BetMakers Executes Strategic Operational Restructure
Sydney, May 31, 2023 AEST (ABN Newswire) - BetMakers Technology Group Ltd (ASX:BET) (TPBTF:OTCMKTS) is pleased to provide shareholders an update on its cost base reduction and global efficiencies program, which is expected to result in significant operating overhead reductions and savings across the business moving forward.
As announced on 31 January 2023, the Company made a number of Board and management changes to enable the optimisation of the business in order to reach its full potential. As noted by Nick Chan (Non-Executive Director):
"These changes are designed to affect a strategic reset of the business, with a clear focus on operational discipline, specifically a return to positive cashflows, cost efficiency, and optimal capital management."
During the past four months, the Company has undertaken a wide-ranging operational review and is pleased to provide the following material updates on progress to date:
- Normalisation of annualised staff and operating overheads of the business are expected to reduce from $91.5m (H1 FY2023) to approximately $70m (unaudited) from Q1 FY2024 (a decrease of 23%).
- The reduction in cost is primarily driven by restructuring of global operations and technology.
- Total number of employees is projected to be approximately 4403 in Q1 FY2024, compared with 568 as at 31 December 2022 (a reduction of 23%).
- The cost of executing the global efficiency program is expected to be between $2.0m - $2.5m.
The operational restructure has been made possible by streamlining and consolidating key software offerings and leveraging technology monitoring and reporting capabilities. This in turn, has allowed the Company to streamline its operational infrastructure.
BetMakers Chief Executive Officer, Jake Henson, commented:
"The Company's cost base has been reset on the back of the deployment of proprietary technology and a strategic review of our operating model. BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal. The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximise future growth opportunities.
For our customers, who are at the core of our value creation process, we are committed to delivering bestin-class levels of service and quality. The investments in our technology and the extended rollout of our platforms and products into all regions both domestically and globally will support this ongoing commitment."
BetMakers Executive Chairman, Matt Davey, commented:
"As detailed when we presented our Q2 FY23 results, and reiterated in our Q3 FY23 announcement, the Company is focused on delivering operational efficiencies, simplifying our global operating model, and positioning the Company for profitable growth.
Management and our global team have delivered on this promise, and we now expect the Company to be well positioned to drive operating leverage as we expand our revenue base.
Importantly, this restructure will allow increased focus on our core platform and products, improving the benefits and value we can deliver to our domestic and international customers."
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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.
Betmakers Technology Group Ltd