Announcement PDF APPENDIX 4D HALF-YEAR REPORT Name of entity: BetMakers Technology Group Ltd ABN: 21 164 521 395 Reporting period: For the half-year ended 31 December 2023 Previous period: For the half-year ended 31 December 2022 RESULTS FOR ANNOUNCEMENT TO THE MARKET $’000 Revenues from ordinary activities up 9.9% to 51,364 Loss from ordinary activities after tax attributable to the owners of BetMakers Technology Group Ltd down 32.3% to (13,493) Loss for the year attributable to the owners of BetMakers Technology Group Ltd down 32.3% to (13,493) 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 $13,493,000 (31 December 2022: $19,945,000). This includes share-based payments expense of $1,366,000 (31 December 2022: $5,291,000) and impairment of receivables expense of $5,092,000 (31 December 2022: nil). Further information on the 'Review of operations' is detailed in the Directors' report which is part of the Interim Report. SUPPLEMENTARY INFORMATION Half-year report given to the ASX under Listing Rule 4.2A. This report should be read in conjunction with the Annual Financial Report of the Company for the year ending 30 June 2023 and any public announcements made by the Company since that date. NET TANGIBLE ASSETS Consolidated 31-DEC-2023 $’000 31-DEC-2022 $’000 Net assets 138,324 167,351 Less: Intangibles (57,105) (71,077) Less: Right-of-use (ROU) assets (3,660) (5,019) Add: Lease liabilities - current 1,475 618 Add: Lease liabilities - non-current Net tangible assets Number of ordinary shares on issue Net tangible assets per ordinary security Appendix 4D 2,174 4,552 81,208 96,425 31-DEC-2023 31-DEC-2022 948,261,674 942,052,401 REPORTING PERIOD CENTS PREVIOUS PERIOD CENTS 8.56 10.24 BETMAKERS TECHNOLOGY GROUP LTD 1 APPENDIX 4D HALF-YEAR REPORT CONTINUED CONTROL GAINED OVER ENTITIES Not applicable. LOSS OF CONTROL OVER ENTITIES Not applicable. DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES Not applicable. 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. AUDIT QUALIFICATION OR REVIEW Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. ATTACHMENTS Details of attachments (if any): The Interim Report of BetMakers Technology Group Ltd for the half-year ended 31 December 2023 is attached. SIGNED As authorised by the Board of Directors: ____________________________________________ Matt Davey Chairman Date: 28 February 2024 BETMAKERS TECHNOLOGY GROUP LTD 2 BETMAKERS TECHNOLOGY GROUP LTD ABN 21 164 521 395 INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2023 TABLE OF CONTENTS APPENDIX 4D 1 DIRECTORS' REPORT 6 AUDITOR'S INDEPENDENCE DECLARATION 10 FINANCIAL STATEMENTS 11 12 13 14 15 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 16 DIRECTORS' DECLARATION 34 INDEPENDENT AUDITOR'S REVIEW REPORT 35 BETMAKERS TECHNOLOGY GROUP LTD 4 WE SIMPLIFY BETTING. BetMakers Technology Group (ASX:BET) is a leading international provider of advanced wagering technology, data, content and service solutions with a footprint that spans the world’s major racing and betting markets. Our technology and service solutions simplify betting at critical points along the wagering life cycle for bookmakers, pari-mutuel wagering operators, rights holders and racing authorities, unlocking new revenue streams, expanding markets, and enhancing the user experience. At BetMakers, our mission is to power excitement, growth and sustainability of wagering globally. BETMAKERS TECHNOLOGY GROUP LTD 5 DIRECTORS' REPORT ← Back to Contents DIRECTORS' REPORT 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 half-year ended 31 December 2023. DIRECTORS The following persons were Directors of BetMakers Technology Group Ltd during the whole of the financial halfyear and up to the date of this report, unless otherwise stated: • • • • • Matt Davey - President and Executive Chairman Simon Dulhunty - Non-Executive Director Rebekah Giles - Non-Executive Director Anna Massion- Non-Executive Director Nicholas Chan - Non-Executive Director (resigned on 31 October 2023) PRINCIPAL ACTIVITIES The Group's principal activities during the financial half-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 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 EBITDA to reflect the core earnings of the Group. