Racing and Sports storms home with record revenue for the quarter
Leading sports wagering data provider Racing and Sports reports its best quarter since listing on the ASX.
RAS Technology Holdings (ASX:RTH) has hearts racing this morning after reporting record revenue for the first quarter of the new financial year.
The company saw a 62% increase year on year (YoY) to $2.85 million, announcing major contracts in the period including a partnership with wagering powerhouse Flutter via the group’s advanced-deposit wagering (ADW) platform TVG.com and its entry into the lucrative Risk Managed Trading Service (RMTS) space on a deal with next gen betting platform Picklebet.
The company also reported a 41% increase (YoY) in annualised monthly recurring revenue (AMRR) to $9.57 million driven by a series of contracts across the business.
|Source: Racing and Sports
Racing and Sports is the foremost provider of technology, data, digital and media services to the horse racing industry globally. Among others, it drives the offerings of Entain Group’s Ladbrokes, Flutter Group’s Sportsbet and Betfair, Tabcorp, Bet365, the Hong Kong Jockey Club and Racing Victoria.
CEO Stephen Crispe told Stockhead the wagering technology side of the business was where the company was seeing the most growth.
“We’re known in the industry for having a depth of data that is unparalleled,“ he said.
“We’re using that to drive trading and pricing capabilities as well as leading to a full, turn-key solution which is going to be our Wagering 360 platform, a white label platform for operators looking to enter the market.”
Crispe said revenue growth continued to be underpinned by a growing enterprise customer base that generated 85% of revenue in the September quarter.
“Enterprise customers are a key focus for the company,” he told Stockhead.
“We’ve finalised several new agreements since the start of the new financial year including an expanded deal with Entain and we’ve got a strong pipeline across all parts of the business.”
Crispe also said the company was well funded with a cash and cash equivalents balance of $9.95 million as at September 30, 2022.
The strong result comes just a week after equities research shop MST Access issued a note calling RAS vastly undervalued with analyst Michael Youlden whacking a $1.02 valuation on the company, almost double its current share price of 54.5 cents.
Youlden cited the enormous expansion of the wagering market globally and estimated RAS Tech’s revenue growing from $8 million in FY22 to almost $20 million in FY25.
He noted the heavy reliance of RAS Tech’s clients on the company’s products and services and highlighted management’s strong industry knowledge and its extensive relationships with key industries in Australia and overseas.
RAS Tech’s co-founder, racing industry veteran Gary Crispe, started his career as the chief handicappers of the Superform ratings service. He was also involved in the development of the Wizard Form guide (then the largest privately circulated form guide in Australia).
Under his stewardship and, more recently, that of his son Stephen, RAS Tech has expanded from two countries (Australia and New Zealand) to 30, from analysing 107, 943 horses to 1.5 million and as a result growing its its racing database from 200Mb to a dizzying 821Gb.
Youlden said MST considered RAS Tech to be well positioned to continue its strong growth trajectory, noting that in FY22 90% of the company’s revenue was recurring, reflecting its multi-year contracts and high customer retention.
With Melbourne in the thick of the first Cup Carnival since pandemic restrictions eased, Racing and Sports launched a new tech offering for the custodians of the Melbourne Cup Carnival, the Victorian Racing Club (VRC).
Released on Derby Day, Inside Run is a digital race guide which lets punters watch the race before it happens using AI to create animated videos showing how the last 400m should play out. The result, based on RTH’s data and statistics, predicts the first three horses to cross the finish line.
The offering also includes a feature which shows how each horse is predicted to jump from the barrier and settle into each race. Punters can also view live vision of the horses in the parade ring and mounting yard, pre-race and follow Inside Run’s expert tipsters and racing identities.
VRC CEO Steve Rosich said the club was proud to partner with a respected operator like Racing and Sports.
Stephen Crispe said that the company was excited to be working so closely with the VRC.
“We’re thrilled to be able to showcase our innovative and immersive technologies that are designed to appeal to a new demographic of racegoer,” he said.
“We achieved this by combining core elements of gamification with our data and analytics to create a world class user experience with the VRC.”
This article was developed in collaboration with RAS Technology, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.