Quarterly Activities Report
Quarterly Activities Report
Sydney, July 26, 2021 AEST (ABN Newswire) - The Board of BetMakers Technology Group Ltd (ASX:BET) (FRA:T07) is pleased to release its Quarterly Cash Flow Statement and Quarterly Activities Report for Q4 FY21, the quarter ending 30 June 2021.

Quarterly highlights

- $8.9mil in cash receipts from customers in Q4 FY21

- 71% increase versus Q3 FY21 and 272% increase versus Q4 FY20

- Completion of acquisition of Sportech racing, tote and digital business

- Fixed Odds Bill passed unanimously in Senate and General Assembly in New Jersey

- Acquisition of Form Cruncher and Swopstakes assets

- Placement shares issued to wagering industry leader Matt Tripp

- Closing cash balance of $120mil

The Company recorded its strongest quarter to date with $8.91mil in cash receipts from customers in Q4 FY21. This was up from $5.2mil (+75%) on the previous quarter (Q3 FY21) and a (+272%) increase on comparison Q4 FY20. A summary of the Company's historic quarterly performance is tabled in link below*.

The revenue growth in Q4 FY21 was derived from a significant increase in activity in the Australian market and a positive early result from the Company implementing its international expansion plans.

The Company announced the completion of the Sportech PLC ("Sportech") asset acquisition on the 17th June and the reported numbers for Q4 FY21 include approximately two weeks of cashflows from the Sportech racing, tote and digital business that has been acquired by BetMakers.

The Company finished Q4 FY21 with more than $120 million in cash and continues to operate without any debt.

BetMakers intends to be strategic and opportunistic with sustained investment in its B2B wagering technology and data platforms. This includes software and hardware wagering products, as well as content acquisition for its Global Racing Network, and Global Tote expansion. During the quarter, the Company invested $1.5 million in technology and hardware as part of its strategy to enhance the racing and wagering experience in the United States. Investments are intended to fully capitalise on multiple international opportunities that the Company has created in the United States and other countries, while also maximising potential returns within the Australian market.

Company CEO Todd Buckingham said: "The past quarter is a very pleasing result for the Company. We have seen an impressive uplift on our strong base of domestic operations while also capturing growth in global markets that we have identified as having the potential to be opportunities for us to expand our B2B wagering technology products and services globally as they continue to develop.

"BetMakers has a very clear strategy for growth in Australia and internationally. This includes in the United States where our Fixed Odds plans, starting in New Jersey, progressed during Q4 FY21 after being passed unanimously by the Senate and General Assembly.

"I am especially pleased that we have completed the acquisition of Sportech's racing, tote and digital assets during Q4 FY21. This material acquisition is a cornerstone of our future plans and we are delighted to have welcomed staff within these businesses into the BetMakers' team.

"With a clear strategy, focused management, highly-skilled global staff and the opening up of sizeable opportunities across the world wagering markets, we feel that BetMakers is well placed to build upon the foundations it has now established."

Highlights during Q4 FY21 included:

COMPLETION OF ACQUISITION OF SPORTECH RACING, TOTE AND DIGITAL BUSINESS

BetMakers completed the acquisition of the racing, tote and digital business from Sportech as announced on 18 June 2021 (BetMakers made payment of GBP24.7 million as part of the completion process).

The acquisition of the Sportech assets enhances BetMakers' position to capitalise on growth opportunities in international wagering markets and is anticipated to materially expand the Company's global customer base, technology and geographic reach.

These assets provide BetMakers with a platform to target growth in the United States, including with respect to Pari Mutuel and Fixed Odds wagering.

As previously announced to the ASX on 1 December 2020, the business assets acquired by BetMakers comprise the following:

- Americas Tote Business: providing betting solutions, hardware, and operational services to over 200 racetrack, casino, and betting venues to more than 50 customers across the United States, Canada and Latin America.

- Americas Digital Business: providing white-label digital betting solutions to more than 25 customers in North America.

- UK and European Tote Business: providing betting technology, parimutuel and co- mingling services to more than 35 customers across the UK, Ireland, Europe, and Asia.

- QuantumTM Tote Technology: a world-leading tote betting engine currently used internationally and including for events such as the Breeders Cup and Royal Ascot race meetings.

FIXED ODDS BILL PASSED UNANIMOUSLY IN BOTH SENATE AND GENERAL ASSEMBLY IN NEW JERSEY

BetMakers announced to the market on 22 June 2021 that a Bill to "authorise fixed odds wagering on horse races through fixed odds wagering system" ("Fixed Odds Bill") was passed unanimously in both the Senate and General Assembly in New Jersey.

The Senate voted 40-0 in favour of the "Fixed Odds Bill" after amendments were made to accommodate the horsemen groups and stakeholders. The "Fixed Odds Bill" was then declared passed after a unanimous 71-0 vote in favour by the General Assembly.

As a part of the formal legislative process, the Bill has been sent to the Governor of New Jersey for approval to become law.

As previously announced to the market, BetMakers has secured an exclusive 10-year agreement with New Jersey Thoroughbred Horsemen Association and Darby Development LLC., the operator of Monmouth Park racetrack, to deliver and manage Fixed Odds thoroughbred horse racing into New Jersey. Please see the Company's announcements dated 5 February 2020, 3 July 2020 and 21 May 2021 for further information regarding this agreement.

ACQUSITION OF FORM CRUNCHER AND SWOPSTAKES ASSETS

BetMakers announced to the market on 23 June 2021 that it (and its wholly owned subsidiary, BetMakers DNA Pty Ltd("BDNA")) had entered into agreements pursuant to which BDNA has acquired the technology platform assets, databases and intellectual property of racing data company Form Cruncher Pty Ltd ("Form Cruncher") and technology and intellectual property associated with the Swopstakes betting product from the parent company of Swopstakes Australia Pty Ltd ("Swopstakes").

Form Cruncher processes racing event data such as odds, price fluctuations, sectional times and results to create advanced form information and dynamic content that can be adapted and customised globally.

Features include: Race and runner ratings, Speed ratings and maps, Runner comments, Race overviews and suggested tips that can be customised to suit each platform partner's 'Branding and language'. No cash payments were made during the quarter in relation to the acquisition of the Form Cruncher assets.

Swopstakes is a wagering platform, specifically developed to run sweepstakes on racing and sports events including AFL, NRL, NBA and NFL. Swopstakes' proprietary betting product allows customers to purchase tickets in featured events and play tournament-style live games on real racing and sports events. Players can buy, sell or swap tickets during the course of an event until one ticket holder is eventually the winner. The Company paid $634,750 (plus GST) during the quarter in relation to the acquisition of the Swopstakes assets.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/J1L9330M


About Betmakers Technology Group Ltd

Betmakers Technology Group LtdBetmakers Technology Group Ltd (ASX:BET)  (FRA:T07) 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.

    


Contact

Charly Duffy
Company Secretary
E: companysecretary@thebetmakers.com
M: + 61-409-083-780

Jane Morgan
Investor and Media Relations
E: investors@thebetmakers.com
M: +61-405-555-618



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