I would now like to hand the conference over to Mr. Andrew Menz, Chief Executive Officer. Please go ahead.
Good morning. Thanks for joining us today for the Betr Entertainment Limited interim results presentation. I'm Andrew Menz, CEO of the company, and I'm joined today by our acting Chief Financial Officer, Blake Matthews, and our Chief Operating Officer, Bill Richmond. Starting on slide 2. As we outlined when releasing the company's Q2 results, Betr achieved sustained turnover growth in the first half of the financial year against the backdrop of challenging racing and sports results and our disciplined strategic investment into our organic growth channels. Results from these investments are already evident, and they will contribute to a larger, faster business that we expect to deliver H2 FY 2026 normalized EBITDA of between AUD 5 million and AUD 8 million. The increased scale and operating leverage in the business is expected to deliver FY 2027 normalized EBITDA in the range of AUD 13 -AUD 19 million.
As we announced yesterday, we have agreed with National Australia Bank to extend the maturity date of our existing facility agreement by at least 12 months to 31 July 2027. The financial flexibility this provides us demonstrates NAB's understanding of our business and its commitment to supporting our long-term strategic objectives and growth plans. Coupled with a strong balance sheet and continued growth, the company remains well-positioned to execute on its organic and inorganic growth agenda. Slide 3 steps through the company's trading performance in more detail, where you can see that overall turnover of AUD 807.3 million was more than 25% higher than the PCP. Better's underlying turnover growth, excluding Top Sport, of circa 13% in the period, is 4 times our estimate of overall market turnover growth.
This increased activity brought a Net Win increase versus the PCP, despite the well-publicized, customer-friendly results that all operators experienced in the period. The active customer base of the business continued to expand in the half. On slide four, as we outlined, EBITDA was impacted by those customer-friendly results and a deliberate front-loaded investment in our brand, product, and technology. Our brand relaunch and marquee sports assets are already lifting awareness and consideration, improving our ability to acquire and retain customers at scale. Product investments, particularly Sky Racing, are driving stronger engagement and more attractive customer behavior, particularly from those more engaged, higher value, and recreational customers. These initiatives now are largely complete. We enter half two with improved efficiency, a better operating leverage, and a clear path to profitability.
Slide 5 details our financial outlook for the company, where we expect H2 of FY 2026 to deliver AUD 5 -AUD 8 million of Normalized EBITDA and AUD 13 -AUD 19 million in FY 2027 as our operating leverage compounds. This guidance is based only on the existing Betr business, assumes modest industry turnover growth, and doesn't rely on further step change assumptions or M&A, as the company importantly retains its optionality to capitalize on those inorganic growth opportunities in the market. I will now hand over to Blake Matthews, our Acting CFO.
Thanks, Andrew. Turning to slide 7. As discussed at our Q2 results announcement, the business delivered a Normalized EBITDA loss of AUD 13.2 million for the half. Importantly, this reflects approximately AUD 7 million of customer-favorable results during the Spring Racing Carnival, together with a deliberate front-weighting of marketing investment through the securing of marquee assets across the footy finals and the Ashes series. Pleasingly, turnover increased 25% versus the PCP, while Net Wagering Revenue grew 8% to AUD 68.9 million, despite these challenging results. Marketing expense increased 72%, reflecting the front-weighted investment in the half and a comparatively low spend in the PCP due to the migration of the Blue Bet and Betr businesses. Employee benefits expense increased 28% versus the PCP, driven by the Top Sport integration and a strategic strengthening of our product and technology teams.
All other operating costs were in line with expectations. The group's statutory results, along with a full reconciliation to Normalized results, are included in the appendix. At 31 December 2025, the company held corporate cash of AUD 26.7 million and reported net assets of AUD 137.4 million. Post period end, the company extended its AUD 35 million loan facility with NAB, secured against its strategic investment in PointsBet. The group remains well-capitalized to execute on to next phase of profitability. At 31 December 2025, the company's cash balance was AUD 40.8 million, including AUD 13.6 million of customer balances. Net Win for the half was AUD 75.8 million. Net cash used in operating activities for the Australian business was AUD 18.5 million, including AUD three and a half million of transaction costs.
