Sports betting and media company, Better Collective, has reported remarkable results for the second quarter of 2023. With a substantial upturn in revenue, the company is celebrating its best-ever Q2 performance, demonstrating a strong and sustainable growth trajectory.

Revenue reaches €78.1 million

Better Collective’s Q2 2023 financial report reveals an impressive revenue increase of 39 percent, reaching €78.1 million. This substantial growth reinforces the company’s resilience and ability to capitalize on market opportunities.

Breaking down the earnings further, Better Collective achieved an organic year-on-year growth rate (excluding businesses acquired after Q2 2022) of 29 percent. Notably, €46 million of the total revenue was derived from recurring sources, representing a remarkable year-on-year increase of 67 percent.

Examining the regional performance, €55.2 million, or 70.6 percent of the total revenue, originated from the Europe and Rest of World segment, reflecting a strong year-on-year increase of 32.3 percent. The remaining €22.9 million was generated from North America, where the company witnessed an impressive year-on-year growth rate of 59.9 percent.

EBITDA and cash flow

Better Collective demonstrated exceptional financials, reporting an EBITDA before special items of €29 million, signifying a substantial year-on-year growth of 135 percent. This was achieved at an EBITDA margin of 37 percent. Additionally, cash flow from operations before special items during the quarter amounted to €34 million, indicating a substantial increase of 55 percent.

The company maintained robust capital reserves of €78 million, including €65 million in cash, as of the end of the quarter, demonstrating its financial stability.

In Q2, Better Collective added more than 500,000 new depositing customers (NDCs), reflecting a commendable year-on-year growth rate of 32 percent. Impressively, 87 percent of these NDCs were directed to operators on revenue-sharing contracts.

Performance of Acquisitions

Better Collective’s strategic acquisition of Skycon, the digital display advertising company in April 2023, proved to be highly successful, delivering strong performance following a swift onboarding process.

Better Collective’s co-founder & CEO, Jesper S?gaard, expressed satisfaction with the exceptional Q2 results, attributing the success to a strong team and successful acquisitions. He emphasized the company’s vision to become the leading digital sports media group and highlighted the Americas and media partnerships as key drivers of growth. In North America, the company’s investments have borne fruit, with operational earnings achieving a 33 percent margin during the traditionally slow Q2 season.

In June, Better Collective upgraded its financial targets for the full-year 2023. Revenue expectations were adjusted to a range between €315 million and €325 million, up from the previously issued guidance range of €305 million to €315 million. Similarly, EBITDA before special items for the full year is now expected to total between €105 million and €115 million, an increase from the earlier guidance of €95 million to €105 million.

Post Q2 performance

Following the reporting period, Better Collective has been reporting a consistent strong performance and in July revenue totalled €23 million, implying a year-on-year growth rate of 39 percent for the month.

Better Collective A/S (BETCO.ST) is trading at SEK252.50, reflecting a notable increase of 12.22 percent

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