Date: 22.02.2023

by Mateusz Mazur

Last update: 22.02.2023 13:21

Better Collective announces financial results after record year 2022

Better Collective presented its financial report for 2022, which was marked by record growth for the company in all areas.

63 percent increase in revenue

Better Collective’s revenue in the fourth quarter of 2022 increased by as much as 63% year-on-year to €86.1 million. 44% is the result of organic growth. The company also reported increases in recurring revenue (+94% year-on-year) and revenue share income (+81% year-on-year). In the fourth quarter, they amounted to €41.3 million and €39.2 million, respectively.

EBITDA, before extraordinary operations, reached the value of €35.2 million, an increase of 115% year-on-year with a margin of 41%. The number of customers making their first deposit also reached a record level, exceeding 580,000. This is an increase of 117% year-on-year.

Not only the fourth quarter, but also the entire 2022 was successful for Better Collective. The company’s revenue increased 52% year-on-year to €269.3 million. 34% of the growth in this area was organic in nature.

Recurring revenues in 2022 reached €123.3 million, up 42% year-on-year. EBITDA before extraordinary operations, meanwhile, increased 53% year-on-year to €85.1 million (32% margin). Revenue share income increased 42% to €96.4 million.

The number of customers making their first deposit exceeded 1,680,000 last year, a record increase of 96%. Earnings per stock (EPS) also increased by more than 150%.

The Group achieved good results in terms of both revenue growth and operating profit. This result was largely achieved by changing the terms of several contracts in the U.S. from continuous payment authority (CPA) to revenue share. As a result, Better Collective boasted record growth in EBITDA.

Jesper Søgaard, CEO of Better Collective said: „The Group delivered strongly both in terms of revenue growth as well as operational earnings. This performance was accomplished on the back of moving several US contracts from upfront payments (CPA) to revenue share, why implicitly the Group could have delivered an EBITDA of €100 million, implying 80% growth. Undeniably, the ability to drive high profitable growth remains very important for Better Collective’s future ambitions”

Increases in Europe and in the U.S. as well as a successful beginning of the new year

Revenues from Europe and the rest of the world increased 59% to €52.2 million in 2022, driven by an exceptionally good performance during the Men’s World Cup, which reported more than 300,000 new depositing customers.

Revenue in the U.S. increased 71% to €33.9 million, boosted by a busy sports calendar and a successful launch in Maryland state.

The positive dynamics of 2022 also continued in January 2023, which reported record monthly revenues of more than €37 million, a year-on-year increase of more than 40%.

The main driving force for the increases was the launch of the Ohio market. The increases are comparable to last year, when the New York market officially started.

The media partnership with Wirtualna Polska was also remarkable. Especially since, globally, Better Collective is already working with a number of established brands such as The Telegraph and The New York Post.

On January 20, 2023, a €5 million stock buyback program was completed, which raised 394,645 stocks. Overall, Better Collective holds 1.1% of all outstanding shares at this moment.

The company’s management also decided to launch a new €10 million stock buyback program. The purpose of the buyback program is to cover future payments related to completed acquisitions and LTI programs.

A $4.3 million deal for sports media assets in emerging markets was also finalized.

An important development that reinforces the impression of an exceptionally successful beginning of the new year was Better Collective’s acquisition of a stake in Catena Media equal to 6,093,381 stocks (8.5%)

Better Collective’s rapid growth has not missed the industry’s attention. The two founders of Better Collective, Jesper Søgaard and Christian Kirk Rasmussen, received a lifetime achievement award at the iGB Affiliate Awards gala.

Optimistic perspectives

Considering how successful the past few months have been for Better Collective, it should come as no surprise that management is setting ambitious goals for 2023. The company expects revenues between 290-300 million euros and EBITDA before extraordinary operations of 90-100 million euros.

Better Collective is also continually investing in organic growth and has decided to take on one-time investment costs to strengthen its presence in Latin America and other emerging markets where regulations will soon come into effect

The group will continue to strive to increase its revenue share in the U.S., although it notes that the calendar for 2023 is not as rich as it was for 2022, when we saw market openings in several new states.

Jesper Søgaard adds: „After the overwhelmingly good start to January, I look forward even more to 2023. January was boosted by the Ohio launch – giving us our best month ever – with revenues of >€37 million – implying growth of >40%, despite tough comparisons to the New York launch in January 2022, where we doubled the revenue from 2021.

This year will expectedly have fewer large single events than 2022, with the main ones being the summer women’s World Cup in Australia and New Zealand, and the launch of sports betting in Massachusetts. We will continue our growth efforts in LATAM and keep an eye out for new market opportunities.”