Q2 proved to be a productive quarter for BetMakers in the finance industry, with several major clients renewing contracts. The Selangor Turf Club in Malaysia and Argentina Jockey Club both renewed with BetMakers’ Global Tote division. BetMakers also renewed contracts with Meadowlands in New Jersey and ZeTurf in the Netherlands. In addition, BetMakers’ digital division renewed contracts with William Hill UK and PointsBet Australia. These renewals played a significant role in the Q2 increase in revenue, according to BetMakers executive chair Matt Davey.
BetMakers has implemented a cost reduction strategy to improve its financial performance. The strategy was launched in May 2023 to reduce operating overheads and save money across the business. This was necessary to address outstanding investment commitments and mitigate negative growth risks in FY23. Davey praised the operator’s achievements in streamlining the business, simplifying the operating model into two key segments: Global Betting Services and Global Tote. This approach allows for more effective management and reporting.
Looking at the financial results for Q2, the headline figure is a 10.0% increase in revenue compared to the previous year. This growth alleviates concerns about the impact of cost reductions. Costs of goods sold increased by 17.0% to $9.1m, but the revenue growth led to a 6.3% increase in gross profit to $16.1m. Staff expenses were reduced by 29.2% to $12.3m, and other operating costs decreased by 27.7% to $5.0m. The negative underlying EBITDA of $1.2m was significantly lower than the $9.1m loss in Q2 of 2023.
While there are additional figures worth noting, such as capitalised staff costs and a debtor shortfall being partly offset by positive balance sheet movements, the net cash used in operating activities decreased from $5.9m to $2.6m. Davey expressed enthusiasm for the future and the benefits of the restructuring program already implemented. He expects continued improvement in the third quarter through reduced outflows and cost management.
BetMakers’ focus on cost optimization will continue in the second half of FY24, as the company looks towards future growth opportunities. CEO Jake Henson emphasized that while significant progress has been made, the task is not yet complete. The aim remains to achieve positive underlying EBITDA and operational cash flows to create a solid foundation for future growth.
