Betmakers Technology Group Ltd (BET) Earnings Call Transcript & Summary

Good morning, and welcome to the BetMakers' First Half 2025 Investor Webinar. My name is [ Danny Enis ] and I help with Investor Relations for BetMakers. With me this morning, we have Matt Davey, President and Executive Chairman of BetMakers; Chief Executive Officer, Jake Henson; and the CFO, Carl Henschke. Before I hand over to Matt and Jake, just to note that we'll be having a Q&A session at the end. If you have any questions, please type them into the Q&A box at the bottom of your screen. I would now like to hand the webinar over to Matt and Jake. Please go ahead.

Thanks, Danny, and it's a pleasure to be talking with everyone here today. Let's kick off. Thanks, Carl. The BetMakers over the last 18, 24 months has gone through quite the transformation journey. I'm really happy to say that where we sit today, we have completed the restructuring of our cost base. That was critical for us to first build a platform from which we can then continue to scale the business and deliver the kind of results that we're all looking for as investors in this business. Today BetMakers is a global leader in racing. We have the only consolidated B2B solution for both tote and fixed odds. We have done so whilst expanding our footprint, both domestically here in Australia as well as internationally. The footprint now allows us to take our products into over 30 countries, which is quite the expansion. We have a really attractive industry to deploy our products into. The consumption of wagering behavior has continued to go and expand from both land-based into online at quite a rapid pace, both in the European markets, which I would consider some of the most mature along with the emerging U.S. markets, Latin America, and Africa. So we're continuing to expand into those markets, which are expanding themselves. So that double growth is going to start to show up in our top line revenue. And then given the fit state we've put this business in will flow through to the bottom line. The platform itself has cost tens of millions to develop. We've spent a number of years on it. The team have delivered an incredible product. Jake will talk to you more about the experience we're getting and the feedback we're getting in the marketplace, but it's been fairly consistent and somewhat overwhelmingly positive. In addition to the product, what we're now seeing are the compounding effects of simplifying the business, getting our operating costs under control, and putting out great products that our customers want to work with. That's starting to deliver the results we want to see on the financial lines. You can see that this last half, loss was reduced to only $1.3 million. And obviously, we have high hopes for the second half of the year to do a lot better than that. Thanks, Carl. Let's go to the next slide. In terms of the footprint, one of the key things I wanted to get through to our investors today is the network effects that this company is starting to build. So it starts with building a great product, getting that platform, but you also need to be integrated into all of the major B2B suppliers in the industry. The team have done a phenomenal job of doing that today. We have effectively 2 derivatives to work through. We build the products. We worked through in some cases B2B suppliers, then we get to the B2C operators, and then they deploy our products to their customer base. So there's quite a bit to work through. Those integrations have been done. We've worked really hard to make certain our technology is tight and simple so that the technical lift is a lot easier. We've shortened integration times from what could be over a year to a matter of months or weeks in some cases. This means we now have access to over 60 wagering operators in 45 regulated jurisdictions in 30 countries around the world with 230 racing partners. It's a great footprint to have and now we can start to fill that footprint with our brand-new products that the team have worked hard to build. Go to the next slide, Carl. To put that into context, there's over 20,000 sportsbooks worldwide that operate in the digital space that gives access to over 1.5 billion active gamblers. So BetMakers now has a technology set that is integrated with a distribution network that can create a critical mass around that and gives us a much greater chance to start to really grow top line revenues, and then we can deliver that against our really efficient cost base, and that will start to show up in our operating leverage. Next slide. So looking in the past, we have got a $82.8 million annualized revenue run rate from the first half, we're going to look to work to improve upon that. The $1.3 million loss in the EBITDA line is dramatically better than what we've seen before. But obviously, we're not happy with that. We're going to turn that positive. We have told the market that we anticipate turning positive in the second half of this year. The gross margin is also critical. I think the company suffered from fairly low gross margins through a number of contracts that we entered into. We have modified and improved those, not just from third-parties, but also our internal products. So we anticipate further increase in gross margin percentage. And the operating expenses have come down dramatically. They will continue to trend lower. However, I'm very happy with where they're at today and believe we can drive a very profitable business off the back of that. With that, let me hand over to Jake to walk you through the rest of the business.

