Earnings release
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betr Entertainment Limited | 9/8 Spring Street, Sydney NSW 2000 | www.betr.com.au ASX Announcement (ASX:BBT) 29 January 2026 betr Q2 FY26 Results betr provides FY27 EBITDA1 target of $13-19m; underlying turnover growth2 outpaces market 4x in H1 with customer-friendly results and non-recurring strategic investment driving H1 EBITDA loss3 betr Entertainment Limited (betr or the Company) today releases its Q2 FY26 Quarterly Activities Report and Appendix 4C. Highlights • Underlying H1 turnover growth of ~13% (ex-TopSport customer contribution) outpaced market by more than 4x, with ongoing market share gains • H1 EBITDA of -$13.2 impacted by industry wide, exceptionally customer-friendly results and front-weighted strategic investment • Trading margins have returned to trend since December, with Net Win Margin ~11% across December and January MTD • Strategic marketing and technology investment activity completed in H1, enabling materially improved operating leverage in H2 and FY27 • EBITDA target1 of $5m-$8m for H2 FY26 and $13m-$19m for FY27 Results Overview The Company’s H1 FY26 performance fell below management’s expectation, being impacted by two primary factors: 1. Industry-wide, customer-friendly racing and sports results, reducing historical Net Win margins and causing an adverse EBITDA impact of ~$7m; 2. Front-weighted, one-off, strategic investment in brand relaunch, Sky Racing integration and delivery capability to support accelerated organic growth. 1 Normalised EBITDA excludes one-o7 costs and share based payments. 2 betr base business. Excludes impact of TopSport acquisition. 3 Unaudited For personal use only
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betr Entertainment Limited | 9/8 Spring Street, Sydney NSW 2000 | www.betr.com.au These factors combined to produce a H1 EBITDA4 loss of ~$13.2m. Importantly, both drivers are non-recurring items, with trading margins returning to historical levels from December and the brand relaunch being successfully completed. Over the peak wagering period in Q2. Outlook and Financial Targets With investment activity largely completed and operating conditions returning to historical margin levels, the Company expects a materially improved earnings profile in H2 FY26. The business now enters H2 with greater operating leverage, greater scale driven by share gains and improved margin momentum, supporting financial targets of $5–8m in normalised EBITDA in H2 FY26 and $13–19m in FY27. Supporting this outlook, betr expects to see the earnings benefits of strategic H1 investment over the balance of FY26 and through FY27. This includes enhanced brand awareness leading to higher customer acquisition, and payback from premium sports advertising. Furthermore, the Company will continue to benefit from a lower cost base from H2 FY26, having met development and deployment costs. The financial targets assumes that net win margins are consistent with historical levels and that there are no material adverse changes to the cost of sales or regulatory settings. Commenting on the results Executive Chairman, Matt Tripp, said: “The board’s focus is disciplined capital allocation and building a scalable, profitable business to drive meaningful shareholder returns on a standalone basis or as part of our stated M&A strategy. “The strategic investment undertaken in H1 has strengthened betr’s competitive position, and with a normalisation in results, the earnings potential of the business is now more evident than ever. “The financial targets provided today reflects the underlying run-rate of the business, not optimistic assumptions, and positions betr to deliver profitable growth while maintaining balance sheet flexibility.” Chief Executive O_icer, Andrew Menz, said: “H1 was a period of strategically elevated investment and extraordinary customer-friendly outcomes, which have combined to temporarily impact earnings. With Net Win margins now back to historical levels and our major investment initiatives completed, the business enters H2 with stronger operating leverage and a clear path to profitability at scale. “We are already seeing the benefits of brand, product and Sky Racing investment flow through customer growth and engagement, and this underpins our confidence in our H2 performance and FY27 target.” “A larger, faster business provides a clear path to profitable market share growth and value creation as we execute on our M&A agenda. ” 4 Normalised EBITDA excludes one-o7, M&A and media production costs. Unaudited For personal use only
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betr Entertainment Limited | 9/8 Spring Street, Sydney NSW 2000 | www.betr.com.au Announcement of share buyback On 14 January 2026, betr announced that it intends to undertake an on-market buyback for up to 10% of issued share capital, in according with the Corporations Act 2001 (Cth) and ASX listing rules. This is in line with betr’s capital allocation framework, and the Company commits to maintaining strong balance sheet flexibility through the buyback program. The buyback will be executed in a manner that will only use excess available cash. There is no guarantee any shares will be bought back with any purchase subject to maintaining balance sheet flexibility and all relevant information at the time. Investor and Analyst Briefing An investor and analyst briefing will be held on 29 January 2026 at 10.30am AEDT to discuss the Q2 FY26 results. The briefing will be webcast and accessible via the links below. Phone registration https://s1.c-conf.com/diamondpass/10052412-hu7y6t.html Webcast https://ccmediaframe.com/?id=yPzLn1Y9 AUTHORISATION This announcement has been authorised for lodgement to the ASX by the betr Board of Directors —END— For further information, please contact: Investor enquiries Media enquiries Daniel Bevan Jack Gordon Head of External Apairs Sodali & Co investor@betr.com.au jack.gordon@sodali.com About betr Entertainment Limited (ASX:BBT) betr is a pure-play digital wagering operator listed on the Australian Securities Exchange (ASX) focusing solely on the Australian wagering market. betr has a world-class board led by prominent Australian wagering industry figures Matthew Tripp and Michael Sullivan, and a highly experienced management team For personal use only