with Caesars Entertainment venues. New features and widgets were introduced to improve customer-facing functionality.
H1 FY24 also saw the company launching its ‘OneWatch’ data collection tool for monitoring and analytics.
BetMakers’ Global Tote operations were also moved to a single centralised support portal to increase control.
COST BASE
Adjusted EBITDA for H124 was at negative AU$0.9m (-$15.4m H123) due to “significant cost base reduction”.
The focus will increase on reducing and managing the cost base to bring it under AU$ 110m in FY24, with around AU$ 15m of strategic investment in international fixed odds and product development.
For H224, BetMakers will aim to shrink operating costs by 10% compared to H1. This is projected based on an ongoing downsizing that is bringing lower employment costs driven by headcount reductions – from 456 in 30 June, 2023 to 414 in 31 December.
These results have been previously targeted in BetMakers’ investor update from 30 August 2023.
Total costs in FY23 were AU$ 127.5m. Projected FY24 total costs are $100.3m, with H124 costs already at $52.8m, and forecasted expenses for H2 at $47.5m.
BALANCE SHEET & CASH FLOW
An “outstanding customer payments due” of AU$ 5m brought the firm’s unrestricted cash balance to $18.1m as of 31 December 2023 – below the expected floor. BetMakers will now move to secure “at least $20m” of unrestricted cash reserves in FY24.
The Next Gen asset brought the firm a total of AU$ 3.3m from conservation of employment costs.
Capitalising on staff costs and excluding movement of funds held on behalf of customers, net cash stood at AU$ 8.9m on 31 December, 2023 (H123: $9.71m). This was impacted by the $3m payment as a minimum guarantee to Monmouth Park during the 22/23 racing season.
BetMakers’ focus going forward will be on maximising operational efficiency, meeting ESG goals, and capitalising on the streamlined Global Betting Services and Global Tote segments.
