BetMakers accelerates financial transformation strategy in drive toward profitability

Wagering specialist BetMakers Technology Group (ASX: BET) has accelerated its transformation strategy in a bid to move closer to profitability.

The company has focused on lowering its cost base, exiting unprofitable contracts, restructuring operations and rebuilding its core technology platform to produce annual improvements in operating expenses and adjusted EBITDA.

Key initiatives have included $5.1 million in staff cost reductions and the centralisation of corporate functions to generate operational efficiencies and improve operating leverage.

Next Gen platform

BetMakers has upgraded Australian customers to the advanced Next Gen platform to enhance the user experience and lower cloud and infrastructure costs incurred in delivering the white-label product.

Next Gen is a revamp of BetMakers’ core platform that offers a suite of new services and features including updated form and content from Racelab Global Assets, an international supplier of racing wagering products acquired by BetMakers in April.

“The upgrade of our Australian platform customers to Next Gen is progressing well, […] management is pleased with the performance of the new platform as well as the feedback it has received from clients and users,” the company said.

“We expect to launch four new Australian platform brands onto Next Gen by the end of the first half of 2025.”

Expense outlook

Operating expenses for the 2025 financial year are expected to fall below the $60m target.

The company anticipates revenue for the second half of 2025 to be higher than the first half.

With benefits from lower cloud costs and the ongoing reduction in staff and operating expenses, BetMakers is aiming to achieve positive cash flow for the six months ending in June.

Debt facility

BetMakers has secured a US$3m debt facility with Tekkorp Holdings to support its transformation strategy, provide additional financial flexibility and further bolster funding capacity for future strategic initiatives.

The loan will be for a 24-month period and drawn down in two tranches, with BetMakers required to make a single bullet repayment at maturity.

Tekkorp is controlled by BetMakers executive chair Matthew Davey.

“I am excited to see the impact our transformation strategy is already having on the business and, importantly, that management has been able to accelerate this strategy,” Mr Davey said.

“BetMakers is on a financial transformation journey, which is designed to deliver long term value for shareholders [and] we are making strong early progress in this endeavour.”