Wagering technology and data partner for some of the world’s most recognised and respected bookmakers, BetMakers Technology Group [ASX:BET], has shared an update for its strategic operational restructure, claiming that the path to profitability is clear in sight.
By the early afternoon, BET’s share price had skyrocketed by 20%, and by then it was trading for 15 cents a share.
This boost may have uplifted the bookmaker’s stock by more than 7% over the past week. However, it’s still down by 70% over the year, and in the industry:
Source: TradingView
BetMakers shares details of its operational restructure and sees clear path to profitability
Today, BetMakers Technology Group sought to provide shareholders with an update on its strategic operational restructure, with details pertaining to a cost base reduction and global efficiencies program.
Moving forward, such changes should result in significant operating overhead reductions and savings across the business according to the group’s announcement today.
Back in January this year, BetMakers released a series of board and management changes that were arranged to optimise the business and assist in reaching its full potential.
Over the four months that followed, the company reflected on its operations and reviewed strategies that have resulted in a few notable changes and some early progress.
For one, BET now sees the normalisation of annualised staff and operating overheads of the business — reducing from $91.5 million in the first half to approximately $70 million (unaudited) from Q1 FY2024. This represents a decrease of 23% in under a year.
The company will also be culling its workforce by dropping employee numbers from around 568 last December to closer to 440 in Q1 next financial year.
BET says the cost of executing its global efficiency program is expected to be in the range of $2 million–$2.5 million.
The group believes the operational restructure has been made possible by streamlining and consolidating key software offerings. Also, by leveraging its technology monitoring and reporting services.
This has again led to further savings which also allowed the business to streamline its operational infrastructure.
BetMakers CEO, Jake Henson commented:
‘The Company’s cost base has been reset on the back of the deployment of proprietary technology and a strategic review of our operating model.
‘BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal. The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximise future growth opportunities.
‘For our customers, who are at the core of our value creation process, we are committed to delivering best-in-class levels of service and quality. The investments in our technology and the extended rollout of our platforms and products into all regions both domestically and globally will support this ongoing commitment.’
BET had a closing cash balance of $56.2 million by the end of the last quarter — a 9% increase in cash receipts — which totalled to $23.6 million.
Source: BET
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