Betmakers Technology Group (BET) H2 2024 earnings summary

Executive summary

• Achieved AUD 95.2 million in revenue for FY 2024, with a rebased figure of AUD 88.8 million post-Betr exit; revenue was flat year-over-year.

• Adjusted EBITDA loss narrowed by 74% to AUD 7.2 million, driven by a 26% reduction in operating expenses and improved efficiency.

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

• Business transitioned to a leaner operating model, focusing on high-margin, recurring revenue streams and international growth.

• 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; ex-Betr revenue is AUD 88.8 million (+1.0% YoY).

• Adjusted EBITDA loss improved from AUD 41 million to AUD 7.2 million; margin improved from -29% to -8%.

• Operating expenses reduced to AUD 65.3 million, including a 29% reduction in staff costs to AUD 45.4 million.

• Gross margin was 60%, down from 62% year-over-year, impacted by lower-margin Australian Platforms revenue.

• Unrestricted cash at year-end was AUD 14.8 million; total cash AUD 29.3 million; net loss after tax was AUD 38.7 million, impacted by non-cash items.

Outlook and guidance

• Targeting another 16% reduction in cash operating expenses for FY 2025, aiming for below AUD 60 million.

• Focused on securing high-quality, high-margin contracts and launching the Next Gen platform in Q1 FY25 to drive growth and margin improvement.

• Confident in achieving cash flow breakeven and positive operating cash flow in the near term, 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).

• Revenue base for 1H FY25 will be lower due to Betr exit and Australian softness, but contract wins and seasonality expected to drive 2H growth.