The Betmakers Technology Group Ltd (ASX: BET) share price is under the spotlight today after releasing its quarterly update.
What’s happening to the Betmakers share price?
Betmakers share are currently down around 1% after it revealed its FY21 fourth quarter.
It said that it received $8.9 million in cash receipts in the fourth quarter, which was an increase of 71% on the previous quarter. It was an also increase of 272% increase compared to the last quarter of FY20.
This strong increase in revenue was thanks to a significant increase in activity in the Australian market and a positive early result from its international expansion plans.
These quarterly numbers also included two weeks of cashflows from the Sportech acquisition which was completed on 17 June 2021. Sportech is a racing, tote and digital business.
It finished the period with more than $120 million of cash and has no debt.
In terms of operating cashflow, it made a positive $648,000 for the quarter and it was almost breakeven over the 12 months to 30 June 2021.
What does it plan to do with that money?
Betmakers says that it intends to be strategic and opportunistic with sustained investment in its business to business wagering technology and data platforms. This includes software and hardware products, as well as content acquisition for its global racing network and global tote expansion.
During the quarter, it invested $1.5 million in technology and hardware as part of its strategy to enhance the racing and wagering experience in the US,
Management comments
Betmakers CEO Todd Buckingham said: “Betmakers has a very clear strategy for growth in Australia and internationally. This includes in the US where our Fixed Odds plans, starting in New Jersey, progressed during the fourth quarter after being passed unanimously by the Senate and General Assembly.
“With a clear strategy, focused management, highly-skilled global staff and the opening up of sizeable opportunities across the world wagering markets, we feel that Betmakers is well placed to build upon the foundations it has now established.”
Summary thoughts on Betmakers and the share price
Despite a heavy decline for the high in late May, the Betmakers share price is still up around 92% over the last year.
The business has made a lot of progress in the last year, but without a crystal ball it’s hard to say how much profit it’s going to make in the coming years. There is some strong competition in the space.
This isn’t the type of investment bet I like to make on a high-priced, high-growth business. There are other ASX growth shares I like the look of more.