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards ('AAS') and represents the profit 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 half-year to adjusted EBITDA is as follows: CONSOLIDATED 31-DEC-2023 $'000 CONSOLIDATED 31-DEC-2022 $'000 VARIANCE VARIANCE $'000 % Revenue 51,362 46,741 4,621 9.9% Gross margin 33,068 30,187 2,881 9.5% Loss before income tax (12,888) (25,909) 13,021 (50.3%) Add/(Less) back: Depreciation and amortisation Finance costs Share-based payments expense Impairment of receivables1 5,336 164 1,366 5,092 4,819 367 5,291 - 517 (203) (3,925) (5,092) 10.7% (55.3%) (74.2%) - Adjusted EBITDA (930) (15,432) 14,502 94.0% 1. The Company believes that the receivable impairment is an isolated and specific event relating to two customers. The Company is currently in discussions with both customers for recovery. The Company is unable to comment on the expected outcome of these discussions and therefore there is no guarantee that the full value of these receivables will be recovered. Directors' Report BETMAKERS TECHNOLOGY GROUP LTD 6 DIRECTORS' REPORT ← Back to Contents During the six months to 31 December 2023 the Company was focused on executing on its restructuring plan, reducing its cost base, and setting a sustainable foundation for future growth through the renewal of contracts with key partners and signing new customer contracts. The restructuring plan has simplified the Group’s operations, including streamlining the business model across three operating segments: Global Betting Services, Global Tote and Corporate. This streamlining of operations also included a reduction in headcount from 456 at 30 June 2023 to 414 at 31 December 2023. The Company is now operating with a reduced cost base and is focused on delivering revenue growth. The investments made in technologies and infrastructure puts BetMakers in a stronger position to deliver the next phase of revenue and earnings growth through customer acquisition and retention, the continued reduction in operating costs, and the delivery of long-term projects in H2 FY24 including the new national tote system for Norsk Rikstoto of Norway and the embedded tote solution for Caesars Entertainment. The loss for the Group after providing for income tax amounted to $13,493,000 (31 December 2022: loss of $19,945,000). Excluding depreciation and amortisation, income tax expense and financing costs, the Group's result was a loss of $7,388,000 (31 December 2022: loss of $20,722,000). This includes $1,366,000 of share-based payments expense (31 December 2022: $5,291,000) and impairment of receivables expense of $5,092,000 (31 December 2022: $nil). The Group's Earnings Before Interest, Tax, Depreciation and Amortisation (‘EBITDA’) excluding share-based payments expense and impairment of receivables expense is a loss of $930,000 (31 December 2022: loss of $15,432,000). H1 FY24 OPERATIONAL HIGHLIGHTS BetMakers is a leading B2B technology company servicing the global racing and online sports betting industries. The Group is defined through three divisions; Corporate, Global Betting Services and Global Tote. The Company achieved revenues for the half-year of $51,362,000, an increase of 9.9% compared to the prior half-year (2022: $46,741,000). This growth was driven by: • Marginal growth in the Company’s platform and managed trading services offering in the Australian market, despite a downward shift in market conditions and opportunities in the Australian market; and • The growth in pari-mutuel wagering customers and pooling integrations. Consolidated H1 FY24 $'000 H1 FY23 $'000 VARIANCE $'000 VARIANCE % Global Betting Services 26,787 25,375 1,412 5.6% Global Tote 24,575 21,366 3,209 15.0% Total revenue 51,362 46,741 4,621 9.9% CORPORATE HIGHLIGHTS • Completed restructure of US Operations. • Simplified operating model to two key segments. • Nicholas Chan, Non-Executive Board member, resigned his position on 31 October 2023. STRATEGIC FOCUS AND OUTLOOK Having made significant strides in its FY24 objectives, the Company's focus remains on