BetMakers Revenue Rise with New Customers and Client Renewals
LISTEN TO THIS ARTICLE:BetMakers reported a significant 10% increase in revenue, reaching AU$25.1 million in Q2. This growth was attributed to acquiring new customers and renewing contracts with existing clients such as the Selangor Turf Club in Malaysia and the Argentina Jockey Club, who continued their partnerships with BetMakers’ Global Tote division.
Further renewals were seen with Meadowlands in New Jersey and ZeTurf in the Netherlands. Additionally, BetMakers’ digital division successfully extended its collaborations with William Hill (UK) and PointsBet (Australia). BetMakers executive chair Matt Davey emphasized the critical role these deals played in the company's revenue increase during the quarter.
Cost Reduction Efforts Continue
The company's strategy to reduce its EBITDA loss was successful, largely due to a comprehensive cost reduction strategy initiated the previous year. In May 2023, BetMakers announced a scheme aiming to cut operating overheads and save money across its business. This move followed a warning of potential negative growth in FY23, linked to outstanding investment commitments.
Related: BetMakers Technology Launches OneWatch Terminal Platform
BetMakers streamlined its operations into two main segments: ‘Global Betting Services’ and ‘Global Tote’. Davey highlighted that this reorganization allowed for more efficient management and reporting within the company.
We are continuing to execute on our strategy of growing the top line, lowering operating expenses, and moving towards profitability, as evidenced by this quarter’s results. I am pleased to say that we again signed new customer agreements, and extended contracts with key partners, which is expected to aid BetMakers’ growth going forward. In addition, the company has continued to drive down the cost base with a key focus on the significant cost items of staff and core infrastructure costs.
Financial Performance and Future Outlook
Looking at Q2’s financial results in detail, the most notable figure was the 10% year-on-year increase in revenue. This, coupled with reduced costs, led to a gross profit increase of 6.3% to $16.1 million. Staff expenses and other operating costs were significantly reduced, resulting in a considerable decrease in the underlying EBITDA loss.
Despite some financial challenges, such as a $2 million debtor shortfall and $1.5 million in capitalized staff costs, positive balance sheet movements and reduced net cash used in operating activities were evident. As such, Davey expressed confidence in the future, anticipating further improvements in the third quarter through continued focus on cost reduction.
In regards to the company’s future direction, both Davey and CEO Jake Henson hinted at ongoing efforts to optimize costs. Davey emphasized the importance of maintaining momentum and focusing on future growth opportunities, while Henson acknowledged the need for continued simplification of the operating model to achieve positive EBITDA and operational cash flows.
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