Quarterly Activities Report
Sydney, Oct 13, 2020 AEST (ABN Newswire) - The Board of BetMakers Technology Group Ltd (
ASX:BET) (T07:FRA) is pleased to release its Quarterly Cash Flow Statement and Quarterly Activities Report for Q1 FY21, the quarter ending 30 September 2020.
Quarterly highlights
- Cash receipts up 63% on previous quarter ($3.9 million versus $2.4 million)
- ~$16 million Annualised Revenue Run Rate based on Q1 FY21 (Unaudited)
- Strong growth driven by Managed Trading Services and Global Racing Network
- BetMakers growing Australian revenues ahead of international expansion
- Closing cash balance of $32.8 million
The Company continued its growth throughout Q1 FY21 based on strong activity in the Australian market, with highlights including:
o Cash receipts from customers was $3.9 million (up from $2.4 million previous quarter)
o Revenues (unaudited) of $3.9 million (up from $2.7 million from previous quarter)
o Demand for Managed Trading Services, content distribution and acquisition tool products delivering Company domestic growth
The Company finished Q1 FY21 with more than $32.8 million in cash with no debt and is exploring organic and inorganic growth opportunities in Australia and Internationally, including in the U.S. market.
The Company has seen significant growth in cash receipts from customers over the past two quarters, with the Q1 FY21 representing an increase of +63% on the previous quarter (Q4 FY20) and a year-onyear increase of 132% on Q1 FY20.
Management expects the continued strong growth in cash receipts and revenue to continue within the Australian domestic market and intends to leverage products and services into International markets in line with the Company's expansion plans.
Company CEO Todd Buckingham said: "The business has now delivered two consecutive quarters of sustained growth, leveraged from its strong base of recurring revenues, and we believe we are in a strong position to continue to expand our products and services.
"The impressive growth we are seeing over the past two quarters is a result of the successful development, launch and implementation of our products and services in the Australian market over the past few years.
"The Company has a strong technology and leadership team across the business and its innovative B2B wagering technology products have generated strong results since launching into the Australian market, which gives us great confidence for further roll outs both domestically and into new overseas markets.
"In particular, Our Managed Trading Services business has been a success, not only for BetMakers but also for our customers using the service."
During this period of growth the Company is continuing to invest in product development and its international expansion strategies. This is reflected in an increase in staff costs during Q1 FY21 as the Company hired key personnel across its product development and commercial teams to ensure its ability to meet increased customer demand domestically and overseas.
The growth in cash receipts recorded across the Managed Trading Services and content distribution products, such as the Global Racing Network, has also driven an increase in the product manufacturing and operating costs (variable costs correlated to revenue generation).
During Q1 FY21 the Company invested approximately $0.3 million in the U.S. expansion opportunity.
This included US$0.06million insurance payment (reported in 1.2(c) of the Appendix 4C) to sponsor the "BetMakers Bonanza", where a US$1 million amount would be paid to the connections of any horse that wins the TVG.Com Haskell Stakes, the Kentucky Derby and the Breeders' Cup Classic. To date, the racehorse Authentic has won both the TVG.Com Haskell Stakes and the Kentucky Derby, and is entered to race in the Breeders' Cup Classic on 7 November for its chance to win connections the US$1 million bonus prize. The insurance payment made covers the full potential payment of US$1 million.
To view the Quarterly Report, please visit:
https://abnnewswire.net/lnk/57RC282C
About Betmakers Technology Group Ltd
Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) is an ASX-listed holding company and a global provider of online wagering products and services to both wholesale and retail markets through its various wholly owned subsidiaries. The Company operates a retail wagering business, offering consumers wagering, fantasy tournament and content products and services.
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