BetMakers posts A$27.8m loss despite impressive revenue growth
Sports betting supplier losses mount due largely to share-based payments in face of upticks across revenue and EBITDA in H1 2022
BetMakers has posted net loss of A$27.8m for H1 2022 despite recording significant revenue growth during the reporting period.
The Australian firm recorded a post-tax loss increase of 527% year-on-year (YoY) compared to the A$4.4m loss in H1 2021.
Despite this, closing cash balance for the business at the end of H1 2022 amounted to A$110.9m, up 61.7% year-on-year.
However, the firm did post a 473% YoY increase in revenue for H1 2022, up from A$7.5m in H1 2021 to A$43.5m.
Gross profit of A$32m was up 700% on the corresponding period in 2021, although the firm reported a sharp increase in operating expenses, rising 426.5% YoY to A$35.8m, excluding share-based payment expenses, which increased 718% to A$25.2m.
EBITDA improved from a loss of A$847,000 in H1 2021 to a positive of $2.3m during the reporting period, with a corresponding margin of 5% compared to -11% in 2021.
The business has long been readying itself for a major push into the US horseracing market having recently signed a 10-year extension to its exclusive deal to provide fixed-odds betting on horseracing in New Jersey.
Fixed-odds betting on racing is due to be launched in the state at Monmouth Park on 7 May. BetMakers is looking to establish a fixed-odds model in the market that can be seamlessly expanded into other states.
In June 2021, BetMakers completed the A$56.2m acquisition of fixed-odds and Tote betting supplier Sportech and in January named Christian Stuart, former head of Caesars Entertainment sports and online gaming, as its new North America CEO.
BetMakers last month announced it would be empowering Australian operator Crossbet’s entry into Ontario’s sports betting market.
The supplier also highlighted a number of key strategic focus areas for H2 2022, including the launch of more Australian bookmakers on its platform, ongoing execution and expansion of its B2B strategy across Australia and the US, and the expansion of its Tote network across the northern hemisphere.