BetMakers' Restructuring Leads to Cost Reduction and Revenue Growth

BetMakers, the sports betting and wagering technology provider, embarked on an ambitious operational restructure in May last year, aiming to streamline its operations and reduce costs. As part of this restructuring effort, the company planned to decrease its total staff headcount to approximately 440.

Fast forward to today, and BetMakers has successfully completed its Global Tote restructure, resulting in a global headcount of 430 full-time employees. While slightly below the initial target, this staff reduction has led to significant cost savings amounting to AU$400,000 (£209,219/€239,354/US$254,182).

In addition to the cost-cutting measures, BetMakers has also secured extended partnerships with key clients. During Q1, Global Tote extended its collaboration with Penn Entertainment, while the Global Betting Services division renewed contracts with Pointsbet, Dabble, and 888.

Moreover, BetMakers is on the verge of launching an embedded tote solution for point-of-sale wagering in partnership with Caesars in Nevada, aiming to go live before the end of the calendar year.

In a global expansion move, a new national tote system with Norsk Rikstoto in Norway is on track to go live in early 2024. Furthermore, the company signed new pricing agreements in Africa and engaged in discussions regarding additional fixed-odds wagering opportunities in the United States.

BetMakers' executive chair, Matt Davey, expressed satisfaction with the company's progress in the past quarter, emphasizing the importance of reducing costs and simplifying the operating model. He stated, "We continued to focus on reducing and normalizing the cost base and simplifying the operating model."

Davey also highlighted technology advancements, hardware monitoring improvements, and a race book agreement with TonyBet, strengthening BetMakers' technology capabilities.

Looking ahead, BetMakers remains committed to further improving its cash performance. CEO Jake Henson emphasized that the company will continue to focus on reducing and normalizing the cost base and expects stronger cash receipts in the second quarter. He also mentioned the upcoming commercial launches that will contribute to revenue growth.

In terms of financial performance during Q1, BetMakers reported a 9.3% increase in revenue, reaching $26.1 million, driven by new customer growth. Despite a 19.0% increase in the cost of goods sold, the company achieved an increased gross profit of $16.2 million, marking a 4.0% increase. Notably, staff expenses were reduced by 25.5% to $12.1 million, and other operating costs decreased by 16.8% to $4.8 million. As a result, underlying EBITDA loss was substantially reduced by 88.2% to $767,000, compared to the $6.5 million loss in Q1 of the previous year.

BetMakers' remarkable progress in restructuring and revenue growth highlights the company's commitment to a more streamlined and profitable future.