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Shares in BetMakers Technology Group experienced a 16.7% drop today (31 July), despite the Australian betting supplier’s report of “progress” in its cost reduction programme.

In an investor update, BetMakers said the recent quarter marked “one of progress” for the company as it continued to focus on simplifying its operating model.

The company has been actively streamlining its operations as part of the cost reduction initiative initially announced in January.

During Q4 2023 (three months ending 30 June), BetMakers achieved a 39% reduction in net cash outflows from operations when compared to the previous quarter.

Furthermore, cash receipts from customers increased by 5% compared to Q3 2023, reaching $24.8m.

Meanwhile, the company’s operational cash outflows during the same quarter amounted to $26.9m, showing a 6% decrease from the previous quarter.

Looking at the bigger picture, the full-year 2023 cash receipts amounted to $99.1m, indicating a solid 6% growth compared to 2022. As of 30 June, the firm’s closing cash balance stood at $41m.

Implemented measures

BetMakers attributed its positive financial developments to the implementation of significant measures to enhance operational efficiency and reduce costs.

These measures included streamlining and consolidating key software offerings, employing technology for monitoring and reporting purposes, and optimising global operations to simplify the company’s structure.

The company took specific actions to achieve these goals, such as reducing its headcount by 15% to 485 employees, with further reductions underway and a target headcount of approximately 440 employees.

BetMakers also introduced automation and other tools to improve efficiency and productivity, and lower operating expenses.

BetMakers stated that the global efficiencies programme is an ongoing effort, and that it anticipates further cost reductions to be realised in the first quarter of fiscal year 2024.

Additionally, in April 2023, BetMakers entered into a non-binding term sheet with Stronach Group’s 1/ST Content to distribute BetMakers’ Global Racing Network’s (“GRN”) race meetings to international wagering markets.

This business partnership has resulted in increased distribution and monetisation of GRN’s North American thoroughbred content.

However, despite this development, investors continued to express skepticism.

Over the past six months, the company’s share price has fallen by nearly 35%.