Morning and welcome to Racing and Sports investor webinar to discuss the company's first half FY 26 results. On today's webinar from the company, we have Managing Director and CEO Stephen Crispe, CFO Tim Olive, and Strategic Communications Manager Eliza Axley.

To ask a question, please submit them via the Q&A button on the screen. We'll do our best to get through as many of those as possible.

I'll now hand it over to Stephen.

Wonderful. Thanks, Ben, and thank you everyone for joining the Racing and Sports half-year presentation.

Look, we'll do questions at the end of the seminar, look forward to receiving those, and we'll kick off. Racing and Sports is trusted by the world's leading racing and industry brands.

We process an eye-watering amount of data every day, and this enables us to reliably serve our global customer base with the most data-rich and credible racing products in the industry globally. Some of the brands we serve are there, and also some of the high-level statistics, as you can see on the screen, to show the size and quantum of the Racing and Sports enterprise as it stands today.

Next slide. The first half of FY 26, we sustained strong growth across the first half of '26, which has really been underpinned by the continued momentum in the complete racing solution and data and content products.

This has been supported by strategic investment in our core trading platform and technologies, as well as the expansion of the global trading team. Our investment in Asia continues to perform well and continues to provide a solid base for continued expansion in the region, and there is good momentum in the conversion of deals from the pipeline through the contracts as well.

LeoVegas Group has come online, FairPlay and other trading deals have also been signed, and the business continues to leverage its strong base, its great global reputation and brand, and the ability to deliver sustained, strong revenue growth and capitalize on the growth initiatives and investments that have been made across the first half and into the second half of FY 26. With that, I'll hand over to Tim to talk us through some of the first-half key financial highlights.

Thank you, Stephen, and thanks for joining us this morning, everyone, to talk through the results for the first half of FY 26. This slide presents some of our key financial metrics for the first half of the year, and I'll just run through the highlights around those.

Revenue for the first half of the year was $13.9 million, which was up 38% on the prior year, and we really saw growth across all sort of functional areas, and we were also aided by the addition of the Hong Kong acquisition, which wasn't there in the first half last year. I'm pleased to say that we're on track for our fifth straight year of 30-plus percent revenue growth, positioning Racing and Sports as an ongoing high-growth company.

Moving over to our normalized EBITDA, for the period it was $1.4 million, which was broadly in line with last year. I should note with our EBITDA, we've normalized the results to adjust for a couple of non-recurring items that were a little abnormal and won't continue going forward, so that flows through some of our profit metrics.

From an ARR perspective, we reported ARR at the end of the period of $24.6 million, which was up 34% on the prior year, continuing to grow strongly, and up about $3 million on the last reported number. It's also important to note that we have a further $3 million in repeatable revenue from our Asian business around publication sales on a B2C basis.

That really means that our exit rate for recurring revenue at the end of half one FY 26 is $27.6 million. From a cash perspective, cash at the end of the period was $4.4 million, down slightly on the last reported period, but reflecting that investment we made in a couple of our major growth areas.

From a normalized cash flow from operations perspective, we had an normalized inflow of $800,000, which was slightly better than the prior period. This graph shows a time series of half-year results for our key financial metrics.

It's pleasing to say we continue to achieve strong, sustained growth across our revenue categories, across all businesses. Revenue has grown strongly over that period, and we've now had eight consecutive halves since listing of strong revenue growth.

From an ARR perspective, the revenue here, it is worth noting that the bar does still include Stake, who we've announced will not continue beyond May, but it does not include LeoVegas, which is a really meaningful revenue deal we announced through the half year, which will come on board mid-year as well, so that's a couple of notable points there. From our profit metrics perspective, we've made a significant investment in capability building in the first half of FY 26, and despite this, normalized EBITDA has remained stable.

From a normalized net profit perspective before tax, we've seen a slight decline in FY 26 to date, and this is due to the significant investments we've made in the business to support future growth. It's also important to note that half one includes the Hong Kong racing off-season, we're probably still looking to educate the market around the seasonality of our Asian business.

Hong Kong racing has an off-season in the first half of the year, which means that revenue and profit will be stronger for our RAS Asia business in the second half of the year. It's valuable to know also that our BAU business made a normalized profit in half one, and also at a group level, our business presented a profit after tax on a normalized basis as well.

