Current position and health of BET
- Thread starter Hume201
- Start date
TeddyFiles
Regular
Sadly I cannot comment. There is really no way to accurately tell.
The only one thing I can add is that the racing content for Australia races that is now being provided to the Selangor Turf club has just about doubled and they erected large Betmakers signage etc.
The global totes in Asia could be a great filler whilst the US splutters away. There is huge money in the Asia industry and they have plenty of money that they love sending round each weekend.
I'm more pessimistic than TeddyFiles.
- Their two supposedly ground-breaking plays (betr and US fixed odds) have proven to be duds.
- Their future growth strategy seems unclear.
- Staffing levels and cash burn remain at ludicrously high levels.
- The $15M Tripp payment fiasco indicates that they cannot be trusted to act in the interest of retail shareholders
Lattelarry
Regular
Cash burn is potentially less than $1m per quarter. I don't think any revenue from Betr has been realised yet.
If they pick up $8.5m or more from Betr in October then the 1H24 should look pretty good.
Lattelarry
Regular
I didn't think the deal had to be per annum. So in total if 10 years is bigger than the amount needed to be strategic it passed.
But the $15M should never have been paid as a lump sum upfront - that was crazy. If anything, and it was voted that no extra cash would be given, it should have been an extra amount per year based on some formula depending on how much was made from it each year.
Tripp thought he was bringing such a good deal to the company that he sold all his 35.7m shares!
Lattelarry
Regular
Part of the problem is they never properly defined what the deals were meant to achieve.
They say "will increase the Company’s Revenues by more than 10% on a pro forma basis"
If you take it that it has to increase revenues by more than 10% per year then if revenues were $80m and it had to boost revenue by $8m per year then it would be in the first but potentially not in years 2-10.
But if you say the deal in total has to be worth more than 10% of $80m then this should bring in a minimum of $83.75m over 10 years which is well in excess.
It should have been paid annually to Tripp depending on the amount that Betr had paid.
Reg, apart from the Betr issue, from the figures shown in the June quarterly, do you see progress towards being cash flow positive from an operations perspective in the first half of next year?
Also, do you have any thoughts on the success of the current Monmouth Park season?
Always interested your comments.
Also, do you have any thoughts on the success of the current Monmouth Park season?
Always interested your comments.
The betr deal has proven to not satisfy the Strategic Deal criteria (i.e. increase revenue by at least 10%), let alone come anywhere near satisfying the Transformation Deal criteria. If Davey had given Buckhunter the flick as a result of the Tripp payment, I'd be more confident that the company was now on the straight and narrow.
The only figure out of Monmouth that matters in my opinion is the number of fixed odds customers BET has. Continuing to have a single customer (Monmouth Park) is not a tenable business model.
Lattelarry
Regular
Hope no one here is holding MSB!
If a company that is losing $94m a year with only $2m revenue and lots of debt can still be worth $400-$500m then BET with $100m+ revenue and no debt should be worth a lot more than it is now!
If a company that is losing $94m a year with only $2m revenue and lots of debt can still be worth $400-$500m then BET with $100m+ revenue and no debt should be worth a lot more than it is now!