3 May 2023
BetMakers posts net loss in Q3 2023 due to rising costs
BetMakers, the Australian sports betting technology and data provider, has recorded a net loss in Q3 2023, despite achieving a 9% increase in revenue from the same period the previous year. The company cited significant cost pressures caused by investments in new contracts, technology, and growth opportunities as the main reason for the loss. However, the business is committed to normalizing its operating costs in Q3 and is aiming to achieve operational cash flow positivity by H2 FY23.
BetMakers is undertaking a cost-reduction initiative to achieve its goal. The company has achieved a 13% decline in product manufacturing costs by right-sizing systems and using cloud hosting environments. Staffing costs have also fallen by 8% due to a restructuring and a reduction in the use of third-party contractors. Furthermore, administrative and corporate costs have dropped 25% because of the lack of an annual insurance payment in Q3 and a reduction in the use of third-party advisors.
The company is reviewing its cost base to identify operational inefficiencies and achieve sustainable positive cash flows. The senior leadership team restructuring that the company underwent earlier this year will also aid BetMakers’ acceleration of growth and position it to capitalize on new opportunities.