Betmakers Technology Group (BET) Q1 2025 TU earnings summary

Executive summary

• Transformation strategy underway, focusing on operational efficiency, cost reduction, and growth acceleration.

• Next Gen platform successfully deployed, migration of existing customers ongoing and expected to complete by year-end.

• Bet365 live with fixed odds horse racing in Colorado; New Jersey launch pending, expected to be strategically significant.

• Multiple new and renewed contracts signed, including in Chile, US, Latin America, and Malta.

Financial highlights

• Q1 FY25 revenue of $21.3 million, down 0.8% QoQ, mainly due to seasonal impacts.

• Adjusted EBITDA loss improved to $1.2 million from $3.2 million loss in Q4 FY24.

• Staff costs reduced by 6.4% QoQ to $11.7 million; overheads down 17.9% QoQ.

• Net operating cash outflow of $4.2 million, including a $3.0 million US fixed odds payment.

• Cash receipts of $23.2 million, down 9.6% QoQ, partly due to the exit of the betr contract.

Outlook and guidance

• Focus remains on achieving positive operating cash flow during FY25.

• Management incentivised with new LTIP performance hurdles tied to cash flow and EBITDA targets.

• Long-term goal to become a 'Rule of 40' company, targeting combined growth rate and EBITDA margin above 40%.