betr Entertainmen (BBT) Q1 2025 earnings summary

Executive summary

• Completed transformational merger and rebrand, migrating customers in a record 59 days, integrating teams, and establishing a scalable M&A model for profitable growth in Australia.

• Achieved positive operating cash flow in Australia for Q1 FY25, with disciplined customer reactivation and rapid synergy realization, and strong momentum heading into Q2.

• Exited the U.S. market on favorable terms, simplifying operations, freeing up $6–8m annually for Australian growth, and releasing $11.2m provision for shutdown costs.

• Upgraded annualized synergy target by over 20% to AUD 16.9 million, with $14m already realized or ahead of schedule.

Financial highlights

• Q1 FY25 turnover reached AUD 286.6 million, up 101% year-over-year; net win up 92% to AUD 27.9 million; gross win up 106% to AUD 38.8 million.

• Net win margin for Q1 was 9.7% (down 0.4pp YoY), or 10.5% excluding one-off migration costs; gross win margin was 13.4% (up 0.3pp YoY).

• Positive net cash flows from Australian operations of AUD 1.4 million; closing cash balance at 30 September 2024 was AUD 21.8 million, including AUD 13.1 million in client balances.

• Over 120,000 cash active customers at quarter-end, forming the new basis for growth.

Outlook and guidance

• On track to achieve monthly EBITDA positivity by end of H1 FY25 and full-year EBITDA positive for FY25.

• Expect continued strong trading and high net win margins into Q2, with further customer reactivation aligned to major events.

• Promotional spend to moderate in November-December, supporting profitability.

• Cash burn expected to decrease significantly in Q2, with H2 targeted for cash flow positivity.