The Betmakers Technology Group Ltd (ASX: BET) share price is up more than 53% this year – despite a major freefall in late May, which saw its shares plummet 32% in one week.
The company has not released any price-sensitive news since its fourth-quarter FY21 report in late July. So let's take a look at what else may be driving its upward trend in 2021.
At the time of writing, the Betmakers share price is edging 1.25% lower to $1.027.
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What's driving Betmakers shares?
There are a couple of possible catalysts for why the Betmakers share price has risen strongly in the past 8 months.
The gain might be a reflection of the strong recovery of the ASX share market from COVID-19. In particular, the S&P/ASX All Technology Index (ASX: XTX), which Betmakers is a part of, has surged to near-record levels. Over the course of the past year, the index is up around 33%, reflecting positive investor sentiment.
Another factor weighing into the Betmakers share price has been the star-studded performance in its latest quarterly update.
Betmakers reported $8.9 million in cash receipts, a 71% increase on the previous quarter (Q3 FY21). When compared against the prior corresponding period (Q4 FY20), this metric jumped 272%.
The company attributed the strong growth from a significant uptick in the Australian market and positive early results in its international expansion plans. The acquisition of Sportech PLC was completed on 17 June, further enhancing Betmakers' position to capitalise on revenue-generating opportunities.
In addition, Betmakers finished the quarter with $120 million in cash and continues operating without any debt.
About the Betmakers share price
Looking at the past year, Betmakers shares rose to an all-time high of $1.65 before being walloped in May. The dramatic share price fall came after the company confirmed that it put forward a takeover proposal for Tabcorp Holdings Limited (ASX: TAH). However, that has faded away, with Tabcorp opting to demerge its lotteries and wagering business instead.
The Betmakers share price has delivered returns of around 144% to investors over the last 12 months.
