Betmakers Technology Group Ltd (ASX:BET) CEO Speech at Annual General Meeting

Sydney, Australia, November 22, 2022 – (ABN Newswire) – I am pleased to announce the Betmakers Technology Group Ltd (ASX:BET) (OTCMKTS:TPBTF) growth during the year ended June 30, 2022and provide key highlights and context for the FY22 performance of what is now an established global company operating in more than 30 countries.

Fundamentally, it was a transformational year for the Society.

Revenue increased by $19.5 million in FY21 at $91.6 million in FY22.

This growth, achieved with a positive adjusted EBITDA margin, stems from the execution of strategic planning, including: new long-term commercial contracts; development and implementation of new products; organic growth; and asset acquisitions that have expanded the Company’s global operations.

FY22 was the Company’s first full year of operations since the completion of the Sportech active in June 2021. The acquisition has generated synergies and breadth of our technology offerings and expanded our global footprint.

punters now has business agreements in over 30 countries, with clients including betting operators and racing authorities. We have over 200 betting operators and partners using one or more of our products or services.

The Company has offices in 11 locations around the world. It is represented by a qualified and diverse staff of more than 500 people.

The caliber of the company’s international workforce is highly respected, and I am particularly pleased with the integration of business units operating in large geographies around the world. Our people have been remarkably resilient and adaptable during the restrictions of a global pandemic and other challenges.

Collectively, across the company’s three major revenue divisions – Global Betting Services, Global Racing Network and Global Tote – it is the people and products of punters who delivered a strong performance in FY22 and laid the foundation to capitalize on future growth opportunities in FY23 and beyond.

I would also like to point out that as a rapidly growing company expanding into new regions, punters decided in FY22 – following the acquisition and integration of Sportech Assets – to review policies, processes and procedures and establish appropriate standards for operating in highly regulated and complex international markets.

This included updated systems and controls (including redundancies and contingencies) for security and compliance. By setting best-in-class standards, such as achieving the world-leading ISO27001 certification, it has positioned the Company to take full advantage of these investments.

Consistent with this growth trajectory, the fundamentals of the business remain stronger than ever, and the company’s strategic direction to complete previous transactions and capitalize on the ever-increasing global opportunities in the betting landscape remains unchanged.

The Board of Directors and management recognize that Fiscal 22 presented challenging market conditions for shareholders with respect to the Company’s share price.

We recognize that at the macro level, there has been a global pullback in tech growth stock valuations, but we do not believe that the stock price performance of punters is a true reflection of the company’s performance or where it is positioned to seize opportunities in the domestic and international B2B betting landscape.

The Company is aware of short sales of its shares. Access to stocks to sell short came as a surprise given the fundamental performance of the company and the beliefs of the board and management who are heavily invested in and aligned with its success.

The management team and Board of Directors will continue to focus on the company’s fundamental revenue drivers and on executing results that deliver results for shareholders.

punters delivered an exceptional year in FY22, which enabled the company to generate revenues in excess of $100 million in FY23. We are excited to continue our vision of being the world’s leading racing and betting technology company.

FINANCIAL PERFORMANCE

The Company reported revenues of $91.6 million for fiscal 2022, representing revenue growth of 371% over the prior year. The Company also reported Normalized Adjusted EBITDA of +$2.2mil.

Growth was largely driven by the following factors: the expansion of the company’s managed trading platform and services (MTS) offering under the Global Betting Services division; expanding content distribution rights and delivery to licensed betting operators under its Global Racing Network division; and the full-year recognition of revenue associated with the acquisition of the racing and digital assets acquired from Sportech PLC in June 2021 as part of the Global Tote division.

PEOPLE

In FY22, punters invested in the development and growth of its team and will start the new year with approximately 500 employees.

The culmination of this growth of talented people across global geographies has given the company the ability to successfully execute the foundations that have been built – and the contracts that have been executed – over the past few years.

Key appointments for FY22 included the addition of two new board members, Rebecca Giles and Anne Masson. These appointments were made in accordance with Bet Makers intentions to ensure the highest levels of governance with a composition of the Board of Directors that is diversified in its skills and aligned with the Company’s global strategy.

During the year, the company named Christian Stuart, a former senior executive at Caesars Entertainment, to the key role of CEO of North America to help create opportunities in this important market.

In addition, punters also joined its key legal and technology leadership team with the appointment of the former interim CEO of Racing Queensland Sam Adams (Legal Director) and very experienced betting manager Dan McDonald (Digital Director).

KEY CONTRACTS

Throughout FY22, punters focused on the execution and delivery of key strategic contracts intended to set the company up for success in FY23 and beyond.

Some of these key contracts include:

– Signed agreement to be the exclusive technology supplier of the NTD consortium for the Betr platform, with potential revenues exceeding $300 million over the next 10 years;

– Launch of 12 additional platforms on the Australian market;

– Execution of 8 other platform agreements through AustraliaUnited States and Canadascheduled to launch in FY23;

– Execution of an amended agreement with the New Jersey Thoroughbred Riders Association extend the duration of punters to exclusively manage fixed odds betting on thoroughbred horse racing in New Jersey;

– Expanded our North American content to over 12,000 races per year for distribution in international jurisdictions and across Bet Makers customer network;

– Signature of a binding framework agreement to become the exclusive provider of mutual betting services on the races of Caesars Entertainment Inc. physical sports betting shops in Nevada;

– Selected as a new catch-all and technology and service provider for the country of Norway under a 10-year agreement to provide betting processing services with Norsk Rikstoto;

– Extended pari-mutuel services agreement with Monmouth Park for another 5 years.

– In United Statesthe company successfully launched fixed odds betting in the state of New Jerseythe first bets being placed on the right track in May 2022.

Betr’s launch in the Australian market was very successful, with some 300,000 registrations. The platform withstood a significant volume of traffic with a peak of more than 8,000 bets per minute during the spring carnival. punters owns this technology platform and intends to leverage it across all areas of its global business. We believe this investment will bring significant benefits in the future.

The Company is well capitalized with $64 million cash in the bank September 30, 2022.

The investment in Betr and other initiatives has caused punters to report negative operating cash flow in the first quarter of FY23. However, we expect to generate positive operating cash flow in the second half of FY23.

As such, we are well positioned to meet future cash requirements, including ongoing acquisitions, capital expenditures and organic investments required by the business.

We have also invested heavily in our cybersecurity, ISO27001 certification, regulatory frameworks and procedures, and of course in our people. It has been a real transformation for the company and a significant investment, but positions us as a world-class player in a rapidly growing global industry.

Management and the Board of Directors are focused on executing the company’s strategy and realizing the multiple opportunities for growth that our unique set of assets offers.

The year ended with confidence, enthusiasm and substantial gains, with the Company positioned to reap the rewards of the successful operation of Bet Makers suite of assets. The long-term future of the company is very promising.

We would not be in this position without the invaluable support of our shareholders, our dedicated Board of Directors and every employee globally, and we are truly grateful.

Todd Buckinghamgeneral manager of punters

About Betmakers Technology Group Ltd:

Betmakers Technology Group Ltd (ASX:BET)(OTCMKTS:TPBTF) is an ASX-listed holding company and a global provider of online betting products and services in the wholesale and retail markets through its various wholly owned subsidiaries . The Company operates a retail betting business, providing consumers with betting, fantasy tournaments and content products and services.

Contact :

Charlie DuffyCompany Secretary
Email: [email protected]
M: +61-409-083-780

Jane MorganInvestor Relations and Media
Email: [email protected]
M: +61-405-555-618

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