BetMakers to axe more than 100 jobs as part of cost-cutting measures
Supplier aims to bring down staff costs and overheads by 23% to steer the company towards profitability
BetMakers is set to axe approximately 128 jobs in a global cost-cutting programme as the firm looks to restructure and accelerate its path to profitability.
In an investor relations statement published today, the ASX-listed company said it had undergone a wide-ranging operational review over the past four months.
As a result, the group expects its annualised staff and operating costs to fall from A$91.5m (£48m) to A$70m from Q1 full-year 2024.
BetMakers added that the total number of employees is expected to land at 440 by the end of Q1 FY24, down from 568 as of 31 December 2022.
The firm said it expects the cost of the streamlining measures to be between A$2m and A$2.5m.
Following the announcement of the plans, BetMakers stock rose by 24% on Wednesday trading, sitting at A$0.15.
BetMakers noted that the streamlining follows the consolidation of key software offerings and monitoring divisions.
BetMakers CEO Jake Henson said: “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.
“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.”
BetMakers executive chairman Matt Davey commented: “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.”
The announcement comes after Tom Waterhouse reduced his stake in BetMakers at the end of March.
Waterhouse sold A$4.6m of his shares in the supplier through his Waterhouse VC fund in March, which leaves his stake in the company at 4.87%. Waterhouse is the fourth-largest shareholder in BetMakers, behind Tekkorp Holdings, Matthew Tripp’s personal investment vehicle and Paradice Investment Management.