‘Not immune’ – Betr weighs impact of economy on wagering while staying on target

Troubled economic times haven’t dimmed betr’s projections for profitability or its determination to seek out opportunities for mergers and acquisitions, but chief executive Andrew Menz has admitted the wagering industry is not immune from the challenges posed by an uncertain economy.

Betr, which holds around five per cent market share in the Australian digital wagering landscape, announced its latest quarterly results on Thursday, saying it remains on track to reach its $5 million to $8 million EBITDA target this financial year and $13 million to $$19 million next financial year.

It reported that the net win margin has rebounded above 10 per cent after an industry-wide trend of punter-friendly results in the final three months of 2025.

It also said key initiatives have led to more engagement from first-time depositors, greater overall customer stickiness, and a 33 per cent increase in same-game multi-turnover.

Overall turnover grew by two per cent on the same quarter last year, while net win increased to $38.2 million, up 1.2 per cent on 12 months ago.

The bookmaker reported 157,264 cash active clients, which was a slight reduction from the 163,500 reported during the peak spring carnival period in the previous quarter.

However, Menz told an investors’ call that despite the challenges with the broader economy, the number of active clients remains consistent.

“I think all industries, including the online wagering industry, have seen some changes in consumer behaviour as a result of the ongoing pressures that individuals are under,” he said.

“What we’re not seeing is a reduction in customers or in active user days. We have seen, in small cohorts of customers, either a reduction in frequency or in bet size.

“Interestingly, when you have a reduction in bet size, it often translates to higher margin activities.

“So, the impact on revenue has been really negligible in that respect with how the customers have continued to engage with us. But this industry, like many others, is not immune to the broader macroeconomic pressures that we’re seeing.”

A spike in fuel prices due to conflict in Iran, plus ongoing inflation challenges, which are likely to result in another interest rate rise next month, have compounded existing cost-of-living issues, which are expected to impact discretionary spending industries such as wagering.

Betr, which reported net cash outflows of $8.9 million in the quarter, which it said was due to “significant non-recurring items”, remains bullish in its own corporate prospects.

It says it has already reduced operating expenses by $6 million per annum and has reduced generosity costs by 10.7 per cent compared to the same quarter last year.

“I’m very pleased with our progress in Q3, but there’s a lot more to do,” Menz said.

“We remain highly confident delivering our guidance targets in H2 FY26 and we are well-positioned to carry strong customer, brand and product momentum into FY27.”

Betr has made no secret of its ambition to build its presence through mergers and acquisitions. It merged with BlueBet in 2024 and then secured TopSport in early 2025.

A protracted bidding war for PointsBet fell short last year, but betr still holds a 28 per cent stake in one of its key rivals, which is controlled by Japanese-owned MIXI.  

Menz said betr remains in active growth conversations with potential targets at both the smaller and larger end.

“The company is focused on and is well positioned to capitalise on those inorganic growth opportunities and we remain in ongoing active discussions with both existing market participants and potential new entrants,” he said.

Betr has previously been linked to a bid for Entain’s Australian business, but rumours of a possible mega-deal have gone cold in recent months.