betr Entertainmen (BBT) H1 2026 earnings summary

Executive summary

• Achieved 25% turnover growth in H1 FY26, significantly outpacing the market by over 4x on underlying business growth, excluding TopSport acquisition.

• Major investments in brand, product, and technology are largely complete, positioning the business for improved efficiency and profitability in H2.

• Active customer base continued to expand, with product innovation focused on Same Game Multi offerings to attract younger demographics.

• H1 EBITDA loss of $13.2 million driven by customer-friendly results during peak wagering and one-off strategic investments.

• Net win margins normalized by December and January, returning to historical trends, but February was slightly behind due to customer-friendly Group 1 racing results.

Financial highlights

• Overall turnover reached AUD 807.3 million, up 25.2% year-over-year; underlying turnover growth (excluding Top Sport) was approximately 13%.

• Net Wagering Revenue grew 8% to AUD 68.9 million; Net Win for the half was AUD 75.8 million, up 12.5% year-over-year.

• Gross profit was $25.9 million, down 13% due to lower win margins and higher cost of sales.

• Normalized EBITDA loss of AUD 13.2 million for the half, compared to a $1.7 million profit in the prior period.

• Statutory loss after tax was $32.2 million, compared to $0.5 million in H1 FY25.

• Cash and cash equivalents at period end were $40.8 million, down from $104.9 million at June 30, 2025.

• Net operating cash outflow was $18.5 million, including $3.5 million in transaction costs.

Outlook and guidance

• H2 FY26 normalized EBITDA expected between AUD 5 million and AUD 8 million, assuming historical net win margins and no material regulatory or cost changes.

• FY27 normalized EBITDA guidance in the range of AUD 13 million to AUD 19 million, based on existing business and modest industry turnover growth.

• Guidance does not rely on further step change assumptions or M&A, but company retains optionality for inorganic growth and value-accretive M&A.

• Marketing spend in H2 will be materially lower as benefits of front-weighted investment are realized.

• Directors consider the PointsBet investment strategically attractive and intend to hold it for the long term.