International markets helping to drive growth for BetMakers in FY2024

The figure marked a minor increase of AU$200,000 for BetMakers compared to 2023, while a focus on costs helped slash the supplier’s adjusted EBITDA loss for the 12 months ended 30 June 2024.

Its Global Tote division, which has a presence in more than 35 countries, drew in the majority of the revenue. It delivered AU$54.8m, representing 58% of total revenue – a 3% year-on-year increase.

In FY2024, BetMakers entered into or renewed contracts with 29 operators around the world. International customers are a growth focus while its domestic platforms and the loss of its contract with Betr held it back, it explained.

During the year it signed a two-year market access and content agreement with Bet365 to distribute horseracing content to customers in New Jersey and Colorado in the United States. Caesars Entertainment has launched BetMakers’ Embedded Tote solution across 22 venues in Nevada, as well as in Iowa and Nebraska.

It also delivered racebook services to Gaming Innovation Group’s SportX platform and through Kambi’s sportsbook.

Cutting costs in search of profitability

BetMakers executive chair Matt Davey has also credited the company’s restructuring process as key to reducing costs.

It is not yet complete but the “streamlining” of its workforce has resulted in a reduced headcount from 456 to 414. This has helped to lower operating costs overall by 26% from AU$88.2m to AU$65.3m as staff costs diminished by AU$19m 

The company has focused on reaching profitability, with the latest results showing progress.

Its earnings before interest, taxes, depreciation and amortisation (EBITDA) loss was also reduced by 74% to AU$7.2m from AU$27.8m in FY2023. 

Technology investment and lower staff costs were crucial in increasing operational efficiency and achieving cost reductions, BetMakers said.

After finance costs, the business posted an AU$38.7m net loss after tax, down marginally year-over-year.

BetMakers’ future ambitions

International expansion is core to BetMakers’ growth strategy for FY2025.

A 10-year agreement has also been signed for Global Tote to enter the Norwegian market in Q2 of FY2025. Chile has then been identified as another key target market.

In Norway, Global Tote’s Quantum platform will replace the current system operated by Norsk Rikstoto. Norsk Rikstoto is the sole purveyor of betting on horse racing in the country.

The deal will see Global Tote cover all thoroughbred and harness race wagering in Norway.

Technology is also a key aspect for BetMakers in FY2025, with a rebuild of its core tech platform Next Gen close to completion.

Next Gen is expected to drive further financial improvements in 2025 by reducing cloud costs and ensuring increased efficiency.

“We are excited about the development of the Next Gen platform and that the final stages will go live in Q1 FY25,” BetMakers chair Matt Davey said. “We expect Next Gen to deliver improved operational efficiencies and an enhanced user experience, with benefits to be realised from FY25.

“In the Australian market, where soft trading conditions have remained, BetMakers’ fixed-odds managed trading services’ customers will benefit from increased speed, an upgraded user experience and a host of new features from Next Gen.”

The final stages of Next Gen are expected to go live in Q1 of the 2025 financial year.

The company is aiming to decrease costs by at least 16%, to below AU$60m and drive future growth in FY2025.