Betmakers (ASX:BET) share price drops 6% after $4 million loss

The Betmakers (ASX: BET) share price has sunk 6% this morning following release of the company's half-year results. Here's what we found out.

The Betmakers Technology Group Ltd (ASX: BET) share price has dropped 6.11% this morning following the release of the company's half-year (1H21) results.

At the time of writing, the Betmakers share price is trading at 84 cents a share.

Here's the rundown on how the betting technology company has performed in the 6-month period ended 31 December 2020.

A man holds his head and look in horror at a betting slip, indicating share price drop on the ASX market

Image source: Getty Images

Betmakers half-year performance wrap

In today's release, Betmakers reported a $7.6 million revenue for 1H21, an 88% gain on the previous corresponding period.

The company – which provides data analytics and content for bookmakers globally and distributes racing content – posted a 1H21 loss of $4.4 million. This is 697% higher than its loss of $556,000 in 1H20.

Betmakers advised that the loss included $3 million of share-based payments and about $831,000 in expenses related to acquisitions.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was negative $1.7 million.

However, it wasn't all bad news, with 1H21 net assets soaring to $90.1 million from $6.5 million in the pcp. 

Earnings per share (EPS) leapt from 13 cents a share in 1H20 to 75 cents, and total assets as of 31 December 2020 came in at $81.6 million, up from $33.7 million.

Betmakers finished the period with cash and cash equivalents totalling $68.6 million, a booming number compared to the $2.7 million held at the end of the pcp.

Outlook

The business advised that its acquisition of Sportech's tote and digital assets is on track. Betmakers expects to complete the acquisition during the next financial quarter.

The company said the tote and digital business combined with BetMakers' existing operations would have delivered $56.1 million revenue and $7.7 million EBITDA for the period.

When the deal is complete, 36 states in the United States will have access to the company's technology.

Betmakers is also pursuing new opportunities in the US state of New Jersey as well as other growth acceleration activities.

Betmakers share price snapshot

Over the past year, the Betmakers share price has gained 150% and climbed 34.3% year-to-date.

The company's market capitalisation is currently $614.4 million, and 773.5 million shares are outstanding.

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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