Betmakers Technology Group Ltd. · ASX:BET
Betmakers Technology — FY2024 Earnings Presentation
26 slides from Betmakers Technology's earnings presentation, Aug 30, 2024
Slide 1: FY24 Full-Year Results Presentation
BetMakers Technology Group Ltd ABN 21 164 521 395 | | | | | | | | | | | | | | | | | | | | | | | | | FY24 FULL-YEAR RESULTS PRESENTATION 30 AUGUST 2024 FOR THE FULL YEAR ENDED 30 JUNE 2024 www.betmakers.com/investors © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR
Slide 2: Racing Enhanced
RACING ENHANCED BetMakers delivers world leading B2B technology solutions for tote and fixed odds betting on racing. | | | | | | BetMakers Technology Group (ASX:BET) is a leading international provider of B2B technology products with a global footprint that spans the world’s major racing and betting
Slide 3: Summary of FY24
SUMMARY OF FY24 FY24 SUMMARY ______ Material benefits were realised during FY24 from a disciplined execution of BetMakers’ turnaround strategy. $88.8m 97% ↑ +1.0% vs pcp APPROACHING PROFITABILITY BENEFITS FROM TECHNOLOGY ➞ Adjusted EBITDA1 in FY24 of -$7.2m (loss reduced by 74% INVESTMENT vs pcp). FY
Slide 4: Transformation Journey
TRANSFORMATION JOURNEY ______ FY24 – TURNAROUND PHASE FY25 / FY26 – TRANSFORMATION PHASE LONG TERM GOAL3 Restoring Operational Discipline Working Towards Delivering Sustainable Profit Rule of 404 REVENUE GROWTH International markets the focus - strong performance from Global Tote Revenue will be re-b
Slide 5: BetMakers Overview
FY24 FULL-YEAR RESULTS BETMAKERS OVERVIEW ______ Serving the global betting industry with market-leading B2B technology solutions. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 5
Slide 6: Global Footprint
BUSINESS STRATEGY GLOBAL FOOTPRINT EUROPE ______ United Kingdom and Ireland, France, Germany, The Netherlands, Spain, Cyprus, Denmark, Norway and Finland 30+ 60+ active countries online wagering operators ASIA South Korea, Hong Kong, Macau, Vietnam and Malaysia 230+ 45+ racing partners regulatory li
Slide 7: Products by Division
PRODUCTS PRODUCTS BUSINESS STRATEGY __________________ __________________ PRODUCTS BY Fixed Odds Pricing & Managed Trading Services _________ Betting Platform Development Quantum™ Tote Engine _________ Tote Hosting DIVISION Data, Form & Content _________ _________ _________ International Tote Poolin
Slide 8: Global Betting Services (Next Gen)
BUSINESS STRATEGY GLOBAL BETTING SERVICES (NEXT GEN) ______ TARGET CUSTOMER REVENUE MODEL New opportunity Sportsbook Platform Terminal Interface The customer is seeking a full Variable fees + SaaS1 PLATFORM white label digital platform, but minimum fees October 2024 Launch can be leveraging an exist
Slide 9: Global Tote
BUSINESS STRATEGY GLOBAL TOTE ______ TARGET CUSTOMER REVENUE MODEL Existing or new operator ADW Platform BetLine Terminals Variable fees + SaaS PLATFORM & TERMINALS An operator looking for full end to minimum fees All Products Live end digital and/or POS solution End-to-end Existing operator Digital
Slide 10: Industry Drivers
BUSINESS STRATEGY INDUSTRY DRIVERS ______ BetMakers’ plays a crucial role in the digitisation and globalisation of wagering on racing for both Tote and Fixed Odds. INDUSTRY TREND CUSTOMER NEED BETMAKERS’ PRODUCTS AND SERVICES Digital wagering operators looking to ➞ Racing product and content. ➞ Embe
Slide 11: Financial Results
FY24 FULL-YEAR FINANCIAL RESULTS ______ Substantially improved operating base; moving closer to profitability. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 11
Slide 12: FY24 Revenue Composition
FY24 FULL-YEAR RESULTS FY24 REVENUE COMPOSITION ______ Our revenues are contracted, diversified, and allow BetMakers to participate in the value generated by our products. CONTRACTED REVENUES CUSTOMER CONCENTRATION REVENUE MODEL 3% 27% 37% 63% 73% 97% Contracted Beginning Not-contracted Top 10 Custom
Slide 13: Revenue Summary
