BetMakers implemented an operational restructure in May of last year with the goal of reducing costs. As part of this restructure, the company aimed to decrease its total staff headcount to approximately 440. The Global Tote restructure resulted in BetMakers now having a global headcount of 430 full-time employees, slightly below the target number. This reduction in staff ultimately led to cost savings of AU$400,000.
In addition to the restructure, BetMakers experienced positive developments through contract extensions with key clients. Global Tote extended its partnership with Penn Entertainment during Q1, while the Global Betting Services division renewed contracts with Pointsbet, Dabble, and 888. Furthermore, testing for an embedded tote solution for point-of-sale wagering with Caesars in Nevada is nearing completion, with the aim of going live before the end of the calendar year.
BetMakers is also on schedule to launch a new national tote system with Norsk Rikstoto in Norway in early 2024. The company has signed new pricing agreements in Africa and engaged in discussions regarding further fixed-odds wagering in the US.
BetMakers executive chair Matt Davey expressed satisfaction with the progress made during the quarter, emphasizing the focus on reducing costs, simplifying operations, and proving the value of their technology to customers. Notably, the restructure of the US operations has been successfully completed, providing a solid foundation for future growth in the US market.
Looking ahead, BetMakers aims to continue cutting costs to improve cash performance. The company expects to achieve reduced outflows and stronger underlying cash receipts in the second quarter of FY24.
Newly appointed CEO Jake Henson also highlights the ongoing focus on reducing costs while anticipating stronger underlying cash receipts in the upcoming quarter. The company aims to achieve positive underlying EBITDA and operational cash flows in their pursuit of financial stability.
In terms of financial performance, BetMakers saw a 9.3% increase in revenue to $26.1 million during Q1. This growth was driven by the acquisition of new customers. While the cost of goods sold rose by 19.0% to $9.9 million, the company managed to reduce staff expenses by 25.5% to $12.1 million and other operating costs by 16.8% to $4.8 million. As a result, the underlying EBITDA loss was significantly reduced by 88.2% to $767,000 compared to the loss of $6.5 million in the same quarter of the previous year.
Overall, BetMakers is pleased with both its operational progress and revenue growth in the quarter, driven by new customers and the utilization of new technology.