Thanks, Matt, and thanks to everyone who has joined today. Throughout the first half of FY '25, we've delivered on a few key operational targets that we believe set us up well for the second half. We've delivered on material reductions to the cost base, which is now tracking around $32 million in annualized savings. This obviously increases our operating leverage. We've executed on our technology road map, including delivering the Apollo platform and associated modules and products. This improves our position within the market. We've streamlined our growth strategy to focus on some key initiatives, we'll chat a little bit about later. And we've reduced the adjusted EBITDA loss to $1.3 million for the half. And as Matt said, we're confident about the trajectory that's heading in moving forward. I think the key takeaway, which Matt just touched on, is we're pleased with the progress, and I'm certainly very proud of the efforts of our staff to get us to where we are now. But we're certainly not done and we have some pretty lofty goals that we want to see come through during this next half, not only in delivering efficiencies, but also expanding our sales and revenue pipeline off the back of that technology we've now delivered on. Now this slide is a little bit to take in here for investors, but I think it's a good walk-through of where we fit inside the ecosystem from a racing perspective, a little bit like sports content. It doesn't come out of the box in a wagering format. It's obviously live racing. And then that goes into the BetMakers ecosystem where our various products come into play to put it into a position where we can distribute it via distribution channels. So it's then ready for operators and customers at the bottom of the funnel. So a practical example here would be racing from a racetrack in the U.S. We get live streaming come into our engine and live racing data. We then apply betting products to it like fixed odds and parimutuel through Quantum. We overlay our Racelab Pro Form and Punting Form content and data insights, and then we get them into our BetMakers delivery channels. This could be our terminals through BetLine. It could be GTX or Apollo platforms or our API service layer, and then we then sell on to the operators from there. So taking what is quite raw data at the top of the funnel into wagering-ready data at the bottom of the funnel for those operators. Next slide, please, Carl. A little bit more around 2 of those platforms we just spoke of there. So the Apollo suite of products is a really important one and really underpins what we do within our GBS division. This was delivered to the market during the last half, and we're really excited about the progress we've made, not only getting it into the market, but then subsequently delivering against that with new features and enhancements. And on the GTX side there, we flagged this to the market a few weeks back, the finalization and acquisition here that basically sets up the digital strategy for our tote business. GTX will underpin how we transform what has been historically a very heavy land-based business in parimutuel business into the digital age. GTX platform will be underpinned by a lot of the same structure and mechanisms of Apollo. So it's multi-tenant architecture. This is designed to ensure we can deliver it at an affordable cost to our users and ensure we keep a strong margin ourselves. It's about continual enhancement and ensuring we can deploy more products and features over time swiftly. It's the ability to take both tote and fixed odds products to various audiences. So in tote markets, historically, their access to fixed odds product has been really low. We can increase that via a turnkey API. And inversely, in fixed odds markets, being able to deliver parimutuel products, particularly exotics and jackpots, we think is a key strategy for us moving forward, and we think it fills a strong hole for operators who around the world are faced with increasing tax at the moment and the margin that can be delivered by those products, we think, is really exciting. Importantly, both products are underpinned by our core data system, including the likes of Racelab and Punting Form. So we're able to enhance what is raw racing data and deliver it in a way that helps users make more bets. Next slide. Thanks, Carl. This is a bit of a deep dive on the Apollo segment, particularly speaking to what I mentioned there around the modularized product set. So Matt mentioned off the top that the world of wagering is underpinned by suppliers, and we've worked really hard over the last 6 months to get our products in a position where they