BetMakers (ASX:BET) revenue zooms up 371%, shares on rise

Highlights:

• During the financial year 2022, BetMakers posted 371% surge in its group revenue to AU$91.6 million.
• Gross profit grew by 550% to AU$66.3 million.
• On year-to-date basis, BetMakers share price has dropped by nearly 48%.

Australian wagering operator, BetMakers Technology Group (ASX:BET), on Friday (26 August), has shared its full-year results for the period ended 30 June 2022 (FY22). The company reported a growth of 371% in its group revenue compared to the previous year. The gross profit jumped by 550% on prior year.

BetMakers is a B2B wagering technology organisation that operates through three divisions – Global Racing Network, Global Tote and Global Betting Services. The company have 45 regulatory licences via which it can operate in over 30 countries with more than 225 racing partners, clients, and 60 wagering operators.

Following the BetMakers full-year results, the share price jumped 6.17% higher from its previous close at AU$0.43 apiece at 10:02 AM AEST. Including today’s gain, BetMakers’ share price fell by 12% in a month, 23.21% in six months and 62.28% in 12 months. On a year-to-date basis, the share price dropped by 48.19%.

Key highlights of FY22 performance

• BetMakers reported a 371% surge in revenue to AU$91.6 million.
• Adjusted EBITDA for the year was AU$2.2 million.
• Gross profit jumped by 550% to AU$66.3 million, with an increase in gross margin to 72%.
• The company ended the user with a cash position of AU$87.6 million.

Image source: © Khosrork | Megapixl.com

What drove BetMakers revenue higher?

BetMakers said in a statement that its growth was driven by expansion and acquisitions done by the company in the past.

According to today’s release, the company expanded its platform and managed trading services offered under the Global Betting Services division. Under the global Racing Network division, the content distribution rights were expanded. Lastly, the company acquired digital and racing assets under the Global Tote division from Sportech PLC.

Expectations from FY23

• In FY22, BetMakers signed a number of deals, and it expects to see benefits from these deals in FY23, as it materialises. Here’s the list of deals inked by the group in FY22
• The company entered into an agreement to be the exclusive technology provider to the NTD consortium. It is expected to generate more than AU$300 million in revenue in 10 years.
• In the Australian market, additional 12 platforms were launched.
• Additional eight-platform agreement was executed across Canada, the US and Australia.
• North American content has been expanded to over 12,000 races annually.
• A binding Heads of Agreement was executed to become an exclusive provider of betting racing services.
• Parimutuel services agreement was extended for further years with Monmouth Park.