In the second quarter of the year, BetMakers experienced significant growth and success as they renewed contracts with key clients.
Notable renewals included agreements with the Selangor Turf Club in Malaysia and the Argentina Jockey Club, both within BetMakers’ Global Tote division.
Meadowlands in New Jersey and ZeTurf in the Netherlands also chose to extend their partnerships with BetMakers.
Furthermore, BetMakers’ digital division renewed contracts with William Hill UK and PointsBet Australia.
These renewals significantly contributed to the increase in revenue during Q2, according to BetMakers’ Executive Chair, Matt Davey.
Davey also commended the company’s overall performance, emphasizing the reduction in EBITDA loss.
This reduction was achieved through a cost reduction strategy initiated in May 2023 to streamline operations and cut expenses.
The strategy was launched in response to concerns of negative growth in FY23 due to outstanding investment commitments.
BetMakers’ restructuring efforts have simplified its operating model into two key segments: Global Betting Services and Global Tote.
This restructuring has enhanced efficiency and reporting capabilities.
Davey expressed his satisfaction with the progress, stating, “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.”
Looking at the financial results for the three months ending December 31, 2023, the standout figure is a 10.0% year-on-year increase in revenue.
This growth alleviates concerns regarding the impact of cost reductions. Costs of goods sold increased by 17.0% to $9.1 million, but the significant revenue growth led to a 6.3% increase in gross profit, reaching $16.1 million.
Staff expenses were reduced by 29.2% to $12.3 million, and other operating expenses dropped by 27.7% to $5.0 million, resulting in a negative underlying EBITDA of $1.2 million, a substantial improvement from the $9.1 million loss reported in Q2 of 2023.
While there were some financial challenges, including capitalised staff costs and a debtor shortfall, they were partially offset by positive balance sheet movements.
As a result, net cash used in operating activities decreased from $5.9 million to $2.6 million.
BetMakers remains focused on optimizing its cost base during the second half of FY24, as stated by both Matt Davey and CEO Jake Henson.
They are committed to achieving positive underlying EBITDA and operational cash flows to ensure sustainable growth in the future.
Henson emphasized that the task is not finished and that the company continues to refine its operating model for future success.