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- Betting tech company BetMakers (BET) has recorded an 88 per cent increase in revenue in H1 FY21 of $7.59 million
- Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled just over $37,000
- However, the company reported a loss after tax of $4.43 million, up 697.2 per cent on the period ending December 31, 2019
- In December, BetMakers entered binding agreements to acquire the global assets of Sportech for $56.2 million
- The company will acquire all of Sportech’s racing and digital assets in the U.S., the U.K. and Europe to expand its global customer base and strategic position
- At the end of the half, BetMakers had a closing cash balance of $68.6 million
- Shares in BetMakers are down 6.67 per cent on the market and are trading at 84 cents
Betting tech company BetMakers (BET) has recorded an 88 per cent increase in revenue in H1 FY21 of $7.59 million.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) totalled $37,057.
However, the company reported a loss after tax of $4.43 million, up 697.2 per cent from a loss of $556,348 for the period ending December 31, 2019.
This loss is attributable to share-based payment expenses and acquisition costs.
Operations
Sportech acquisition
On December 1, BetMakers entered binding agreements to acquire the global assets of Sportech for $56.2 million.
BetMakers will purchase all of Sportech’s racing and digital assets in the U.S., the U.K. and Europe to expand its global customer base and strategic position.
To pay for the purchase, BetMakers undertook a $60 million capital raising consisting of a placement and share purchase plan.
Once completed, BetMakers will have access to 36 U.S. states and more than 100 customers across casinos and race tracks.
U.S. fixed odds
In July, BetMakers’ subsidiary, BetMakers DNA, signed an agreement with PointsBet New Jersey for fixed odds betting on U.S. horse racing.
A bill has been introduced into the New Jersey legislature which “authorises fixed odds wagering on horse races through fixed odds wagering system.”
If and when the bill becomes law, BetMakers’ agreement with the New Jersey Thoroughbred Horsemen Association and Darby Development will begin.
This will allow the company to manage fixed odds betting on horse racing in New Jersey.
At the end of the half, BetMakers had a closing cash balance of $68.6 million.
Shares in BetMakers are down 6.67 per cent and are trading at 84 cents at 1:19 pm AEDT.
