Transatlantic momentum drives H1 success at Better Collective
Better Collective has detailed strong progress in both Q2 and H1 2022, as the Danish betting and gaming media publisher experienced continued momentum in both Europe and North America.
For the first six months of the year, Better Collective’s revenue rose by 57% to €123.4m (2021: €78.8m) whilst group EBITDA grew by 37% to €35.3m (€25.9m), with a margin of 29%.
During the second quarter specifically, revenue stood at €56m (€40m), a growth rate of 40%, although EBITDA fell by 3% to €12.2m, alongside a group wide margin of 22%, due to increased costs from an enhanced US presence.
Despite recording an EBITDA loss of €1.8m for its US operations, the firm asserts that any ‘short term costs’ as a result of heightened North American activity has been absorbed by continued strong growth’.
“Q2 was a productive quarter. Revenues from revenue share contracts as well as NDCs were an all-time high of €22m and 387.000, respectively,” said Jesper Søgaard, Co-Founder & CEO of Better Collective.
Another revenue driver was a strong uptick in customer acquisition, with the number of new depositing customers in Q2 increasing by 93% to 387,000, and in H1 by 50% to 737,000 from 371,000.
Revenue growth was recorded, the group detailed, despite an ‘exceptional Q2 2021’ offering strong comparative figures, and a ‘low season’ in the US, with an absence of many sporting events throughout the late spring and summer.
The North American market appears to remain the company’s key focus, having made its ‘largest acquisition to date’ in efootball community FUTBIN, along with its related domains, for €105m in a cash and shares deal.
Additionally, the firm acquired US sports betting media outlet Action Network in June – as mentioned previously, these acquisitions were key in driving stateside costs up and EBITDA down.
However, Better Collective maintains confidence in its US capabilities, stating that the hit to EBITDA was ‘as expected’ as well as reflective of the ‘normalised seasonality on group revenue’
Looking ahead, the group expects its US business to ‘deliver full year profitability in line with the group’, whilst also eyeing up opportunities in Ontario – which regulated in April during Q2, and where the firm has acquired Canada Sports Betting to establish a presence.
Søgaard added: “Our geographical diversification really proved its worth as the Europe & RoW Publishing business continued its strong momentum for both revenue and earnings.
“Our US business showed 90% topline growth and a negative EBITDA, which runs in line with our strategy to continue large scale investments in what rapidly has become our largest single market.”
Closing the first half of the year, Better Collective’s cash flow stood at €35.6m – a 31% increase on the previous year’s figure of €27.2m – whilst in Q2 this was recorded as €22.5m, a 50% growth rate on 2021 comparatives (€11.1m).
Post-quarter developments have seen the company record July revenue of €17m, 36% higher than 12 months previously, and partnerships have been signed with media group’s Sport1 Median in Germany and Boston.com and the Chicago Tribune in the US.