Better Collective, a dominant player in the affiliate market, has announced a revision of its financial targets for 2023. The company has raised its revenue expectations and anticipates strong annual growth of 17% to 35%. Additionally, Better Collective expects an increase in EBITDA before special items and maintains its net debt to EBITDA ratio.
Revised Financial Targets for 2023:
Better Collective has upgraded its revenue expectations for 2023 from €305m – €315m to €315m – €325m. This upward revision indicates the company’s confidence in achieving substantial growth. The expected revenue range suggests an annual growth rate of 17% to 35%. Furthermore, the company anticipates an increase in EBITDA before special items from an initial projection of €95m – €105m to €105m – €115m.
Stable Net Debt to EBITDA Ratio:
Better Collective has stated that it does not expect any changes in its net debt to EBITDA before special items ratio. This suggests that the company aims to maintain its financial stability and manage its debt effectively while pursuing ambitious growth targets. By keeping the ratio stable, Better Collective demonstrates its commitment to responsible financial management.
Strong Performance and Market Dominance:
Better Collective’s strong performance is exemplified by its record-breaking first quarter of the year. The company reported revenue of €88m, reflecting a 30% year-on-year growth, while EBITDA before special items reached €33m, representing a 44% year-on-year increase. The impressive Q1 results were primarily driven by Better Collective’s presence in the Americas and a robust overall performance across the group.
Acquisition of Rival Stake:
In a strategic move to solidify its market position, Better Collective acquired a stake greater than 5% in its main rival, Catena Media. This acquisition not only demonstrates Better Collective’s intention to expand its influence but also signifies its confidence in outperforming competitors. By strengthening its foothold in the affiliate market, Better Collective aims to bolster its revenue streams and increase its market share.
Long-Term Financial Targets:
Alongside the revised 2023 targets, Better Collective has also announced its long-term financial goals up to 2027. The company aims to achieve a compound annual growth rate (CAGR) of 20% and maintain an EBITDA margin, excluding special items, within the range of 30% to 40%. These targets indicate Better Collective’s ambition to sustain strong growth in the coming years while maintaining profitability and operational efficiency.
Better Collective’s upward revision of its 2023 revenue expectations, along with its projected increase in EBITDA, showcases the company’s confidence in its future prospects. The company’s dominant position in the affiliate market, coupled with its record-breaking performance in the first quarter, further strengthens its outlook. By maintaining financial stability and pursuing strategic acquisitions, Better Collective aims to solidify its market dominance and achieve its long-term growth targets.