Better Collective has announced its financial results for the first quarter of 2024, showcasing a notable revenue growth but facing expected declines in EBITDA and profit after tax.
Revenue and Recurring Revenue Growth
Better Collective, a leading affiliate in the sports betting industry, reported a solid 8% year-on-year increase in revenue for Q1 2024, reaching €95 million ($103.12 million). A significant highlight was the recurring revenue, which saw a 14% increase from the same period last year, totaling €53.3 million. This growth in recurring revenue reflects the company’s strategic focus on establishing a sustainable and reliable income stream.
EBITDA and Profit After Tax
The company’s EBITDA for the quarter was valued at €29 million, marking a 13% decrease compared to Q1 2023. Despite this decline, Better Collective had anticipated this outcome, given the exceptionally strong performance in the previous year. Profit after tax experienced a sharper decline, dropping to €7.6 million from €20.9 million in Q1 2023.
CEO’s Perspective
Jesper Søgaard, Co-Founder and CEO of Better Collective, provided insights into the Q1 results. He emphasized the strength of the quarter despite the challenging comparisons to the prior year’s performance. Søgaard highlighted the 14% growth in recurring revenue, which now includes significant contributions from Playmaker Capital, indicating a shift towards higher quality revenue sources.
Market Performance
In terms of market performance, Better Collective saw robust results across all regions. The Europe & ROW (Rest of World) segment posted an impressive 20% growth, with 5% of this being organic growth. This success was driven by the company’s owned and operated channels, as well as strategic media partnerships, which helped to amplify their market impact.
In North America, Better Collective continued to strengthen its commercial position, establishing active partnerships with all major players in the region. The company expressed delight in the progress made during the quarter, signaling a positive outlook for future growth in this key market.
Strategic Acquisition
In addition to reporting on its financial performance, Better Collective also confirmed the acquisition of AceOdds, a prominent sports betting brand, for €42 million. This acquisition is expected to bolster Better Collective’s market presence and enhance its product offerings.
Overall, Better Collective’s Q1 2024 results demonstrate a balanced performance with significant revenue growth and strategic advancements, despite the anticipated declines in EBITDA and profit after tax. The company’s ongoing efforts to diversify and strengthen its revenue streams, along with strategic acquisitions, position it well for sustained growth in the dynamic sports betting industry.