Announcement PDF BetMakers Technology Group Ltd Appendix 4E Preliminary final report 1. Company details Name of entity: ABN: Reporting period: Previous period: BetMakers Technology Group Ltd 21 164 521 395 For the year ended 30 June 2025 For the year ended 30 June 2024 2. Results for announcement to the market $'000 Revenues from ordinary activities down 10.6% to 85,121 Loss from ordinary activities after tax attributable to the owners of BetMakers Technology Group Ltd down 31.7% to (26,420) Loss for the year attributable to the owners of BetMakers Technology Group Ltd down 31.7% to (26,420) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments The loss for the Group after providing for income tax amounted to $26,420,000 (2024: $38,667,000). This includes a deferred tax asset movement of $8,599,000 (2024: $18,966,000), share-based payments expense of $553,000 (2024: benefit of $1,916,000), impairment of assets expense of $311,000 (2024: $895,000), loss on asset disposal of $1,118,000 (2024:$nil) and a write off of inventory of $1,098,000 (2024: $nil). Further information on the 'Review of operations' is detailed in the Directors' report and Chief Executive Officer's report which is part of the Annual Report. 3. Net tangible assets Consolidated 2025 2024 $'000 $'000 Net assets Less: Intangibles Less: Right-of-use (ROU) assets Add: Lease liabilities - current Add: Lease liabilities - non-current 95,227 (60,044) (1,275) 1,231 242 111,554 (59,130) (2,887) 1,556 1,599 Net tangible assets 35,381 52,692 Number of shares 2025 2024 Number of ordinary shares on issue Net tangible assets per ordinary security 1,086,631,276 965,114,395 Reporting period Cents Previous period Cents 3.26 5.46 BetMakers Technology Group Ltd Appendix 4E Preliminary final report 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Details of associates and joint venture entities Not applicable. 7. Foreign entities Details of origin of accounting standards used in compiling the report: Currently all accounting policies of the Group are consistent with those adopted by its ultimate holding company, BetMakers Technology Group Ltd. 8. Audit qualification or review Details of audit/review dispute or qualification, if any: The financial statements have been audited and an unmodified opinion has been issued. 9. Attachments Details of attachments (if any): The Annual Report of BetMakers Technology Group Ltd for the year ended 30 June 2025 is attached. 10. Signed As authorised by the Board of Directors Signed ___________________________ Matt Davey Chairman Date: 28 August 2025 BetMakers Technology Group Ltd ABN 21 164 521 395 Annual Report – 30 June 2025 BetMakers Technology Group Ltd Contents 30 June 2025 Chairman's Letter CEO's Letter Directors' report Auditor's independence declaration Statement of profit or loss and other comprehensive income Statement of financial position Statement of changes in equity Statement of cash flows Notes to the financial statements Consolidated entity disclosure statement Directors' declaration Independent auditor's report to the members of BetMakers Technology Group Ltd Shareholder information Corporate directory 1 2 4 26 27 28 29 30 31 70 71 72 78 81 BetMakers Technology Group Ltd Chairman's Letter 30 June 2025 Dear Shareholders, FY25 marked a true inflection point for BetMakers. For the first time, the Company delivered both positive Adjusted EBITDA and operating cash flow, underpinned by a leaner cost base, expanding margins, and the successful rollout of new proprietary technologies designed both to accelerate top-line revenue growth and be cost efficient. This represents not only a comprehensive turnaround, but what we view as the creation of a sustainable foundation for long-term, profitable growth. BetMakers has entered FY26 from a position of strength: through its financial inflection point, debt-free, and supported by a strong balance sheet. Our priorities are clear - scaling the Apollo platform, advancing our nextgeneration tote platform, GTX, and completing the strategic acquisition of the Las Vegas Dissemination Company. These initiatives, alongside deeper international expansion and stronger partner adoption, are designed to deliver revenue growth and margin improvement. On behalf of the Board, I thank you, our shareholders, for your ongoing support, and congratulate Chief Executive Officer Jake Henson and his team for executing a transformation that has reset BetMakers as a business and enhanced its standing as a world-class technology provider to the global racing and wagering sector. With solid foundations in place, the Board is confident that BetMakers is positioned to deliver long-term value. Matt Davey Executive Chairman 1 BetMakers Technology Group Ltd CEO's Letter 30 June 2025 Dear Shareholders, I am pleased to present the 2025 Annual Report for BetMakers Technology Group. FY25 was a defining year in which we reshaped our