Betmakers Technology Group (BET) H2 2024 earnings summary

Executive summary

• Achieved AUD 95.2 million ($95.2 million) in FY24 revenue, with rebased revenue of AUD 88.8 million post-Betr exit; revenue was flat year-over-year.

• Adjusted EBITDA loss narrowed by 74% to -$7.2 million, driven by a 26% reduction in operating expenses and restructuring.

• 97% of revenues are contracted, providing strong revenue stability and predictability.

• Focused on high-margin, recurring revenue streams, international expansion, and scalable products, with new and renewed contracts including a 10-year Norway tote agreement.

• Management targets positive cash flow before the end of FY25, with further cost reductions and margin improvements expected.

Financial highlights

• Revenue was flat year-over-year at AUD 95.2 million ($95.2 million); ex-Betr revenue is AUD 88.8 million (+1.0% YoY).

• Adjusted EBITDA loss improved to -$7.2 million from -$27.8 million; EBITDA loss narrowed to -$5.2 million from -$41.0 million.

• Operating expenses reduced by 26% to $65.3 million, with staff costs down 29% and overheads by 16%.

• Gross margin declined to 60% from 62% year-over-year.

• Net loss after tax was -$38.7 million, impacted by non-cash items including a $20.1 million DTA movement.

Outlook and guidance

• Targeting another 16% reduction in annual operating expenses for FY25, aiming for below $60 million.

• Next Gen platform to go live in Q1 FY25, expected to improve gross margin and operating leverage.

• Management aims to achieve positive cash flow before the end of FY25, with stronger performance expected in 2H FY25.

• Double-digit top-line growth remains the target, with a long-term goal of 25%+ EBITDA margin (Rule of 40).