can plug into those distribution and supply networks, of which the second layer, you can see on screen there, are either deals that were signed, that we've signed and integrated or were signed and integrating. So the exciting part for me here is a lot of these partnerships are not yet hitting the P&L or the revenue line, which represents obviously strong upside. All of those partners you can see on screen also have a captive audience of existing wagering operators and the ability for BetMakers products from Apollo to be able to plug in there and enhance their offering is really exciting. It gives us a faster path to market after the initial integration and obviously allows us to tap into markets that we're not currently operating within. A call out here since the completion of the half was the Sportradar announcement that we put out to the market last week. This fits perfectly into this distribution and B2B2B model. Sportradar is the largest B2B sports betting supplier in the world, U.S. listed, and roughly $7 billion market cap. They have customers all around the world that take their products, and we see it as a strong endorsement for BetMakers racing products to be able to plug into that distribution network. We think this will drive further sales certainly because Sportradar are the largest and the best in class. So I personally think it's a great endorsement for the technology that we've delivered through the last half to have an operator of that size elect us as their preferred racing partner for their platform customers. So really exciting. And I think the key takeaway from this slide is most of the upside from these distribution partnerships is still to play out. Thanks, Carl. Finally, I just want to touch on a little bit more around the growth strategies we have in place. The 4 listed on the left, I'll work through to start with. And first one, expanding our international partnership channel ties very tightly into that previous slide. We want to increase market share in Australia through existing and new customers. We want to increase handle for our tote partners globally, and we want to expand the global reach, particularly through our global racing network. I think the exciting thing for me about this slide is the middle part, you can see on the screen, the product suite. The vast majority of those products are brand-new products that have been put into the marketplace over the last 12 to 18 months. They're the result of a lot of planning, a lot of hard work and exciting for us that we can take them to market now and the early feedback has been super strong across those, evidenced by the recent wins we've had from the sales pipeline perspective. We've also been able to deliver against these growth initiatives recently. A few of those are flagged over on the right there. So the Sportradar announcement, certainly, but the likes of Sportingtech, Gaming Innovation Group, Intelligent Gaming, and Delasport have all taken various versions of the Apollo product suite and are at various stages of integrating with, GiG going live just before New Year's and Intelligent Gaming just a few weeks ago. Really exciting progress there. The Apollo platform, we've launched a few new customers since this went into the market first in October last year. And I think the pipeline for growth is the largest we've seen across this sector, which is really exciting. And again, I think speaks to the quality of the product and how it's being viewed within the wider marketplace. On the tote side, I think the big shift here is around that movement from land-based to digital, and we think GTX puts us in a position to really capitalize and accelerate that not only through tote betting, but then also being able to offer curated fixed odds and other bet types via APIs. And finally, on the tote side, the Norway 10-year deal, the National Tote System went live recently, which is a fantastic milestone for the company. For background, this is basically a ground-up tote infrastructure build that covers hosting of all pools, all of co-mingling, connectivity to all retail and all digital. So a massive product and a fantastic effort from our team to now get that into a production state. We also recently announced the Perak Turf Club in Malaysia, will be going live with our Quantum solution. This supports the deal that we put into the market late last year with Selangor Turf Club in Malaysia as well. And also the Argentina Jockey Club, I think this was signed just before Christmas and has recently gone into a go-live state as well. So some fantastic progress on the tote side, and it's great to see some new customers coming to the fold.