95.0 95.2 FY24 FINANCIAL RESULTS 87.9 88.8 REVENUE SUMMARY ______ 54.8 53.2 FY24 Revenue flat at Group level GBS (42% of revenue) was weaker, 41.8 40.4 ➞ Group revenue was flat for FY24, driven by a down 3.3% YoY solid result from Global Tote, and offset by a ➞ GBS revenues of $40.4m were softer in FY2
Slide 14: Adjusted EBITDA
FY24 FINANCIAL RESULTS ADJUSTED EBITDA _____ -7.2 -6.3 9.8 The restructure is delivering, the business is more efficient ➞ Key driver is reduction in operating expenses from $88.2m in FY23 to $65.3m1 in FY24. ➞ Well positioned for improved operating leverage in FY25 and future periods. Adjusted EBITDA
Slide 15: Operating Expenses
FY24 FINANCIAL RESULTS OPERATING ($m) EXPENSES 88.2 ______ 65.3 Operating efficiency a focus, expenses down $22.9m (26%) 64.4 -26% ➞ Operating expenses of $65.3m1 (vs $88.2m pcp). Staff expense reduced by $19.0m (29%) 45.4 -29% ➞ Staff costs reduced to $45.4m (after the capitalisation of $6.3m of staff c
Slide 16: Profit & Loss
FY24 FINANCIAL RESULTS PROFIT & LOSS FOR THE 12 MONTHS ENDED 30 JUNE 2024 ($M) FY24 FY23 Variance $/% % ______ Revenue 95.2 95.0 0.2 0.2% COGS -37.8 -35.9 -1.9 5.4% Revenue of $95.2m, flat vs pcp GROSS PROFIT 57.4 59.1 -1.7 -3.0% ➞ Revenue for FY24 excluding betr was $88.8m (up 1.0% vs pcp). GROSS MA
Slide 17: Balance Sheet & Cash Flow
FY24 FINANCIAL RESULTS BALANCE SHEET & BALANCE SHEET SUMMARY 30-JUN-24 30-JUN-23 CASH FLOW Unrestricted cash 14.8 30.1 Restricted cash 14.5 10.9 Deferred tax asset 13.9 34.0 ______ Property Plant & Equipment 24.4 28.4 Intangibles and Other Assets 83.1 96.1 Total assets 150.7 199.5 $14.8 million in u
Slide 18: FY25 Outlook
FY25 OUTLOOK ______ Shaping the future of global racing. © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 18
Slide 19: FY25 Outlook
CONTINUED IMPROVEMENT IN OPERATING EFFICIENCY AND MARGIN ➞ Management is focused on enabling BetMakers to generate positive cash-flow during FY25. 1 ➞ Targeting a further reduction (16%) in cash operating expenses1 to below $60m for FY25. ➞ In addition to the reduction in operating expenses, operatin
Slide 20: Investor Questions
INVESTOR QUESTIONS ______ Email: investors@betmakers.com © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 20
Slide 21: Appendix
APPENDIX ______ Email: investors@betmakers.com © 2024 BetMakers Technology Group Limited. Confidential & proprietary. FY24 FULL-YEAR RESULTS | 21
Slide 22: FY25 Divisional Focus
BUSINESS STRATEGY & OUTLOOK FY25 DIVISIONAL FOCUS ______ GLOBAL BETTING SERVICES GLOBAL TOTE ➞ Launch Next Gen platform for Platform clients to deliver improved gross ➞ Deploy contracted large-scale solutions for Norway and Chile. margin and enhanced product for our customers. ➞ Complete full move i
Slide 23: Global Tote Case Study – Norway
BUSINESS STRATEGY & OUTLOOK GLOBAL TOTE CASE STUDY – NORWAY ______ BetMakers was awarded a ten-year technology and services contract with Norsk Rikstoto. EXCLUSIVE CONTRACT WITH SOLE OPERATOR IN NORWAY ➞ Norsk Rikstoto is the sole purveyor of betting on horse racing in Norway. ➞ 10 Year Agreement wi
Slide 24: Sustainability Initiatives
APPENDIX SUSTAINABILITY INITIATIVES ______ Guided by the key pillars of our Sustainability Strategy, BetMakers is dedicated to leaving a lasting impact on our people, our customers, and the community. Social ➞ Diversity Targets: ○ The BetMakers Board has achieved a gender composition ratio of 50% fe
Slide 25: Technology Highlights
SUMMARY OF FY24 TECHNOLOGY HIGHLIGHTS ______ Next Gen’s features and architecture positions the Company to transform its operations and improve margins. FINAL STAGES OF NEXT GEN INVESTMENT IN CORE DATA AND DEVELOPMENT INFRASTRUCTURE ➞ Development of Next Gen technology platform ➞ Launch of a materia
Slide 26: Disclaimer
DISCLAIMER ______ This shareholder update is dated 30 August 2024. The material contained in this document is a presentation of general information about the activities of BetMakers Technology Group Limited (the Company or BET) as at the date of this update. All monetary figures quoted within this do
Betmakers Technology Group — FY2024 Earnings Presentation on 6ix