BetMakers chief executive, Todd Buckingham, declared that the firm is now “unquestionably robust and autonomous” following a significant surge in earnings for the fiscal year 2021-22. This growth was attributed to the acquisition of Sportech’s global wagering division.
The company generated A$91.7 million in the year ending June 30, but their financial losses also escalated after the acquisition.
Global betting services, which previously constituted the most substantial portion of BetMakers income, generated A$19.5 million, representing a 179.3% increase.
However, it no longer holds the top spot in terms of revenue generation due to the expansion in other areas subsequent to the acquisition.
The global betting division acquired from Sportech is now the primary revenue generator. Betting income reached A$46.9 million, a substantial increase from A$1.7 million the previous year, as the deal was finalized in the final weeks of 2020-21.
BetMakers global racing network generated A$4.1 million, reflecting a 28% increase.
The expenses associated with sales also rose, albeit at a slower pace, increasing from A$9.3 million to A$25.4 million. This resulted in a profit of A$66.3 million, more than six times the previous year’s earnings.
However, post-acquisition costs also experienced a significant surge.
Employee benefits climbed to A$46 million.
BetMakers encountered a challenging fiscal period, experiencing a substantial pre-tax deficit of A$96.3 million, a significant increase from the A$20.9 million loss recorded in the preceding year. Despite a surge in revenue to A$8 million, their share-based compensation payments soared to A$71 million, nearly sixfold the amount paid in the previous year.
Following a tax reduction of A$7.1 million, BetMakers’ final deficit reached A$89.2 million, representing a fivefold increase compared to the previous year’s loss.
At the conclusion of the fiscal year, BetMakers forged a critical agreement with a joint venture spearheaded by media conglomerate News Corp. This partnership has the potential to generate up to A$300 million in revenue over a five-year period.
Subsequent to the fiscal year’s end, the entities participating in the consortium revised the agreement, acquiring the betting brand TexBet and enhancing the maximum revenue BetMakers could generate from the venture.