Thanks, Jake. Look, I'll walk through some slides in a sec that, I guess, talk about the performance in the half. But I guess just in terms of summary at the outset, I think we're very encouraged, really excited, I guess, about where the business is going. I think we're moving into a period where we're going to see concurrently revenue growth, gross margin improvement, and our cost coming down, which I think is really the payoff of the investment and transformation that's been undertaken by the business over the last couple of years. Just in terms of our revenue profile, a bit of a reminder for everybody, our revenue profile looks like a B2B technology company. We have very highly contracted revenues. You can see there for the period, 98% of revenues were contracted at the beginning of the period, low churn, very low customer concentration. Historically, we were more beholden to a legacy customer. That's not the case. Most of those major customers are international customers. Top 10 customers only make up 27% of the business. Where we're perhaps different from some other B2B technology companies is we do have a significant portion of our revenue that's variable. But we think it aligns us very closely with our customers and with our new products. We're certainly looking at ways to make sure that we increase wagering turnover generated by our products, which we will be rewarded for. And then lastly, a reminder again about the international nature of our revenue. The vast majority of our revenue is global and exposes us to global macro trends in wagering, including the emerging developing wagering markets. Obviously, Australia is still a very important market for us, and we certainly see growth in the Australian market supported by our products. This next slide is, I guess, really designed to help unpack some of the noise that you might see in our revenue when you look at our financial statements, I guess, give you a bit of a window into what we see when we look at our underlying revenue trajectory. So what we've done here is we've x-ed out the impact of a legacy customer that churned just at the beginning or at the end of FY '24 or the beginning of FY '25. And you can see there that half-on-half, we've actually generated modest growth during the period. So that supports a strong base for the sort of acceleration of growth that we're talking about. I think we're calling out very specifically that we expect to see revenue growth in FY '26, and we're anticipating seeing evidence of that, particularly in the back end of the second half, but certainly deals that support that like the Sportradar deal that we've seen to date. I think like I mentioned earlier, we're also very confident about our gross margin trajectory in the short-term, particularly delivered by the impacts of the technology upgrade, particularly for GBS in Australia and certainly much higher incremental gross margins than our current gross margin. We'd also expect to see benefits from the rollout of GTX as we continue to move forward with that. This is a slide, I think, that the business is very proud of. We've been working very hard to optimize our cost base, I guess, to reflect the strategic priorities and the growth initiatives of the business. It's been, I guess, undertaken from operational discipline, but also as a result of the investment in tech, allowing us to bring down some of the overheads and staff costs. I think at the FY '24 results, we called out that we were targeting to get the annualized costs under $60 million. We've now done that. That number there, $59.6 million, does include some restructuring costs in the half. We're sort of confident about the trajectory of that, and we're now targeting to get the cost -- the operating cost base to $55 million. And we think that's an operating cost base that's optimized and certainly can support significant future growth, particularly with some of these scalable B2B products. This is a slide that I think we flashed at the half. It really summarizes very simply the financial impact of the transformation that the company has undertaken in the last 3 years. We've been able to generate $32 million in annualized savings so far, which is really quite a phenomenal effort on the revenue base of the company. The first 2 show the movement in staff costs and overhead over the last 2 years. It compares the annualized cash cost exiting calendar year 2022 to the annualized cash cost exiting calendar year 2024. You can see a $22 million reduction in staff costs, $6 million overheads, phenomenal effort from the team. And then the next one looks at our cloud and infrastructure savings to date, really driven by our tech upgrades. This is on a slightly shorter period, the period of time in which those upgrades have really been implemented, which is really since 30 June 2024. We've seen $4 million annualized savings in terms of COGS in the Australian business. We certainly expect that to continue. And as we mentioned, we expect that to drive improved gross margins going forward. We're obviously committed to continue the approach to operational excellence and efficiency, and we'll continue to work on costs as much as we can. I guess this slide really summarizes the impact of a lot of work that's been done in transforming the business. It shows the progression in adjusted EBITDA, which we think is a good reflection of the cash operating profit of the company. The capitalized costs over those various different periods have been quite similar. And you can see there a vast improvement from the half in FY '23 of a $15 million loss to a $1.3 million loss from an adjusted EBITDA perspective in this half. It's also supported by improvements in our operating cash flow, which improved 43% quarter-on-quarter for the December quarter. Obviously, any -- and we expect this trajectory to continue driven in the short-term, principally still by the impacts of our recent restructuring and also the technology benefits that we've spoken about. But future revenue growth would continue to accelerate this given the operating leverage we've now built into the business. This is another slide that we used at the half when we gave a bit of an update on the transformation. I think it's particularly helpful for people that are a little bit newer to the story. It tells the financial story of the company over a number of years and really shows what we're focused on and where we're heading. You can see there in what we call the build phase, the business grew very, very quickly from $6 million to $95 million of revenue in a way that was typical of the time, I guess, but at a cost, annualized adjusted EBITDA loss of $28 million in FY '23. You take that to 1H FY '25, and there's been a material improvement in the profitability of the company. And we're very, very proud of that. I think, however, though, what we're very, very focused on now is transitioning to achieving our long-term goals, which is really based around making BetMakers a Rule of 40 company. And we think that's about getting ourselves to double-digit revenue growth, which we're trying to accelerate to as quickly as we can. 70% gross margins, which from the evidence we're seeing in terms of the impact of our tech, we're very comfortable about delivering that on this time frame. And we feel confident that if we deliver those 2, then based on the cost base that we've got, we'll be on our way to deliver EBITDA margins of 25%, which is consistent with businesses in our space. Back to you, Matt.

