Insights

Why Betmakers (ASX:BET) share price jumped when losses deepened

The Betmakers Technology Group Ltd (ASX: BET) share price rallied after the company unveiled a big jump in revenue but…
The post Why Betmakers (ASX:BET) share price jumped when losses deepened appeared first on The Motley Fool Australia. –

The Betmakers Technology Group Ltd (ASX: BET) share price rallied after the company unveiled a big jump in revenue but a bigger profit loss.

The online bet technology group posted a 126.7% surge in FY21 revenue to $19.5 million. But its net loss blew out by three-fold to $13 million versus FY20’s $4.4 million loss.

Betmakers share price beating the odds

The red ink did not deter investors. The Betmakers share price increased 3.1% to $1.16 in early trade as the S&P/ASX 200 Index (Index:^AXJO) added 0.4%.

In contrast, gaming heavyweight Crown Resorts Ltd (ASX: CWN) share price fell 0.4% to $9.28 when it released its results.

More red ink

The group’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was a negative $2.9 million.

This is also worse than the previous year’s $847,000. Adjusted EBITDA excludes impairment/recovery of receivables, share-based payments expense, and Sportech related deal costs.

The widening earnings loss is due to extra investments Betmakers needed to make to support its international expansion. For instance, it spent $2.4 million just in operating expenses for its US business alone during the year.

Why Betmakers share price can rally as bottom-line falls

But investors’ focus tends to be more on the top- than the bottom line when it comes to high-growth ASX small caps.

In that regard, Betmakers is kicking goals. Its Global Betting Services division won a 130% revenue payoff with sales jumping to $14.6 million. This division accounts for around 75% of total group revenue.

Global Betting Services is a business-to-business (B2B) global racing solutions provider that offers services like fixed odds pricing and platform development.

Contributing to growth

Meanwhile, the group’s Global Racing Network division expanded FY21 revenue by 44% to $3.2 million compared to the previous year. Management credits the expansion of its content and distribution network for the growth.

This division operates in 36 countries and covered over 300,000 races during the financial year. Some of the services the business provides include rights management, racing vision and reporting and analysis.

Further, the group’s acquisition saw its Globel Tote business contribute $1.7 million to total revenue in the period. And this was just from the first 14 days of the acquisition.

Betting on more growth ahead

Betmakers also indicated it’s hunting for other opportunities to grow inorganically – either through takeovers or partnerships. But management’s focus will be on expanding its operations in the US market.

The Betmakers share price has surged by over 120% over the past year when the S&P/ASX SMALL ORDINARIES (INDEXASX: XSO) gained 25%.

The post Why Betmakers (ASX:BET) share price jumped when losses deepened appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Crown (ASX:CWN) share price wobbles as profit slumps 429%
ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX

5 things to watch on the ASX 200 on Monday

How has the Westpac (ASX:WBC) share price performed against the banking sector in August?
The Crown (ASX:CWN) share price lifted last time the company reported

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!