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Shares in BetMakers Technology Group fell by 15% after the company reported negative adjusted EBITDA of A$27.9m for financial year 2023 (12 months ended 30 June).

While the B2B technology supplier saw a 3.7% year-over-year revenue increase to A$95m, primarily due to enhanced performance in the global betting services division, it still posted a loss of A$38.8m.

BetMakers’ results come after a period of reorganisation and restructuring.

In May, the company implemented a $20m cost reduction programme, which involved reducing the headcount from 568 employees to 440.

The firm also saw several management changes, including the appointment of Jake Henson as the new CEO.

BetMakers said revenue growth was boosted by the launch of its Next Gen wagering platform and managed trading service technology.

The expansion of content distribution rights and partnerships in global markets also contributed.

Its global betting services division accounted for A$43.1m of total revenue, up 6.1% on 2022.

Global tote remained its largest division, although this was down 3.5% year-on-year to A$45.3m.

Betmakers’ global racing network added A$6.7m to the firm’s total revenue, an increase of 61% year-over year.

This growth was attributed to its new fixed-odds offering in New Jersey.

Henson described the year as transformative: “In FY23, BetMakers undertook an operational restructure based on costs and efficiency, while delivering key objectives around the development of our proprietary technology and making significant progress towards the goal of generating positive operating cash flow.”

2024 outlook

Henson said financial year 2024 has been identified “as a period to aggressively drive further simplification to the operating model and to retire legacy systems in order to establish a solid foundation for growth”.

BetMakers aims to reduce and manage the cost base to under A$110m this financial year and would try to advance opportunities with clients such as Norsk Rikstoto, Penn Entertainment and Caesars Entertainment.

It forecast low double digit revenue growth in financial year 2024 and unrestricted cash reserves of at least A$20m throughout the year.

Henson emphasised that the bolstered board and management team, coupled with a well-defined strategic roadmap for expansion and profitability, meant he could approach 2024 with a sense of “confidence and enthusiasm”.

However, investors did not share the same sentiment, leading to a substantial 15.4% plunge in the company’s shares.

This decline adds to recent challenges, as its stock has suffered a cumulative loss of almost 48% over the past six months.

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