Betmakers’ full-year revenue soars 370% as flurry of deals inked in Q4
ASX-listed firm reveals cash receipts more than trebled for its fiscal year ahead of the rollout of its tech with News Corp
Betting supplier Betmakers has reported a 325% year-on-year (YoY) surge in cash receipts to A$93.4m (£53.8m) for its fiscal full year, which led to revenue hitting A$91.6m, an increase of 370%.
Betmakers said the sharp rise in revenue was driven by the growth of platform and managed trading services clients, the integration of Sportech’s racing and digital assets and expansion of its content distribution rights and wagering operator integrations.
However, this was offset by A$48.6m in staff costs, A$26.6m in product manufacturing and operating expenditure, A$15.9m in administration costs, and lastly, A$4.6m in income tax, advertising and advertising marketing costs.
The ASX-listed provider also stated that it had spent A$15m on investment activities in relation to the News Corp launch.
Its cash balance as of 30 June was A$87.6m.
As for the last quarter of its fiscal FY2022, the company recorded a 194% increase in Q4 cash receipts YoY to A$26.2m, up from A$8.9m in Q4 2021.
Net cash from operating activities in the quarter was A$400,000, which includes almost A$2.5m in payments not directly related to the normal costs for the quarter. This led to the business posting an operating loss of A$1.6m.
The final quarter saw the supplier complete several launches and ink new deals. The Australian firm announced back in April that it had entered into a 10-year deal to provide its tech and wagering solutions to NTD Pty, which involves News Corp and Tekkorp Capital.
The deal has the potential to bring in revenue of more than A$300m, with a minimum revenue of A$80m over this initial contract period, Betmakers said.
Betmakers also partnered up with Penn National Gaming (PNG) at the end of June to offer PNG’s racing content outside of the US and Canadian markets for fixed-odds betting and exchange wagering.
Furthermore, the ASX-listed supplier penned a deal with New Jersey’s Monmouth Park and the New Jersey Thoroughbred Horsemen’s Association ahead of the launch of fixed-odds wagering in the state.
Betmakers was also announced as the new tote provider in Norway in May. This agreement with Norsk Rikstoto will also last for 10 years, and the full delivery of the system is expected to go live during Q4 2023.