BetMakers Technology Group Ltd (ASX:BET), a leading B2B technology provider for the racing and wagering sector, has announced significant strides in its transformation strategy, focusing on operational efficiencies, technology upgrades, and financial restructuring.
Key Highlights:
- Staff Cost Reductions: Annualized staff costs reduced by $5.1 million.
- Expense Targets Surpassed: Operating expenses to fall below the $60 million FY25 target.
- Next Gen Platform Progress: Australian platform upgrades nearing completion.
- Debt Facility Secured: $3 million from Tekkorp Holdings to fund initiatives and provide flexibility.
- Profitability Goal: Operating cash-flow break-even anticipated by 3Q FY25.
Driving Operational Efficiencies
BetMakers has achieved key milestones by streamlining operations, centralizing corporate functions, and upgrading technology platforms. These efforts are expected to lower operating expenses below $60 million for FY25.
Staff cost reductions of $5.1 million since June 2024 reflect these initiatives, with full effects to be realized by 3Q FY25.
Technology Upgrades: Next Gen Platform
The rollout of the Next Gen platform is progressing well, with Australian clients expected to fully transition by 1H FY25. The platform boasts improved performance and reduced cloud costs, addressing customer needs for efficiency and scalability. The Global Tote ADW platform is also being modernized to further enhance performance.
Positive Outlook on Revenue and Profitability
BetMakers projects higher revenue in 2H FY25, buoyed by cost efficiencies and the Next Gen platform’s benefits. The company is on track to achieve positive operating cash-flow for the six months ending June 2025.
Financial Flexibility with Tekkorp Debt Facility
To support its transformation, BetMakers has secured a $3 million debt facility from Tekkorp Holdings, led by Chairman Matthew Davey. This 24-month facility, with a 12% interest rate, will fund strategic initiatives, including staff cost reductions and platform integration.
Executive Insights
Executive Chair Matt Davey remarked,
“The transformation strategy is delivering tangible results, and we’re moving swiftly toward profitability. Technology upgrades are enhancing performance while lowering costs, providing a strong foundation for long-term shareholder value.”
BetMakers’ strategic pivots signal its commitment to financial resilience and operational excellence, setting the stage for sustained growth in the racing and wagering technology sector.
