Shares in Betmakers Technology Group Ltd (ASX: BET) are trading flat after the company released its quarterly report this morning. The Betmakers share price reached a high of 45 cents in early trade but has since pulled back to 43 cents at the time of writing, the same price at which it closed Monday's session.
What Betmakers does
Betmakers is a racing data supplier based in Australia. The company is involved in the development and provision of data and analytics products. It also specialises in the production and distribution of racing content.
The info tech company is focused on providing innovative industry and bookmaker solutions to improve industry coverage and the consumer experience. The group's main revenue channels include Australia, the United Kingdom and the United States.
Quarterly report
Today, the Betmakers share price is trading flat despite a strong quarterly update from the company. Betmakers continued its growth through Q1 FY21 based on strong activity in the Australian market.
One of the highlights from the report was the strong increase in cash receipts, which came in at $3.9 million, 63% above the last quarter. Revenues also increased to $3.9 million, up from $2.7 million last quarter. Furthermore, the strong increase in cash receipts and revenue are expected to continue within the Australian domestic market. Betmakers also noted that it saw strong demand for its managed trading services, content distribution and acquisition tool products.
Betmakers finished the first quarter of the financial year with more than $32.8 million in cash. Impressively, the company also boasts no debt and management is exploring organic and inorganic growth opportunities in Australia and internationally, including in the US market.
What now for the Betmakers share price?
The Betmakers share price has been performing exceptionally this year and is up 207% year to date. This is a huge rise, particularly in comparison with the 6% drop seen in the All Ordinaries Index (ASX: XAO) this year. I believe a large part of the impressive rise in the Betmakers share price is down to its considerable growth in cash receipts, up by 132%.
Betmakers CEO, Todd Buckingham, was pleased with the results, stating:
The impressive growth we are seeing over the past two quarters is a result of the successful development, launch and implementation of our products and services in the Australian market over the past few years.
Furthermore, as mentioned above, Betmakers shareholders have plenty to look forward with a potential US market expansion in store.
