- BetMakers (BET) had $7.9 million in cash receipts for 1H FY21, up 130 per cent over the prior corresponding period (pcp)
- Of this, $4 million came in during the December quarter which is a record for BetMakers
- During the quarter, BetMakers acquired Sportech for $56.2 million and Supreme Ventures
- The company now has access to the U.S., U.K., Jamacia and Asia markets
- Throughout the December quarter, BetMakers burnt through $170,000 in operating activities and used more than $11 million in investing activities
- As of December 31, BetMakers had more than $68 million in available funding, representing 404 quarters left of use if spending levels remain the same
- BetMakers is down 4.23 per cent on the market and shares are trading at 68 cents
BetMakers (BET) had $7.9 million in cash receipts for 1H FY21, up 130 per cent over the prior corresponding period (pcp).
Of this, $4 million came in during the December quarter, which is a record for BetMakers.
“The Q2 FY21 quarter was not only our best quarterly performance to date, but it was also the company’s most productive and transformational in terms of international expansion,” CEO Todd Buckingham said.
“I am pleased with the consistent growth in the domestic business, with the performance for the first half of FY21 setting the company’s annualised revenue run rate in line with our expectations,” he added.
Sportech acquisition
In early December, BetMakers agreed to purchase part of online sports betting company Sportech for $56.2 million.
As part of the purchase, BetMakers will acquire Sportech’s racing and digital assets in the U.S., the U.K., Europe and Asia.
The aim of this acquisition is to accelerate BetMakers’ international growth plans.
“The acquisition of Sportech’s Racing and Digital assets will deliver a business that provides betting software, hardware and service solutions to over 150 clients in over 30 countries,” Todd stated.
To fund the acquisition, BetMakers undertook a $50 million placement, with the funds raised via the issue of roughly 83.3 million new fully-paid ordinary shares at 60 cents.
A share purchase plan was then opened on January 5 to raise an additional $10 million. The plan closed on January 15 oversubscribed.
Horse racing
A few days before Christmas, BetMakers’ subsidiaries, BetMakers DNA and Managed Trading Services, signed multiple five-year agreements with subsidiaries of Supreme Ventures.
Supreme Ventures is the lead gaming and entertainment group of companies in Jamaica. It promotes horse racing, gaming lounges, sports betting, online gaming, and slot machines.
Under the agreement, BetMakers will manage fixed-odds wagering through all fixed-odds bets placed in horse racing as well as distribute and manage racing data for horse races undertaken at Jamaica’s leading race track, Caymans Park.
Financials
Throughout the quarter, BetMakers burnt through around $170,000 with the majority going towards manufacturing, operating and staff costs.
The company also invested more than $11.6 million in its business, property, plant and equipment.
As of December 31, BetMakers had more than $68 million in available funding, representing 404 quarters left of use if spending levels remain the same.
BetMakers is down 4.23 per cent on the market and shares are trading at 68 cents at 1:37 pm AEDT.