Better Collective Reports €96.2M in Q4 Revenue
Better Collective closed 2024 with solid financial results, reporting €96.2 million in revenue for Q4, a 13% year-over-year increase.
Strong Q4 Performance with Mixed US Market Results
Recurring revenue played a crucial role, rising by 28% to €63.1 million and making up 65% of the company’s total revenue. EBITDA before special items grew by 14% to €34 million, with a stable EBITDA margin of 35%.
The company generated 407,000 new depositing customers (NDCs), with 82% of them coming through revenue-share agreements. Operational cash flow, excluding special items, reached €20 million, while cash conversion stood at 60%. Despite these gains, organic revenue growth declined by 2%, highlighting some challenges in key markets.
Challenges and Opportunities in the US Market
Better Collective’s US operations showed mixed results in Q4. The company saw strong momentum early in the year, boosted by North Carolina’s sports betting launch. However, activity slowed ahead of the NFL season, leading to lower-than-expected performance.
US revenue for the quarter reached €29 million, a modest 6% increase, but organic revenue declined by 8%. Revenue-share agreements, however, showed promise, increasing by 45% to €7 million, while cost-per-acquisition (CPA) revenue dropped due to reduced marketing spending by operators.
Sponsorship revenue rose by €3 million, driven by Playmaker HQ, and CPM revenue increased by €2 million following the acquisition of Playmaker Capital.
Operating profit remained stable at €7 million, maintaining a 24% margin. Looking ahead, Better Collective aims to achieve a minimum 20% EBITDA margin in North America in 2025, with a long-term goal of exceeding 35% by expanding revenue-share agreements.
CEO Jesper Søgaard on the Future of Better Collective
CEO and Co-founder Jesper Søgaard expressed confidence in the company’s future despite challenges. He highlighted the resilience of the team and Better Collective’s positioning for continued growth in the global sports betting and media landscape.
“In the US, our business started the year of 2024 well,” Søgaard said. He also pointed to Brazil as another key opportunity, given the recent regulatory changes there.
Beyond North America, Better Collective’s European, Canadian, and South American operations showed solid performance. The company’s portfolio includes market-leading sports media brands such as HLTV, FUTBIN, BolaVIP, and Action Network, reinforcing its dominance in both betting media and esports.
Søgaard emphasized the company’s strategic focus on organic expansion, disciplined capital allocation, and operational efficiency. “Our diversified portfolio of leading brands, combined with strong financial discipline and a commitment to innovation, positions us well for sustained growth. With a shift toward organic expansion, disciplined capital allocation, and a continued focus on operational excellence, we are confident in our ability to generate long-term value for our shareholders,” he concluded.
Recommended