betr Posts $13.2m H1 EBITDA Loss but Sees Turnaround in FY27

Strategic Investments Weigh on H1 Earnings

betr Entertainment Limited (ASX, BBT) has revealed a challenging first half of FY26, posting an EBITDA loss of approximately $13.2 million. The shortfall was primarily attributed to two non-recurring factors, industry-wide, exceptionally customer-friendly racing and sports results that compressed net win margins, and front-loaded strategic investments including a brand relaunch and integration with Sky Racing.

Despite the earnings setback, betr’s underlying turnover growth was a standout, expanding by around 13% excluding contributions from the TopSport acquisition. This growth rate outpaced the broader market by more than four times, signalling strong customer engagement and market share gains during the period.

Margins Normalise and Operating Leverage Improves

Since December, trading margins have returned to historical levels, with net win margins stabilising around 11%. This margin normalisation, combined with the completion of strategic marketing and technology initiatives, positions betr for improved operating leverage in the second half of FY26 and beyond.

The company’s management emphasised that the strategic investments made in H1 were designed to accelerate organic growth and enhance brand awareness. These initiatives are expected to drive higher customer acquisition and engagement, underpinning the company’s confidence in its financial outlook.

Financial Targets and Capital Management

Looking ahead, betr has set ambitious EBITDA targets of $5 million to $8 million for H2 FY26 and $13 million to $19 million for FY27. These projections assume stable net win margins and no significant adverse changes in regulatory or cost environments.

In a move aligned with its capital allocation strategy, betr also announced an on-market share buyback program for up to 10% of its issued capital. The buyback will be executed prudently, ensuring balance sheet flexibility is maintained and only utilising excess cash.

Management Commentary

Executive Chairman Matt Tripp highlighted the disciplined approach to capital allocation and the focus on building a scalable, profitable business. He noted that the strategic investments have strengthened betr’s competitive position and that the current financial targets reflect a realistic run-rate rather than optimistic assumptions.

CEO Andrew Menz echoed this optimism, pointing to the benefits already visible from the brand and product investments, as well as the Sky Racing integration. He described the business entering H2 with stronger operating leverage and a clear path to profitability at scale, supported by a larger and faster-growing customer base.