The Betmakers Technology Group Ltd (ASX: BET) share price is falling on Wednesday.
At the time of writing, the betting technology company's shares are down 1% to $1.24.
Image source: Getty Images
Why is the Betmakers share price falling?
Investors have been selling down the BetMakers share price today despite the release of a first quarter update which revealed explosive growth.
According to the release, the company recorded cash receipts of $21 million during the quarter. This represents a 135% increase over the previous quarter and a 437% increase over the prior corresponding period.
A key driver of this growth was the company's acquisition of Sportech. This game-changing acquisition completed on 18 June, which meant the first quarter was the first full quarter of ownership.
In addition, management reported growth in its Australian platform and the Managed Trading Services operations within the Global Betting Services business segment. Pleasingly, this growth is expected to continue during the remainder of FY 2022 as the company delivers on its expanded customer pipeline now under contract.
Despite the jump in cash receipts, BetMakers recorded a net operating cash outflow of $1.5 million for the period. Nevertheless, it ended the period with a strong net cash position of ~$109 million.
BetMakers Chief Executive Officer, Todd Buckingham, commented: "The past quarter is a very pleasing result for the Company. We have seen an impressive uplift on our strong base of domestic operations while also capturing growth in global markets that were identified by the Company as opportunities for us to expand our B2B wagering technology products and services globally."
"BetMakers has a very clear strategy for growth in Australia and the United States, and is investing in the US opportunity, which we believe has the potential to be significant. Our rollout for Fixed Odds in the US, starting in New Jersey, progressed during Q4 FY21 after being passed unanimously by the Senate and General Assembly, and signed into law by the Governor of New Jersey. Everything is on track and we are excited about the journey ahead," he added.
Bookies Card
BetMakers' performance all looks likely to be boosted by a deal with EML Payments Ltd (ASX: EML).
It has partnered with EML Payments to launch the Bookies Card. Management notes that this is an innovative B2B Mastercard for the global wagering industry.
The Bookies Card is a prepaid reloadable Mastercard that allows cardholders to transfer money between their bookmaker accounts via its website and withdraw funds by using the card at any ATM.
Mr Buckingham commented: "We are very pleased to see the BetMakers' Bookies Card ready for launch, having developed the card as a B2B innovation in partnership with EML. We are always looking for ways to help our partners in every way possible, whether that's reducing resource cost, improving margins or acquiring clients. The Bookies Card website will feature functionality for users to sign up to accounts for all participating bookmakers from one site as well as pay for betting products to assist them with their betting."
