Better Collective Reports Strong Q4 2024 Results

Strong Q4 and Full-Year Performance

Q4 revenue reached 96 million EUR (+13%), while recurring revenue grew 28% to 63 million EUR. EBITDA before special items rose 14% to 34 million EUR (35% margin). Full-year revenue totaled 371 million EUR (+14%), with EBITDA at 113 million EUR (+2%).

The company exceeded its revised EBITDA guidance, supported by a 50 million EUR efficiency program that was executed faster than planned.

Impact of Brazil’s New Gambling Regulations

Brazil accounted for 19% of Better Collective’s 2024 revenue (70 million EUR). The introduction of a 26% gambling tax and increased costs could reduce revenue by 15-20 million EUR in 2025. Additional customer churn due to re-activation requirements may further lower revenue share income by 20-30 million EUR, with an estimated 35-50 million EUR total impact on 2025 revenue and EBITDA.

Despite short-term hurdles, the company sees long-term growth potential in Brazil, with expectations for market stabilization by 2026.

Cost Efficiency Program and Financial Stability

Better Collective fully implemented its cost efficiency program, saving 15 million EUR in Q4 alone. The program will provide 50 million EUR in savings in 2025, with reductions in salaries, editorial expenses, and office costs.

With net debt to EBITDA at 2x, the company maintains financial stability, supported by 102 million EUR in capital reserves.

2025 Outlook and Strategic Focus

For 2025, Better Collective projects:

• Revenue of 320-350 million EUR
• EBITDA before special items of 100-120 million EUR
• Free cash flow of 55-75 million EUR
• Net debt to EBITDA below 3x

The company remains focused on expanding its European, Canadian, and esports businesses, alongside commercial execution and capital allocation. Despite expected short-term revenue declines in Brazil, Better Collective sees long-term opportunities in regulated markets and continues to strengthen its global position.