business and delivered on our strategic priorities. Transformation and performance FY25 was characterised by disciplined execution and a significant operational and technical restructure. The process was challenging but has left BetMakers with a leaner, more agile cost base and a business model designed to scale globally. Key financial highlights include: ● ● ● ● Revenue: $85.1 million Gross Margin: 64%, rising to 68% in 2H FY25 Adjusted EBITDA: $4.6 million Cash at Bank: $18.8 million, with no debt I am satisfied that these results demonstrate the scalability of our platforms, the strength of our partnerships, and the impact of the transformation program. Technology and innovation Technology remains the cornerstone of our growth strategy. The rollout of our Apollo platform has been transformational, delivering reduced costs, faster product deployment, and a superior customer experience across multiple jurisdictions. We have also advanced GTX, our next-generation digital tote wagering platform, which is designed to lower infrastructure costs, accelerate innovation, and provide greater flexibility for our partners. Complementing these platforms, we are embedding Artificial Intelligence and Machine Learning across our product lifecycle - from advanced pricing models to automated workflows and content creation - to further enhance efficiency and customer outcomes. Partnerships and global expansion The Company’s growth has been reinforced by a series of strategic agreements and international expansion: Across FY25, we were pleased to deliver: Renewal and expansion of our Global Tote partnership with UK Tote Group covering UK and Irish racing as well as World Pool and key commingling partners. ● ● ● ● Extension of our long-term pricing and data partnership with Sportsbet largest digital operator in Australia. Deeper penetration into South Africa and Malaysia, alongside extended presence in Cyprus and Chile. Anticipated strengthening of our U.S. presence through the pending acquisition of the Las Vegas Dissemination Company (LVDC). Executed key strategic agreements with B2B distribution partners Sportradar, Sportingtech, Intelligent Gaming and Delasport These achievements reflect the trust placed in BetMakers’ technology and our growing reputation as the backbone of global racing and wagering industries. People and sustainability 2 BetMakers Technology Group Ltd CEO's Letter 30 June 2025 Our turnaround has been made possible by the resilience and expertise of our people. As we reshaped the business, we built a culture of innovation, accountability, and collaboration. We remain committed to being an employer of choice, fostering an inclusive and dynamic environment where our people can thrive. We also take seriously our responsibility to the industries we serve. For BetMakers, sustainability includes supporting the long-term health of the racing and wagering ecosystem, upholding integrity, advocating for welfare standards, and maintaining the highest levels of governance and ethics. Outlook BetMakers enters FY26 with momentum and purpose. Our priorities are clear: ● ● ● ● ● Broaden adoption of Apollo and GTX platforms and modules, both domestically and internationally. Complete the acquisition and integration of LVDC to accelerate U.S. expansion. Deliver upon our broadening suite of B2B distribution into new and emerging markets Unlock further margin growth as transaction volumes scale globally. Innovate with new products to support our customers’ needs. I would like to thank our Board, led by Executive Chairman Matt Davey, for their support and strategic guidance throughout our transformation. The close alignment between the Board and management gives me confidence that we are well placed to deliver on our future growth ambitions. With robust proprietary technology platforms, a strengthened balance sheet, world-class partners, and an energised team, we believe BetMakers is positioned to deliver sustainable profitability and long-term value creation. Jake Henson Chief Executive Officer 3 BetMakers Technology Group Ltd Directors' report 30 June 2025 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of BetMakers Technology Group Ltd (referred to hereafter as the 'Company', 'BET' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2025. Principal Activities The Group’s principal activities during the financial year were the development and provision of software, data and analytic products for the B2B wagering market and the production and distribution of racing content. Review of Operations The loss for the Group after providing for income tax amounted to $26,420,000 (2024: $38,667,000). This includes a deferred tax asset movement of $8,599,000 (2024: $18,966,000), share-based payments expense of $553,000 (2024: benefit of $1,916,000), impairment of assets expense of $311,000 (2024: $895,000), loss on asset disposal of $1,118,000 (2024:$nil) and