Quarterly Activities Report for June 2016
Sydney, July 28, 2016 AEST (ABN Newswire) - The Board of TopBetta Holdings Limited (
ASX:TBH) ("TopBetta" or the "Company") is pleased to provide shareholders with the attached Appendix 4C (refer to link below) for the quarter ended 30 June 2016.
During Q4, TopBetta made significant progress throughout the business, including:
- Wagering and Tournament revenues increased by 88% quarter-on-quarter.
- Total revenue increased by 55% quarter-on-quarter.
- A strong increase of registered active users throughout the quarter from 4,247 at 31 March 2016 to 5,945 at 30 June 2016.
- Net operating cash outflows of $1.17M for the quarter with $2.43M cash in bank.
- Acquired a strategic stake in Australian Wagering technology company Modern Wagering Systems.
Strong Quarter-On-Quarter Increases Across Cash Receipts, Active Users and Revenues
During the quarter, the Company's active users increased by 40% from 4,247 as at 31 March 2016 to 5,945 as at 30 June 2016.
The Company has achieved significant growth across the key metrics of the business including User growth, wagering and tournament revenues and turnover.
Management believes this strong growth gets the business well positioned coming into the seasonally high period of NRL and AFL finals, along with the Spring Racing Carnival, over the next two quarters.
Modern Wagering Systems Investment
During the quarter, the Company announced that it had completed its strategic investment in Australian wagering technology company, Modern Wagering Systems Pty Ltd ("MWS"). The investment with MWS ensures that TopBetta is appointed as the exclusive global wholesale distributor of MWS' wagering products for 24 months. As detailed in the announcement, the investment in MWS will also allow TopBetta to:
- integrate the unique "TopBetta Tournament" products and new pooled betting product with MWS' existing sports betting and racing systems, allowing third-party operators to easily access the network of TopBetta tournaments and other products to create mass distribution;
- offer fully-integrated white label solutions for potential wagering operators in Australia and globally; and
- launch a newly-developed pooled betting product on global sporting contests, including (among others) football, golf, racing, car racing and sports.
CEO Todd Buckingham commented; "Despite Q4 typically being a slower quarter, due to the decrease in grade one racing days, the increase in revenues and active users is very exciting and is a testament to the team and the marketing strategies developed by the Company."
Appointment of Chief Operating Officer
Topbetta is also pleased to announce the appointment of Mr Paul Jeronimo as the new Chief Operating Officer ("COO") of the TopBetta business.
Paul joined TopBetta with over 20 years' experience in consumer communications and technology, and with extensive experience in start-up and early stage businesses. Paul also has previous ASX public company stewardship experience, including CFO and Company Secretary roles at Mobile Innovations Ltd, Engin Ltd, Mobile Embrace Ltd (ASX:MBE) and 4 years' experience at UK-based Voiamo Group PLC.
Mr Jeronimo will be issued 2,000,000 options ("Options") which will convert into Shares on a 1:1 basis, subject to the terms of the Company's Long Term Incentive Plan and satisfaction of the following vesting conditions:
1,000,000 Options will vest on one of:
-- the Company achieving gross revenue of at least $3 million over a period of three consecutive months;
-- the Company's 20-day volume weighted average price of its shares as quoted on the ASX being at least $0.50; or
-- a change of control event occurring.
1,000,000 Options will vest on one of:
-- the Company achieving EBITDA of $1 million over a period of three consecutive months;
-- the Company's 20-day volume weighted average price of its shares as quoted on the ASX being at least $1.00; or
-- a change of control event occurring.
The issue of the Options to Paul is pursuant to the Company's Long Term Incentive Plan.
An Appendix 3B relating to the issue of Options can be viewed in the link below.
To view the full report, please visit:
http://abnnewswire.net/lnk/CVN02SOL
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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