Betr slashes net loss in FY25, PointsBet rebuffs latest takeover proposal
Betr reported a 129.3% increase in revenue in FY25, while net loss was cut to $2.3 million.
Betr Entertainment has reported a significant year-on-year improvement in net loss for its 2025 financial year following a sharp increase in wagering revenue. However, the operator is set for more disappointment in its pursuit of PointsBet after its latest offer fell on deaf ears.
Wagering revenue for the 12 months to 30 June amounted to AU$132.3 million (US$154.1 million), up 129.3% from 2024.
The increase came following the completion of the merger of Betr and BlueBet Holdings in July last year. Migration completed in August 2024, with BlueBet adopting the Betr brand in Australia.
Betr expanded its business further by striking a deal to acquire TopSport in February 2025, completing the purchase in April. Migration was also completed in under two months, with TopSport now fully integrated with Betr.
“FY25 was a defining year for us,” Betr CEO Andrew Menz said. “We set bold commitments, executed with speed and discipline and delivered strong financial performance that demonstrated our ability to create meaningful value for shareholders.
“Our growth in FY25 was powered by disciplined consolidation and rapid execution. The precision and speed of these integrations give us confidence in replicating success with future opportunities, as we continue to drive consolidation in the Australian wagering market.”
Early synergy realisation benefits Betr
Swift migration, Menz said, brought with it earlier-than-expected merger synergies.
For BlueBet/Betr, this resulted in $16.9 million annualised cost synergies, some 20% ahead of commitment. Meanwhile, the TopSport transaction structure ensured all $9 million in annualised cost synergies were realised immediately upon completion.
“This proven ability to rapidly capture synergies is a cornerstone of our strategy,” Menz said. “These efficiencies create capacity to reinvest in brand, product and customer intelligence – delivering a superior wagering experience and building long-term shareholder value.”
Menz added: “With strong momentum in our core business, a repeatable and proven M&A playbook and a disciplined approach to organic and inorganic growth, Betr is well positioned to keep building scale and long-term shareholder value.”
Horseracing betting draws most revenue for Betr
Drilling down into revenue performance in FY25, Betr said horse racing wagering generated the most revenue at $57.7 million. This surpassed last year by 125.4%.
Elsewhere, greyhound betting jumped 114.3% to $39 million, while sports betting revenue hiked 146.2% to $22.4 million. The remaining $13 million came from harness racing, a rise of 176.6%.
As for player spend, gross wagering turnover – gross of goods and service tax (GST) – was up 140.1% to $1.42 billion. Player winnings amounted to $1.22 billion, gross of GST, while $50.9 million of promotions was noted. In addition, GST amounted to $13.2 million.
All revenue came from operations in Australia, with Betr having withdrawn from the US early in FY25. This saw it enter termination agreements for gaming licences in Iowa, Colorado and Louisiana. Under these arrangements, payments will be made over future years.
Betr net loss cut to $2.3 million
Looking towards the bottom line, gross profit for the year rocketed 89.6% to $58.4 million. However, with expenses higher across the board, this left a pre-tax loss from continuing operations of $19.5 million, compared to $8.7 million in FY24.
Betr received $4.6 million in tax benefit, resulting in a net loss from continuing operations of $14.8 million. This surpassed last year’s $6 million loss.
However, the situation was greatly improved when accounting for discontinued operations. For FY25, these generated an $8 million profit, whereas in the previous year, loss stood at $40.9 million.
When also including $4.5 million worth of fair value gain, there was a comprehensive net loss attributable to Betr of $2.3 million. This was a stark improvement on $47.5 million in FY24.
“FY25 showcased Betr’s ability to pivot with speed, scale rapidly and deliver profitable growth,” Menz said. “In FY26, we will expand our scale through disciplined, strategic investment and grow our brand presence with a clear focus on the next generation of wagering customers.
“We will also continue to deliver innovative products that our customers and wagering consumers love.”
PointsBet plays down improved takeover bid
The results come after Betr lodged another improved offer to acquire the shares it does not currently hold in PointsBet. Betr secured an initial 19.9% stake in PointsBet in April this year and, almost ever since, has been seeking to take full control.
However, its efforts have been thwarted by MIXI Australia, which has submitted several of its own bids. PointsBet has so far favoured the offers from MIXI, recommending shareholders vote in favour of these bids.
MIXI recently submitted an improved and final bid for PointsBet. The all-cash offer is valued at $1.30 per share. However, this price would only apply if it acquired at least 90% of the total holding. If it fell short of this, then the company would pay at the previously stated rate of $1.25. Betr, with its 19.9% holding, has already stated it would not back the bid.
Betr has now returned to the table with its own improved offer, increasing its all-share offer to $1.40 per share. But the initial response from PointsBet remains the same, in that it has said shareholders should reject the bid in favour of MIXI’s proposal.
“PointsBet shareholders that accept the unsolicited Betr offer will receive Betr shares, and in effect reduce their economic interest in PointsBet in exchange for an economic interest in the Betr business,” PointsBet said. “The PointsBet board considers to be inferior to that of PointsBet.”
Betr remains upbeat on PointsBet chances
However, Betr appears unmoved by the apparent rebuttal. Writing in his post-FY25 notes, Betr Executive Chairman Matthew Tripp maintained the operator was in good position to take full control of PointsBet.
“Our track record in identifying and integrating strategic, accretive acquisitions is now firmly established,” he said. “We continue to believe that our offer for PointsBet presents superior value for both Betr and PointsBet shareholders and we remain disciplined as we evaluate further opportunities to accelerate growth.”