Still some good profit metrics despite a slight decline in the headline rate. Moving into our key business segments and also geographic breakdown here.

Look, it's pleasing to see the investments in wagering tech and Asia have continued to drive diversification of revenue by jurisdiction, and also to deliver strong growth in our ARR over prior years. Going through our business units, Enhanced Information Services is our most mature segment.

It continued to grow strongly in FY 26, up 17% to reach $14.7 million at the end of the period. From a wagering technology perspective, it continues to be our highest growth business segment, and it accelerated further in the first half of FY 26, up 67% on the prior year, and now contributes a really meaningful $7.5 million of ARR.

From the perspective of Digital Publications, Media and Other Revenue, we've seen strong growth in this segment, and that's reflected through the Asian acquisition coming online in 2025, and it's also been aided by some revenue from the other area of the MTC deal, which we'll talk more about later on. Regionally, the UK continued to grow strongly, up 49% on prior year, and our ARR in Asia has now grown to make up 7% of our total ARR.

Again, important to note that doesn't include $3 million of revenue for repeatable B2C publication sales. Thanks, Eliza.

I'll throw back to Steve to talk about some investments in growth.

Wonderful. Thanks, Tim.

Look, as Tim has touched on, that the first half of FY 26 has had a key thematic around investment for growth, and this is really important. We've done a lot of heavy lifting in the first half in terms of investing for sustained growth within the Racing and Sports global business.

Obviously, we brought on Asia, invested significantly there in management, technology, and operations. We've obviously included the UK team and expansion into the global trading team in that region as well as here in Australia, as well as many other technological advances in terms of our core platforms, our products, and other services within the business.

Some of those high-growth initiatives have been really prioritized to set the business up for future scale and future growth, to really support the revenue roadmap that the business is committed to, to drive automation and platform enhancements. These are really important in terms of taking some of the inefficiencies that have grown into the business out and replace those with technology advancements, automation, artificial intelligence.

Right-sizing the business for scale is really important, that we, as we continue to grow, we make sure that we have the right people, the right expertise, and the right skills in the right areas within the business globally. Of course, that strategic resource alignment, making sure the right people are in the right places at all times to enable and facilitate that growth.

I'll hand to Tim to talk about some of the more tangible and visible outcomes of these initiatives that we've had in the past six months. Over to Tim.

Thanks, Stephen. With our investment in wagering technology, as you can see here, that's driven revenue growth from an ARR perspective of $3 million, or 67% year-on-year.

We're seeing a really strong return on that investment, and we're now in a position where we have our own proprietary, full trading suite, including our MTS, our trading platforms, and our BetBridge product. We go forward with a full suite of products that we can sell to the market in that high-yielding wagering technology sector.

From an Asian perspective, the investment in the business resulted in a new international simulcast product, which we'll talk more about later, which will be an accelerant of revenue going forward. We've also invested in high-growth digital assets and modernizing our IT platforms, we think we're really well positioned to drive revenue and growth going forward for Asia.

I'll pass back to Stephen to talk about our business update.

Thanks very much, Tim. Racing and Sports has continued deploying its complete racing and fully integrated services to clients around the globe in the past half, and some of these include the likes of QuinnBet in the UK, who are on the Pragmatic Play platform, and they've been expanding their racing offering, which has been a pleasing relationship and deal for us going forward.

Stakemate, who are a next-generation proprietary sportsbook platform, who are very much in the social betting and social experience space. Racing and Sports has formed a very meaningful and productive relationship with the Stakemate Group.

We've onboarded Best Odds. We've expanded the global Tier 1 client for trading services.

Of course, the Stake deal will be coming to an end in May this year. Going through LeoVegas, this was one of the big announcements in our business update over the past number of months, and this deal is due to go live in 2026, towards the middle of the year, and it really is a milestone international agreement.

It's a qualifier for Racing and Sports data, content, and managed trading services, which was proven in a global, competitive tender process, where Racing and Sports was chosen above other competitors within the global marketplace. It really does establish Racing and Sports as a credible Tier 1 global racing MTS provider.

We will be developing and delivering their full, integrated racing service for BetMGM in the UK and BetUK and other brands amongst the group, which is an exciting and large-scale implementation and deployment process. Something we're all excited about seeing as it comes live later on in the year.

