betr Raises PointsBet Offer to $1.35, Posts $70m FY25 EBITDA Profit
betr Entertainment Limited has boosted its all-scrip takeover offer for PointsBet while reporting a strong Q4 FY25 with $70 million EBITDA profit, underpinned by robust growth and strategic integrations.
- Increased PointsBet takeover offer to $1.35 per share, surpassing MIXI’s bid
- Achieved FY25 EBITDA profitability of $70 million
- Turnover surged 160% in Q4 FY25 to $399.5 million
- Successful migration of over 90% TopSport customers completed
- Raised $130 million equity to support PointsBet acquisition
Strategic Acquisition Moves
betr Entertainment Limited has taken a decisive step in its growth strategy by increasing its all-scrip takeover offer for PointsBet to $1.35 per share, representing 4.219 betr shares for every PointsBet share held. This enhanced offer clearly outbids MIXI’s competing offer of $1.20 per share, reinforcing betr’s commitment to consolidating its position in the digital wagering market.
The move is not just about acquisition; it aims to create a more scaled player with approximately 10% market share, positioning betr as the clear number four in the Australian wagering sector. The combined entity would be the only pure-play digital wagering operator listed on the ASX, potentially paving the way for inclusion in the S&P/ASX 300 index.
Robust Financial Performance
betr’s Q4 FY25 results reflect strong operational momentum. Turnover soared 160% year-on-year to $399.5 million, while gross win and net win margins remained healthy at 13.3% and 10.1%, respectively. The company reported a full-year EBITDA profit of $70 million, a significant milestone driven by a scalable platform and enhanced product offerings.
Key to this performance was the successful integration of TopSport, with over 90% of TopSport’s customers by value migrated to betr within 55 days of acquisition. This rapid migration has already delivered margin uplift and increased customer stickiness, contributing to the company’s synergy targets.
Synergies and Growth Initiatives
betr has realized $16.9 million in synergies ahead of schedule, exceeding its initial $14 million target from the BlueBet merger. The company expects to deliver approximately $44.9 million in cost synergies from the PointsBet combination, with confidence in rapid execution and limited risk of revenue dis-synergies due to low customer overlap.
Looking ahead, betr is focusing on a brand refresh aligned with its target market, product innovation with a rapid pipeline ahead of key sporting events, and enhanced data-driven personalization to increase customer engagement and share of wallet. These initiatives aim to sustain growth and maximize the value of the combined business.
Strong Cash Position and Capital Management
At quarter-end, betr held $105.1 million in cash, supported by a $130 million equity raise specifically to fund the PointsBet acquisition. The company also secured a $35 million credit facility from NAB, reflecting prudent capital management to support its expansion plans.
Operating cash flows were slightly negative at $1 million outflow for the quarter, reflecting ongoing investments in marketing and platform development. However, the company’s cash runway extends beyond 100 quarters at current burn rates, underscoring financial stability amid aggressive growth.
Bottom Line?
betr’s enhanced offer and strong FY25 results set the stage for a transformative acquisition, but synergy delivery and regulatory approvals remain key watchpoints.
Questions in the middle?
- Will regulatory authorities approve the increased PointsBet takeover offer without conditions?
- How quickly can betr realize the projected $44.9 million in synergies post-acquisition?
- What competitive responses will emerge from MIXI and other digital wagering players?
