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, New Zealand, the United States, the United Kingdom, and internationally. The AU$170m market-cap company’s loss lessened since it announced a AU$89m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$81m, as it approaches breakeven. 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.
Consensus from 3 of the Australian Hospitality analysts is that Betmakers Technology Group is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$3.4m in 2024. So, the company is predicted to breakeven just over a year from today. 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 111%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Betmakers Technology Group’s upcoming projects, though, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Betmakers Technology Group 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
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 put together a list of pertinent aspects 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.
Valuation is complex, but we’re helping make it simple.
Find out whether Betmakers Technology Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.