Betr Posts Decent Growth In Q3 2026 After Hitting A$38.2m in Gross Wins

Betr Entertainment reported stronger sales and profit performance in the Q3 of its 2026 financial year. The management attributed this to improved customer quality, lower marketing costs and a tighter focus on the Australian market.

Quarterly sales rose 2% year-on-year to A$383m, while gross win reached A$38.2m. Cash reserves stood at A$28.7m as of 31 March 2026. The company recorded a cash outflow of A$8.9m during the quarter, including non-recurring costs tied to its restructuring process.

Management said the business returned to its target net win margin range after the shift owing to selective customer acquisition and operational discipline.

Australian strategy improves customer quality and retention

The company reduced promotional spending by 10.7%, moving away from unproductive incentives. At the same time, active users increased between 25% and 35% following targeted campaigns and the platform’s rebranding efforts.

The company said improved retention and product adjustments also contributed to stronger margins. According to Chief executive Andrew Menz, the Australian market remains the company’s main growth opportunity. “Our strategic focus on the Australian market is yielding positive results, and we are confident in our ability to drive sustainable growth,” he stated.

Menz also noted that Betr avoided matching the recent increase in promotional activity, instead prioritising disciplined capital allocation.

Company maintains guidance despite industry pressure

Betr reaffirmed its guidance for the second half of FY26, forecasting normalised EBITDA between A$5m and A$8m. For FY27, the company expects EBITDA to reach between A$13m and A$19m.

Management also projected mid-to-high single-digit revenue growth, supported by product development and customer engagement plans. Despite the operational improvement, investors reacted cautiously. Betr shares remained flat at A$0.18 following the update, close to the company’s recent low of A$0.17. However, they reached a high of A$0.28 on January 27.

Regulatory changes and consumer pressure remain key risks

Upcoming advertising restrictions will limit exposure channels for operators in Australia, making customer acquisition more difficult. Betr said it is already preparing for these changes and working to reduce their impact on future growth. The company should also avoid risks such as pressures on spending from cost-of-living situations, intense competition within the betting sector, and managing non-recurring costs.

During the earnings call, analysts questioned management about rising promotional activity and how Betr plans to compete without spending aggressively on advertising.

Menz maintained that the company would continue prioritising disciplined spending over chasing market share through higher promotions.

Betr has projected a modest profit margin for Q3 2026 in its latest financials. The key contributing factor is the company’s focus on the Australian market. However, Betr must choose effective acquisition plans over bonus generosity to maintain its user base.