BetMakers Technology Group is pleased to provide this activity report for the quarter ended 30 September 2023 (Q1 FY24).

Solid revenue was achieved in Q1 FY24, up 9.3% to $26.1 million, driven by new customer growth. Costs continue to come down as part of the cost reduction program, with an underlying EBITDA loss for Q1 FY24 of

$767k, a substantial improvement on the $6.5 million loss in Q1 FY23. As previously flagged, investment in product development ( improvement on the $6.5 million loss in Q1 FY23.

 Q1 FY24 cash receipts were $24.5 million, up 3.1% on pcp. Cash receipts were impacted by a delay in customer recoveries of around $1.5 million, which is expected to be resolved in Q2 FY24.

Net operating cash outflows for Q1 FY24 was $7.6 million, reflecting a number of one-off and annual costs. It also includes approximately $1.0 million in payments to PENN National Gaming for international content rights, which will be ongoing in nature (see Company announcement 30 June 2022 “BET signs deal with Penn National Gaming”). It is expected that operating cash outflows will be reduced by more than $3 million in Q2 FY24.

Total cash on hand reduced by $4.7 million to $36.2 million as at 30 September 2023. The 30 September 2023 unrestricted cash was $22.5 million, and as previously disclosed to the market, management are working towards maintaining an unrestricted cash balance of at least $20.0 million.

Commenting on the quarter, Executive Chair Matt Davey, said, “The quarter marked one of further progress for the Company as it continued to focus on reducing and normalising the cost base and simplifying the operating model. The restructure of the US operations is now complete, which provides a strong footing to build further scale in the US in a profitable way.

“We were able to extend contracts with key partners, which helps underpin our revenue for the remainder of FY24 and beyond, and importantly, shows that our technology is delivering value to our customers. We also upgraded our hardware monitoring technology and signed an embedded race book agreement with TonyBet, further strengthening our technology capabilities.