The underlying outflows reflect elevated strategic marketing investment associated with The GOAT, higher promotional intensity, and customer-favorable results during the period. Cash outflows from investing activities totaled AUD 4.3 million, comprising AUD 4.1 million in platform development and AUD 0.2 million in plants and equipment. Cash outflows from financing activities were AUD 41.3 million, primarily driven by AUD 40.7 million deployed under the company's share buyback. The company's cash position is in line with expectations. The front-weighted marketing investment in the first half has positioned the business with strong momentum into the second half to execute on our guidance. I'll now hand back to Andrew.
Thanks, Blake. With major investments now behind us, normalized operating conditions and a lower cost base, we are well positioned to deliver on the financial targets we have outlined and create meaningful value for our shareholders. Thank you. I'll now open up to questions.
Thank you. We will now begin the question and answer session. If you wish to ask a question via the phone, please press star, then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star, then two. If you are on a speakerphone, please pick up the handset to ask your question. If you wish to ask your question via the webcast, please type it in the ask a question box and click submit. Our first question for today will come from Phil Chippendale with Ord Minnett. Please go ahead.
Hi. Good morning, gents. Thanks for your time. Just wanted to get an update on to performance results so far, again, it's late February, and the first half was impacted by, you know, some pretty customer-friendly results. How are margins performing so far this quarter?
Thanks, Phil. As we outlined in January, December and January margins were back in line with historical trends. February is slightly behind, again, relating to Group 1 racing, which seems to come back, and we find favorite after favorite being able to win the major Group 1 races. Margin is tracking back over that last 3-month period in line with historical.
Okay, thanks. Just in terms of marketing expenses for the current half, you know, last half was about AUD 17 odd million, but presumably a reasonably sort of promotional heavy period around Spring Racing. How should we be thinking about that in the current period?
Thanks, Phil.
Yeah. Go for it, Blake.
There was absolutely a front-weighted element to that with those marquee assets that we took on in H1. H2, we'll see a materially lower marketing spend as we look to attain the benefits of that front-weighted investment.
Okay, thanks. Last one from me, just on that NAB facility, congratulations on the extension, but just wondering if there's any change to the terms of that facility?
I'll let you handle that, Blake.
Yeah. Phil, no, they're largely unchanged. The extension has been applied to 31st of December, 31st of July, rather, 2027. The facility limit and the terms are largely in line with what they previously were.
Okay, great.
What I think it demonstrates is a really strong relationship with our bankers, who really do understand this business, understand the sector, and understand the opportunities that lay in front of us. It's a very strong relationship and one we're very proud of and one we're keen to retain for the future to give us that funding flexibility to do what we're planning to do in the market.
Yep. Understood. Thanks, Andrew. Thanks, Blake.
If you have a question, please press star, then one. Our next question will come from Leo with Morgan. Please go ahead.
Hi, guys. Thanks for taking my question. Phil's already asked most of my questions, but just one on product. How are you seeing your multi offerings, particularly in sport, resonating with the customer base? Just noting some of the Tabcorp's comments yesterday on strength, particularly in the 18-24-year-old cohort. Is that consistent with what you guys are seeing?
Yeah, very much so, Leo. You know, we continue to see the acceleration of the move from racing to sport, particularly for customers in that younger segment. When they're engaging with sports products, it's more and more with Same Game Multi, which is becoming the product of choice for nearly all sports customers now. What that means for operators is the challenge is to innovate in Same Game Multi and not let that offering stand still. We're deeply investing, and a lot of the work that we've done in that first half is to set our Same Game Multi up to be tier one, and then innovate in a way that hasn't been seen in this market around that Same Game Multi product.
We'll have some small releases on Same Game Multi to better format and make it easier for our punters to place their Same Game Multis. Then by the end of the financial year, we're expecting to be in a position to release what we consider a game-changing, innovative product around Same Game Multi, which will really differentiate Betr from the competitor set. It's a critical product for us, and it's where so much of our focus and attention goes at the moment, right across the business.
Awesome. Thanks, guys.
There are no further questions at this time. I would like to hand the call back over to Mr. Menz for any closing remarks. Please go ahead.
Thank you to everyone for joining the session today. A little shorter than typical, given we'd really pre-announced that half result at our quarterly in January. We thank our investors for their ongoing support. The team and I are supremely confident, and we are well on the way of executing in a manner that has this business exactly where we need to get it. We'll have further updates as they come to hand, but we do appreciate you taking the time to join the call this morning. Thank you.