Announcement PDF BETMAKERS TECHNOLOGY GROUP LTD ACN: 164 521 395 Phone: 1 300 208 849 Fax: (02) 8330 6357 Level 4, 189 Flinders Lane Melbourne, VIC 3000 31 July 2023 NSW 2291 Q4 FY23 QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING 30 JUNE 2023 Quarterly highlights: ● ● ● ● ● ● ● ● $24.8m in cash receipts in Q4 FY23 is +5% versus Q3 FY23 $99.1m in full year FY23 cash receipts from customers, +6% versus FY22 Net cash out flow from operations decrease 39% versus Q3 FY23 (-$3.0m Q4 FY23) Executed term sheet for the distribution of race meetings Executed strategic operational restructure Form Cruncher performance payment period complete Investor Webinar to be held following FY23 Annual Reporting Closing cash balance of $41.0m The Board of BetMakers Technology Group Ltd (ASX:BET) (“BetMakers” or the “Company”) is pleased to release its Quarterly Cash Flow Statement and Quarterly Activities Report for Q4 FY23, being the quarter ending 30 June 2023. The quarter marked one of progress for the Company as it continued to focus on reducing and normalising the cost base and simplifying the operating model. The focus of the last two quarters is evidenced in the declining operational cash outflows, and the Company will continue to execute on its strategic restructure during Q1 FY24. Q4 FY23 HIGHLIGHTS INCLUDE: Executed term sheet for the distribution of race meetings As announced on 3 April 2023, the Company executed a non-binding term sheet with the Stronach Group’s 1/ST Content business (“1/ST Content”) for the distribution of BetMakers’ Global Racing network’s (“GRN”) race meetings into international wagering markets, including the UK and Ireland. The deal is subject to completion of long form agreements. The deal intends for BetMakers’ GRN feature racing content, from racecourses at Kentucky Downs, Charles Town, Mahoning Valle, Penn National, Sam Houston, Zia Park and Monmouth Park, to be available for 1/ST Content’s broadcast schedule. This includes through Sky Sports racing in the UK and Ireland, as well as across other international media partners’ websites. This distribution relationship commenced on 1 May 2023. Executed strategic operational restructure and accelerated path to profitability As announced on 31 May 2023, the Company provided shareholders with an update on its cost base reduction and global efficiencies program which is expected to result in significant operating overhead reductions and savings across the business moving forward. During Q4 FY23 the Company made significant progress with regards to its reduction in cost. This is evidenced by:   the 39% reduction in net cash outflows from operations compared to Q3 FY23; and the reduction in headcount from 568 employees as at 31 December 2022, to approximately 485 employees currently. The global efficiencies program is still underway with further reductions in cost expected to be realised in Q1 FY24. Form Cruncher performance period complete As announced on 23 June 2021, the Company acquired the intellectual property of racing data company Form Cruncher Pty Ltd (“Form Cruncher”). Form Cruncher processes racing event data such as odds, price fluctuations, sectional times and results to create advanced form information and dynamic content that can be adapted and customised globally. As part of the consideration, Form Cruncher was entitled to a performance payment subject to the satisfaction of certain performance milestones over the financial year ending 30 June 2023. Following the completion of the financial year ending 30 June 2023, it has been determined that Form Cruncher is entitled to a performance payment of $500,000 to be paid as:   $250,000 to be paid in cash; and $250,000 in shares, subject to a floor price of $0.90 per share. Based on the above and the current share price, it is expected that the Company will issue 277,778 ordinary shares to Form Cruncher in due course. Upcoming investor webinar The Company is pleased to present the Investor Presentation which accompanies today’s Appendix 4C. In addition to this presentation, the Company intends to hold a comprehensive investor webinar following the release of the 30 June 2023 Annual Report, in late August 2023. Further details will be provided in due course. 2 The Company paid Directors $175,000 for services during Q4 FY23. This included payment to the President/Executive Chairman for employment services. The Appendix 4C for the quarter ending 30 June 2023 is attached to this announcement. For further information please contact: Jane Morgan Investor and Media Relations investors@thebetmakers.com + 61 (0) 405 555 618 The Board of BetMakers has authorised the release of this announcement to ASX. Disclaimer The material contained in this document is of general information about the activities of BetMakers as at the date of this update. All monetary figures quoted within this document are in Australian dollars ($AUD) unless otherwise specified and are provided on an unaudited basis. This announcement contains “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”, “intend”, “estimate”, and “expect”. Statements which are not based on historic or current facts may by forward-looking statements. Forward-looking statements are based on: • • assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties. Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentations are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forwardlooking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The 3 projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements. 4