BetMakers Q1 FY27 revenue rises 16.3% to AU$24.7m as margins improve

Australian wagering technology supplier BetMakers Technology Group increased its gross margin to 69.1% in the first quarter of FY27, from 63.9% a year earlier on a constant-currency basis. Its digital customer base expanded and operating expenses edged down despite higher revenue.

Revenue for the three months ended 30 September was AU$24.7m (US$17.42m), a 16.3% year-on-year rise from the comparable AU$21.2m. Its adjusted EBITDA reached AU$5.9m, up 176.1% from AU$2.1m, and the margin increased to 23.8% from 10.0%. 

The comparison removes the effect of exchange-rate movements and all quarterly figures are unaudited.

The quarterly report also records unadjusted EBITDA of AU$5.35m, against AU$2.01m a year earlier. It does not publish Q1 net income or a statutory profit or loss, so the EBITDA figures should not be read as bottom-line earnings. In its latest audited accounts, BetMakers reported an FY26 net loss of AU$5.18m, compared with AU$25.4m in FY25.

BetMakers attributed the revenue increase chiefly to a larger digital customer base. Its Apollo wagering platform recorded higher activity, while the Global Tote operation benefited from cloud and other cost efficiencies. 

Q1 operating expenses fell to AU$11.2m from AU$11.4m on the constant-currency comparison. Capitalised staff costs rose from AU$1.42m to AU$2.03m and are excluded from the reported staff expense line.

Operating cash flow moved to an inflow of AU$2.8m from an AU$1.2m outflow a year earlier. That result came after a US$2m annual minimum-guarantee payment to Monmouth Park. Unrestricted cash was AU$16m at 30 September, up AU$0.4m from the end of FY26. 

BetMakers is also progressing its proposed acquisition by Tabcorp. The scheme still requires competition, gaming, racing, shareholder and court approvals, with implementation targeted for Q3 FY27 if those conditions are met.  

Management's longer-term targets include at least 10% annual revenue growth, a 70% gross margin and a 25% adjusted EBITDA margin. These remain targets rather than forecasts.

In August, Tabcorp agreed to buy BetMakers in a deal with an enterprise value of about AU$267m. The operator projected AU$30m of annual cost savings by the end of its second year of ownership.