Home NewsMarketing Better Collective surpasses revenue target for 2023 and targets double-digit growth

Better Collective surpasses revenue target for 2023 and targets double-digit growth

122 views 4 minutes read

Better Collective announced that it has exceeded its revenue target of EUR327m ($353.7m/PS280.2m) by 2023. The affiliate group now plans to grow at double-digit rates.

Better Collective’s revenue for 2023 was 21% higher than the year before, and this is on top of a 52% increase in the year prior. The company exceeded the EUR315m to EUR325m target it set for its earnings in 2022. The recurring revenue was EUR189m and also up by 47%.

Better Collective’s EBITDA (before special items) also increased by 31%, to EUR111m. This is again at the upper end of their EUR105m-EUR115m target. EBITDA was at 34%. This is in line with the 30%-40% target set by Better Collective for its report of 2022.

Jesper Sogaard is the founder and CEO of Better Collective. He said, “In 2023 a team effort from across the Better Collective group ensured a successful year, marked by profitable expansion, while we continued our strategic investments in order to build the foundations for the future.”

The year 2023 is a standout as the one where we have made major progress in our quest to become the world’s leading digital sports media company.

Q4 of 2023 For Better Collective

Better collective revenue generated EUR85m for Q4, which allowed it to reach its targets by 2023

Better Collective achieved its revenue goal of 2023 by accumulating EUR85m during the Q4 period. In Q4, the group’s revenue recurring was up 15% at EUR47m. The company said this meant “higher-quality revenue”.

The group revenue in Q4 2018 was EUR1m lower than the revenue generated by Q4 2022. Organic revenue growth for the quarter was -7.7%.

EBITDA prior to special items was EUR30m in Q4, down by 16% from 2022. However, EBITDA Margin stood at 35% and finished at the upper end of the range for 2023. Better Collective attributed the drop in EBITDA to the transition from revenue sharing to profit-sharing in the US.

In January, the group saw its revenue drop 27% to EUR27m. Better Collective attributed this to the comparison with its launch of sports betting last year in Ohio. January 2023 was Better Collective’s best ever month.

Better Collective has announced that it will not report trading data for the first quarter of the next quarter due to the large fluctuations within certain quarters, such as the Q4 of 2023.

Better Collective reported a 17% drop in new customers for Q4. The group blamed the 300.000 NDCs during the World Cup 2022 for this decline. From the 483,000 sent, 115,000 went to the US. Better Collective has sent an unprecedented 1.9 millions NDC in 2023. This is a 14% increase.

Cash flow before special items in Q4 of 2022 was EUR38m. This is an increase of EUR17m over the previous figure, EUR21m. Better Collective had EUR122m of capital reserves by the end 2023. This was made up of EUR43m of cash, EUR7m of other current assets, and EUR72m of unused credit lines.

Better Collective acquisitions for FY2023

Better Collective has acquired Playmaker Capital in a deal worth EUR176m, the second-largest ever for the company. This deal is expected to strengthen the company’s position in North America and give them “market leadership” throughout South America.

After the Playmaker Capital transaction, Better Collective raised its targets for 2023-2027, increasing its EBITDA before special items from 30%-40% to 35%-40%.

The revenue compound annual growth (CAGR), and the net debt-to-EBITDA target remained unchanged at +20 % and under 3x, respectively.

BLS Capital Fundsmaeglerselskab a/s was also announced as the new majority shareholder following the end of Q4. They hold 6.7% of voting rights. Also, the group has been listed on Nasdaq Stockholm as well as Nasdaq Copenhagen.

2024 Targets

better collective is eyeing revenues of €390m-€420m in 2024

Better Collective has increased its financial goals for 2024, with a goal of EUR390m-EUR420m. This would represent a growth rate between 19%-29%.

Better Collective also hopes to reduce the net debt ratio to EBITDA to 3x. It also aims to grow its EBITDA by 13%-22% and generate EUR125m to EUR135m.

Better Collective has accounted for an impact of 11 months from the Playmaker Capital deal, but it expects flat revenues and earnings in 2024. It believes that the deal will increase in value over time.

You may also like

About Us

On iGamingWorld, we provide in-depth analysis, the latest news and opinions from famous people of the gaming industry.

Featured Posts