ASX-listed BetMakers unveils plans for 10% share buyback

ASX-listed betting technology supplier BetMakers has unveiled plans to conduct an on-market share buyback of up to 10% of the company’s total listed shares.

The buyback is expected to commence on 12 July and will be funded from BetMakers’ existing cash reserves.

The buyback will be conducted under the Australian Corporations Act’s “10/12 limit”, which allows businesses to buy back up to 10% of the smallest number of shares issued at any time during the last 12 months, without shareholder approval.

“We continue to take a disciplined approach to capital allocation, discerning between opportunities to invest for future growth, and we are constantly looking at methods of returning value to shareholders both organically and inorganically,” said BetMakers CEO Todd Buckingham.

“As a business we have signed and announced deals that we believe will give the company strong organic growth in FY23 and we expect this momentum to continue.

“BetMakers is in a strong financial position with our improving cash flow and with current market dynamics providing us with an opportunity to maximise shareholder value via a buyback,” Buckingham concluded.

BetMakers CEO Todd Buckingham: “BetMakers is in a strong financial position with our improving cash flow and with current market dynamics providing us with an opportunity to maximise shareholder value via a buyback.”

There are currently 903.5 million shares issued in BetMakers, meaning the business will be able to buy back upwards of 90 million shares. At the firm’s current share price of A$0.38, the total buyback could be worth as much as A$34.3m.

BetMakers shares have traded as high as A$0.78 this year, before the price began to decline rapidly from an April peak. The stock’s 52-week high saw shares trade as high as A$1.42 during 2021.

The April rally in BetMakers’ share price was likely helped by the announcement of an agreement between the operator and media giant News Corp to launch a new Australian sports betting operator.

BetMakers was selected as the technology partner of the new venture, which will be backed by a consortium of investors associated with Australian bookmaking legend Matthew Tripp, as well as Las Vegas-based online gambling investment fund Tekkorp Capital. Tekkorp is also a major shareholder in BetMakers.

The 10-year exclusive agreement with News Corp’s new venture could bring the company upwards of A$300m in revenue, it said.