further reducing the cost base and moving towards profitability. Additional cost reductions are expected to result from leveraging technology solutions such as OneWatch, right-sizing infrastructure and software usage, and continuing to simplify the operating model. BETMAKERS TECHNOLOGY GROUP LTD 7 DIRECTORS' REPORT ← Back to Contents DIVISION HIGHLIGHTS OPERATIONAL HIGHLIGHTS STRATEGIC FOCUS & OUTLOOK • Extended and signed contracts with key partners including PointsBet Australia, Dabble, and 888’s William Hill. • Signed content management agreements with multiple PENN Entertainment racetracks and with Hawthorne Race Course. • Continue to develop and enhance the 'Next Gen' platform solution. • Launch the AdVantage Platform in partnership with PA Betting Services, leveraging our ‘Next Gen’ technology to offer a new turn-key path to more operators. • Upgrade existing digital pari-mutuel (“ADW”) client platforms in North America with ‘Next Gen’ technology. DIVISION HIGHLIGHTS OPERATIONAL HIGHLIGHTS STRATEGIC FOCUS & OUTLOOK • Delivered Caesars Entertainment embedded racebook solution. • Signed new tote client Selangor Turf Club and extended and expanded agreements with Argentina Jockey Club, The Meadowlands in New Jersey, and ZeTurf in the Netherlands. • Launched the new OneWatch terminal monitoring system to allow the Company to continue simplifying its operating model. • Complete full deployment of our terminal middleware software solution into 26 Caesars Entertainment Nevada locations. • Complete consolidation of tote wagering platforms globally and the global deployment of new clientfacing service portal and consolidated service delivery function. • Expand on key pari-mutuel contracts such as Caesars, Argentina and Norsk Rikstoto. • Work with existing customers and racing bodies to expand tote integrations and improve pool liquidity. • Deploy BetLine wagering terminals to additional clients in the USA. BETMAKERS TECHNOLOGY GROUP LTD 8 DIRECTORS' REPORT ← Back to Contents SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS On 31 October 2023, the Company announced changes to its Board, namely that Nicholas (“Nick”) Chan, formerly Non-Executive Director, had stepped down from the Board. It was determined that the Board’s current composition is appropriate for the current size and profile of BetMakers and therefore there is no intention to replace Nick’s role on the Board. There were no other significant changes in the state of affairs of the Group during the financial half-year. PRINCIPAL BUSINESS RISKS The material business risks that could adversely affect the Group's financial performance and growth potential in future years and how the Group proposes to mitigate such risks were detailed in the Annual Report at 30 June 2023. Those risks have been assessed up to the reporting date with no significant changes noted since then. ROUNDING OF AMOUNTS The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. AUDITOR'S INDEPENDENCE DECLARATION A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the Directors: __________________________________________ Matt Davey Chairman Date: 28 February 2024 BETMAKERS TECHNOLOGY GROUP LTD 9 PKF(NS) Audit & Assurance Limited Partnership ABN 91 850 861 839 755 Hunter Street, Newcastle West NSW 2302 Level 8, 1 O’Connell Street, Sydney NSW 2000 Newcastle T: +61 2 4962 2688 F: +61 2 4962 3245 Sydney T: +61 2 8346 6000 F: +61 2 8346 6099 info@pkf.com.au www.pkf.com.au BetMakers Technology Group Limited Auditor's Independence Declaration under section 307C of the Corporation Act 2001 I am pleased to provide the following declaration of independence to the Directors of Betmakers Technology Group Limited. As lead audit partner for the review of the financial statements of BetMakers Technology Group Limited for the halfyear ended 31 December 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. PKF PAUL PEARMAN PARTNER 28 FEBRUARY 2024 SYDNEY, NSW 5 PKF(NS) Audit & Assurance Limited Partnership is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under Professional Standards Legislation. Auditor's Independence Declaration BETMAKERS TECHNOLOGY GROUP LTD 10 