- COMPANY RESULTS
Better Collective reported Q1 revenue of €83 million (£70 million/$94 million), marking a 13% year-on-year decline, with organic growth down 18%, compared to a 2% drop for FY24.
Recurring revenue fell 8%, as revenue share declined by 13% due to new Brazilian regulations. Subscription revenue was flat, while CPM-based revenue rose 13%, driven by the Playmaker Capital acquisition and “a good start to the year in the Brazilian advertising market”.
Group costs dropped 8% year-on-year to €61 million, reflecting the impact of the €50 million cost efficiency programme launched in October 2024, which is expected to be fully realised in 2025. Staff costs were down 5% to €27 million following layoffs.
The affiliate delivered 316,000 new depositing customers (NDCs) in the quarter, down 30% from the 450,000 recorded in the same period last year.
This resulted in an EBITDA before special items of €22 million, a 24% drop. The EBITDA margin before special items was 27%, compared to 31% in Q1 2024.
Brazil slowdown
The group attributed the revenue decline mainly to challenges in Brazil and North America, stating “the performance was in line with expectations”.
In Brazil, the business generated €10 million in revenue during the quarter. Regulatory changes impacted earnings by around €7 million. The company also pointed to “a seasonally low period” caused by “national holidays and the start of the Serie A football league commencing in late March”.
CEO Jesper Søgaard said the group is “pleased to report that the overall amount wagered in the player databases has increased, and the reduction in wagering activity is less than expected”. While the lack of welcome bonuses has slowed NDC growth, it remains “very optimistic” about its “leading position” in the market.
North America
Revenue in North America fell 32% year-on-year to €23 million, with organic growth down 35%. The drop was mainly due to the €5 to 6 million boost from last year’s North Carolina launch and reduced marketing activity in the region.
CPA revenue in the region declined by roughly €9 million in Q1. Revenue share also decreased, but Søgaard said the affiliate is on track to strengthen its revenue share foundation in North America and expects “these earnings begin to materialise” over time.
Overall, North America made up 28% of group revenue and 19% of operational earnings. Europe and the rest of the world accounted for the remaining 72%, with revenue staying broadly flat year-on-year at €60 million.
Publishing and paid media
Despite recent Google updates impacting affiliates’ media partnerships, Søgaard stressed that the group still sees “strong business opportunities” in paid media, particularly for “driving and monetising sports audiences” in a call with iGB Affiliate.
Paid media made up 30% of group income and contributed 25% of operational earnings in Q1. Revenue in this segment declined by 14%, with organic growth down 15%, and revenue share income dropped by 20%. Direct costs remained stable, as this segment isn’t affected by the cost efficiency programme.
Publishing remains the main income source, with Q1 revenue at €58 million, down 13%. Organic growth declined by 19%, and operating profit dropped 26% to €17 million.
“The new BC”
Søgaard described Q1 2025 as the start of “the new BC”, with the company “taking strategic steps to optimise our foundation and set ourselves up for long-term success”. He told iGB Affiliate the shift was “partly planned” even before last year’s dip as the company pulls back from M&A and reallocates resources to its “biggest opportunities”.
He added that last year’s 300 layoffs were part of the company’s natural growth, following the acquisition of 35 operations over the years. While revenue is down, the affiliate hasn’t announced any further staff cuts, though it will continue to assess its resources to “realign and ensure the right people are in the right roles”.
As part of its restructuring, Better Collective is moving from a geographical structure to three global business units: publishing, paid media and esports. The group is also focusing on its “house of brands”, including Action Network, AceOdds, BolaVIP, FUTBIN and HLTV.
Another key change was in its leadership structure, as COO Christian Kirk Rasmussen joined Søgaard as co-CEO in April 2025. Søgaard said Rasmussen’s previous role “was broad and spread him thin”, and that the new arrangement “allows him to go deeper into long-term opportunities”.
In addition, Sofie Ejlersen has been appointed COO. Previously a strategic advisor to the group for six months, she played a key role in shaping “the new BC”. Ejlersen brings more than 12 years’ experience from Bain & Company, where she advised global companies on strategy, performance improvement, organisation, transformation and M&A. As COO, she will oversee the implementation and integration of the group’s transformation efforts.
Better Collective reaffirmed its 2025 targets of €320 to 350 million in total revenue, EBITDA before special items of €100 to 120 million, free cash flow of €55 to 75 million and a net debt to EBITDA ratio below 3x.
It also issued long-term guidance for 2027, aiming for positive organic growth from 2026, an EBITDA margin of 35-40%, strong cash conversion and net debt to EBITDA below 3x.