The sports betting and technology provider noted that, in the six-month period, it had focused on minimising its cost base. This also saw it renew its contracts and the signing of new customers.
The restructuring also allowed BetMakers to work on “streamlining the business model” across three segments – Global Betting Services, Global Tote and Corporate. This resulted in a reduced headcount from 456 to 414 during the six months.
BetMakers announced the restructuring scheme in May 2023 as a way to reduce costs. Following its Q4 2023 results – released in July – BetMakers remained committed to continuing the strategic restructuring into 2024. This follows after seeing positive results during the quarter.
For the first half of its 2024 financial year, BetMakers’ Global Betting Services segment extended and signed contracts with operators including PointsBet Australia and 888 William Hill. Meanwhile, Global Tote delivered an embedded tote solution for Caesars Entertainment.
“The investments made in technologies and infrastructure puts BetMakers in a stronger position to deliver the next phase of revenue and earnings growth through customer acquisition and retention, the continued reduction in operating costs and the delivery of long-term projects in H2 2024,” BetMakers noted.
Operational breakdown
Revenue was generated fairly evenly between the Global Betting Services and Global Tote segments. Global Betting Services accounted for $26.7m of the revenue, a 5.6% increase yearly. Global Tote saw a much larger revenue boost, with its $24.5m signifying a 15.0% rise.
The cost of goods sold topped $18.2m, creeping up from the $16.5m recorded in H1 2023. This left a gross margin of $33.0m,
Turning to expenses, these generally decreased during the six months to 31 December. The highest expense came from employee benefits at $24.6m. However, this was a significant decrease from the $34.0m recorded in H1 2023. The second highest expense – depreciation and amortisation – ticked up by 10.7% to $5.3m.
Finance costs more than halved to $164,000, while professional fees fell 34.3% to $2.6m. Overall the expenses totalled $46.4m, bringing the pre-tax loss to $12.8m, down by half year-on-year. The expenses fell 32.3%. yearly.
Following income tax of $605,000, the total loss for the year was $13.4m. This was a 32.3% improvement yearly.
Adjusted EBITDA worked out at a $930,000 for the six months. In comparison to H1 2023, this was a 94.0% reduction.
Looking ahead to H2 2024 and FY24
Looking at its progress in the first half of the year, BetMakers said its on track to keep the cost base under $110m. For the remainder of the year, it is aiming to carry out a further 10% reduction in operating costs compared to H1.
Also in H2 2024, BetMakers has projected that it will go live with “key contracts” such as Caesars Entertainment and Norsk Rikstoto. For the full-year, BetMakers has forecast low double digit growth compared to FY23.
The company said that it would remain focused on minimising its cost base going forward, with an aim to improve profitability. BetMakers also aims to deliver positive monthly operational cash flow and positive adjusted EBITDA.
“Having made significant strides in its FY24 objectives, the company’s focus remains on further reducing the cost base and moving towards profitability,” the report noted.
“Additional cost reductions are expected to result from leveraging technology solutions such as OneWatch, right-sizing infrastructure and software usage and continuing to simplify the operating model.”
Original article: https://igamingbusiness.com/finance/betmakers-h1-revenue-up-9-9-as-restructuring-rumbles-on/