Thanks, Carl. So the company has been on quite the journey as both Jake and Carl have walked you through. This includes not just cost out. Cost out is one thing. It's fairly simple to go out and reduce costs. The difficult part is to do so without impacting revenue and the company has done a great job there. But it's not just that. It's also reducing complexity. Complexity has slowed down many companies. And now we have done simple things such as reduce the number of offices. We've also improved the quality of the product. The product itself now has never been in better shape. And that also reduces complexity. We're seeing decision flow through the company accelerate. We're seeing faster deliveries of technologies. We're seeing contracts being executed more quickly. All of these impacts here are having a compounding effect on where the company is at today and the momentum we have built into the business now. So when you think about the outlook into the second half of FY '25 and then over into the New Year of '26, we're looking for top line revenue growth, as Carl touched on. But doing so with a strong operating cost base in place allows us to really deliver what I call operating margin expansion. So we will see not just an improvement in gross margin, that's going to be a natural default of holding our cost base to where it is today, but that will also then flow through to the EBITDA line, and you'll see both gross margin and EBITDA expand as we bring forward that top line revenue growth. So the company is in a very healthy place. It's never operated more efficiently. The quality of information and the speed at which we are working is very impressive from my experience over the last 25 years or so. I think we're in a very fit and healthy shape, and that is exactly the time you want to put your foot down on the accelerator and start to really grow the revenue side of this business. So just to tick through the key points here. So the EBITDA and cash flow trajectory for the second half of '25, we've called it out. We're saying it's going to be better than the first half. I think everyone can read through on that. The revenue growth, again, you'll see the majority of this uptick kicking in '26, but we're definitely seeing signs of that in the second half of the year. Apollo, the new technology platform has transformed our gross margins, and we think that will continue to flow through with the positive compounding benefits to the rest of the business. We'll continue to focus on the growth initiatives. We're going to do so with a very disciplined approach to our operating cost base as well. We're going to make certain as we expand the top line, we continue to stay in a healthy, fit, nimble, and agile shape. That said, the final thing, I guess, I want to touch on is it's great to see some capital market activity in our sector in the space. We think that's going to continue to accelerate as well, and we anticipate being an active participant in that over the next couple of years. With that, let me hand it back to Danny.

