Q2
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BetMakers lauds ‘substantial improvements’ across Q2 FY2025

BetMakers’ Executive Chair Matt Davey lauded “significant results” from the betting technology provider’s transformation strategy as improvements were revealed in the firm’s Q2 FY2025 results.  

Throughout 2024, the ASX-listed betting systems provider implemented several initiatives to enhance its operational efficiency – including a 6.4% reduction in staff costs and a 24-month, $3m debt facility with Tekkorp Holdings to provide additional financial flexibility secured in November. 

BetMakers revealed that its adjusted EBITDA has improved by 69% across Q2 FY2025, reaching a loss of AU$300,000 (Q1: AU$1.1m). 

The improvement in adjusted EBITDA was despite lower revenue for the quarter – which dropped from Q1’s AU$21.33m to AU$20.05m – and was supported by an improvement in gross profit margin, which rose by 3.7% from Q1’s 57.8% to 61.6%.

These figures were supported by a total staff costs reduction across H1 FY2025 of AU$5.1m as a result of the company’s aforementioned restructuring. 

Davey commented: “We are seeing significant results from our transformation strategy. The Company has made substantial improvements to its operating efficiency and operating leverage. Whilst we continue to execute with tight cost discipline, our focus has now turned to growth.”

Net cash used in operating activities improved 43% from quarter-to-quarter to come in at AU$1.3m, while the firm’s closing cash balance for Q2 FY2025 stands at AU$20.8m, of which AU$8.9m is unrestricted. 

BetMakers delivered a net operating cash outflow of AU$1.3m after adjusting for capitalised staff costs of AU$1.8m. This was a 43% improvement on Q1 comparatives.

The company incurred approximately AU$0.8m of one-off staff costs in the quarter. On the basis of those adjustments, the normalised net operating cash outflow for Q2 was only AU$0.5m.

BetMakers CEO Jake Henson said: “We are excited about our progression towards positive cash flow generation. The team has worked very hard on our transformation. We are excited about our product offering and the increasing reach of our technology solutions across the global wagering ecosystem. 

“We look forward to reaping the rewards of our investment in technology and developing market leading products.”

Additionally, the quarter saw the migration of BetMakers’ Australian platform customers onto the Apollo platform is now complete, as part of the firm’s ‘Next Gen’ technology upgrade.

Following the migration, BetMakers expects material cloud and infrastructure savings on a per-platform basis, with benefits such as improved gross margin for betting systems expected to be realised throughout H2 FY25.

“We are excited about the opportunities we are seeing in our pipeline,” Davey continued. 

“This is being driven by two key factors: the network effects of our marketplace, where BetMakers’ technology and services are at the centre of wagering globally; and the new products and platforms that have been built with embedded innovation to boost existing clients and potentially secure new customers around the world with plug-and-play wagering technology platforms.

“These factors underwrite our confidence in delivering future top line revenue growth and the sustained momentum in our commercial development activities.”

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