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Market Analysis Latest ASX News

Betmakers (ASX:BET) Slumps on FY22 Results

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By Kiryll Prakapenka, Friday, 26 August 2022

Betmakers Technology Group [ASX:BET] saw FY22 revenue rise 371% to $91.7 million but net loss widen 411% to $89.2 million.

Betmakers Technology Group [ASX:BET] saw FY22 revenue rise 371% to $91.7 million but net loss widen 411% to $89.2 million.

BET shares were down 5% in late Friday trade.

Over the past 12 months, the BET stock is down 65%:

ASX:BET stock chart

www.TradingView.com

Betmakers’ revenue rises…as do losses

Here are BET’s FY22 results:

  • Revenues from ordinary activities rose 371.1% to $92 million ($40 million in Global Betting Services, $47 million in Global Tote, and $4 million in Global Racing Network).
  • Adjusted EBITDA of $2.2 million, up from an adjusted EBITDA loss of $3 million in FY21.
  • FY22 gross margin rose to 72%, up from FY21’s gross margin of 52%.
  • Loss from ordinary activities increased 411.1% to $89.2 million.
  • Cash balance went down from $120 to $88 million.

BET said it reached its key milestones during the financial year by upping revenue growth, boosting talent and recruitment, and adding international deals.

While BET’s net losses are widening, the wagering business said it is still focusing on ‘capitalising current opportunities and driving revenue’.

Betmakers’ CEO, Todd Buckingham, reiterated the focus on revenue growth, saying:

‘In establishing this world-class team across a wide international footprint, and together with the deals signed in FY22, I am especially pleased with the position it now places BetMakers to accelerate growth opportunities in each of its revenue divisions in FY23 and beyond.’

While BET reported a loss before income tax of $96.3 million, its adjusted EBITDA came in at a positive $2.2 million, largely due to adding back the share-based payments expense for FY22.

That share-based payments outlay was a substantial $71 million, $43.7 million of which went to Matt Tripp for deal-making services rendered as a strategic advisor.

Cash burn remains an issue for the growth-chasing Betmakers.

The company ended the year with negative free cash flow of more than $40 million.

While its receipts from customers jumped from $22 to $94 million, payments to suppliers and employees alone jumped from $24.5 to $96 million.

Outlook for BET and betting on battery tech

Betmakers said that it’s excited by FY23’s prospects and that the execution of its company strategy will mean realised multiple growth opportunities from its many assets by deals signed during FY22.

CEO Buckingham commented:

‘We believe the business transformation is now unquestionably robust and independent of any single contract or strategy.

‘This financial year closes with confidence, enthusiasm, and a substantial pipeline of opportunities.’

Now, let’s leave the wagering sector to one side for a moment and consider the future of our daily commute.

Electric vehicles are likely to be the main way we’re getting around in the next few years.

And while lithium, one of the major metals used in an EV battery, dominated financial headlines last year, let’s not forget about the other critical metals…like copper, nickel, cobalt, and graphite.

With ASX lithium stocks taking a tumble this year, our experts believe there may be a smarter way to play the EV theme.

This proposed ‘smarter way’ involves what you might call lithium’s ‘little brother’.

 

Regards,

Kiryll Prakapenka

 

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Kiryll Prakapenka

Kiryll’s Premium Subscriptions

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