BetMakers has reported a shakeup of its boardroom makeup, with new incumbents installed as President, CEO and Chairman as the sportsbook platform provider aims to focus on profitability.
Announcing changes to the ASX, BetMakers noted that three different changes have been made to the senior management team as it seeks to fast-track the development of its business across global markets.
The changes to the board are as follows:
- Matt Davey has been appointed as President and Executive Chairman to provide strategic direction, oversight and prioritization.
- Todd Buckingham departs his CEO role to become Chief Growth Officer with a focus on developing and executing on international opportunities.
- Jake Henson is promoted from COO to CEO with a focus on driving the operational excellence of the business and optimizing profitability.
BetMakers shakes up boardroom
Commenting on the Board and Management changes, Todd Buckingham said: “I am especially proud to have been the founding CEO of BetMakers as we have built the Company from a start-up to the respected expansive Global company it is today.
“The decision to transition from CEO to a focused delivery role on our international opportunities and growth initiatives came after an internal review to best position the Company for accelerated growth and how best I could assist in capitalizing on these opportunities.”
BetMakers cited that the restructuring as required to accommodate for the ‘exponential growth’ that it has witnessed over the last three years and that it has created a range of ‘highly lucrative’ global opportunities.
It also noted that each of its revenue divisions are at different stages of maturity which require different levels of investment and attention which have resulted in boardroom-level changes.
Specifically, BetMakers states that after securing access in New Jersey for its Global Racing Network fixed odds initiative, it holds a strong platform whilst being in an ‘embryonic stage’.
Meanwhile, its Global Betting Services Division provides the firm an opportunity to scale on a global level having been in ‘strong growth mode’.
Nick Chan explained some of the changes: “The Board, working with management, have concluded that this restructure creates absolute clarity and focus to deliver on our growth plans for shareholders.
“I welcome Matt Davey back to the Board and thank him for taking on the role of President and Executive Chairman. “In practical terms, these changes are designed to affect a strategic reset of the business, with a clear shift from growth to optimization plus execution.”
Q2 FY23 results
The announcement was made at the same time as the firm published its Q2 results for FY2023, which revealed 9% yearly growth in terms of cash receipts.
For the quarter ending Dec. 31, 2022, BetMakers recorded $20.7m in cash receipts from customers, up 9% YoY and 13% on a sequential basis.
However, leadership warned that after securing a positive EBITDA in FY22, it has invested heavily in international expansion in the last two quarters which will result in a negative EBITDA for FY23, but it aims to deliver earnings growth in FY24.
The firm’s operating costs stood at $7.3m, whilst staff costs amounted to $12.1m.
Other costs including marketing, assets and admin expenses led to net cash loss of $4.1m from operating activities.
Meanwhile, on the investment side, BetMakers put $2.0m into its acquisition of Punting Form and $1.7m into building new Bet Lines betting terminals and other US-based on-track and in-venue hardware.
The acquisition of Punting Form was first announced in October and sees BetMakers integrate that AI platform into all its divisions, and will expand its services to include sectional time ratings for North American racing.
Buckingham commented on the acquisition: “Sectional times are at the forefront of any rating system and required by any serious ratings engine. The synergies across our business are exceptional with both internal use and our external client base benefiting greatly from this acquisition.
“The team at Punting Form are very experienced in delivering B2B wagering solutions and we are excited to have them onboard at BetMakers.”
From investment activities, which were boosted by a $6.7m injection from customer deposits from the Global Tote Hub launch, the firm had net cash of $2.5m.
Finally, BetMakers ended the quarter with $42.6m in the bank.
