Better Collective Lowers 2024 Guidance Amid U.S. Market Slowdown

Reasons for Better Collective’s 2024 Financial Forecast Revision

The updated forecast now projects revenue of €355–375 million and EBITDA before special items of €100–110 million.

Better Collective lowered its 2024 financial outlook primarily due to lower-than-expected partner engagement in the U.S. The company also reported a continued decline in activity in Brazil, tied to anticipated regulatory changes set for early 2025.

Reduced U.S. partner activity is the main factor behind the revised financial forecast. However, the company has not specified the exact causes of this decline in engagement.

Pending gaming regulations in Brazil have also contributed to the adjusted forecast. Like other industry players, Better Collective has experienced a drop in interest from Brazilian users as they await upcoming legislative changes.

Despite these challenges, Better Collective remains optimistic about long-term growth potential in both the U.S. and Brazilian markets, noting the strong foundational growth in each.

Jesper Søgaard, CEO and Co-Founder of Better Collective states: “Since 2017, Better Collective has grown significantly both organically and through 35 acquisitions expanding our team while adding increased complexity to our organization. As external market conditions shift, it’s important for us to recalibrate our spending and investment strategies to ensure sustainable long-term success. We are currently implementing adjustments that will better prepare us for the future and I am confident that Better Collective will emerge even stronger following this exercise. We operate in a market with strong underlying growth, despite being subject to volatility, and we are well-equipped to adapt and are strategically positioned to sustain our growth in the future.”.

To adapt to current market conditions, Better Collective is implementing a business optimization process aimed at achieving over €50 million in annual operational savings. This plan includes identifying synergies and organizational optimization, with full implementation expected within the next month and complete impact anticipated by 2025.

Industry-Wide Challenges

Better Collective is not alone in facing industry challenges. Recently, XLMedia decided to fully exit the North American market, citing financial unviability. The company sold its assets to Sportradar for an estimated $20–30 million.

Catena Media has also encountered difficulties, prompting a workforce reduction of 29 employees in North America, roughly 10% of its regional staff. The company is now focusing on product development and revenue diversification.

These challenges for affiliate firms in the U.S. stem from several factors, including heightened competition, as numerous companies vie for player attention and lead generation opportunities.

Additionally, there’s a trend of consolidation in the market. Larger players are acquiring smaller firms, while others exit due to performance pressures.