betr Entertainmen (BBT) H1 2025 earnings summary

Executive summary

• Achieved normalized EBITDA profitability ahead of schedule for H1 FY2025, following rapid migration and rebranding post-merger, and significant synergy gains.

• Completed the acquisition of TopSport and betr, with TopSport expected to deliver over 30% EPS accretion in FY2026 and FY2027 and client migration underway.

• Announced a non-binding indicative offer to acquire PointsBet, aiming to create a leading Australian-owned scale player with significant synergy potential.

• Net loss after tax for H1 FY2025 was $496,000, a significant improvement from the prior period.

• No dividends were paid or declared during the period.

Financial highlights

• Turnover for H1 FY2025 was $645.1 million, up 116% year-over-year; gross win reached $91.3 million, up 128%; net win was $67.4 million, up 120%.

• Normalized EBITDA for the half was $1.7 million, excluding one-off costs; EBITDA improved to $2.0 million from a negative $9.2 million in the prior period.

• Gross profit up 98% year-over-year to $29.9 million; gross profit margin at 47%.

• Cash and cash equivalents at period end were $16.0 million, including $11.8 million in client balances.

• Basic and diluted EPS were both (0.09) cents, compared to (5.17) cents in the prior period.

Outlook and guidance

• Strong momentum in activity and margin has continued into the second half, with a focus on scaling both organically and through further M&A.

• On track to be cash flow positive in H2 FY2025, with continued sustainable profitability expected.

• Directors believe recent capital raised and existing cash reserves provide sufficient working capital for at least the next 12 months.

• The TopSport acquisition is expected to complete in Q4 FY25, with client migration to the Betr platform.

• The PointsBet acquisition offer remains pending as of the report date.