betr Entertainmen (BBT) Q2 2025 earnings summary

Executive summary

• Achieved normalized EBITDA profitability for H1 FY25 ahead of schedule, driven by synergy gains, strong trading performance, and strategic customer reactivation.

• Successful migration and integration of betr customers to the new platform, resulting in improved profitability, operational scale, and enhanced Net Win Margin.

• Outperformed industry during the Spring Racing Carnival, delivering an 11% net win margin for the quarter and a 16.8% gross win margin, 4.6pp above industry average.

• Focus remains on scaling the business both organically and through M&A, leveraging a market-leading product, experienced team, and scalable technology platform.

• Continued strong momentum into Q3, supported by product innovation and targeted customer reactivation.

Financial highlights

• Q2 FY25 turnover reached AUD 357 million, up 131% year-over-year; year-to-date turnover at AUD 645.1 million, up 116%.

• Net win for Q2 was AUD 39.2 million, up 142% year-over-year; year-to-date net win was AUD 67.4 million, up 120%.

• Record quarterly gross win margin of 14.6%, up from 13.7% in Q2 FY24; net win margin improved to 11% from 10.5%.

• Cash balance at December 31, 2024, was AUD 17.7 million, including AUD 12 million in client balances.

• Cash-active clients reached 144,697 at Q2 FY25 end, up 20% from the prior quarter.

Outlook and guidance

• Strong momentum continued into January, with Q3 off to a robust start and margins expected to be sustainable.

• Focus on product innovation, with new offerings expected to roll out from March and quarterly headline releases planned.

• Targeting 10%+ market share in Australia through both organic and inorganic growth, with a clear pathway to further scale.

• On track to be cash flow positive in the second half of FY 2025.

• Strategic differentiators include a scalable technology platform and a ready-to-execute M&A playbook.