Reports Positive EBITDA for June Quarter
- Positive underlying EBITDA for the June 2019 quarter
- Positive cashflow expected for September 2019 quarter
- Updated guidance for FY20 of $3.4mil to $3.7mil EBITDA on expected revenues of $10mil
- Completed current payment obligations for acquisition of DynamicOdds Pty Ltd and C.D.K Software Limited
- Completed current payment obligations for acquisition of Global Betting Services Pty Ltd
- Secured strategic investment from Tekkorp Holdings LLC
Based on the estimated revenues, the Company now expects to deliver between $3.4mil and $3.7mil in EBITDA for FY20.
BetMakers Chief Executive Officer, Mr. Todd Buckingham, said: "The Company is seeing increasing demand in International wagering markets for its products and services, and we will continue to pursue these opportunities as well as enhancing and expanding products domestically."
"We are now in a position where we believe we are sufficiently funded to execute on growth plans - as a technology company, there is a need to develop new products and services and we feel that we are now in a position to do this through internal cash-flows."
"We aim to be the leading betting technology company globally with a key focus on being the conduit between racing bodies and wagering operators for both their commercial success and compliance and integrity obligations."
In the June 2019 quarter, the Company accepted a strategic investment from Tekkorp Holdings LLC ("Tekkorp"), a Las Vegas-based international wagering and gaming industry investment firm ("Investment"). President and CEO of Tekkorp, Mr. Matt Davy, is an international wagering and gaming industry leader with more than 20 years of experience who recently sold NYX Gaming Group to Scientific Games for more than $800mil.
The June 2019 quarter also saw the completion of the pro-rata non-renounceable rights issue, which, together with the Investment, allowed the Company to restructure and finalise the immediate cash payment obligations in respect of the acquisitions of DynamicOdds Pty Ltd, C.D.K Software Limited and Global Betting Services Pty Ltd. The Company has now satisfied its current payment obligations with the final payments due by 30 June 2024.
The Company would also like to note that while normal activities included positive EBITDA numbers, it has reported negative cash-flows for the June 2019 quarter due to several oneoff payments associated with restructuring across the business to realise acquisition synergies, and other costs incurred in relation to refinancing and capital raising activities.
Cash outgoings for Q1 FY20 are expected to be approximately $1.80mil compared with expected cash inflows during the quarter of at least $2.00mil.
About Betmakers Technology Group Ltd
Betmakers 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.
Betmakers Technology Group Ltd