FINANCIAL STATEMENTS ← Back to Contents FINANCIAL STATEMENTS The following Statements should be read in conjunction with the accompanying notes. Financial Statements BETMAKERS TECHNOLOGY GROUP LTD 11 ← Back to Contents STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Consolidated NOTE 31-DEC-2023 $'000 31-DEC-2022 $'000 4 51,362 46,741 Cost of goods sold (18,294) (16,554) Gross margin 33,068 30,187 510 2 120 3 (24,650) (2,677) (2,985) (3,070) (660) (5,336) (5,092) (1,366) (468) (164) (34,010) (4,077) (3,395) (2,701) (877) (4,819) (5,291) (682) (367) (12,888) (25,909) (605) 5,964 (13,493) (19,945) Items that may be reclassified subsequently to profit or loss Foreign currency translation (145) 2,306 Other comprehensive (loss)/income for the half-year, net of tax (145) 2,306 (13,638) (17,639) NOTE 31-DEC-2023 CENTS 31-DEC-2022 CENTS Basic loss per share 17 (1.43) (2.16) Diluted loss per share 17 (1.43) (2.16) Revenue Net foreign exchange gain Interest revenue EXPENSES Employee benefits expense Professional fees Administration expenses IT expenses Occupancy expenses Depreciation and amortisation expense Impairment of receivables Share-based payments expense Other expenses Finance costs 5 5 5 18 5 Loss before income tax (expense)/benefit Income tax (expense)/benefit Loss after income tax (expense)/benefit for the half-year attributable to the owners of BetMakers Technology Group Ltd OTHER COMPREHENSIVE LOSS Total comprehensive loss for the half-year attributable to the owners of BetMakers Technology Group Ltd Statement of Profit or Loss and Other Comprehensive Income BETMAKERS TECHNOLOGY GROUP LTD 12 ← Back to Contents STATEMENT OF FINANCIAL POSITION Consolidated 31-DEC-2023 $'000 30-JUN-2023 $'000 36,479 16,182 4,215 286 3,890 61,052 41,041 27,642 4,170 2,474 75,327 26,822 3,660 57,105 34,024 773 122,384 28,365 4,331 56,706 34,024 792 124,218 183,436 199,545 33,204 1,974 1,475 582 1,965 3,250 42,450 35,079 1,848 1,401 472 2,343 651 3,500 45,294 NON-CURRENT LIABILITIES Lease liabilities Employee benefits Provisions Total non-current liabilities 2,174 361 127 2,662 3,308 220 127 3,655 Total liabilities 45,112 48,949 138,324 150,596 303,159 13,529 (178,364) 300,009 15,896 (165,309) 138,324 150,596 NOTE ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Finished goods Current tax asset Other assets Total current assets NON-CURRENT ASSETS Property, plant and equipment Right-of-use assets Intangible assets Deferred tax asset Defined benefits scheme Total non-current assets 6 7 8 9 Total assets LIABILITIES CURRENT LIABILITIES Trade and other payables Contract liabilities Lease liabilities Income tax Employee benefits Provisions Other financial liabilities Total current liabilities 10 11 Net assets EQUITY Issued capital Reserves Accumulated losses Total equity Statement of Financial Position 12 BETMAKERS TECHNOLOGY GROUP LTD 13 ← Back to Contents STATEMENT OF CHANGES IN EQUITY CONSOLIDATED ISSUED CAPITAL $'000 RESERVES TOTAL EQUITY $'000 ACCUMULATED LOSSES $'000 Balance at 1 July 2022 252,486 69,521 (132,721) 189,286 Loss after income tax benefit for the half-year Other comprehensive income for the half-year, net of tax - 2,306 (19,945) - (19,945) 2,306 Total comprehensive income for the half-year - 2,306 (19,945) (17,639) Transactions with owners in their capacity as owners: Share-based payments (note 18) Exercise of options Share-based payments - cancelled options Share buy-back 58,612 (12,063) 5,291 (56,136) (193) - 193 - 5,291 2,476 (12,063) Balance at 31 December 2022 299,035 20,789 (152,473) 167,351 CONSOLIDATED ISSUED CAPITAL $'000 RESERVES TOTAL EQUITY $'000 ACCUMULATED LOSSES $'000 Balance at 1 July 2023 300,009 15,896 (165,309) 150,596 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax - (145) (13,493) - (13,493) (145) Total comprehensive income for the half-year - (145) (13,493) (13,638) 3,150 - 1,366 (3,150) (438) 438 1,366 - 303,159 13,529 (178,364) 138,324 Transactions with owners in their capacity as owners: Share-based payments (note 18) Exercise of options Share-based payments - cancelled options Balance at 31 December 2023 Statement of Changes in Equity $'000 $'000 