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Highlights
- BetMakers intends to conduct an on-market share buy-back of up to 10% of the company.
- The buy-back will be funded from BetMakers’ cash reserves and is expected to commence on 12 July 2022.
- The shares have gained more than 23% on the buy-back news.
The share price of BetMakers Technology Group Ltd (ASX:BET) surged 23.333% and the stock traded at AU$0.370 apiece at 11:21 AM AEST. The stock surged after the Australian wagering company shared its intent to undertake an on-market share buy-back of up to 10% of the company.
The company proposed to commence buy-back on 12 July 2022, and the proposed end date is 23 June 2023.
BetMakers, a wagering company, offers three products, DynamicOdds, Global Tote and Global Betting Services. DynamicOdds is an odds comparison tool used by industry professionals, bookmakers and punters. BetMakers’ Global Tote is the first B2B tote. It is a modern and lightweight technology that enables scalability, new product creation and quick API integration. Global Betting Services offer tools that corporate bookmakers can employ to create content for its racing customers.
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About the on-market buy-back
The company would conduct the buy-back under the 10/12 limit. According to the 10/12 limit permitted under the Corporation Act 2001, a company cannot buy-back over 10% of the smallest volume of shares issued during the last 12 months.
Management commentary on the proposed buy-back
Todd Buckingham, chief executive officer, BetMakers, commented on the development
“BetMakers is in a strong financial position with our improving cashflow and with current market dynamics providing us with an opportunity to maximise shareholder value via a Buy-Back.”
BetMakers’ half-year financial results
For the half-year ending 31 December 2021, BetMakers reported a 473% increase in the revenue to AU$43.5 million in a year. Gross profit was up by 700% on pcp (prior corresponding period) to AU$32.0 million. AU$2.3 million of adjusted EBITDA was recorded, up from the previous year’s negative AU$0.8 million. As of 31 December 2021, the company had a cash balance of AU$110.9 million, with no debt and positive operating cash flow. The company recorded a positive AU$1.8 million of net cash for operating activities.
Image source: © Martinapplegate | Megapixl.com
The company said in a statement that the growth in revenue and improvement in gross margin was driven by the Global Tote and expansion of the MTS offering and the Australian platform.
During the half, no dividend was declared.
Related article: BetMakers (ASX:BET) shares fall despite record gross profit in H1 FY22
Share performance of BetMakers
Including today’s gain, the BetMakers share price surged by 12.12% in last five trading sessions. The share dropped by 27.45% in a month, and the year-to-date loss is 55.42%. In a year, the share price sank by over 69%.