Thank you, Matt, Jake, and Carl. We will now move to the Q&A session. Once again, if you have any questions, please type them into the box at the bottom of your screen. We do have several questions coming through. Thank you. As expected, there are quite a few questions around Sportradar. So we'll pull those together and kick off with some of those. So the first question maybe for you, Jake. In terms of Sportradar customers, how many are using the ORAKO platform?

Yes, I can't speak to specifics exactly there, Danny. But what I can say, it's our understanding that there's at least 30 customers that are using that platform and that the integration of the actual solution is basically complete, which is exciting. The actual revenue model there, which we did get some questions about as well, the variable nature of it means that it's quite difficult to project revenue with any great accuracy. So we'll stop short of putting anything out there that we can't get absolute certainty around. What we are very confident on is that Sportradar is the leader in that field. And for those guys to select our solution to integrate as fast as they did and to be in a position where we are now to work with them to onboard that product, it's super exciting. And as I said earlier, I think it's one of the best endorsements for our technology that you could get.

Thanks, Jake. The next question on Sportradar is around the opportunities to expand this agreement. Are there any and where?

Yes, absolutely. So the ORAKO platform actually has multiple functions to it, including a point-of-sale and hardware network, which we see as the logical stage 2 of that partnership. Obviously, Sportradar play in a number of verticals all around the world, and we see this as hopefully a leapfrog to do more business with them. But in the short-term, absolutely focused on tapping into the ORAKO network and doing the best possible service we can there.

And maybe a little bit more clarity, Jake, on Sportradar's geographic reach. So will it extend your geographic reach from circa 30 countries and by how much? And will Sportradar post ramp-up and integration skew your sales to a higher customer concentration?

Yes, that's a good question. So obviously, our business spawned out of the Australian market, and we were 100% Aussie revenue 4 or 5 years ago. And I think now we're probably circa 25%. And part of that footprint has grown into the U.S. and throughout Europe. But Radar on the other hand, would be quite small in the Australian market. So we do see it as a massive opportunity to get into markets that we're not currently operating within, particularly countries throughout Europe where radars are staple in terms of being the leading supplier. So what that means for revenue mix, I think overall, as we add in more customers, we become more and more diversified. It enables us to obviously get into emerging and growth markets as well. I flagged earlier the Sportingtech partnership in Brazil, which I think is probably the largest growth market we've seen open up in many years. We're really excited about that and the other prospects throughout LatAm that seem to be aligned.

Okay. There's a couple of questions around the BetMakers technology and the platform. So I'll ask those. So the first one is, are BetMakers providing technology to any customers that use it for sports betting as opposed to racing?

Yes, absolutely. It's a good question. I think that's part of what we've pulled together with our new product suite in the Apollo division is a betting engine that can power a number of suppliers at the top of the funnel. So in that regard, we're actually partnering with players such as Betgenius, Sportradar, Sporting Solutions, and OpenBet to deliver their products for them through our network, which I guess speaks to the network effect flagged from Matt earlier. We're also able to do this in our point-of-sale and terminal fleet, which is really exciting. So a practical example is a racetrack customer that's historically just had local content on their point-of-sale devices could then add in sports betting, iGaming, and global fixed odds as well. So we see that as part of the natural upsell and helps those operators compete with the shift to digital.

Okay. The next question around the technology is the upgrading technology with the Apollo platform, do you expect to see further efficiency gains from the migration of customers?

Yes. I can take the first part of that. It probably ties into a little bit of financial update from Carl as well. But certainly, and I think that's part of the reason that we undertook such a key tech milestone there is that we need to be able to serve our customers at a strong gross margin, which we flagged in terms of our long-term goals. And a lot of the work and the upgrades through that division play through right until January. So we'll start to see the cleaner benefits from that on a P&L basis through the end of this quarter and into the April quarter. So we definitely expect further improvement from the gross margin line as a result of that.

Okay. The next question is around revenue growth. So what level of revenue growth do you expect to achieve in FY '26?

I'll take that, [ gents ]. Look, we've been pretty clear, we're targeting double-digit revenue growth at the top line. It takes time to build that momentum in. We've obviously gone through a period of contraction. I think you'll see FY '26 deliver in the double digits, probably the low double digits, but I think you'll see that accelerate over time. And as you can see from gross profit margin, we don't need much increase in the top line to start coming through the bottom line quite nicely.

Thanks, Matt. There's a couple of other questions around the financials. I think Matt, yes, maybe you take the first one, and Carl, the second one. So the first one is, do you expect to be profitable in half 2? And will you be cash flow positive in half 2?