BETMAKERS TECHNOLOGY GROUP LTD 14 ← Back to Contents STATEMENT OF CASH FLOWS Consolidated 31-DEC-2023 $'000 31-DEC-2022 $'000 RESTATED2 51,005 (56,226) 2 7,976 (347) 51,673 (61,485) 8,887 102 2,410 (823) (1,122) (3,573) (4,460) (4,461) (6,608) (4,695) (15,529) (1,360) 2,670 (12,096) (1,125) Net cash used in financing activities (1,360) (10,551) Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Effects of exchange rate changes on cash and cash equivalents (3,645) 41,041 (917) (26,903) 87,550 305 Cash and cash equivalents at the end of the financial half-year1 36,479 60,952 NOTE CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Movement in customer operational funds held Income taxes (paid)/refunded Net cash from/(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for purchase of business, net of cash acquired Payments for property, plant and equipment Payments for intangibles 9 Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Payments for share buy-back Repayment of lease liabilities 12 12 1. The cash balance includes customer funds held on deposit in relation to Global Tote and ADW operations ('restricted cash'). Excluding these amount, the Company's unrestricted cash balance as at 31 December 2023 was $18,156,000 (31 December 2022 unrestricted cash balance: $45,311,000). 2. Comparative information was restated to disclose Movement in customer operational funds held within Cash flows from operating activities (previously disclosed within Cash flows from investing activities). Statement of Cash Flows BETMAKERS TECHNOLOGY GROUP LTD 15 NOTES TO THE FINANCIAL STATEMENTS ← Back to Contents NOTES TO THE FINANCIAL STATEMENTS The following notes are an accompaniment to the Statements on the previous pages. Notes to the Financial Statements BETMAKERS TECHNOLOGY GROUP LTD 16 ← Back to Contents NOTE 1. GENERAL INFORMATION The financial statements cover BetMakers Technology Group Ltd as a group consisting of BetMakers Technology Group Ltd (the 'Company' or 'Parent Entity') and the entities it controlled at the end of, or during, the half-year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is BetMakers Technology Group Ltd's functional and presentation currency. BetMakers Technology Group Ltd is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 4 189 Flinders Lane Melbourne, VIC 3000 A description of the nature of the Group's operations and its principal activities are included in the Directors' Report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 28 February 2024. NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION These general-purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general-purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except as disclosed below. INTERNALLY GENERATED INTANGIBLE ASSETS - SOFTWARE Capitalised staff costs is stated at cost and is not amortised until it is ready for use. The costs are transferred to the relevant class of asset from the time the asset is held ready for use and is then subsequently amortised based on the class of asset. These costs have been capitalised only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Refer to note 9, for the additions of $3,298,000 relating to internally generated intangible asset. RECOVERABILITY OF DEFERRED TAX ASSETS Deferred tax assets are recognised for tax losses and deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses, and that the Company continues to meet the Same Business Test and Similar Business Test rules as applicable. With changes to corporate tax rates in Australia in future financial years, there is judgement regarding the tax rate expected to apply when assets are recovered. During the half-year, the Group incurred a net loss after tax of $13,493,000 (2022: net loss of $19,945,000) and net operating cash inflows of $2,410,000 (2022: outflows of $823,000). The Company has prepared cash flow forecasts as at 31 December 2023 to determine the recoverability of the Group’s intangibles and deferred tax assets. The key assumptions underlying these forecasts are as follows: • Continuation of current revenues with further growth driven through international platform, API