a write off of inventory of $1,098,000 (2024: $nil). The non-IFRS financial information presented in this Review of Operations has not been audited in accordance with the Australian Auditing Standards. All figures are in Australian dollars unless otherwise stated. The Directors consider Adjusted EBITDA to reflect the core earnings of the Group. Adjusted EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the profit/(loss) under AAS adjusted for non-cash and significant items. The Group’s reconciliation of its statutory net loss before tax (‘NLBT’) for the current and previous year to Adjusted EBITDA is as follows: Consolidated Consolidated 2025 2024 $'000 $'000 Variance $'000 Variance % Revenue 85,121 95,203 (10,082) (11%) Gross margin 54,548 57,402 (2,854) (5%) Loss before income tax Add/(Less) back: Depreciation and amortisation Net finance costs Share-based payments expense/(benefit) Impairment of assets Impairment of receivables Gain on valuation of financial liabilities Bargain on purchase Write off of inventory Restructuring Costs Adjusted EBITDA (15,178) (17,857) 2,679 (15%) 16,044 528 553 311 1,098 1,254 4,610 12,196 444 (1,916) 238 657 (218) (765) (7,221) 3,848 84 2,469 (238) (346) 218 765 1,098 1,254 11,831 32% 19% 129% 100% 53% 100% 100% 162% FY2025 Operational Highlights BetMakers is a leading B2B technology company servicing the global racing and online sports betting industries. The Group is defined through two divisions; Global Betting Services and Global Tote. The Company achieved revenues for the year of $85,121,000, a decrease of 10.6% compared to the prior year (2024: $95,203,000). This change was driven by: ● the loss of a key customer which contributed $7.1 million of revenue in FY24; ● lower variable revenue from Global Tote’s existing customers; and ● lower than expected turnover and trading conditions for BetMakers’ platform customers. 4 BetMakers Technology Group Ltd Directors' report 30 June 2025 Consolidated Consolidated 2025 2024 $'000 $'000 Variance $'000 Global Betting Services Global Tote 34,458 50,663 40,433 54,770 (5,975) (4,107) Total revenue 85,121 95,203 (10,082) Variance % (14.77%) (7.50%) The Global Betting Services division delivered significant strategic and commercial success in FY25, cementing its position as a leading provider of data, pricing, and technology solutions to wagering operators globally. ● Strengthening Tier-1 Customers Our ability to retain and grow relationships with the industry's largest operators is a testament to the quality and reliability of our services. We successfully renewed and extended our long-term pricing and data partnership with Sportsbet, Australia's largest corporate bookmaker, reaffirming our position as a trusted technology partner to tier-one operators. We also expanded our partnership with rapidly growing Australian operator Dabble, integrating further products and services to support their growth trajectory. ● Accelerating Global Expansion We continued to expand our international footprint, securing new clients in key strategic markets and demonstrating the global appeal of our solutions. As part of this expansion we secured a significant new agreement with Hollywoodbets, one of South Africa's leading operators, establishing a key foothold in the important African market. We significantly increased the reach of our proprietary racing data through new, high-impact B2B distribution agreements. Our product went live with Gaming Innovation Group (GiG), delivering our comprehensive racing data and solutions to their extensive global network of platform partners. We entered into a landmark partnership with Sportradar to supply our comprehensive global horse racing data feed for their market-leading ORAKO Managed Trading Solution, vastly broadening our indirect distribution to operators worldwide. ● Driving Product & Data Innovation During the 2025 financial year, we executed a transformative upgrade of our technology suite, headlined by the successful deployment and enhancement of our next-generation Apollo™ wagering platform. This strategic initiative has been pivotal, delivering a dual benefit of superior product offerings for our partners and substantial operational efficiencies for our business. Key advancements to the Apollo™ platform included the roll-out of an advanced embedded racing solution, which offers a more immersive and intuitive user experience. To accelerate our global expansion, we engineered a sophisticated multi-language and multicurrency architecture, enabling rapid and seamless deployment into new regions. The integration of advanced machine-learning pricing models and Racelab’s dynamic form content has empowered our partners with superior trading capabilities and more precise, real-time betting triggers. The platform's robustness and scalability were validated by the seamless and rapid migration of key clients, demonstrating its market-leading