FansUnite confirms CTO exit as shares soar on wind down of B2B betting division
The migration of DragonBet away from the Chameleon platform, coupled with the sale of the Chameleon source code to microbetting start-up Betr in May, marks the final step in FansUnite’s shift away from B2B platform licensing.
This transition is expected to result in annualised cost savings of around C$7.1m for the company.
These savings encompass reductions in salary, selling, general, and administrative costs.
These cost savings will be reflected in the company’s financial results once the wind-up of operations of the Chameleon Gaming platform is complete.
FansUnite expects to generate positive cash flow in Q4 2023 as a result of its strategic plan to improve financial efficiency.
In Q2 2023, FansUnite achieved a positive EBITDA of C$4.3m, a significant turnaround from the C$11.1m EBITDA loss in the same period last year.
CTO set to leave
CTO Jeremy Hutchings (pictured) will step down from his role on 30 September in light of FansUnite’s new strategic focus on the affiliate segment.
However, he will be available for consultation to support the company in maximising the monetisation of the Chameleon platform’s source code, which could involve exploring additional opportunities for selling the code.
“Firstly, I would like to thank my co-founder Jeremy for his contribution to FansUnite as he played an integral role during the early stages of the company and we look forward to watching his future success,” said FansUnite CEO Scott Burton.
Hutchings co-founded Askott Entertainment in 2013, the entity behind the B2B Chameleon platform, which was acquired by FansUnite in 2020.
Hutchings, formerly CTO of Askott, then assumed the same role at FansUnite.
Investors responded positively to the news, and FansUnite’s stock jumped more than 22%.