This is a pure technological disruption play so I’m not sure what your point is regarding content saturation.
TBH are more nimble, have less overheads and can provide better racing data services and information for cheaper take-out rates than competitors. That means more money for racing bodies, more profit for our client bookmakers and less take-out percentage for punters (leading to increased dividends.)
The saturation of a racing product in Australia has nothing to do with the TBH model. They clip the ticket on turnover.
Sure, there will be bigger turnover deals to be had, the point here is TBH can scale to many hundreds of these deals with next to no increase in overhead costs.
By completing the proposed acquisitions they are also creating a symbiotic relationship between the existing racing information clients who they can leverage onto the Global Tote pools.
It’s unfortunate timing for the capital raise, and there is likely to be some short term pain until the deals materialise in the quarterly figures, but this stock honestly has the potential to be the next afterpay.
Good luck and good punting!
TBH Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