It really does strengthen Racing and Sports as an independent alternative to incumbent providers and a real disruptor to the established UK and global industry for delivery of these fully integrated complete racing services and solutions.

Next slide.

Excitingly, we've launched BetBridge into the market, which is our fully managed, embedded racing product, and this really targets customers who are after something which is complete turn-key out of the box, who may not have racing experience or expertise that's required to run a racing product within their business, who also have a short time to get a product into the market. This is a rapidly deployable product that's embedded in a customer's sportsbook or platform of any size, whether it be a small Tier 3 all the way up to a Tier 1 operator, that integrates seamlessly on their platform.

Racing and Sports manages everything from cradle to the grave with that platform, everything from the front-end UX/UI, all the way through to accepting bets, managing liabilities, trading, resulting, and all those services that you'd expect. Custom UX/UI can be tailored very quickly.

This is all configurable within the platform and the product, and it really does provide an exciting new product in the Racing and Sports armory for customers who really want to get accelerated on racing very quickly, that had no expertise or experience in that space. Excitingly, FairPlay Exchange in the UK are our first customer on the platform, and they've now been operational for several months, and they continue to evolve and grow with them and for their customers as well.

BetBridge, a very exciting product, and you'll see more about BetBridge as we continue to onboard clients according to the pipeline of customers. The Mauritius Turf Club.

Again, this is an industry-based solution which is a new product within the Racing and Sports business. We've been working on it for quite some time, and it sort of builds on the work we've done with the GBGB, which we've gone off in many previous presentations.

The MTC's had the successful first season, which has gone very well, and obviously coming into the second season commencing shortly. The tech platform continues to evolve and mature.

The MVP was obviously delivered for the first season, but that wasn't the finish line. The finish line certainly continues as we work with the Mauritius Turf Club creating new features, functionality for the raceday office system, the database management, the handicapping framework, and ecosystem.

We're working on retail solutions, visual retail solutions, engagement solutions for enhanced fan engagement. We're working on tote systems and vision feeds, as well as fixed-odds trading capabilities, and also looking at working with the Mauritius Turf Club around the syndication of their product externally, internationally, as well as import of international racing into Mauritius as well.

There's a lot of work to do for the Mauritius Turf Club project and an opportunity, and this will continue over the coming half and years to come. In the UK market, strong growth has continued, pleasingly.

Some of the key activities: obviously, we've signed the LeoVegas Group deal. The operator-managed trading platform, previously known as our SaaS platform, has continued to be deployed, with Eyas Gaming going live in 2025.

The MTS clients continue to grow, and our MTS capability continues to become sought-after as best in class, best in market within the region. There are other customers who are continuing to evolve their offerings that we've delivered to them through our MTS and our operator-managed trading platform as well, and there's integrations with OpenBet which is ongoing for additional work, trading, content, data, and digital.

With that, I'll hand over to Tim to talk about some of the key drivers within the UK market going forward.

Thanks, Stephen. Look, it's pleasing to say we've still got a really strong pipeline in the UK, and we've also got our established deals with our platform provider partners that provide us a sort of continuous range of opportunities to onboard new wagering brands.

We're really strengthening our product to be a real next-gen racing product, including a range of derivative markets, which are really high margin for wagering operators, gives us another point of differentiation. From a financial perspective, it's been a real success story for us.

ARR is continuing to grow strongly, reaching $8.5 million at the end of the half, and with LeoVegas and other deals still to come, we think we've got really strong growth momentum ahead. Moving over to talk about our Asian business.

It's been a big six months of strengthening the foundations for RAS Asia, and also progressing the strategy for a sustained period of growth in revenue and profit for the region. As I said earlier, the Hong Kong racing off-season runs from around mid-July to early September, meaning the half one is much quieter in terms of revenue and profit outcomes, we should see that strengthening in the back half of the year.

Pleasing to say we're tracking ahead of expectations in the first half of the year despite that off-season. We've put in place a highly credentialed leadership team to drive our RAS Asia business, led by Ronnie Tai.

Ronnie's a very well-known executive in the region, with very strong knowledge in the space and deep networks across Asia, we think he's the right person to lead our growth strategy in Asia. Pleasingly, in the first half of the year, we introduced a new international simulcast product ahead of time, and this is a completely new revenue source for our RAS Asia business.

