Is Betr Entertainment (ASX:BBT) a Buy After 24.5% Growth and Buyback?

Betr Entertainment jumps on strong growth and a major share buyback

Betr Entertainment (ASX: BBT) closed at A$0.26 on Thursday, representing strong gains for the week after announcing quarterly numbers that got the market excited. The digital betting company grew turnover by 24.5% and revealed plans to buy back up to 10% of its shares. That buyback tells us something important: the board thinks the stock is cheap. With analysts targeting prices nearly double current levels, is now the time to look at BBT?

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Strong Quarter Shows the Business Is Gaining Ground

The December quarter was a good one for Betr Entertainment. Turnover hit A$444 million as more customers placed more bets through its platform. This kind of growth matters for a company still chasing profitability because it shows the business is winning market share in a crowded space.

There was a speed bump during the Spring Racing Carnival when customer-friendly results squeezed margins below target. But here’s the encouraging part: December margins bounced back above average, and January is tracking well too. This suggests the weakness was just bad luck on race outcomes rather than anything wrong with the business itself.

Why Management Is Betting on Themselves

The 10% buyback announcement is worth paying attention to. When a board commits cash to buying its own shares, it’s putting money behind its confidence. Importantly, Betr confirmed this won’t stop them from chasing acquisitions, which remains central to their growth strategy.

What strengthens the case here is who’s running the show. Chairman Matthew Tripp has done this before, twice. He turned a tiny investment in Sportsbet into an A$338 million exit, then built and sold BetEasy for another big payday. When someone with that history backs a company, it adds credibility to the plan.

Betr Entertainment still owns nearly 20% of rival PointsBet after losing a takeover battle last year. Rather than selling, Tripp held on. That suggests he sees more consolidation opportunities ahead and wants to stay positioned.

The Investor’s Takeaway for BBT

The opportunity here looks attractive on paper. Analysts have price targets around A$0.44 to A$0.50, which would mean roughly doubling your money from today’s A$0.26. The buyback should provide some floor under the share price, and M&A activity could be the catalyst that drives a re-rating.

But let’s be clear about the risks. Betr Entertainment is still losing money in a market dominated by bigger players like Sportsbet and Tabcorp. Australian regulators keep tightening rules around gambling advertising, which could make customer acquisition harder and more expensive. The failed PointsBet deal also shows that even experienced operators don’t always get what they want.

Our view? At current prices, Betr Entertainment looks interesting for investors who can handle volatility and are comfortable with speculative small caps. Tripp’s track record deserves respect, and the growth numbers suggest the strategy is working. However, this isn’t a stock for conservative portfolios. If you need certainty or can’t stomach losses, wait on the sidelines until Betr proves it can turn profitable. For everyone else, keep this on your watchlist and look for M&A news as the next potential trigger.