BETMAKERS TECHNOLOGY GROUP LTD — Capital/Financing Update 2020

Mar 25, 2020

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26 March 2020

UPDATE ON COVID-19

The Board of BetMakers Technology Group Ltd (ASX:BET) (”BetMakers” or the “Company”) would like to update the market on the Company’s operational performance and trading conditions through the COVID-19 pandemic.

To date, there has been no impact on BetMakers as a B2B racing wagering technology business, most importantly noting there has been no loss of customers or contracts. Delivery of all existing products and services are currently running as normal.

With the cancellation of events in various jurisdictions across the world, BetMakers has seen growing demand from wagering operators (existing clients and new clients) to provide additional content through BetMakers’ Global Racing Network (GRN).

Over the past four weeks, BetMakers has successfully delivered numerous new solutions to wagering operators by sourcing new racing content from those jurisdictions where racing continues to function.

New and existing content has been integrated into our Australian and International customers to ensure their racing products remain as comprehensive as possible.

Further, BetMakers notes that the measures and proposed timelines to combat the COVID-19 situation vary by country, meaning that Australian wagering operators are expected to continue to offer international racing product even in a scenario where Australian racing is temporarily stopped.

Due to the urgency and demand from wagering operators for new content, BetMakers expects to emerge with a more comprehensive data and content solution for wagering operators to offer their customers.

The Company has a strong balance sheet position with cash in excess of $2mil.

The Company’s previous guidance of $10mil in annual revenue is expected to be impacted should a stoppage of Australian racing occur between now and the end of FY20, however, this is expected to only impact any growth expected in the fourth quarter of FY20, rather than any existing contracted recurring revenues. Even if all Australian racing were to be stopped temporarily during FY20, the Company would still expect to deliver positive normalised EBITDA for the period.

The Board believes it will not be required to raise any further capital to manage through the COVID19 period of disruption.

BetMakers has asked its staff to work from home and we have been able to transition seamlessly in what has been a very busy period for the Company.

BetMakers Chief Executive Officer Mr Todd Buckingham said:

“In what is obviously a difficult time for many industries across the world, BetMakers has been working hard to increase products and services to our customers both in Australia and Internationally while at the same time maintaining our existing business.

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“While we are not immune to the significant challenges during the pandemic, BetMakers currently continues to operate uninterrupted to provide a range of services for bookmakers and racing bodies across the world.”

“Part of the service for bookmakers in Australia is providing race day controls, fields and form for International racing and Australian racing, including the three codes, Greyhounds, Harness and Gallops. The Company also provides pricing and trading solutions for our partners – and these are vital services supplied under contracts that have, to date, not been affected.”

“In addition, I would like to stress that this pandemic has left world economies under great duress and people under intense pressure in their daily lives. The situation from a societal point of view is fragile, and we as a company are thinking of this above all else. We are thinking of our staff, customers and their families, along with the broader community, during this challenging period.”

For further information please contact

Charly Duffy	Jane Morgan
Company Secretary	Investor and Media Relations
companysecretary@thebetmakers.com	investors@thebetmakers.com
+ 61 (0) 409 083 780	+ 61 (0) 405 555 618

Todd Buckingham, Managing Director of BetMakers, authorised the release of this announcement to ASX.

Disclaimer

This announcement contains “forward-looking statements.” These can be identified by words such as “may”, “should”, “anticipate”, “believe”, “intend”, “estimate”, and “expect”. Statements which are not based on historic or current facts may by forward-looking statements. Forward-looking statements are based on:

• assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate; and

• current views, expectations and beliefs as at the date they are expressed and which are subject to various risks and uncertainties.

Actual results, performance or achievements of the Company could be materially different from those expressed in, or implied by, these forward-looking statements. The forward-looking statements contained within the presentations are not guarantees or assurances of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by forward-looking statements. For example, the factors that are likely to affect the results of the Company include general economic conditions in Australia and globally; exchange rates; competition in the markets in which the Company does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Company. The forward-looking statements contained in this announcement should not be taken as implying that the assumptions on which the projections have been prepared are correct or exhaustive. The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement. The Company disclaims any responsibility to update or revise any forward-looking statements to reflect any change in the Company’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except as required by law. The projections or forecasts included in this presentation have not been audited, examined or otherwise reviewed by the independent auditors of the Company. You must not place undue reliance on these forward-looking statements.