When BetMakers bought Sportech‘s global tote arm last year, the Australian company had big plans and expectations for its newly -acquired asset. With tote revenue figures of $46.9 million for the financial year ending on June 30 and total revenue of $91.7 million, it is obvious BetMakers made the right move.
Moreover, the global tote division is now BetMaker’s leading revenue generator. Previously, the Broadmeadows-based company’s main source of revenue was global betting services.
Global Tote Revenue Increased from $1.7m to $46.9m
In FY 2022, BetMakers reported global betting services revenue of $19.5 million, which even though 179.3% higher than the year before, was below the $46.9 million global tote revenue figure.
For comparison purposes, the wagering technology and data provider brought just $1.7 million in global tote revenue the previous year.
BetMakers’ racing revenue figures were $4.1 million, up by 28% compared to FY 2021. Costs of goods sold rose from $9.3 million in FY 2021 to $25.4 million in FY 2022. BetMakers made a gross profit of $66.3 million, a figure six times higher than the year before.
News Corp Deal Will Bring $300m in Revenue Over Five Years
BetMakers was quite busy in FY 2022 and continued to operate in much the same way in the months after the financial year ended. In addition to the Sportech deal, the company also got involved in News Corp’s new Australian sports betting provider – a deal expected to bring revenue of $300 million over a five-year period.
Later, the consortium that signed the News Corp deal, changed it and acquired TexBet. It also increased the revenue that BetMakers would receive from the whole thing.
Costs Skyrocketed After Acquisitions
However, all of those deals also meant greater expenses for BetMakers. For instance, the company reported paying $46.8 million in employee benefits. Benefits were only a fifth of that amount the previous year. Similarly, share-based payments were $71 million. They were six times lower last year.
As a result, BetMakers’ pre-tax loss was $96.3 million, an almost five-time increase compared to the year before. The company did receive a $7.1 tax benefit, though, so its FY 2022 loss was actually $89.2 million. Still, that was five times the amount the company lost the previous year.