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

BetMakers maps out 2024 cost-reduction programme 

BetMakers has notified investors that it expects to “normalise its operating cost base” by the end of full-year 2024 trading.

The objective was outlined in the concluding statement of the ASX wagering technology group’s FY2022/2023 investor update, published on 30 August.

Tough trading saw BetMakers miss the targets of its corporate consensus as group revenues increased by only 3.7% to AUS $92m (€54m).

Failing to match its consensus, the management of BetMakers described the 2022/2023 activities as strategically transformative for the ASX tech group, which involved streamlining its product suite and launching its new ‘NextGen Platform’.

Tech upgrades were necessary, as the NextGen Platform will enhance wagering solutions for 25 Australian clients and improve BetMakers’ US offering for ADW customers.

The balance statement of the ASX group detailed a combined investment of AUS $15m (€9m), with $7m reserved for the development of its ‘international fixed odds product’ and $8m earmarked for ‘future growth products’.

During 2022/2023, BetMakers implemented an operational restructure, announcing a $20m (€12m) cost reduction program in May. As a result, the staff size was reduced by 23%, global operations were simplified, and key software offerings were consolidated.

Closing its year-end accounts, BetMakers reported a negative EBITDA of AUS $27.9m (€16m) However, the ASX group emphasized that its post-tax loss position had significantly improved, dropping to $38.8m from $89.2m in the previous year.

Investors were informed that BetMakers aims to reduce its operating cost base from AUS $110m to approximately $91m, with costs including its $15m technology investment.

BetMakers’ growth strategy will be supervised by Jake Henson, who was appointed CEO in January. He will report to Matt Davey, who serves as the President and Executive Chairman of the ASX firm.

SBC News BetMakers maps out 2024 cost-reduction programme 

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