That's certainly what we've indicated to the market, that's our target. I'm very comfortable where we sit today that if trends continue as we're seeing at the start of this quarter, I think we're right on track to exactly where we need to be.

Okay. And the second question around the financials, maybe one for you, Carl. Just in terms of that $60 million in costs going to $55 million, is that a fully loaded number, i.e., before you capitalize any R&D below the line?

Yes. Thanks, Danny. Yes, that number is a fully loaded number, inclusive of all cash costs, no impact from capitalization.

Okay. And there's a follow-up question just on the gross margins, maybe another one for you, Carl. You're currently sitting at around 60%. Longer term, they're expected to go up. How quickly can you get to, say, 65%-ish?

Yes, we'd certainly be expecting to be in that range by FY '26. I think we're very, very comfortable with the trajectory of gross margin in the business at the moment and quite excited about how quickly we can get to 70%.

Excellent. Okay. The next question is around new products and customer feedback. So is there any early customer feedback on the new products that you can share?

Yes, absolutely. So the Apollo suite of products have been going into the marketplace since early last year. And I think the recent trade show we attended in Spain was probably the first of which most of those products were in the [indiscernible] as such. And I think from an inbound perspective and sales, that was the strongest conference I've personally been to. The endorsements from customers are obviously the ultimate sales mechanism. And I think that probably culminated in the Sportradar deal as well. As I mentioned, we see that as a very strong endorsement, and that's of a lot of our products that feed into that, the betting engine, the fixed odds solution, the managed trading, the parimutuel solution. So yes, I think that's -- the feedback has been fantastic. And I'd say the stance from our team internally is we're just getting started, and we think that we can take to a whole new level in FY '26 and throughout the next half.

Thank you. We've got a question that goes back to the revenue growth. So now that revenue growth is the key initiative, is it right to assume that the contract extensions announced have had price increases built in?

It's a good question. I think it's similar to that, but it's more so that the deals we've executed throughout the last half, particularly noted in that strategic partnership slide, is that they're starting to come through to a production state. So those customers are either integrating or recently completed their integrations, which enables us to tap into their network throughout this half. So it's less so of increases to existing customers and more so getting some of those pre-existing deals into the marketplace.

Just to touch on that, Danny and Jake, I know Carl kind of flagged out the revenue split and called out the fixed versus variable and some investors prefer a large fixed component. I'm actually a huge fan of variable once you've got your cost base under control. And I think we've got an expanding industry worldwide. And by being on these variable contracts where we're exposed to the upside of our customers, we can actually generate significant growth in revenue without actually having to do anything else other than deliver our product. So it's actually a great setup to have once you have your cost base under control and Jake and the team have done a phenomenal job of doing that. The latest deals that we're seeing, which are API-driven or just simple integration-driven deals, don't carry a lot of additional operating costs for us. So I think that variable nature of these contracts will actually benefit us over the short to medium-term.

Okay. Thanks, Matt. Just a reminder before I ask the next question, if you have a question, please type them into the Q&A box at the bottom of your screen. Okay. Maybe the next one is for you, Jake. It's in regards to some partnerships and deals. So any update on the Norway bet365 and Caesars from a revenue perspective?

Yes. So each of those deals are at, I guess, varying stages of maturity. But they're certainly all in line so far with our expectations. So the Caesars rollout throughout Nevada is largely complete now, and we're working with them to unlock some of the other states in which they've got a presence. The Norway deal I touched on actually went live recently. So after the completion of the first half, that's a big tech lift, but it's obviously a large contract and early signs have been really strong in that regard. And on bet365, and I think this ties into a couple of other questions that have popped up there, yes, U.S. fixed odds has been a bit of a slow burn, but I think the last 3 to 6 months has probably been the most progress we've seen in that regard, highlighted by a global wagering giant like bet365 going live in a few states there. I think like the Sportradar announcements that spawns interest from other competitors and players within the marketplace, and we've been able to have some pretty active discussions with those recently. The other thing to flag there is the capability of our platform, the GTX platform that we highlighted in the presentation to not only do parimutuel in markets like the U.S., but also to be able to do fixed odds and managed trading through that offering in basically a one-stop shop.

