Despite a 13 percent decline in revenue, year-on-year, major media affiliate Better Collective (BC) has reaffirmed its FY2025 fiscal target in its Q1 results, released today.
The Danish-origin company, founded by current chiefs Jesper Søgaard and Christian Kirk Rasmussen, generated €83 million (£69.98m) in revenue for the quarter, ending March 31, with EBITDA, before special items, totalling €22 million (£18.55m), representing a margin of 27 percent.
Recurring revenue amounted to €49 million (£41.31m) and group costs fell by €5 million (£4.21m), or eight percent, as part of the company’s ongoing €50 million (£42.15m) cost efficiency programme launched in October 2024, which involved 300 redundancies.
Brazil
The Brazilian market, which officially launched on 1 January 2025, contributed €10 million (£8.42m) in revenue during the quarter.
Although Brazil’s new regulatory regime hit BC’s revenue and EBITDA by some €7 million (£5.9m), compared to Q1 2024, Better Collective reported stronger-than-expected player migration and retention rates, and now expects this arm of its LatAm business to return to growth by 2026.
North American operations, meantime, aligned with management expectations in the quarter.
A €5–6 million (£4.21m-£5.06m) revenue decline in the sector was attributed to the expense of BC launching in North Carolina last year.
New BC
And management still maintains its full-year forecast for the North America region, with revenue share expected to contribute up to €15 million (£12.64m) to group revenue.
New Depositing Customers (NDCs) numbered 316,000 for the quarter, 80 percent of them driven by revenue share agreements, but still, disappointingly, down by 30 percent, year-on-year, thanks to lacklustre Brazil and the U.S.
Nevertheless, BC asserts that its financial position remains strong, with cash reserves of €25 million (£21.08m) and €65 million in available credit (£54.8m).
Better Collective also announced a new €10 million (£8.43m) share buyback and reiterated its full-year 2025 guidance: revenue of €320–350 million (£269.82m-£295.12m) and EBITDA before special items of €100–120 million (£84.32m-£101.18m).
“Overall, our Q1 results landed in line with our expectations,” asserted Co-CEO Jesper Søgaard.
“As we are now building the “New BC”, we are setting the stage for future growth by focusing on global scalability and streamlining our House of Brands. This marks the beginning of an exciting new chapter for Better Collective. Thanks to all my colleagues for your continued support as we continue navigating market changes.”
