The operator announced on 31 May that it would be implementing a scheme to reduce operating overheads and save money across the BetMakers business. This decision came as a response to the company’s warning of negative growth in FY23 due to outstanding investment commitments.
The restructure was in place for one month of Q4 and during this time, BetMakers made significant progress in reducing net cash outflows from operations by 39% quarter-on-quarter. Additionally, the company reduced staff numbers by 15% from 568 to 485, further lowering costs. It is anticipated that staff figures will normalize at 440 upon completion of the strategy.
BetMakers reported Q4 revenue of AU$24.8m (£12.9m/€15.1m/US$16.6m), which was a 5% decline from the previous year but a 5% increase from Q3 of the current year. The company did not provide a breakdown of revenue performance but did provide more detailed information on cost savings, including reductions in operating and investment activities in Q4.
In Q4, overall operating cash outflow was reduced by 6% quarter-on-quarter to $26.9m. Staff costs were cut by 4% and product manufacturing and operating costs were lowered by 10%. Administration and corporate costs remained level. However, net cash spend on investing activities increased significantly quarter-on-quarter, with increases seen across all areas.
In terms of cash flow, BetMakers had $56.2m at the start of Q4. After accounting for $15.2m in net cash flow, the company had $41.0m remaining at the end of Q4.
For the full year, BetMakers reported revenue of $99.1m, representing an 8% increase from the previous year. The total operating cash outflow was $119.0m, resulting in a net cash from operating activities of $19.9m. Net investment spend amounted to $18.7m and there was an additional $8.4m in net financing activities cash use. The company had $87.6m in cash and cash equivalents at the start of the year, which decreased to $41.0m by the year’s end.
In addition to the operational changes, BetMakers also made several changes to its senior management team in FY23, including the appointment of a new CEO and chief people officer. The company also completed its acquisition of ABettorEdge, trading as Punting Form, as part of its long-term growth plans. This acquisition is expected to strengthen BetMakers’ position as a provider of B2B data and technology services for horse racing.