Thanks, Jake. Maybe the next 2 are for you as well, more around general conditions. So the first one is, are you feeling the impacts of a more competitive local wagering market?

No, I don't think so. I think the market has been competitive for as long as I've been around anyway. It goes through different waves that are normally aided by tailwinds and then obviously bumping across headwinds. I think the marketplace at the moment is starting to tick back up. I think this is evidenced by valuations in the space on the B2C side, which is always a good proxy for activity. And then also what we're seeing from inbound interest as well. So not just players within our marketplace, but within other marketplaces. And there's obviously some news around some of the B2C players in this regard lately, which I think Matt touched on it, but I see it as a massive positive for the industry in our space and horse racing more generally that there is that interest now being shown. And that obviously piggybacks off some macro tailwinds as well. And I think as an industry, we just need to capitalize on it and, hopefully, BetMakers is there with the right solution at the right time.

Yes, and you pretty much answered the second question around the macro tailwinds. Are there any others that excite you most about BetMakers?

Yes, it's probably the emerging markets. I think to put into perspective, the Brazil comment from earlier is there's as many people in Brazil as there is the U.S. But it's one piece of legislation to get access to 300 million potential customers. Whereas in the U.S., it's obviously highly fragmented across all states and regulatory bodies. So that's a market that's probably dominated the industry over the last 12 to 18 months, and we're really happy to have a few irons in the fire there through some of our distribution channels. And I think we'll see other countries within LatAm follow a different -- sorry, a similar path in the coming years now that sort of blueprint has been laid out by Brazil. So I think that's a market to keep track of. And the ultimate proxy for that is the large B2C giants are taking that market more seriously than they ever have done before. So I think that's a good sign of where further growth will come from.

Excellent. There are some financial questions coming through. Maybe Carl, I'll put you on the spot. So how do you manage FX? Is this impacting the business?

Yes. Thanks, Dan. Look, it's not a big impact for the business. We've got a natural hedge in the business, given that we've got both U.S. dollar and Aussie dollar cost and revenue. So we continually review how we manage that, but it's not a big issue for us.

Okay. And how are you feeling about your long-term goals, specifically being able to achieve 10% revenue growth and EBITDA margins of 25% plus?

Yes. I think there's been a very deliberate posture change here about calling out that we're moving into a phase where we're expecting to see revenue growth. So I think with the transformed cost base, we're very excited about the possibility of achieving those long-term goals well within the time frame that we've set for ourselves.

Thanks, Carl. The final questions are around the future. So what does the pipeline of opportunities look like?

Yes, I'll start, Matt, feel free to chime in after that. The short-term opportunities we see being driven by the strategic partnership slide that we highlighted. Each of those B2B suppliers has, in every case, dozens of downstream sportsbook operators. So that's a ready-made sales pipeline for us to tap into once those integrations are complete, and that's a key focus for what we're doing now. I think when we think about 6 to 12 months down the line and our products starting to enter more maturity, we definitely think we can get more revenue from our existing customer base by helping them target a deeper integration with our product set, but then also leverage more out of their existing base with improved products as well. I think that was one of the questions that came through on the buzzer there is how we get more revenue out of our existing base. So I think our technology is in a position now and the best position it's been in to do exactly that.

Thank you very much. It doesn't look like there are any further questions. So that concludes the Q&A session. I will now hand back over to Jake and Matt for any closing remarks.

Thanks, Danny. Thanks, everyone, for your time today. We are very happy to have delivered the first half. We cannot wait to deliver the second half and look forward to catching up soon. Appreciate it.

Thank you.