Better Collective Reports Q2 Earnings, Exhibits Growth in iGaming Sector
Better Collective reported a Q2 revenue of €78 million (£66 million/US$85 million), up by 39% from €56 million in the previous year’s Q2. The company also recorded an organic revenue growth of 29%.
Recurring revenue for the quarter was €46 million, indicating a 67% growth. This accounts for 59% of the group’s total revenue, compared to 49% in Q2 of the previous year.
Before special items, the company’s EBITDA for Q2 was €29 million, compared to €12 million in Q2 2022, resulting in an EBITDA margin of 37%.
Regarding cash flow, before any special items, the reported amount was €34 million, up from €22 million in Q2 2022. By the end of Q2, capital reserves totaled €78 million, broken down into €65 million of cash and €13 million in other current assets.
The quarter witnessed a 32% increase in new depositing customers, with a total of over 500,000. Of these, 87% were through revenue share contracts.
During this period, Better Collective acquired Skycon Limited and made adjustments to its 2023 financial targets. These revised targets project revenues of €315-325 million and an EBITDA, before special items, between €105-115 million.
In relation to regulatory developments, the UK Government released a “White Paper” as a part of a Gambling Act review.
Other developments in the period include the appointment of Terence Gargantini as Country Director for Brazil, acquisitions such as Playmaker HQ and media entities from the Everysport Group, and the inauguration of a new headquarters in Copenhagen.
Jesper Søgaard, Co-founder & CEO comments: “Q2 turned out to be an exceptional quarter with strong growth building on the momentum generated in previous quarters. This was driven by a great performance across the group, highlighting the Americas and our media partnerships as key factors. Driven by successful acquisitions and a strong team to execute on our strategy, I am pleased with the progress we are making towards our vision to become the leading digital sports media group.
“We continue to be excited about the vast potential and opportunities in South America, where we plan to leverage our ‘Better Collective Growth Formula’ throughout the region. We are working hard to establish a talented team on the ground dedicated to delivering excellent sports content and experiences to the South American audience.
“In North America we have continued our investments despite tougher market conditions and I am proud to see that we are now reaping the benefits as operational earnings have moved from negative last year to a 33% margin during this low season quarter.”