BetMakers has emerged in a positive light amidst strategic restructuring, as the sports betting and technology provider reports a 9.9% increase in H1 revenue. During the six-month period under review, BetMakers focused its efforts on achieving a more efficient cost structure along with contract renewals and securing new customers, reflecting a steadfast commitment to its long-term financial health and market position.
As part of its sweeping reorganization, BetMakers has honed its business model across three pivotal segments: Global Betting Services, Global Tote, and Corporate. This led to a trimming of the workforce, reducing the staff count from 456 to 414 within the half-year period.
The seeds for this restructuring were sown in May 2023, in response to the need for cost reductions. Following its Q4 2023 results revealed in July, the company carried its commitment forward, aiming to sustain the momentum of the restructuring into 2024, after witnessing encouraging outcomes from its strategies.
BetMakers’ Global Betting Services segment made notable progress, clinching extended contracts and new agreements with operators like PointsBet Australia and 888 William Hill. On another front, its Global Tote segment succeeded in delivering an integrated tote solution for the esteemed Caesars Entertainment.
The investments in technology and infrastructure spearheaded by BetMakers are expected to foster the upcoming phase of revenue and earnings growth. Customer acquisition and retention, continuous trimming of operational costs, and the materialization of long-term projects in H2 2024 are anticipated to be focal areas of growth.
Notably, revenue was evenly split between the Global Betting Services and Global Tote segments, with the former generating $26.7 million, marking a 5.6% increase on a yearly basis, and the latter demonstrating a robust 15.0% increase to $24.5 million in revenue.
Despite a slight increase in the cost of goods from $16.5 million in H1 2023 to $18.2 million for the current period, gross margins managed to hold strong at $33.0 million.
On the expenses front, a general downtrend was recorded for the six months ending 31 December, spearheaded by a significant cut in employee benefits, from $34.0 million the previous half-year to $24.6 million. Depreciation and amortisation ramped up by 10.7% to $5.3 million, while finance costs were more than halved to $164,000, and professional fees dropped by 34.3% to $2.6 million. The aggregate expenses fell to $46.4 million, paving the way to a pre-tax loss of $12.8 million, a marked improvement year-on-year.
Post-taxation, the total loss stood at $13.4 million, an uplifting year-on-year enhancement of 32.3%. On the adjusted EBITDA front, BetMakers recorded a $930,000 for the six months, which, although a 94.0% reduction from H1 2023, reflects the stringent cost management initiatives.
BetMakers is on target to keep its cost base below $110 million for the year, with ambitions to achieve a further 10% cut in operational costs in H2 compared to the first half of the year. Additionally, the company anticipates the activation of ‘key contracts’ with partners like Caesars Entertainment and Norsk Rikstoto, projecting a low double-digit ascension for the full year compared to FY23.
Maintaining focus on minimizing costs and driving profitability, BetMakers looks forward to achieving positive monthly operational cash flow and a favorable adjusted EBITDA. Through leveraging technology solutions like OneWatch, optimising infrastructure and software, and simplifying its operational model, BetMakers anticipates further cost reductions.
Summing up their progress in the first half of FY24, BetMakers aims to continue trimming costs and advance toward profitability, shaping a more resilient and competitively positioned company in the dynamic sports betting and technology landscape.
