BetMakers Implements Restructure Plan to Mitigate Losses and Drive Long-Term Growth
BetMakers Technology Group, a prominent player in the iGaming industry, has undertaken significant restructuring efforts aimed at reducing operating costs and positioning itself for sustainable growth.
Navigating Q3 Challenges
In the third quarter ending March 31, BetMakers reported a revenue of AU$22.3m, representing a 4.1% decline compared to the same period last year.
This dip was attributed to soft trading results in Australia and delays in international deal deliveries. Despite this setback, BetMakers remains confident in achieving mid-single-digit revenue growth for the full year, with domestic Australian revenues now constituting less than 25% of its total revenue.
Strategic Partnerships and Expansion
BetMakers’ strategic initiatives include forging key partnerships to drive international expansion. Notable collaborations include a five-year partnership with PA Betting Services and agreements with Gaming Innovation Group (GiG) and Kambi Group.
Additionally, the final testing stages of a Norway tote system and progress in the US market with Caesars reflect BetMakers’ commitment to diversifying its revenue streams and expanding its global footprint.
Cost Reduction and Operational Efficiencies
BetMakers’ restructure plan, initiated in May 2023, has yielded positive results in reducing operating costs. Notably, staff costs decreased by 25.6%, contributing to a 9.4% reduction in other operating expenses.
Although cost of goods sold temporarily increased due to preparations for the launch of NextGen platforms, BetMakers anticipates substantial cost savings post-implementation. As a result, adjusted EBITDA loss in Q3 decreased by 25.6%.
Outlook and Future Prospects
Despite challenges, BetMakers remains optimistic about its future trajectory. Year-to-date revenue has increased by 5.3%, accompanied by improvements in adjusted EBITDA.
The company continues to focus on reducing operating costs and enhancing profitability, with a targeted 10% reduction in operating costs for the second half of FY24.
Strategic Acquisitions and Partnerships
BetMakers’ recent acquisition of assets from Racelab Global, coupled with the impending conclusion of its agreement with Betr, underscores its commitment to strategic growth and adaptation to market dynamics.
The acquisition enhances BetMakers’ racing wagering offerings, while the termination of the Betr partnership opens doors for collaboration with new operators in Australia and New Zealand.
