Betmakers Technology Group Ltd (ASX:BET) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Betmakers Technology Group Ltd, together with its subsidiaries, develops and provides software, data, and analytics products for the B2B wagering market in Australia. With the latest financial year loss of AU$17m and a trailing-twelve-month loss of AU$41m, the AU$416m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Betmakers Technology Group's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 4 industry analysts covering Betmakers Technology Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of AU$6.7m in 2023. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 100%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Betmakers Technology Group's upcoming projects, however, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Betmakers Technology Group has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are key fundamentals of Betmakers Technology Group which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Betmakers Technology Group, take a look at Betmakers Technology Group's company page on Simply Wall St. We've also compiled a list of relevant aspects you should look at:
Valuation: What is Betmakers Technology Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Betmakers Technology Group is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Betmakers Technology Group’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.