Acquisition-related costs meant BetMakers Technology Group’s losses increased by 715.6% during its 2020-21 financial year, despite experiencing 126.7% revenue growth.
Revenue from ordinary activities over the 12 months ending 30 June, 2021 amounted to AUD$19.5m (£10.4m/€12.1m/$14.3m), compared to revenue of $8.6m in FY20.
BetMakers’ chief executive, Todd Buckingham, said in his report that the increase in revenue was due to rising demand for the company’s products and services in Australia and overseas, and that the figure included two weeks of revenue from the company’s acquisition of Sportech’s Racing and Digital business, completed in June 2021.
Buckingham also pointed out that the business’ share price has gone up from $0.045 to $1.07 over the past two years, stating that the company’s strategy is being clearly executed, and has delivered sustained value growth for shareholders.
The majority of BetMakers’ revenue, $13.5m, came from Australia and New Zealand, while the US brought in $2.5m and the UK and Europe $2.4m. The rest of the world brought in the remaining $1.1m.
The business’ cost of sales for the year amounted to $9.3m, up from $2.2m, for a gross profit of $10.2m, up 61.1%.
However, expenses rose faster than revenue, thanks mostly to share-based payments, which came to $12.4m, a huge increase on 2020’s figure of $885,026. Much of these costs were related to the Sportech acquisition.
Both employee benefit expenses and professional fees more than doubled from the previous year, costing the business $9.1m and $1.8m respectively. Administration expenses cost a further $974,126, up 47.6%.
IT and occupancy expenses came in at $692,582 and $205,247, respectively, both up significantly on 2020. Depreciation and amortisation expenses cost the business $2.7m, up from $2.1m, while impairment of receivables cost a further $98,976.
Finance costs totalled $100,637, down from $481,618, while other expenses increased significantly to $3.1m, compared to just $88,175 in 2020.
These costs left the business with a loss before income tax benefit of $20.9m, compared to a $2.4m loss in the previous year.
After an income tax benefit of $3.5m, up from a $277,844 benefit in 2020, BetMakers was left with a total comprehensive loss of $17.5m, compared to a $2.1m loss in 2020.
