BetMakers CEO is optimistic after Sportech acquisition

BetMakers CEO is optimistic after Sportech acquisition

Summary:

During the financial year ended 30 June, BetMakers’ revenue increased by 179.3%. Global betting services, which used to make up the vast majority of BetMakers’ revenue, brought in over 20 million dollars. With acquisition-driven growth in other segments, it was no longer the leading revenue generator for the business.

The business brought in $91.7 million in revenue in the year ended 30 June, but its losses increased after the deal.

Global betting services made up the majority of Betmakers revenue and brought in more than 20 million dollars.

The global tote arm, acquired from Sportech last year, was the new leader because it was no longer the leading revenue generator. As the acquisition closed in the final weeks of 2020-21, tote revenue was up by more than half a billion dollars from a year earlier.

The BetMakers global racing network brought in more than four million dollars.

The cost of goods sold increased, but more slowly, fromAU$9.3m toAU$25.4m, which resulted in a gross profit ofAU$66.3m. The total was more than six times what it was a year earlier.

The costs went up following the acquisitions.

BetMakers made a pre-tax loss of almost 100 million dollars due to increased employee benefits and share-based payments. In 2020-21, there was a loss before tax ofAU$20.9m.

After receiving a tax benefit, BetMakers had a final loss of almost 100 million dollars. The amount lost was five times what it was a year earlier.

At the end of the financial year, BetMakers secured a key deal with a venture led by News Corp, which it said could lead to revenue of up to $300 million over five years.

The maximum amount of revenue that BetMakers could receive from the operation was increased after the end of the period by the consortium involved.