BetMakers cuts staff by 23% to streamline operational infrastructure1st June 2023 9:17 am GMT
Sydney-listed sports betting technology provider BetMakers is looking to accelerate its path to profitability after restructuring its global operations and technology.
Over the past four months, the company has undergone a cost base reduction and global efficiencies program, which is expected to result in significant operating overhead reductions and savings across the business.
This will see annualised staff and operating overheads reduced by 23 per cent to AUD$70.5 million from the first quarter of its 2024 financial year.
The total number of employees is projected to be approximately 440 in Q1 FY2024, a decline of 23 per cent compared to the end of December 2022 (568 employees).
The cost of executing the global efficiencies program is expected to be between $2.0 million and $2.5 million.
“The company’s cost base has been reset on the back of the deployment of proprietary technology and a strategic review of our operating model,” said BetMakers CEO Jake Henson. “BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal.
“The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximise future growth opportunities. For our customers, who are at the core of our value creation process, we are committed to delivering best-in-class levels of service and quality. The investments in our technology and the extended roll out of our platforms and products into all regions both domestically and globally will support this ongoing commitment.”
BetMakers executive chairman Matt Davey commented: “As detailed when we presented our Q2 FY23 results, and reiterated in our Q3 FY23 announcement, the company is focused on delivering operational efficiencies, simplifying our global operating model, and positioning the company for profitable growth.
“Management and our global team have delivered on this promise, and we now expect the company to be well positioned to drive operating leverage as we expand our revenue base. Importantly, this restructure will allow increased focus on our core platform and products, improving the benefits and value we can deliver to our domestic and international customers.”
Shares in Betmakers Technology Group Ltd (ASX:BET) closed 3.33 per cent lower at $0.145 per share in Sydney earlier Thursday.