efficiency. These enhancements have directly translated into significant growth in customer engagement, with partners on the Apollo™ platform seeing an increase in total bets placed and rise in active users, firmly positioning our technology at the forefront of the global wagering ecosystem 5 BetMakers Technology Group Ltd Directors' report 30 June 2025 The Global Tote division strengthened its position as a world leader in pari-mutuel technology and services, focusing on securing major international partners and launching its next-generation platform. ● Secured Core UK Partnership Renewal A landmark achievement for the year was the successful renewal of our long-term, multi-year partnership with the UK TOTE Group. This agreement reaffirms BetMakers’ position as the core technology and services provider for the exclusive pari-mutuel operator in the United Kingdom, one of the world's most prestigious racing jurisdictions. Our partnership underpins the UK Tote’s operations across all channels, including at iconic events such as the Royal Ascot festival and the Grand National. The renewal covers our full suite of tote technology and our highly valued Managed Trading Services (MTS), ensuring the UK Tote continues to benefit from our market-leading operational expertise. This partnership is a cornerstone of our Global Tote strategy, providing significant, stable revenue and contributing substantial liquidity to the Global Tote Hub from a tier-one international market. ● Strong Retention and Market Position Our Global Tote division continues to be a cornerstone of our international operations, demonstrating remarkable stability and strength through its consistent renewal of key tote contracts. During the financial year, we successfully renewed numerous agreements with major racing and wagering partners across our key jurisdictions in the United States and continental Europe. This high retention rate underscores the trust our partners place in our robust and reliable tote technology and the expertise of our service teams. These renewals, often representing multi-year extensions, not only secure significant recurring revenue streams but also reaffirm our integral position within the global pari-mutuel wagering ecosystem, providing a solid foundation for continued growth and technological investment. ● Developed Next-Generation 'GTX' Platform FY25 marked the culmination of a significant research and development program with the development of GTX, our new, state-of-the-art Tote and Digital wagering platform. Supported by strategic technology acquisitions, GTX is built on a modern, cloud-native architecture designed for superior performance, scalability, and flexibility. For our partners, this means faster bet processing, enhanced data and analytics capabilities, and the agility to rapidly configure new bet types and integrate third-party services. The platform’s modular, API-driven design provides a foundation for our partners' future growth, enabling a seamless omnichannel experience for their customers. GTX represents the future of our tote technology and will be the cornerstone of our offering to racing and wagering operators globally for years to come. 6 BetMakers Technology Group Ltd Directors' report 30 June 2025 Corporate Highlights FY25 was a year of transformation for BetMakers, defined by disciplined execution of our corporate strategy. We successfully reshaped the business to establish a clear and sustainable path to profitability, delivering on our commitments to shareholders. ● Successful Financial Turnaround & Return to Profitability The Company achieved a pivotal financial milestone, returning to profitability and positive cash flow. This was highlighted by a record final quarter, which delivered $4.5 million in adjusted EBITDA and $3.4 million in positive operating cash flow. This result was underpinned by a rigorous focus on financial discipline and the successful execution of our cost-reduction program, delivering a leaner and more sustainable operating model for the future. ● Completion of Strategic Operational Transformation We successfully completed our group-wide transformation program, a process that has fundamentally reshaped our organisation. The result is a more streamlined, agile, and efficient global business with a significantly lower and more sustainable operating cost base. This new structure not only drove our return to profitability in FY25 but also provides significant operating leverage, positioning the Company for enhanced margin expansion as we focus on future revenue growth. ● Strengthened Balance Sheet & Investor Confidence Prudent capital management has been a cornerstone of our strategy. We ended the financial year in a robust financial position with $18.8 million in unrestricted cash and zero debt. In June 2025, the Company successfully completed a $11.5 million institutional placement and SPP, which