Loss-Making Betmakers Technology Group Ltd (ASX:BET) Set To Breakeven
With the business potentially at an important milestone, we thought we'd take a closer look at Betmakers Technology Group Ltd's (ASX:BET) future prospects. Betmakers Technology Group Ltd, together with its subsidiaries, develops and provides software, data, and analytics products for the B2B wagering market in Australia, New Zealand, the United States, the United Kingdom, and internationally. The AU$151m market-cap company posted a loss in its most recent financial year of AU$89m and a latest trailing-twelve-month loss of AU$81m shrinking the gap between loss and breakeven. The most pressing concern for investors is Betmakers Technology Group's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Betmakers Technology Group
Betmakers Technology Group is bordering on breakeven, according to the 5 Australian Hospitality analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$2.6m in 2023. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 108% year-on-year, on average, which is extremely buoyant. 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, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Betmakers Technology Group currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high 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.
Next Steps:
This article is not intended to be a comprehensive analysis on Betmakers Technology Group, so if you are interested in understanding the company at a deeper level, take a look at Betmakers Technology Group's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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