This is a multi-channel strategy to promote international racing that's imported into Hong Kong, and it's very lucrative, the turnover in Hong Kong, a very significant revenue source for rights holders. Racing and Sports provides a new opportunity for them to really promote their product in Hong Kong, and hopefully in Asia more broadly, to drive revenue growth for them and monetize that opportunity for us.

We're also progressing with the tech uplift around our core systems, which will provide enhanced product and also a more efficient business, and will allow us to be more agile, so that's a really positive sort of strategy as well. We've launched some new digital assets in the region, most notably the hkdnform.com, and I'm pleased to say that traffic is growing very rapidly there, and that'll be a real asset for the business going forward and give us an omnichannel strategy that also hits first-time audience and more digital-native clients.

From an outlook perspective for RAS Asia, racing is set to commence in mainland China in October '26, and we think this presents an opportunity for us to really access a much broader market, and also benefit from the additional race meetings that come into Hong Kong. The mainland China race meetings will go on top of the existing Hong Kong meetings, there'll be an underlying unitary driver there.

Also, with the international simulcasts, we'll have a full year of selling that new product going forward into FY 27, and the Hong Kong Jockey Club have committed to increasing the number of race meetings they import from international jurisdictions, we expect this to be a trend going forward for multiple years and will be another unitary growth driver for that business. We've got a really strong pipeline in Asian markets for opportunities around digital, media, data, and also sort of promoting for partners in the region, we remain very positive about our Asian acquisition and are looking forward to really strong growth going into FY 27 and beyond, in both revenue and profit.

I'll throw over to Steve to talk through the outlook going forward.

Excellent. Thanks, Tim.

The business is sort of positioned excellently for global expansion and product growth. The global expansion is very well underway now, with operations across US, UK, Europe, Asia, and emerging territories.

It's something we've been working very hard on, and obviously the investment in capabilities from platform to personnel, skills, and experience within the business will yield results across our global expansion ambition. Accelerating growth through our BetBridge product, this is obviously the newest product within the Racing and Sports enterprise, but takes advantage of all of our assets, everything from our trading capabilities, digital, media, content, and UX/UI.

This product is a sort of culmination of all those things to enable operators to come on board quickly and rapidly onto the Racing and Sports ecosystem, we're very excited about that going forward into the future. There's strong commercial momentum around the managed trading services, and we've really established ourselves as a credible and desirable operator, whether it be for our operator-managed service or our managed trading service, depending on which modality the customer wants to operate.

It's really been sought-after now across all the features, functionality, and information that's available to our customers in those spaces. Obviously, as Tim has touched on, Asia and Hong Kong are obviously continuing to grow and evolve, and as we continue to invest in those markets, we'll see more returns and more opportunities that come from those, again, very exciting.

The range of expenditure initiatives that we've put in place over the first half will continue to yield results across the second half of FY 26, and to ensure cost discipline within the business, making sure we're making the right bets for the business growth, but also to create shareholder value. Again, something we're going to be taking a very keen eye on going forward.

With that, I'll hand back to Ben to get into questions.

Thank you, Stephen and Tim. Just a reminder, if you'd like to ask a question, please do so via the Q&A button on the screen there.

Yep, Stephen, a question for you: so this person noticed you sold some shares recently following the issuance of shares under the company's LTI plan. Could you please provide some color on this?

Sure thing. Thanks, Ben.

The shares were disposed under the company's LTI plan, and no other shares were actually disposed of, and this was done to manage tax liability. All executives and myself within Racing and Sports remain highly committed to the growth and the direction of the company.

All right, thank you. Next question: is the LeoVegas deal potentially as big as the Stake contract?

Look, the LeoVegas deal has the capacity to be as big. It's an excellent group.

It's a large group of customers, and certainly they've been operating it at a very efficient run-rate in their current business, and we believe we can enhance that and scale that through the quality of our products and services and digital assets. Absolutely, it's a customer we're all very excited about, and we'll come back when we get live.

I might just add to that as well, Stephen. I think important to note that the Stake deal was delivered with RVHQ as a trading partner, we did pay away a lot of the revenue for the Stake deal to RVHQ, whereas the LeoVegas deal is delivered fully by Racing and Sports, we'll retain basically all of that revenue.