was strongly supported by both existing and new investors. This vote of confidence from the investment community has further strengthened our balance sheet, providing ample flexibility to support working capital and pursue strategic growth initiatives. Strategic Focus and Outlook Having successfully completed our operational transformation in FY25, BetMakers enters the new financial year in a position of strength, with a clear strategy and a robust financial foundation. Our focus now pivots from restructuring and cost management to disciplined, profitable growth. Our outlook for FY26 and beyond is centred on three core pillars designed to leverage our market-leading technology and lean operating base to deliver sustainable shareholder returns. ● Drive Revenue Growth and Operating Leverage Our primary objective is to drive top-line revenue growth across both our Global Betting Services and Global Tote divisions. With a significantly lower and more efficient cost base now firmly established, we are poised to benefit from substantial operating leverage. This means that as revenues increase, we expect a disproportionately positive impact on our EBITDA and free cash flow. We have created a scalable model where we can onboard new clients and expand existing partnerships with minimal incremental cost, creating a clear and sustainable path to increasing profitability. ● Accelerate Global Client & Partnership Acquisition Organic growth will be fuelled by a dual strategy of expanding our wallet share with existing partners and accelerating the acquisition of new clients. 1. Deepen Existing Partnerships: We will work closely with our key domestic and international partners to embed our services further into their operations, up selling and cross-selling additional products from our extensive suite of solutions. 2. Win New Clients: Our global sales pipeline is strong. We will aggressively target new operators and race clubs in key regulated markets across Australia, the Americas, Europe, and Asia. Our new, highly efficient technology platforms, Apollo™ and GTX, provide a compelling value proposition for clients seeking a competitive edge. 7 BetMakers Technology Group Ltd Directors' report 30 June 2025 ● Maximise Value Through Technology Leadership Technology and product innovation remain at the heart of our competitive advantage. A key priority for FY26 is the strategic rollout of our new GTX tote platform to existing and new race club partners, unlocking new efficiencies and next-generation capabilities. We will continue to invest intelligently in our product roadmap, enhancing our platforms with innovative features that provide our clients with a superior solution and ensure BetMakers remains at the forefront of the global B2B wagering technology market. Principal Risks Identifying and mitigating business risks that may affect the Group’s strategy and financial performance is an essential part of the governance framework. This section outlines some of the key risks identified by the Group. They are not listed in order or importance or likelihood to materialise. Risk Area Description Impact of Operating The Group has incurred operating losses in recent periods and may do so in the future. Losses This presents several risks, including but not limited to: 1. Sustainability of Operations: Continued losses may impact the Group’s ability to sustain its operations, potentially leading to the need for additional financing or cost-cutting measures. 2. Access to Capital: Persistent losses can affect the Group’s ability to raise capital on favourable terms. Investors may be reluctant to provide additional funding, or the cost of such funding may be prohibitively high. 3. Market Confidence: Ongoing losses can erode market confidence in the Group’s business model and management, which could also impact access to capital. 4. Strategic Flexibility: Financial losses may limit the Group’s ability to invest in growth opportunities, research and development, or other strategic initiatives that are critical for long-term success Customer Credit Risk The Group is subject to credit risk associated with its customers and in particular that customers may fail to meet their payment obligations which could adversely affect the Group’s performance and its financial position. This risk can be impacted by several factors including: 1. Creditworthiness of Customers: The risk that customers may default on their payments due to financial difficulties, leading to bad debt expenses and impacting the Group’s cash flow. 2. Economic Conditions: Adverse economic conditions, such as a recession, can increase the likelihood of customer defaults as businesses and consumers face financial strain. 