Yahoo Finance When Can We Expect A Profit From Betmakers Technology Group Ltd (ASX:BET)?
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 data and analytics products for the B2B wagering market in Australia. On 30 June 2021, the AU$1.0b market-cap company posted a loss of AU$17m for its most recent financial year. The most pressing concern for investors is Betmakers Technology Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
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 2022, before turning a profit of AU$4.1m in 2023. The company is therefore projected to breakeven around 2 years from now. 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 112%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Betmakers Technology Group's growth isn’t the focus of this broad overview, however, bear in mind 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 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:
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 look at:
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.
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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