BetMakers Slashes EBITDA Loss by 69%, Eyes Growth on Apollo Platform Success

Transformation Strategy Gains Traction

BetMakers Technology Group (ASX: BET) has reported a significant turnaround in its financial performance for the quarter ended 31 December 2024 (Q2 FY25), as it transitions from a restructuring phase into growth. The company’s adjusted EBITDA loss narrowed dramatically by 69% quarter-on-quarter to just $0.3 million, while operating cash flow improved by 43%, reducing net cash used in operations to $1.3 million.

This progress is underpinned by the successful execution of a comprehensive transformation strategy focused on operational efficiency and technology upgrades. Notably, BetMakers completed the migration of its Australian platform customers onto the Apollo platform, a next-generation wagering technology that promises enhanced user experience and substantial cloud infrastructure savings.

Apollo Platform: A Catalyst for Growth and Efficiency

The Apollo platform migration marks a critical milestone for BetMakers’ Global Betting Solutions (GBS) division. The upgraded technology not only improves performance and introduces new features for customers but also drives material reductions in cloud costs. These savings are expected to continue throughout the second half of FY25, contributing to improved gross margins and profitability.

Alongside technology enhancements, BetMakers has aggressively reduced its annualised staff costs by $5.1 million since June 2024, following a successful restructuring in Q2 FY25. This has resulted in improved operating leverage and a clear pathway to reducing cash operating expenses below $55 million by the end of FY25, down from a previous target of $60 million.

Expanding Market Reach and Pipeline

BetMakers’ growth outlook is buoyed by the network effects of its B2B marketplace and the rollout of new products embedded with innovative technology. The company’s international distribution network now spans North America, Africa, Europe, and Asia, complementing its Global Tote network and positioning it well to capture emerging opportunities.

Recent commercial developments include new launches of fixed odds horse racing products with Bet365 in Colorado and New Jersey, the deployment of Quantum Tote software under a decade-long agreement with Rikstoto, and the first B2B Embedded Racebook customer launch with GiG. Additionally, BetMakers secured new contracts for Price Manager and Racelab with Delasport and extended agreements with key customers such as Sportsbet, Dabble, Betr, and Unibet.

Financial Health and Future Prospects

Despite a slight dip in revenue due to softer trading conditions in the Australian platforms division, BetMakers improved its gross profit margin by 3.7 percentage points to 61.6%, driven by a more favourable revenue mix and reduced cloud costs. The company’s cash position remains solid, with $20.8 million in total cash at quarter-end, including $8.9 million unrestricted.

BetMakers also secured a US$3 million, 24-month unsecured debt facility with Tekkorp Holdings LLC, providing additional financial flexibility to support ongoing transformation and strategic initiatives. The company expects operating cash flow to continue improving in the second half of FY25 as restructuring benefits and Apollo platform efficiencies fully materialise.

Executive Chair Matt Davey and CEO Jake Henson expressed optimism about the company’s trajectory, highlighting the strengthening pipeline of growth opportunities and the potential for sustained top-line revenue growth driven by innovative wagering technology and expanding global reach.