The business still declared a net loss of A$7.6m, however, compared to a A$5.9m net loss in Q1 FY23.
BetMakers ended the quarter with a cash balance of A$36.2m, including unrestricted cash of A$22.5m.
The company’s management team is now working towards maintaining an unrestricted cash balance of at least A$20m, it said.
US restructure completes
In addition to its improving financial situation, BetMakers also announced it had completed a restructure of its US operations, intended to streamline the business and reduce costs, thus providing it with “a strong footing to build further scale in the US in a profitable way.”
Now, the company is focused on continuing to reduce costs throughout the rest of the financial year, which it expects will help bring it towards a cashflow breakeven point.
“The team has done a great job in simplifying our operating model and sharpening our focus over the past six months,” said BetMakers CEO Jake Henson (pictured).“With our suite of market-leading technology for the racing and wagering industries, the company is focused on growing our reach as a B2B operator on a scalable cost base.
“There will be a continued focus on reducing and normalising the cost base, and we expect to achieve stronger underlying cash receipts in Q2 due to, among others, the commencement of a new racing season and the onboarding of new clients.”
In addition to the above developments, the company also extended contracts for the provision of its pricing software and data delivery services with several of its key partners during the quarter, including Penn Entertainment, Dabble, PointsBet and William Hill/888.
It also continues to develop its NextGen platform, “that will underpin how it services its digital customers globally into the future,” it said.
“Refinement and customisation continues on this platform which will be a transformational year for BetMakers digital customers in the US, Australia, Asia and Ireland.”
The NextGen platform recently passed a successful load test of 10,000 bets taken per minute, while successfully processing and resulting more than 200,000 bets in production over a three-minute period.
Other business updates during the quarter included an agreement with Caesars Entertainment, which saw the operator embed BetMakers’ tote solution for point-of-sale wagering in Nevada.
The solution is now entering its final stages of testing and both parties are pushing to go live before the end of calendar year 2023, BetMakers said.
In addition, a new national tote system for Norway, implemented through state-owned operator Norsk Rikstoto, is on schedule to go live during Q1 of calendar 2024, marking the beginning of a 10-year service agreement.