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Betmakers Ends Transformational Year with Strong Financial Results and Positive Cash Flow

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By Imelda Cotton - 
Betmakers ASX BET Strong Financial Results Positive Cash Flow
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The three-month period to end June completed a transformational year for BetMakers Technology Group (ASX: BET), with investments in technology, product development and operational efficiency translating into strong financial results and positive cash flow.

The company’s revenue rose to $22.6 million, representing an 8.9% increase on the previous quarter and more or less in line with the previous corresponding period’s $22.5 million.

This came despite the absence of $800,000 from a legacy customer no longer on BetMakers’ books.

Improved Financials

The company improved gross margins to 71.5%, compared to 63.9% in the previous quarter and 55.2% at the same time last year, with reduced cloud costs and improved unit economics the major contributors.

Adjusted EBITDA reached a record $3.2 million—a significant turnaround on the last quarter of 2024 when the company posted a $3.7 million EBITDA loss.

Operating cash flow improved to $3.4 million from $3 million in the previous quarter, substantially higher than the $500,000 outflow the company posted at the same time last year.

Capital Raisings

BetMakers secured $12.5 million during the quarter through a share placement priced at $0.10 per fully-paid ordinary share to institutional and sophisticated investors, and raised a further $1.2 million post the record date via a share purchase plan for the issue of 12 million shares at the same price.

The company used the proceeds to repay $3.1 million in outstanding debt and fund its strategic growth, including the acquisition of horse and greyhound pari-mutuel supplier Las Vegas Dissemination Company and payments relating to New Jersey Fixed Odds.

At end-June, BetMakers had $18.8 million in unrestricted cash (excluding capital raising funds) and no debt on its balance sheet.

‘Operational Transformation’

Executive chair Matt Davey said the quarter had been BetMakers’ strongest financial performance to date.

“After a period of focused and disciplined execution, I am pleased to confirm that we have completed a significant operational transformation,” he said.

“Our investments in technology, AI-driven software and product development along with our cost control measures have translated into sustained free cash flow, improved operating margins, and record adjusted EBITDA.”

“We remain committed to our long-term goal of top line revenue growth and expanding profit margins from operating leverage and tight cost controls.”