The BetMakers (ASX:BET) share price is up 28% this month. Here’s why

The BetMakers Technology Group Ltd (ASX: BET) share price has soared in April. Let’s take a look at what the company has been up to.
The post The BetMakers (ASX:BET) share price is up 28% this month. Here’s why appeared first on The Motley Fool Australia. –

asx share price rise represented by excited investor making fist at computer screen

BetMakers Technology Group Ltd (ASX: BET) shares have soared through April. At the time of writing, the BetMakers share price is trading at $1.34, 28% higher than it was at the end of last month.

BetMakers is a business-to-business company providing data and analytics. It works in two segments: content and integrity, and wholesale wagering products.

This month, the company has earned its share price’s gains by promising big and delivering bigger. Let’s take a look at two major announcements that helped boost the BetMakers share price in April.

Investor update

We haven’t heard much from BetMakers lately, but what we have heard has been upbeat.

On 29 March, the company released an investor update filled with positive news. The BetMakers share price jumped almost 6% higher on the day of the release.  

Within the update, BetMakers shared that it expected to have generated revenues of $5 million across the third quarter of 2021, which would deliver a 25% quarter-on-quarter increase.

The company further highlighted that it has another four brands launching on its white-label wagering platform in the fourth quarter of the 2021 financial year.

BetMakers also shared that, in the first half of the 2021 financial year, it made 70% of its revenue from Australasia. As The Motley Fool has previously reported, this may have been the major catalyst for its massive growth throughout 2020. As a country, Australia has one of the highest rates of gambling losses in the world, yet it still increased by 35% during Victoria’s COVID-19 induced lockdown.

The company is also in the process of acquiring Sportech’s racing and digital businesses which BetMakers says will make it one of the leading technology providers for racing services in more than 30 countries.

Quarterly results

Following its March update, investors still had another month left to anticipate what BetMakers had actually achieved over the third quarter. The company released its quarterly report on Wednesday this week.

The BetMakers share price opened slightly lower on Wednesday, but those losses were soon recouped. Since then, the BetMakers’ share price has gained another 6%.

The company’s quarterly report proved to be even more upbeat than it had estimated in its investor update.

BetMakers recorded $5.2 million of receipts from customers – up 31% on the last quarter.

Further, in March the company had predicted it would have $100 million in cash. But by the end of the quarter, it actually had $125 million in the bank.  

Over the quarter, the company received around $57 million after costs from a share purchase plan and an institutional placement.

BetMakers share price snapshot

All in all, ASX investors who had faith in BetMakers’ forecast at the end of last month can pat themselves on the back. April’s performance has just added to the meteoritic rise in the BetMakers share price. Currently, shares in the company are up a whopping 90% year to date. Even more staggering – they’re up 375% over the last 12 months.  

This has left the company with a market capitalisation of around $1 billion. There are approximately 775 million BetMakers 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 The BetMakers (ASX:BET) share price is up 28% this month. Here’s why appeared first on The Motley Fool Australia.

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