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The BetMakers Holdings Limited (ASX: TBH) is a consumer discretionary company based in Australia. The company is in the licensed business of sports betting and race wagering in Australia and operates through Fantasy Wagering, Retail Wagering etc.
On 6th May 2019, the company announced that it has entered into a distribution and services agreement with TSG Global Wagering Solutions LLC (GWS). The agreement, via its wholly owned subsidiary BetMakers DNA Pty Ltd, will commence immediately and will run until through 31 March 2020, during which BetMakers DNA will deliver its US Racing, Harness and Greyhound content to bookmakers in New Zealand and Australia.
GWS already has several contracts with other leading operators in Australia like BetEasy, Neds, Pointsbet and others. BetMakers believes that the revenue which may be generated by BetMakers DNA in due course of the agreement is expected to have a material economic impact on the business.
BetMakers DNA has recently released its customised TV widget on operators, TopBetta and NEDS. The management believes this will be a popular product in the Australian market, having more than a thousand races available with Live Vision customised to each operatorâs website. It is also planning to roll out its customised TV widget on other operatorâs websites as well in the coming months.
CEOâs statement
Todd Buckingham, CEO of BetMakers stated that the deal is exciting not only for their subsidiary but for its clients as well as they will now have access to 1,000 races each week and the company is looking to expanding this channel with even more content.
PlayUp Update
BetMakers has a software and services agreement with PlayUp Limited under which, BetMakers would provide a software license and certain services to PlayUp and in return would share a percentage of gaming revenues generated on certain PlayUp subsidiary platforms.
The agreement has been renegotiated by both the parties on mutual understanding, according to which PlayUp is now responsible for all costs associated with the provision of BetMakers services to PlayUp. In consideration, PlayUp will pay BetMakers a fixed monthly fee for the software licenses.
March 2019 Quarterly report
Operational Highlights
- The funds needed for the acquisitions of DynamicOdds Pty Ltd, C.D.K Software Limited and Global Betting Services Pty Ltd were sourced from $4million funding solution
- It has also turned profitable in Q3.
- Entitlement offer of $3 million non-renounceable pro-rata Entitlement is to be conducted at the offer price of 3 cents per new share.
Cashflow report
The company reported net cash inflow from the operating activities at A$176k including A$2.37 million being contributed from Receipts from customers. It used a total of A$115k of net cash for the investing activities, and A$15,000 has been used for financing activities.
At the end of the quarter, the company reported net cash of A$339k. The company also estimated the cash outflow of A$10.72 million for the next quarter where A$8.4million would be final Instalment for DynamicOdds & Global Betting Services.
Technical Outlook
The market capitalisation of the company is A$12.77 million. The 52 week high and low of the stock is A$0.144 and A$0.027 respectively. The stock closed at A$0.053, down by 7.1% as of 6th May 2019. In the last one year, the stock has delivered a negative return of 40.6%, while the YTD return stands at 14%.
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