ASX-listed Betmakers to shed over 120 staff
BetMakers, the wagering technology powerhouse, will be relinquishing over 100 positions globally in a decisive move towards financial recalibration.
This ASX-listed entity, recognised as the exclusive tech partner for News Corp’s Australian betting site, Betr, is on track to decrease annualised personnel expenses and overheads by 23 per cent, aligning with the commencement of the new fiscal year.
The CEO of BetMakers, Jake Henson, revealed that the impending $20 million in expenditure reductions emerged from a comprehensive strategic review spanning four months.
As the company refocuses its cost structure in the wake of deploying proprietary technology and reassessing its operational model, Mr. Henson emphasised the company’s dedication to ensuring enduring value for its stakeholders.
The restructuring initiative is considered a critical phase in fulfilling this vision.
Accordingly, the modifications intend to pave a transparent trajectory towards profitability, simultaneously fashioning a more streamlined operational framework to amplify the potential for future expansion.
This efficiency enhancement programme, with a projected cost of $2.5 million, will reduce the employee headcount from 568 to 440.
This course of action follows the recent move by former Australian bookmaker Tom Waterhouse, who diminished his business stake two months prior.
Mr Waterhouse divested $4.6 million of his BetMakers shares via his Waterhouse VC fund in March, leaving him with a 4.87 per cent stake.
He is currently the fourth-largest shareholder, trailing Tekkorp Holdings, Mr Tripp’s personal investment vehicle, and Paradice Investment Management.
Investor sentiment towards BetMakers has experienced a downturn recently.
As part of a group of unprofitable shares bearing the brunt of climbing interest rates, the company has suffered a staggering 75% drop in its valuation over a single year.
On Tuesday, the shares closed at 12¢, rallying to 15¢ by Wednesday.
The executive chairman of BetMakers and betting entrepreneur, Matt Davey, maintains that the company remains committed to profitable growth.
The restructuring initiative will enable increased concentration on the company’s primary platform and products, thereby enhancing the advantages and value offered to both domestic and international customers, according to Mr Davey.
He had previously indicated that BetMakers was actively seeking opportunities to expand fixed-odds betting services to additional horse racing jurisdictions worldwide, especially in the United States (US).
Since its inauguration last October, the Betmaker powered bookmaker Betr has been plagued by technical glitches, causing growing concern among punters.
This unease has been paralleled by increasing caution from Rupert Murdoch’s Newscorp, which had pumped $49 million into the business over six months, as reported in the group’s December results.
In March, the board of Betr saw the departure of two senior Newscorp executives, Peter Blunden and Mark Reinke.
Consequently, only Mr Tripp and one other director remain on the board.
Subsequently, Betr revealed that it was on the market, appointing Barrenjoey following an influx of interest.
