BetMakers’ Cost Cuts and Acquisition Strategy Face Integration and Market Risks
BetMakers Technology Group delivered a strong FY25 with a 5.6% half-on-half revenue growth and record profitability, while advancing its technology transformation and signing a strategic acquisition in Nevada.
- 5.6% half-on-half revenue growth in 2H FY25
- Record $5.9m Adjusted EBITDA and $6.4m operating cash flow in 2H FY25
- Operating costs cut nearly 20%, optimizing for future growth
- Strong balance sheet with $18.8m unrestricted cash and zero debt
- Binding agreement to acquire Nevada-based LVDC, expanding US footprint
Return to Growth and Profitability
BetMakers Technology Group Limited has marked FY25 as a pivotal year, returning to growth with a 5.6% increase in revenue half-on-half and delivering a record $5.9 million in Adjusted EBITDA during the second half. Operating cash flow also hit a high of $6.4 million, reflecting the success of a disciplined cost reduction strategy that trimmed operating expenses by nearly 20% compared to the prior year.
The company’s gross margin improved to 64%, edging closer to its long-term target of 70%+, driven by technology upgrades and more efficient cloud cost management. This financial turnaround underscores BetMakers’ ability to optimize its cost base while positioning itself for scalable growth.
Technology-Led Transformation and AI Integration
Central to BetMakers’ progress has been its technology-led transformation, which included upgrading its wagering platform and embedding artificial intelligence and machine learning tools. These innovations are designed to enhance pricing accuracy, risk modelling, and operational efficiency, setting the stage for accelerated product development and improved customer experiences.
The company’s modular platform now supports a comprehensive suite of products across fixed odds and tote wagering, with a global network spanning over 65 online wagering operators and 230 racing partners across 30 countries. This breadth of offering and geographic reach provides a competitive advantage in a fragmented global racing wagering market.
Strategic Expansion with LVDC Acquisition
In a significant strategic move, BetMakers has signed binding terms to acquire LVDC, the only approved pari-mutuel service provider for Nevada’s gaming industry. This acquisition is expected to generate approximately A$4 million in annual revenue and establish BetMakers’ foothold in the lucrative US market, particularly alongside Nevada’s premier casino operators.
The deal promises content expansion, product synergies, and platform integration that will enhance BetMakers’ retail and digital wagering offerings. The company anticipates the acquisition to be cash flow positive within 12 months, supported by cost efficiencies and growth opportunities.
Outlook for FY26 and Beyond
Looking ahead, BetMakers expects to sustain its growth trajectory in FY26, targeting consistent revenue increases exceeding 10% annually. The company is confident that its upgraded technology and optimized cost structure will continue to improve gross margins and drive operating leverage, ultimately generating free cash flow as the business scales.
Early FY26 trading has reportedly outperformed expectations, reinforcing confidence in the company’s strategic direction and technology investments. However, the completion of the LVDC acquisition remains subject to regulatory approvals and contract novations.
Bottom Line?
BetMakers’ FY25 turnaround and strategic US expansion set the stage for a compelling growth story, but execution risks remain as it integrates new assets and scales technology.
Questions in the middle?
- Will the LVDC acquisition complete smoothly and deliver the expected synergies?
- How quickly can BetMakers leverage AI to differentiate its wagering platform competitively?
- Can the company sustain margin improvements while scaling internationally?
