The Company continued its strong growth during the quarter across key metrics of Active Unique Clients (up 30% on the previous quarter), Turnover (up 52%) and Revenue (up 95%). The increase in turnover was attributed to the Spring Carnival Racing period and an increase in the marketing activity by the Company's wholly-owned Alderney-based subsidiary, The Global Tote Limited ("The Global Tote"), for its wholesale product.
As announced on 22 January 2018, the Company released an update to the market on the December 2017 quarter numbers as follows:
The Company recorded wagering and tournament turnover of $82.91M, which is a 52% increase on the September 2017 quarter.
The increase in turnover resulted in a revenue increase of 95% from the previous quarter - from $3.55M to $6.92M.
Active Unique Clients increased by 30% compared with the previous quarter (up to 14,223 from 10,904).
Operating cash outflow - Actual December 2017 quarter compared with September 2017 quarter actual and forecast
During the December quarter, to capitalise on the Australian Spring Racing Carnival period, the Company increased its marketing spend to $3.28M, of which $2.58M was attributed to client acquisitions.
Looking forward to the March 2018 quarter the Company intends to significantly reduce acquisition marketing spend as it focuses on realising the benefit of the customers acquired in the December quarter as well as the execution of The Global Tote's wholesale strategy globally. During this quarter The Global Tote will concentrate on further integration of The Global Tote product into previously announced signed-up bookmakers' platforms and giving them access to the tote and other revenue-generating products such as Fixed Odds, Fixed Odds exotics and Racing Informatics.
The Company anticipates it will receive its R&D grant in March, which is estimated at $0.75M.
As outlined in line item 2 above, "Product Manufacturing and Operating Costs" were higher than anticipated in the December quarter as the Company took the opportunity to pursue greater customer acquisition numbers for the Spring Racing Carnival, which has so far delivered a growth in Active Unique Clients, Turnover and Revenue, with further benefits expected to be realised in coming months as the newly-acquired customers continue to wager on the Company's platforms.
TopBetta's Managing Director, Mr Todd Buckingham, commented: "The December quarter was a pleasing strong result as best shown in the growth across all key measurable metrics of the business. We have driven hard through customer acquisition to reach this base for the retail business while at the same time establishing the wholesale business (The Global Tote) in multiple countries. The Company still remains in a strong position financially with a $4.7M cash balance and will now be focussing on reducing the cost base of the retail business while it focuses on the roll-out of The Global Tote's suite of products on to wagering operators' platforms globally."
* All financial figures contained in this Announcement are provided on an unaudited basis.
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About Topbetta Holdings Ltd
The Company has built proprietary technology platforms that combine an online racing and sports wagering offering with a fantasy wagering platform and enables sports fans to compete against each other via online tournaments.
Topbetta Holdings Ltd