Betmakers Technology Group Ltd (ASX:BET) Could Be Less Than A Year Away From Profitability

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 data and analytics products for the B2B wagering market in Australia. On 30 June 2020, the AU$402m market-cap company posted a loss of AU$2.1m for its most recent financial year. 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.

See our latest analysis for Betmakers Technology Group

Betmakers Technology Group is bordering on breakeven, according to the 2 Australian Hospitality analysts. They expect the company to post a final loss in 2020, before turning a profit of AU$3.8m in 2021. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 117% is expected, which is rather optimistic! 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, however, bear in mind that typically 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 quite unusual for a cash-burning 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:

There are too many aspects of Betmakers Technology Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Betmakers Technology Group's company page on Simply Wall St. We've also put together a list of key factors 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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