Betmakers Technology Group (BET) H1 2025 earnings summary

Executive summary

• Achieved AUD 32 million in annualized cost savings and completed cost base restructuring, positioning for scalable growth and improved profitability.

• Expanded global footprint to over 60 wagering operators in 45 regulated jurisdictions and 30+ countries, with new contracts in major markets.

• Launched Apollo and GTX technology platforms, enhancing product suite, operational efficiency, and securing major partnerships including Sportradar.

• Adjusted EBITDA loss narrowed to AUD 1.3 million for 1H FY25, reflecting cost reduction initiatives and operational efficiencies.

• Net loss after tax increased to $17.1 million in 1H FY25, impacted by lower gross margin and higher income tax expense.

Financial highlights

• 1H FY25 revenue was $41.4 million, down 19.4% year-over-year, mainly due to legacy customer impact.

• Annualized revenue run rate at AUD 82.8 million for 1H FY25.

• Gross margin at 60% for 1H FY25, with expectations to reach 65% by FY26.

• Operating expenses reduced to AUD 59.6 million, targeting AUD 55 million.

• Operating cash flow improved 43% quarter-on-quarter for the December quarter.

Outlook and guidance

• Targeting double-digit revenue growth in FY26, with acceleration expected over time and early impact from growth initiatives in late 2H FY25.

• Confident in turning EBITDA and cash flow positive in 2H FY25 if current trends continue.

• Long-term goals include 70% gross margins and 25%+ EBITDA margins.

• Focus for FY25 is on improving operating margins, delivering technology upgrades, and targeting new customers with higher gross margins.

• Cost base reset and cloud/infrastructure savings from technology migrations are expected to improve operating leverage.