The half-year revenues of BetMakers increased by 9.9%, to AU$51.3m ($26.4m/EUR30.8m), for the period ended 31 December. This is despite the ongoing restructuring plans at the company.
In the last six months, this sports betting technology company has focused its efforts on reducing costs. It also renewed its contracts as well as signing up new clients.
This restructuring allowed BetMakers also to “streamline the business model” in three different segments: Global Betting Services (GBS), Global Tote (GT) and Corporate. The headcount was reduced from 456 down to 414 in the last six months.
BetMakers revealed the restructuring plan in May 2023 to cut costs. BetMakers, following its July 2023 Q4 results, remained dedicated to continuing their strategic restructuring until 2024. The positive quarter results led to this decision.
Global Betting Services, a BetMakers segment, extended and signed new contracts for the first six months of 2024 with operators such as PointsBet Australia or 888 William Hill. Global Tote also delivered an integrated tote system for Caesars Entertainment.
BetMakers stated that “the investments in technology and infrastructure put BetMakers a better position to deliver revenue and earning growth in the next phase through customer acquisition, retention and continued cost reductions.
Breakdown of the operational breakdown
Global Tote and Global Betting Services generated revenue in a fairly equal proportion. Global Betting Services generated $26.7m in revenue. This represents a 5.6% annual increase. Global Tote’s $24.5m revenue increase represents a 150% jump.
Cost of goods sold increased to $18.2m from $16.5m in the first half of 2023. The gross margin was $33.0m.
In general, expenses decreased in the six-month period ending 31 December. Employee benefits accounted for the highest cost at $24.6m. This was still a substantial decrease from $34.0m in H1 of 2023. Depreciation and Amortisation, the second largest expense, increased by 10.7%.
Professional fees dropped 34.3%, to $2.6m. The total expenses were $46.4m. This brings the loss before tax to $12.8m. That’s a 50% reduction from the previous year. The costs fell by 32.3%. yearly.
After income tax of 605,000 dollars, the loss total for the entire year came to $13.4m. It was an improvement of 32.3% a year.
The adjusted EBITDA for six months came to $930,000. This was a reduction of 94.0% compared to the H1 2023.
Look ahead to FY24 and H2 2024
BetMakers, based on its first-half progress this year, said it is well on its way to keeping the cost base below $110m. It aims to reduce operating costs by 10% more than in H1.
BetMakers also projected in H2 of 2024 that “key contracts”, such as Caesars Entertainment, and Norsk Rikstoto will be live. BetMakers forecasts a low-double digit increase for the entire year compared with FY23.
It said it will continue to focus on reducing its costs in order to increase profitability. BetMakers aims for positive operational cash flows and adjusted EBITDA.
The report stated that “despite having made great progress in reaching its FY24 goals, the focus of the company remains on reducing costs and moving toward profitability.”
The use of technology such as OneWatch will result in further cost savings. This is also expected from the right-sizing of infrastructure, software and operating models.
