Morning everyone!!
It will obviously take a while to read everything, but this report was pretty close to what was expected IMO - with the two recent quarterlies giving us a few clues.
Revenues were a few million down on what I expected, gross margins were slighly down as expected due to all the investments in their platforms, overheads were up - and with the overall nett loss decreasing from the PCP.
And everything is now "set up" for a pretty strong second half with Matt Davey "in charge" - with BET management reaffirming they are aiming to deliver positive operational cash flows in the second half FY23.
And with some great growth opportunities in front of us (Global tote, BETR revenues, fixed odds expanding in the US etc).
SOME POINTS FROM THE HALF YEARLY REPORT:
The six months to 31 December 2022 represents a period of significant investment by the Company as it progressed and delivered on key operational targets.
The investment made in developing and launching the NextGen platform as well as the acquisition of the Penn National Gaming content weighed on the gross margins during the half year.
The Company believes that the investment made puts it in a stronger position to deliver the next phase of revenue and earnings growth.
The Company is now focused on reducing and normalising the cost base and is aiming to deliver positive operational cash flows in H2 FY2023.
The loss for the Group after providing for income tax amounted to $19,945,000 (31 December 2021: $27,817,000).
Excluding depreciation and amortisation, income tax benefit and financing costs, the Group's result was a loss of $20,722,000 (31 December 2021: $22,912,000).
This includes $5,291,000 (31 December 2021: $25,224,000) of share-based payments. The Groups EBITDA excluding share-based payments expense is $15,432,000 (31 December 2021: $2,312,000).
There still may be a bit more short term pain with the share price, especially with the shorters still around (albeit slowly reducing), but it does feel like BET has turned the corner.
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