BetMakers Technology Group, the ASX-listed betting systems supplier, has implemented an enhanced reorganization strategy to streamline operations, lower costs, and achieve cash-flow positivity. Through measures like staff cost reductions, operational centralization, and the onboarding of customers to its Next Gen platform, BetMakers aims to lower operating expenses below its previously outlined $60 million target. Additionally, the company has secured a $3 million debt facility to provide financial flexibility. This strategic transformation is projected to achieve operating cash-flow break-even by Q3 FY25, setting the stage for long-term value creation for shareholders.

Reorganization Strategy: Reducing Costs and Streamlining Operations

Cost Reduction Measures: BetMakers has implemented several initiatives to achieve cost efficiencies, including:

A $5.1 million reduction in annualized staff costs, with full benefits expected to materialize in Q3 FY25.
Centralization of corporate functions for improved operational efficiency.
Investments in accelerating customer and product onboarding to the company’s Next Gen technology platform.
Expense Projections: The company now expects operating expenses to fall below the previously forecasted $60 million target for FY25, significantly improving its financial outlook.

Financial Targets: Paving the Path to Profitability

Cash-Flow Milestones: BetMakers is targeting:

Operating cash-flow break-even in Q3 FY25.
Positive operating cash-flow for the six months leading up to June 30, 2025.
Revenue Projections: Management anticipates higher revenues in H2 FY25 compared to H1 FY25, driven by new platform launches and improved operational efficiency.

Debt Facility: Financial Flexibility for Transformation

New Debt Facility: BetMakers has secured a $3 million, 24-month debt facility from Tekkorp Holdings, controlled by Executive Chair Matthew Davey. This funding will support one-off costs associated with:

Staff cost reductions.
Acceleration of Next Gen platform integration.
Strategic working capital requirements.
Strategic Importance: The debt facility provides BetMakers with additional flexibility to implement key initiatives essential for achieving profitability and sustaining growth.

Next Gen Technology Platform: Driving Innovation and Efficiency

Platform Onboarding: The transition to the Next Gen platform is a cornerstone of BetMakers’ transformation strategy. By the end of H1 FY25, the company aims to:

Onboard all Australian platform customers to the Next Gen system.
Launch four new Australian platform brands on the Next Gen platform.
Cost and Performance Benefits: The technology upgrade is expected to reduce cloud costs while improving system performance, contributing to higher margins and revenue growth.

Leadership Commentary: A Clear Vision for Shareholder Value

Matthew Davey, Executive Chair of BetMakers, expressed optimism about the transformation strategy:
“I am excited to see the impact our transformation strategy is already having on the business, and importantly, that management has been able to accelerate this strategy.

We are extremely pleased with the technology upgrades and the benefits this is delivering through both performance and lower costs. Coupled with other cost reduction initiatives, we have a clear line of sight to profitability.

BetMakers is on a financial transformation journey, which is designed to deliver long-term value for shareholders. We are making strong early progress in this endeavor.”

Future Outlook: Accelerating Towards Growth

Revenue Growth: Higher revenues in H2 FY25 will be supported by increased platform activity and the launch of new brands.

Operational Efficiency: Continued reductions in cloud costs and operational expenses are expected to boost profitability.

Cash-Flow Sustainability: Achieving positive cash-flow by June 2025 will mark a pivotal milestone in BetMakers’ financial transformation, solidifying its path toward long-term sustainability and shareholder value.