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Shares in sportsbook supplier BetMakers are trading higher today (31 May) after the company revealed it would reduce headcount from 568 to 440 this year.

The reduction in staff numbers is set to take place as part of a series of ongoing cost-cutting measures expected to be completed in the next quarter.

The supplier first announced the measures in January this year, which were “designed to affect a strategic reset of the business, with a clear focus on operational discipline, specifically a return to positive cashflows, cost efficiency and optimal capital management,” according to non-executive director Nick Chan.

The review followed on from the appointment of former SG Digital head Matt Davey as BetMakers’ president and executive chairman.

According to an update published today, the business has since undertaken a wide-ranging operational review resulting in significant reduction of both operating overheads and staff costs.

The company’s annualised costs based on the first half of its financial year 2023 (six months ended 31 December 2022) came to A$91.5m, consisting of A$68m in staff costs and A$23.5m in operating overheads.

Those annualised figures are set to reduce to a total of A$70m as of the first quarter of its financial year 2024 (three months ending 30 September 2023), a reduction of 23.5%, with the new costs set to consist of A$50m in staff costs (down 26.5%) and A$20m in operating overheads (down 14.9%).

The reduction in cost is primarily driven by a restructuring of BetMakers’ global operations and technology, it said.

As part of the cost reduction, the business expects to continue making cuts to its headcount this year, from a total of 568 employees as of the end of 2022 to 440 as of Q1 FY24, a reduction of 22.5%.

In addition, the restructure has seen the business streamline and consolidate its key software offerings, while leveraging technology monitoring and reporting capabilities, it said. Those changes, in turn, have allowed BetMakers to streamline its operational infrastructure.

“Importantly, this restructure will allow increased focus on our core platform and products, improving the benefits and value we can deliver to our domestic and international customers.”

– BetMakers executive chairman Matt Davey

“The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximise future growth opportunities,” said CEO Jake Henson.

Executive chairman Davey added: “The company is focused on delivering operational efficiencies, simplifying our global operating model, and positioning the company for profitable growth.

“Management and our global team have delivered on this promise, and we now expect the company to be well positioned to drive operating leverage as we expand our revenue base.

“Importantly, this restructure will allow increased focus on our core platform and products, improving the benefits and value we can deliver to our domestic and international customers.”

In the company’s H1 FY23 results, covering the six-month period ended 31 December 2022, BetMakers increased its revenue by 7.5% year-on-year to A$46.7m, helping narrow its comprehensive loss for the period from A$27.2m in the prior year to A$17.6m.

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