• Upgrades to products and technology driving growth opportunities
• Apollo Platform migration completed, delivering cloud cost savings
• Restructuring initiatives improve operating leverage

BetMakers Technology Group Ltd (ASX:BET) reported significant progress in its transformation strategy during the quarter ended 31 December 2024 (Q2 FY25). Key highlights include: 1) Upgrades to products and technology driving an increasing number of growth opportunities, with the company expecting to see the impact in late H2 FY25 and further improvements in FY26. 2) Successful completion of the migration of Australian platform customers onto the Apollo platform, delivering an enhanced user experience and expected material cloud and infrastructure savings. 3) Successful execution of restructuring initiatives, reducing total annualised staff costs by a further $5.1 million from 30 June 2024 to 31 December 2024. This has improved operating leverage, with the company now aiming to reduce the run-rate of cash operating expenses below $55 million prior to the end of this financial year. 4) Continued improvement in profitability metrics, with the adjusted EBITDA loss reduced by 68.7% QoQ to $0.3 million and net cash used in operating activities improving 43% QoQ to $1.3 million. The company expects its operating cash-flow trajectory to continue to improve in H2 FY25 as the impacts of the restructuring and the Apollo migration take full effect. 5) Engagement with customers remains strong, with several new brands expected to launch on the Apollo Platform and new contracts or extensions signed across the business.

Based on the current run-rate of operating costs, the expected impact of the restructure and the technology upgrades, the company is now aiming to further reduce the run-rate of cash operating expenses below $55 million prior to the end of this financial year.

BetMakers expects to see the impact of its improved growth outlook in late H2 FY25, with further improvements in revenue growth anticipated into FY26. The company anticipates strong incremental margins from its key growth initiatives.