Better Collective revenue up 97% in first quarter
Published 8th May 2019
Overall revenue amounted to €14.9m (£12.8m/$16.7m) in the three months to March 31, ahead of initial forecasts.
Revenue share deals were responsible for 72% of total revenue, with some 18% coming from cost per acquisition, and 10% from other sources. Over 116,000 new depositing customers signed up over the period, up 147% on last year.
Interestingly, Better Collective said its Swedish business performed well in the quarter, unlike many of its competitors that have struggled due to the new regulations in the country. This was boosted by the €30m acquisition of Ribacka Group in December 2018.
Elsewhere, costs for the quarter increased 53% to €8.4m, mainly due to a rise in revenue-related expense to €1.4m. Staff costs also climbed to €4.2m and other external expenses to €2.7m
This left Better Collective with an operating profit before amortisation and special items of €6.5m, a 212% year-on-year rise.
Excluding amortisation and impairment charges of €1.2m and special items of €87,000 - related to M&A activity - operating profit stood at €5.2m, up 230%.
After financial income and expenses and income tax, net profit for the quarter was €3.7m, up 225%.
Better Collective chief executive Jesper Søgaard has forecast further growth for the company this year, citing efforts to bolster its US position by developing new products and adjusting current offerings for the market.
“While the pace of regulation is uncertain, we see progress and we are preparing for the next states to regulate online sports betting and casino,” he said. “On this note, Pennsylvania has decided to open for online casino as from July 15, 2019, and possibly online sports betting as soon as May.
“We continue the efforts to find new business from the organic approach as well as through possible collaborations and acquisitions.”