betr Entertainmen (BBT) Q2 2025 earnings summary

Executive summary

• Achieved normalized EBITDA profitability ahead of schedule for H1 FY25, driven by synergy gains, strategic customer reactivation, and strong trading performance, with each month since November being profitable on a normalized basis.

• Successful migration and rebrand of betr customers to the new technology platform, resulting in improved net win margin, cash position, and synergy realization.

• Outperformed industry during the Spring Racing Carnival, delivering an 11% net win margin for the quarter and higher margins.

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

• Ongoing trading momentum continues into Q3, with sustained post-migration performance.

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; net win margin improved to 11% from 10.5%.

• Year-to-date net win was AUD 67.4 million, up 120% year-over-year.

• Record quarterly gross win margin of 14.6%, up from 13.7% in Q2 FY 2024.

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

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.

• Positioned as a larger, profitable, Australia-focused operator with a clear pathway to further scale.

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