Analysts Expect Breakeven For Betmakers Technology Group Ltd (ASX:BET) Before Long

We feel now is a pretty good time to analyse Betmakers Technology Group Ltd's (ASX:BET) business as it appears the company may be on the cusp of a considerable accomplishment. Betmakers Technology Group Ltd, together with its subsidiaries, develops and provides data and analytics products for the B2B wagering market in Australia. The company’s loss has recently broadened since it announced a AU$2.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$6.0m, moving it further away from breakeven. As path to profitability is the topic on Betmakers Technology Group's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Betmakers Technology Group

According to the 2 industry analysts covering Betmakers Technology Group, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of AU$1.3m in 2022. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 113% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Betmakers Technology Group's growth isn’t the focus of this broad overview, however, take into account that by and large 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 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 put together a list of essential aspects you should look at:

1. 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.
2. 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.
3. 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. 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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