Entertainment Rewards Posts 2.2% Revenue Growth and $1.29M Operating Loss in Q1 FY26

Steady Revenue Growth and Membership Expansion

Entertainment Rewards Ltd (ASX – EAT) has kicked off FY26 with a modest yet positive 2.2% increase in revenue compared to the same quarter last year. This growth is largely attributed to the continued momentum in its Frequent Values program and the highest-ever revenue recorded from its Card Linked Offers, including the personalised variant (PCLO). The company’s ability to attract over 19,000 new members during the quarter underscores its ongoing appeal in the competitive entertainment and lifestyle rewards market across Australia and New Zealand.

Financial Position and Loan Facility Strengthen Strategic Focus

Cash inflows improved slightly to $4.82 million, reflecting stronger collections from key revenue streams. Despite reporting a net operating loss of $1.29 million, this marks an improvement from both the previous quarter and the prior year, driven by disciplined cost management and restructuring efforts. Crucially, Entertainment Rewards secured an additional $3 million unsecured loan facility from Suzerain Investments, reinforcing investor confidence and providing financial flexibility to pursue growth initiatives and partnerships.

Fundraising and Community Engagement

The company’s fundraising arm continues to make a tangible impact, raising over $320,000 for various charitable causes across Australia and New Zealand during the quarter. Engagement efforts included high-profile member and media events in Melbourne and Auckland, which have revitalised community connections and boosted fundraising results, particularly in New Zealand. These activities not only enhance brand loyalty but also align with Entertainment Rewards’ broader social responsibility goals.

Partnerships and Product Innovation

New partnerships with major retailers such as David Jones and Coles, along with over 300 other businesses, signal a strategic push to expand the company’s gift card offerings and enterprise solutions. The Frequent Values B2B program continues its growth streak, supported by a robust pipeline of new clients. Meanwhile, the Seamless Rewards cashback program remains strong, with a focus on expanding dining-related offers, positioning Entertainment Rewards as a versatile loyalty platform for both consumers and corporate clients.

Sustainability and Corporate Responsibility

Entertainment Rewards is advancing its environmental, social, and governance (ESG) credentials by progressing towards B-Corp certification, 1% for the Planet accreditation, and setting climate targets aligned with the Science Based Targets initiative. The company is also mapping its impact against the United Nations Sustainable Development Goals, reflecting a growing commitment to sustainability that could resonate well with socially conscious consumers and investors alike.