Alongside its revenue increase, BetMakers also saw significantly reduced staff costs (down 29.2% to A$12.3m) and operating expenses (down 27.7% to A$5m), compared to the prior year.
Those cost reductions led the business to a significantly reduced EBITDA loss of A$1.2m, as compared to the A$9.1m EBITDA loss registered in Q2 FY23.
Lower staff costs followed on from a business restructure implemented last year, which saw the firm reduce its headcount from 568 in December 2022 to 412 in December 2023.
The business intends to continue reducing its cost base this year, it said, with a target to have costs 10% lower in the second half of the financial year than in the first.
As of the end of the reporting period, BetMakers held A$18.1m in unrestricted cash.
That figure fell short of its minimum unrestricted cash target of A$20m, the firm said, as the result of a shortfall in receipts primarily from two customers, collectively worth around A$2m.
Key events during the quarter included the renewal of several of BetMakers’ existing client contracts.
Those included deals with The Meadowlands in New Jersey, ZeTurf in the Netherlands, William Hill in the UK and PointsBet in Australia.
The company also signed a new customer, the Selangor Turf Club in Malaysia, and expanded its agreement with the Argentina Jockey Club during the quarter.Further, in the US the company launched its OneWatch terminal monitoring system, enabling the remote monitoring of betting terminals and thus allowing BetMakers to run its US tote operations from a lower cost base.
“New systems such as OneWatch have been instrumental in allowing the company to simplify its operating model and reduce its headcount,” BetMakers said.
Share price performance
Investors reacted positively to the news as shares jumped from A$0.08 to A$0.10 in the wake of the results.
Shares in the company remain at a relative low point historically, however, having dropped precipitously since hitting a high point of A$1.50 in May 2021.
The shares continued to drop steadily throughout 2022 and 2023, and first hit their A$0.08 low in October last year.
The recent share price increase may be a sign of recovering confidence in the business.
“BetMakers has continued to simplify its operating model and sharpen its focus moving forward,” said CEO Jake Henson upon the release of the results.
“The business is now defined across two operating segments being Global Betting Services and Global Tote, and the company has worked hard to streamline the operations to support these two pillars.
“With a much simpler and aligned business focus we expect to continue to unlock operational savings and enable scalability through technology.
“Renewed contracts with key partners continue to support our growth, whilst new customer onboarding is advancing strongly into the second half of FY24. Bringing these new opportunities to market remains a key operational focus in H2 FY24.
“Whilst we have made significant progress over the last 12 months, we’re conscious that the job is not finished. We remain very focused on achieving positive underlying EBITDA and operational cash flows, to provide a sustainable foundation for future growth.”