Loss-Making BETR Entertainment Limited (ASX:BBT) Set To Breakeven

We feel now is a pretty good time to analyse BETR Entertainment Limited's (ASX:BBT) business as it appears the company may be on the cusp of a considerable accomplishment. BETR Entertainment Limited provides sports and racing betting products and services under the BlueBet and betr brands to online and telephone clients through online wagering platform and mobile applications in Australia and North America. With the latest financial year loss of AU$47m and a trailing-twelve-month loss of AU$37m, the AU$255m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on BETR Entertainment's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

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Consensus from 3 of the Australian Hospitality analysts is that BETR Entertainment is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$1.8m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 122% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for BETR Entertainment given that this is a high-level summary, but, bear in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Check out our latest analysis for BETR Entertainment

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of BETR Entertainment to cover in one brief article, but the key fundamentals for the company can all be found in one place – BETR Entertainment's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further examine:

1. Valuation: What is BETR Entertainment worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether BETR Entertainment is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on BETR Entertainment’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.