Better Collective Posts €83M Q1 Revenue

Revenue Impacted by Market Shifts in Brazil and the US

In Q1 2025, Better Collective recorded €83 million in revenue—a 13% drop compared to the previous year. Organic revenue declined by 18%, mainly due to five factors: the transition to regulation in Brazil, a difficult comparison base from North Carolina’s launch in 2024, lower partner activity in the US, positive M&A and exchange rate effects, and a weaker sports win margin. Notably, the Brazilian business generated €10 million in revenue, but regulation changes had a €7 million negative effect on both revenue and EBITDA compared to Q1 2024.

EBITDA before special items totaled €22 million, a 24% decrease year-on-year, resulting in a 27% margin. Group costs dropped by €5 million (or 8%), driven largely by staff reductions and operational savings under the company’s ongoing €50 million cost-efficiency program. Adjusted for the impact of Playmaker Capital (acquired in February 2024) and currency exchange, total cost savings reached €9 million.

Brazil: Strong Migration, Slower Acquisition

Q1 marked Brazil’s first full quarter as a regulated market. Despite the seasonal slowdown and restrictions on welcome bonuses, Better Collective observed better-than-expected player migration and wagering activity. The market delivered strong retention but fewer New Depositing Customers (NDCs) due to acquisition challenges. CPM-based media revenue performed well, driven by sold-out inventory and efforts to expand local brand presence. The company expects the Brazilian business to return to growth by 2026.

In North America, revenue fell by €11 million. About half of this was due to the North Carolina launch comparison, and the rest from reduced partner marketing activity. However, the outlook remains positive, with management expecting €10–15 million in deferred revenue share to materialize over time, gradually stabilizing the region’s contribution.

Strategic Transformation and Leadership Changes

In April, Better Collective unveiled a new organizational model centered on global business units—Publishing, Paid Media, and Esports—replacing its geography-based structure. This change aims to reduce complexity, avoid duplication, and scale best practices more effectively.

The company introduced a Co-CEO model: Jesper Søgaard continues focusing on external strategy and stakeholder engagement, while Christian Kirk Rasmussen leads innovation and operational execution. In addition, Sofie Ejlersen joined as Chief Operating Officer after serving as a strategic advisor during the company’s transformation phase. She brings over a decade of experience from Bain & Company.

Esports to Be Reported Separately

Starting in Q2 2025, Esports will become a standalone reporting segment with dedicated leadership. This move underscores Better Collective’s intent to prioritize high-growth verticals and improve transparency in reporting.

The company completed a €10 million share buyback in April and announced a new buyback program of the same value on May 21, to be executed by August 26, 2025. It also cancelled 1.8% of its outstanding share capital to increase shareholder value. By the end of March, Better Collective had capital reserves of €90 million, including €25 million in cash and €65 million in available credit facilities.

Outlook for 2025 Remains Unchanged

Better Collective reaffirmed its guidance for the full year:

• Revenue between €320–350 million

• EBITDA before special items of €100–120 million

• Free cash flow of €55–75 million

• Net debt to EBITDA below 3x

Q1 delivered 316,000 NDCs, down 30% year-on-year, but 80% came from revenue share agreements. Despite short-term headwinds, the company is focused on long-term scalability and brand consolidation under its “House of Brands” strategy.