Australian betting technology firm BetMakers has been enjoying a surge in trading as it prepares for acquisition by Tabcorp, the country’s oldest and largest B2C firm.
BetMakers reported EBITDA of AU$5.9m (£3.1m), corresponding to an increase of 176.1% YoY and accompanied by a 16.3% uptick in revenue to $24.7m for Q1 FY27.
The company enjoyed particularly strong digital revenue growth, coupled with improved gross margins and tight cost controls.
On the digital side, BetMakers reported strong performance across its Apollo and Global Tote platforms for the three months ending 30 September, with Apollo in particular showing record levels of activity that translated into the post-quarter period during the Caulfield Cup and The Everest Day premier horse racing events.
Financial tailwinds brought BetMakers’ gross margin up to 69.1% from 63.9%, inches away from the company’s long-term 70% minimum target. Operating cash flow resulted in net cash of $2.8m, up from $1.2m in Q1 FY26.
Jake Henson, Chief Executive Officer of BetMakers, said: “Reaching $24.7m in quarterly revenue while generating $2.8m in operating cash flow and $5.9m in Adjusted EBITDA reflects the strong commercial adoption across our product suite and continued operational discipline from our global team.
“We have built an agile, technology-driven business model that yields operating leverage as we scale and continue to observe a strong pipeline of new opportunities to support that scale.”
Over the last six months, the firm’s stock price has significantly increased and remained relatively stable around the $0.24p per share mark.
This is largely due to the agreement with Australian gambling giant Tabcorp in August for the acquisition of BetMakers at $0.24 per share for 100% of the issued BetMakers shares, carrying a transactional value of AU$283m (£148m) and an enterprise value of AU$267m (£140m).
The deal is still subject to competition rules clearance, court approvals, gambling regulatory consents, and an Independent Expert concluding that the acquisition is in the best interest of BetMakers shareholders.
All procedures remain planned for a Q3 FY27 implementation.
In the meantime, the betting technology firm has moved from strength to strength while developments on the Tabcorp deal progress. Earlier in September, BetMakers reported a 205% YoY increase in EBITDA for FY26.
It also solidified its presence in the European horse racing market by penning a deal with French state-owned industry giant Pari-Mutuel Urbain.