3. Credit Policies: The effectiveness of the Group’s credit policies and procedures in assessing and managing customer credit risk. 4. Collection Processes: The efficiency and effectiveness of the Group’s processes for collecting outstanding receivables. Poor collection practices can result in delayed payments and increased bad debts. Deterioration in Financial Position The Group faces the risk of a deterioration in its financial position due to various factors, including but not limited to fluctuations in market conditions that can adversely impact the Group’s revenue and profitability; economic recessions or slowdowns that can reduce demand for the Group’s products or services; or inefficiencies or disruptions in operations that can lead to increased costs and reduced margins. If these risks materialise, in certain circumstances the Group may be required to raise additional equity capital to further support its business. Customer Risk The Group faces the risk of encountering challenges in attracting new customers due to several factors including but not limited to increased market competition, changing preferences of the Group’s customers, negative publicity or a decline in the reputation of the Group, economic downturns or rapid advancements in technology that may require significant investment. 8 BetMakers Technology Group Ltd Directors' report 30 June 2025 Risk Area Description Licensing and Regulatory The Group operates in heavily regulated industries and jurisdictions. Accordingly, there is an exposure to a range of risks relating to compliance with, changes to, or uncertainty in, the relevant legal and regulatory regimes in those jurisdictions. Changes to laws and regulations or failure to comply may have a material adverse effect on the Group’s business, financial position and prospects, or lead to license suspension or cancellation. The Group’s contracts with customers may require approval or consent of one or more Australian or foreign governments, gambling regulators or other regulators. There is a risk that such approval or consent may not be granted and, in such circumstances, the Group or the customer may become unable to comply with contractual obligations, potentially having a material adverse impact on financial performance. Technology and Software The Group’s business is based largely on the software, source code, technology and computer programs which comprise of its online wagering platforms. There is a risk that this technology and/or software may be superseded or displaced in the market by new technology offerings or software which customers perceive have advantages over the Group’s offerings. Furthermore, the Group’s systems can be affected by numerous factors including but not limited to data losses, computer system faults, failure of or suspension from key data feeds, data network failures, and catastrophic event such as natural disaster, computer viruses of power failure. Intellectual Property There is a risk that failure or inability to protect intellectual property rights may have a and Obligations significant adverse effect on operations, financial performance and competitive advantage. Further, there is a risk that operations, products, services or platforms may infringe the intellectual property rights of third parties. If any claim or litigation is brought against the Group which alleges an infringement on another party’s intellectual property rights, this could result in the Group being subject to significant liability for damages or losing the right to use the intellectual property. Security Software, By their nature, information technology systems are susceptible to cyber-attacks with third Technology parties seeking unauthorised access to data, networks, systems and databases. Further, Breaches and third party suppliers may receive and store information from the Group or its customers Improper Access to and although this information is limited and subject to confidentiality obligations, if third Personal Data party suppliers fail to adopt or adhere to robust security practices, any such information may be improperly accessed, used or disclosed. Reliance on Agreements with Sports and Racing Controlling Bodies The Group has in place various approvals and authorities granted by racing controlling bodies which permits the publishing and/or use of relevant race field information associated with those racing controlling bodies. There is a requirement to comply with certain terms and conditions, provisions, rules and regulations provided under the relevant State/Territory laws. Under such legislation, rules and regulations, the racing controlling bodies have the discretion to determine the types of bets the Group is permitted to take. A removal of one or more of these bet types may materially adversely affect business operations and financial position. Racing and Sporting Products The Group is reliant on various state and international racing and sporting controlling bodies providing a regular program of events for the purposes of wagering. A significant reduction in the number of race meetings or sporti