BetMakers records 20% yearly revenue decrease for Q2

BetMakers Technology Group has reported revenue of A$20m (£9.9m) for the second quarter of the company’s fiscal year 2024-25, with bosses talking up the supplier’s transformation plans.

The figure represented a 20.3% decrease when compared to the same period in the previous year, and 6% decrease on the revenue generated in Q1.  

BetMakers’ fiscal Q2 ran from the start of October until the end of December 2024.

After accounting for goods and service costs of A$7.7m, staff costs of A$11.1m and A$3.4m worth of overheads, adjusted EBITDA for Q2 came to a A$348,000 loss.

BetMakers said this showed a shrinking of adjusted EBITDA loss of 68.7% on the previous quarter.  

While gross profit of A$12.3m remained flat from Q1 to Q2, the figure represented a year-on-year (YoY) decrease of 18.2%.  

BetMakers attributed its lower revenue to smaller content and distribution fees, as well as “softer than expected trading conditions and margin” in the Australian market during the second half of the quarter. 

The supplier also stated that its A$5.1m reduction in staff costs between 30 June and 31 December 2024 were part of a successful restructure which took place during Q2.  

The increase in adjusted EBITDA was driven by a 3.7 percentage point increase in profit margin quarter on quarter to 61.6%, in addition to a reduction in Australian cloud costs towards the end of the quarter. 

Q2 also saw BetMakers complete the migration of its customers to the new Apollo platform, which the company expects to lead to more cloud and infrastructure savings going forward. 

The ASX-listed firm said Apollo would lead to new, direct sales, while updates to its advance deposit wagering platform and gains for its Quantum Tote product would form key parts of a growth flywheel.

Executive chair Matt Davey praised the supplier for streamlining its operations while being optimistic about the opportunities that lay ahead in the future. 

Davey said: “We are seeing significant results from our transformation strategy. The company has made substantial improvements to its operating efficiency and operating leverage.

“While we continue to execute with tight cost discipline, our focus has now turned to growth. We are excited about the opportunities we are seeing in our pipeline.

“This is being driven by two key factors: the network effects of our marketplace, where BetMakers’ technology and services are at the centre of wagering globally; and the new products and platforms that have been built with embedded innovation to boost existing clients and potentially secure new customers around the world with plug-and-play wagering technology platforms.  

“These factors underwrite our confidence in delivering future top line revenue growth and the sustained momentum in our commercial development activities.” 

Group CEO Jake Henson added: “We are excited about our progression towards positive cash flow generation. The team has worked very hard on our transformation.  

“We are excited about our product offering and the increasing reach of our technology solutions across the global wagering ecosystem.

“We look forward to reaping the rewards of our investment in technology and developing market-leading products.” 

The post BetMakers records 20% yearly revenue decrease for Q2 first appeared on EGR Intel.

 Business notes that “softer than expected trading conditions” contribute to yearly dip while adjusted EBITDA losses shrink
The post BetMakers records 20% yearly revenue decrease for Q2 first appeared on EGR Intel.