BetMakers has reported that the successful restructure of its Global Tote operations has allowed for a simpler and more aligned business focus, resulting in revenue growth for Q1.

The operational restructure that BetMakers set out in May of last year aimed at reducing costs and included reducing its total staff headcount to approximately 440. The restructure of Global Tote has resulted in a global headcount of 430 full-time staff, below the target number, and leading to AU$400,000 in cost reductions.

In addition to the restructure, BetMakers has had extensions with several key clients during Q1, including Penn Entertainment and the renewal with Pointsbet, Dabble, and 888 by the Global Betting Services division. Furthermore, testing on an embedded tote solution for point-of-sale wagering with Caesars in Nevada is in its final stages, with an expected go-live before the calendar year ends.

There are also plans for a new national tote system with Norsk Rikstoto in Norway to go live in early 2024 and new pricing agreements were signed in Africa, in addition to talks for further fixed-odds wagering in the US.

BetMakers executive chair Matt Davey noted the progress made by the company in reducing and normalizing the cost base and simplifying the operating model. He also mentioned the completion of the restructure of US operations, laying a strong foundation to build further scale in the US in a profitable way. Contracts with key partners were extended, providing revenue stability beyond FY24 and emphasizing the value of BetMakers’ technology to its customers.

Moving forward, BetMakers may look at making further cost savings to improve cash performance and reduce the annualized cost base through FY24 to move the business to cashflow breakeven.

In Q1, BetMakers also reported a 9.3% increase in revenue to $26.1 million, driven by new customer growth. The company also saw a reduction in staff expenses and other operating costs as part of the wider restructuring program, resulting in a significant reduction in underlying EBITDA loss compared to Q1 of the previous year.

Overall, BetMakers is pleased with the operational progress and solid revenue growth in Q1, driven by new customers and new technology, and is optimistic about future commercial launches and reaching positive underlying EBITDA and operational cash flows.

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