Betr lifts first-quarter turnover 19 per cent and holds FY27 earnings guidance

Betr reported turnover of $432.3 million for the September quarter, up 19.1 per cent from the same period last year, and reaffirmed its FY27 guidance of $13 million to $19 million in normalised earnings before interest, tax, depreciation and amortisation (EBITDA).

In its first-quarter update to the ASX, the company said that while results ran in punters’ favour during the quarter, its margin had rebounded in October, with net win up 14.9 per cent for the financial year to October 26.

Betr’s normalised EBITDA forecast assumes historical net win margins above 10 per cent and no material regulatory, taxation or cost of sales changes. In FY26 betr’s net win margin was 9.9 per cent, down from 10.4 per cent the year before, according to its annual report.

Net win margin fell to 8.9 per cent in the September quarter from 10.5 per cent a year earlier, but recovered to 11.5 per cent in unaudited trading to October 26.

Gross win increased 3.2 per cent year-on-year to $53.5 million.

“While Q1 had some customer-friendly results, margin has rebounded strongly in October. We are ready for the upcoming regulatory changes and reaffirm our FY27 guidance,” chief executive Andrew Menz said.

Betr reported 150,729 active customers in the 12 months to September 30, down from 156,479 at June 30, which Menz said signalled a more profitable offering.

“I think the point on our active customer base is that it is entirely quality over quantity. What we’re seeing is increased turnover and revenue per active, and our generosity and our product spend has been focused on engaging those right customers,” Menz told investors.

Menz credited product and brand spending for lifting customer activity heading into spring and singled out the new Wildcards product.

That product, launched in August with the FY26 results, lets customers interact with a same-game multi during a match.

“Products like Wildcards are bringing in new, high-quality customers and winning a larger share of wallet in our most-important season,” Menz said.

Menz said the results reflected better market-share gains than competitors during the quarter.

“This market has been flat to low single-digit turnover growth over the last 12 months. And therefore, our performance in Q1, we think, is significantly outstripping the market and evidencing top-line share gains,” he said.

The company also said the federal government’s wagering reforms are not expected to materially affect its trading.

“We don’t therefore need to make any knee-jerk reactions to any risk and compliance settings to our offering, our marketing, or our product suite,” Menz said.

“As we’ve said many times now, our model is product-led. We are winning on differentiated products and customer experience, not on advertising and inducements.”

The package passed parliament in August and its principal provisions take effect on January 1.

Ladbrokes and Neds owner Entain reported 1 per cent growth in Australian online net gaming revenue for the same quarter at constant currency, while PointsBet’s latest update, covering the six months to September 30 rather than the quarter, forecast a 16 per cent fall in Australian and Canadian group revenue to $113 million, driven by its Australian business.

Tabcorp’s results released in August covered the full year to June 30, rather than the September quarter, with group revenue up 0.8 per cent to $2.64 billion. Domestic wagering turnover rose 0.9 per cent, as 8.3 per cent growth in sports betting offset a 1.1 per cent decline in racing turnover.

Flutter’s global quarterly results, including Sportsbet’s figures, are expected out next week.