Better Collective Sees Strong Revenue Growth in First Half of 2024 Despite Flat EBITDA in Q2

Revenue Grows Despite Flat EBITDA Performance

Better Collective, a leader in sports betting media, reported strong revenue growth for the first half of 2024, reaching €194 million, a 17% increase from the same period in 2023.

Despite this positive revenue development, the company’s EBITDA for Q2 remained flat at €29 million, in line with expectations, due to ongoing investments and recent acquisitions.

Q2 Performance Sees 27% Revenue Growth

In Q2 2024, Better Collective achieved a revenue of €99 million, marking a 27% year-over-year increase.

This growth was driven by €62 million in recurring revenue streams, underscoring the company’s efforts to diversify its income.

However, the group’s EBITDA margin for the quarter stood at 29%, significantly lower than the 37% margin recorded in Q2 2023, when the company experienced exceptional growth from upfront CPA payments in North America.

The flat EBITDA result was largely due to increased investments in adtech and AI competencies, as well as the recent acquisitions of Playmaker Capital and Playmaker HQ, which have not yet fully contributed to profitability.

Better Collective expects these acquisitions to provide a stronger contribution in the latter half of the year, improving overall profitability.

North American Challenges and Revenue Shift

Better Collective faced challenges in North America, where Q2 revenue increased by 12% year-over-year to €26 million, primarily due to acquisitions.

However, the company saw an 18% decline in organic growth, driven by tougher comparisons to the prior year and the impact of Google policy changes on a media partnership.

Historically, North American revenue came from one-time CPA payments, but the company is transitioning towards revenue-sharing models.

This shift has temporarily impacted short-term revenue, but is expected to foster more sustainable long-term growth through recurring income from New Depositing Customers (NDCs).

Despite the revenue increase, North American profitability was hit hard in Q2, with EBITDA falling by 75% to €1.9 million, and the EBITDA margin dropping to 7%, down from 33% in the same period the previous year.

The decline was attributed to lower revenue share earnings and higher acquisition-related costs.

Strategic Adjustments and Positive H2 Outlook

Despite the challenges, Better Collective remains optimistic about the second half of the year.

The company has revised its full-year revenue projections upward to a range of €395 to €425 million, with an EBITDA target between €125 and €135 million.

Jesper Søgaard, Co-founder & CEO of Better Collective, expressed confidence in the company’s diversified strategy, stating, “Thanks to a great team effort, we managed to deliver a strong Q2 in a time of changing market conditions. Our existing business is back to organic growth, and I am pleased to see that our diversified strategy has performed as envisioned.”

Looking ahead, Søgaard is optimistic about the remainder of 2024, as the company anticipates a busy second half with major sports leagues resuming, which is expected to drive further growth and profitability.