From a bottom-line perspective, we feel that that will be likely equal to or greater than the impact of the Stake deal once it gets to run-rate.

Thank you. All

right, thank you. Next question: do you foresee additional increases in costs from this point, or should we see additional operating leverage come through?

Look, there has been a period of significant investment in the first half of the year. Look, some of that will flow through to the second half, but where we are, as Steve said in the last tile of the outlook, we are focused on looking for measures to, yeah, I guess, yeah, find efficiencies.

There's a number of projects in train already, which we think will put downward pressure on costs. We think that will moderate in the back half of FY 26, and the growth rate should slow significantly going forward in future periods.

All right, thank you, Tim. I had a similar question here, just regarding obviously need to continue investing in the team and product, but is that expansion undertaken in the first half largely done?

Like I said, it will flow into the second half of the year, but we do think we're through the bulk of the investment uplift in expenditure. As I said, that we'll continue to invest in the business because it's important that we have the best products available to drive growth in the business, but we're also mindful of balancing that with a range of efficiency initiatives as well, which will moderate that growth rate.

All right, thank you, Tim. It sounds as though your investment in Hong Kong has really fast-tracked the development in this business.

Do you see an opportunity to take a similar style acquisition model throughout other areas of Asia?

Look, I think the RAS Asia business, the Hong Kong acquisition gave us a real beachhead in the region, we think that gives us good access to, I guess Singapore, Malaysia, and other areas. We probably also feel that it is a high-value region with lots of growth opportunities ahead, we remain open and proactive around other opportunities.

Japan particularly is another really high-value market for racing, we do see the region as a major growth driver, we're open to both organic and inorganic growth strategies there. We do feel like we've got a great beachhead, and that presents a lot of value and a lot of growth in the medium to long term.

Thank you, Tim. This one's got a few parts to it: momentum in the business looks good, but can you talk through how you fund the business while it continues to scale?

Comment here on additionally is annualized cash burn for the half of over $2 million doesn't leave a lot of headroom. Are you expecting an inflection point in cash flow after recent acquisitions and new contract wins?

How close is the business to achieving meaningful operating leverage and earnings growth, or should we expect continued reinvestment to restrain earnings growth for some time yet?

There's a few elements to that question. Look, yeah, I think we certainly did see, I guess the impact of investments on cash in the first half of the year.

As I mentioned a number of times through the presentation, there's a little bit more seasonality that's been introduced to the business, we'd probably expect half two to be a stronger result than half one. I think that's noteworthy in terms of the cash burn rate.

It's not appropriate just to double what you saw in the first half. Look, we think we've got, I guess a good base of working capital.

We do need to continue to invest. We're open to strategic opportunities.

If the right strategic opportunity comes, we'll look to consider our capital management considerations as part of that. We're comfortable with where we're at the moment, but as I said, we are looking for strategic opportunities to grow, and we'll package capital into that decision if as and when that opportunity arises.

All right, thank you. Just a question, this one probably tough to answer, but obviously it's going to be skewed to the second half: could you please provide a rough guide on revenue differences from Hong Kong in each half, given seasonality?

Look, we've probably done about 40% of the race meetings in the first half of the year, okay, and 60% of the Hong Kong race meetings in the second half of the year. From our international simulcast product, we didn't really kick that off until late in Q1, I'd expect that to be stronger in the back half of the year.

I think probably on a ratio basis that gives you a bit of an indication of what the split might be, although noting that that international product didn't come on board until late Q1, and hopefully there'll be some other initiatives late in FY 26 and certainly into FY 27. That gives you a bit of a flavor.

Thank you, Tim. That concludes the Q&A segment of the webinar.

I'll now hand back to Stephen for closing remarks.

Wonderful. Thanks, Ben.

Look, thank you, everyone, for joining the half presentation for Racing and Sports. As you can see, there's been a lot of activity in the first half of the year, particularly around our investment and investment for growth and scale, but also bringing on new customers, releasing new products, and managing the pipeline and opportunities through the contract opportunities.

We see a lot of great momentum within the business as it stands today across all regions: the UK, Asia, Australia, and obviously emerging opportunities around partnerships and into the US. I guess stay tuned for the next six months, and we look forward to speaking with you at the full year and probably sometime in between.

Thanks very much.