Better Collective Reports Q4 Revenue of €85m with EBITDA Down 16%: Full-Year Growth Achieved

Navigating Q4 Financials

Better Collective, a prominent affiliate in the iGaming industry, has unveiled its financial results for the fourth quarter of 2023. Despite certain metrics experiencing a decline compared to the previous year, the company achieved double-digit growth in its full-year results, showcasing resilience and strategic adaptability.

Q4 Revenue and Recurring Income

During Q4, Better Collective recorded revenue of €85 million, marking a 7% decrease year-on-year. However, recurring revenue saw a notable uptick, rising by 15% to €47 million, constituting 56% of the total group revenue. The company’s ability to maintain a substantial portion of revenue as recurring highlights its stable income streams amidst market fluctuations.

EBITDA and Market Dynamics

EBITDA before special items witnessed a decline, standing at €30 million with a 16% decrease. Better Collective attributed this downturn to market shifts towards revenue-share contracts in the US, coupled with challenging comparisons due to Ohio’s pre-registration phase for launch in Q4 2022. Despite these challenges, the company demonstrated strong cash flow growth, reaching €38 million compared to €21 million in Q4 2022.

New Depositing Customers and Market Expansion

New depositing customers (NDCs) experienced a decline of 17% in Q4, totaling just over 483,000. Notably, 80% of these NDCs were generated through revenue-share contracts, with a significant influx during the World Cup 2022 period. Moreover, the North American market showed promising growth, with a 66% increase in NDCs, reflecting Better Collective’s strategic focus on expanding its presence in key regions.

Strategic Acquisitions and Growth Initiatives

Despite the quarterly fluctuations, Better Collective made strategic acquisitions in Q4, including the notable acquisition of Playmaker Capital for €176 million in November. Jesper Søgaard, Co-Founder & CEO of Better Collective, described this acquisition as transformative, positioning the company as a leading digital sports media group and underlining its commitment to strategic expansion and innovation.

Full-Year Performance and Strategic Outlook

For the full year 2023, Better Collective reported annual revenue of €327 million, marking a robust 21% increase. Recurring revenue surged by 47%, reaching €111 million in EBITDA before special items, reflecting a 31% growth. Despite challenges in Q4, Better Collective’s overall performance showcases a prosperous year marked by profitable growth and strategic investments.

CEO’s Perspective and Future Vision

Commenting on the results, Jesper Søgaard expressed pride in the team’s efforts, emphasizing profitable growth and strategic advancements in line with the company’s vision. He highlighted 2023 as a year of significant progress and strategic positioning, setting a solid foundation for future growth and innovation in the dynamic iGaming landscape.

Investor Confidence and Market Response

Despite the decline in certain Q4 metrics, investor confidence in Better Collective remains strong. Market analysts view the company’s strategic acquisitions, focus on recurring revenue, and long-term growth strategy as key indicators of resilience and potential in the competitive iGaming sector. The market response to Better Collective’s financial reports indicates a nuanced understanding of market dynamics and strategic decision-making within the company.