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Here’s why the BetMakers (ASX:BET) share price is in the red today

The BetMakers (ASX: BET) share price has fallen today after the company released its quarterly results. Let’s take a look.
The post Here’s why the BetMakers (ASX:BET) share price is in the red today appeared first on The Motley Fool Australia. –

asx share price fall represented by lady in striped tshirt making sad face against orange background

The BetMakers Technology Group Ltd (ASX: BET) share price is falling today after the company released its quarterly results.

After dropping several times to an intraday low of $1.23 this morning, the BetMakers share price has regained some ground and is currently trading at $1.25, down 0.4%. 

Let’s take a look at what’s driving the data and analytic company’s share price this morning.

BetMakers’ balance sheet

For the third quarter ending 31 March 2021, the company reported $5.2 million of receipts from customers – up 31% on the last quarter and 206% more than the previous comparable quarter.

While its income was above its average, so were its costs in product manufacturing, operating, staff and leased assets. 

BetMakers reported earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $415,000.

The company received around $57 million after costs from issuing securities and exercising options. $10 million was brought about by a share purchase plan and $50 million by an institutional placement.

BetMakers ended the quarter with around $125.7 million in cash in the bank.

What has Betmakers been up to this quarter?

Betmakers signed an exclusive partnership with Matt Tripp. The deal means Tripp will receive unquoted performance rights in exchange for his pursuit of ‘strategic deals’ for Betmakers. He can also receive both unquoted performance rights and unquoted options for ‘transformational deals’.

Betmakers also entered into agreements to acquire Sportech’s Racing and Digital assets in the United States, United Kingdom and Europe. The company paid £30.9 million for the acquisition.

BetMakers is now working with Sportech and industry regulators to finalise approvals and authorisations for the licences held by the Sportech assets. This is the last condition left before the company can complete the acquisition, which is expected to happen in the current quarter.

BetMakers is also waiting on a legislative process it hopes will allow it to provide fixed odds betting on horse racing in the US. It expects the process to progress in the current quarter.

Commentary from management

Commenting on the results, BetMakers CEO Todd Buckingham said:

The company is well-placed with $125m cash at bank and is on track to complete the acquisition of Sportech’s racing and digital assets in Q4 FY21.

With our strategic partnerships, including with Matt Tripp, and our first-class team and technology assets, we believe the company is extremely well positioned for substantial growth.

BetMakers share price snapshot

The BetMakers share price is having a great year so far on the ASX. Currently, the BetMakers share price is up 77% year to date. It’s also up 416% over the last 12 months.

The company has a market capitalisation of around $977 million, with approximately 775 million shares outstanding.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the BetMakers (ASX:BET) share price is in the red today appeared first on The Motley Fool Australia.

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