Better Collective’s three-pronged corporate strategy of driving down debt, seeking to dominate key segments of the market and a concentration on building organic growth is paying significant dividends, according to Q1 financials.
While buying its principal US rival for close to a quarter of a billion US dollars, the sports media company’s net interest-bearing debt has decreased by over €8 million (£6.88m/US$9.65m) to €54,936 million (£47.25m/US$66.30m) in the last 12 months.
Revenue grew 86 per cent to €39 million (£33.54m/US$47.05m), year-on-year, in the first quarter ending March 31; of which 19 per cent was registered as organic growth, with 180,000 so-called New Depositing Customers, an all-time high, driving performance.
“This year got off to a strong and exhilarating start,” said the firm’s CEO Jesper Søgaard. “Record high revenue and sports wagering combined with our largest acquisition to date bodes well for continued strong performance.”
The company posted operational earnings of €13 million (£11.8m/US$15.68m), with an estimated EBITA margin of 34 per cent. Earnings-per-share rocketed 76 per cent to 18 Euro cents a share.
Better Collective was also able to up its commitment to safe gambling by increasing its stock, to 90 per cent of shares, in Mindway AI, a software specialist that excels at providing problem gambling solutions.
In April, alone, revenue hit €13.1 million (£11.26m/US$15.8m) — a record increase and 185 per cent more than in the same month last year.
Earlier this month (May 3), Better Collective acquired The Action Network, Inc. for a straight-up US$240 million (£171.08m/€198.83m). The move seals Better Collective’s market leadership of US sports betting and, accordingly, the media group has upped its 2022 stateside revenue forecast to US$100m (£71.27m/€82.84m).
In further significant company news, Sweden’s Therese Hillman, until recently CEO of NetEnt, was elected to the Board of Directors following the April 26 AGM.
She brings iGaming expertise, extensive online business experience and in-depth knowledge of the US market to the table.