and embedded racebook markets; • Launch and monetisation of existing customers contracted, but not yet completely ‘live’; • Expansion of the Global Tote integrations and customer liquidity; and • Sustained cost control to ensure the delivery of positive operating cash flows. The Directors are confident of achieving these assumptions. Should the above assumptions not be realised, or there is a revised less favourable outlook on the timing or quantum of key assumptions, it is expected to result in impairment to the Group's intangible and deferred tax assets. BETMAKERS TECHNOLOGY GROUP LTD 17 ← Back to Contents NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any impact on the financial performance or position of the Group during the financial half-year ended 31 December 2023 and are not expected to have any impact for the full financial year ending 30 June 2024. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. NOTE 3. OPERATING SEGMENTS IDENTIFICATION OF REPORTABLE OPERATING SEGMENTS The Group operates in three segments; Global Betting Services, Global Tote, and corporate. This is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. During the half-year, the composition of the operating segments was realigned to better reflect how the Group’s CODM assesses performance and allocates Group resources. As a result, the Global Racing Network was aggregated within the Global Betting Services segment. There was no change to the Global Tote segment. The new structure aligns the segment reporting with BetMakers' internal CODM reporting, ASX market releases and management reporting structure. The Group has restated the previously reported segment information for the half-year ended 31 December 2023. There are no intersegment transactions. The information reported to the CODM is on at least a monthly basis. The financial information presented in these financial statements are the same as that presented to the CODM. Refer to note 4 for geographical information. TYPES OF PRODUCTS AND SERVICES The principal products and services of each of these operating segments are as follows: The Group provides customers with a variety of racing software, data, and analytical tools. This includes basic race data such as pricing, runners and form, as well as analytical tools to consume and leverage the data, and wagering tools such as platforms and managed trading services. It also assists racing bodies and rights holders in producing and distributing race content. This includes services such as barrier technology, official price calculation, vision and pricing distribution. This includes the provision of tote software and integrations to facilitate tote liquidity and resulting. BETMAKERS TECHNOLOGY GROUP LTD 18 ← Back to Contents NOTE 3. OPERATING SEGMENTS (CONTINUED) OPERATING SEGMENT INFORMATION GLOBAL BETTING SERVICES $'000 GLOBAL TOTE TOTAL $'000 $'000 Sales to external customers Total revenue 26,787 26,787 24,575 24,575 51,362 51,362 SEGMENT RESULT Depreciation and amortisation expense Impairment of receivables (Loss)/profit before income tax expense 5,024 (2,410) (5,092) (2,478) 4,051 (2,693) 1,358 9,075 (5,103) (5,092) (1,120) CONSOLIDATED - 31-DEC-2023 REVENUE UNALLOCATED SEGMENT RESULTS Depreciation and amortisation expense Net finance costs Share-based payments expense Foreign exchange loss Loss before income tax expense Income tax expense Loss after income tax expense ASSETS Segment assets Unallocated assets Total assets LIABILITIES Segment liabilities Unallocated liabilities Total liabilities (9,339) (233) (162) (1,366) (668) (12,888) (605) (13,493) 53,380 51,097 104,477 78,959 183,436 12,182 23,724 35,906 9,206 45,112 BETMAKERS TECHNOLOGY GROUP LTD 19 ← Back to Contents NOTE 3. OPERATING SEGMENTS (CONTINUED) GLOBAL BETTING SERVICES $'000 GLOBAL TOTE TOTAL $'000 $'000 Sales to external customers Total revenue 25,375 25,375 21,366 21,366 46,741 46,741 SEGMENT RESULT Depreciation and amortisation expense Loss before income tax benefit 282 (1,919) (1,637) (2,952) (2,667) (5,619) (2,670) (4,586) (7,256) CONSOLIDATED - 31-DEC-2022 - RESTATED1 REVENUE UNALLOCATED SEGMENT RESULTS Depreciation and a