Better Collective posts Q2 growth despite UK and Brazil headwinds

EBITDA margin expanded by 2% to 30%. Cash flow from operations before special items rose 59% to €30 million, yielding a cash conversion rate of 111%. New depositing customers (NDCs) increased 24% to 373,000, while the value of deposits reached a record €836 million.

The company said growth was driven primarily by talent-led media, paid media, prediction markets and HLTV, which together generated approximately €11 million in additional revenue during the quarter.

Continued headwinds from Brazil and the UK

Commenting on the results, Better Collective co-CEO Jesper Søgaard noted that the growth was “delivered despite regulatory headwinds in the UK and Brazil”. The company estimated that the UK tax rise and regulatory changes in Brazil each reduced quarterly revenue by around €2 million.

Earlier this month, iGBA reported that the group had initiated another round of layoffs, affecting employees principally in Brazil, Argentina and Chile, with Futbol Sites reported to be hit the hardest. The company said the changes formed part of a broader strategy focused on simplifying workflows, leveraging AI and automation and improving efficiency.

Although the Q2 report does not detail the redundancies, Søgaard said the company “made further progress in simplifying the organisation, reducing fragmentation and creating a more scalable operating model” during the period.

“We have now consolidated our content management systems, creating a more integrated technology foundation across our brands,” he explained. “This reduces duplication, improves our ability to share products and capabilities and enables us to scale content and commercial initiatives more efficiently across the portfolio.”

World Cup boost and segment performance

The FIFA World Cup was the standout operational catalyst during the quarter. Better Collective said the tournament drove strong user acquisition, engagement and reactivation across sports media, betting media and paid media. NDCs increased 24%, while the value of deposits reached an all-time high as tournament activity met management expectations. In addition, the affiliate launched its AI-powered solution Playbook in Brazil ahead of the tournament as part of its global expansion.

Publishing remained the group's largest segment, generating revenue of €58 million, up 11% year-on-year. Sponsorship revenue rose 44% to €12 million, while CPA revenue increased 45% to €5 million. EBITDA before special items increased 26% to €17 million, with the margin improving from 26% to 29%.

Paid media revenue grew 6% to €27 million, supported by a 10% increase in revenue share income as customer databases matured. EBITDA before special items rose 6% to €7 million, maintaining a margin of 26%. The segment was particularly affected by developments in the UK and Brazil, though management highlighted continued expansion in the US and other emerging markets.

Esports revenue increased 9% to €5 million. Sponsorship revenue climbed 24%, driven by commercial momentum at HLTV, while EBITDA before special items rose 23% to €3 million. The segment's EBITDA margin improved to 63% from 56% a year earlier, despite weaker engagement at FUTBIN.

Søgaard highlighted that performance across the affiliate’s segments – particularly the publishing business – was supported by strong demand from prediction market operators in North America.

“User interest remained strong, while increasing competition among operators supported demand for efficient distribution and high-quality customer acquisition. Although prediction markets remain an emerging revenue stream, the category provided a positive contribution during the quarter,” he said.

Post-quarter developments and outlook

Following the reporting period, Better Collective launched operations in Alberta on 13 July as the Canadian province opened its regulated online sports betting and iGaming market. The company said brands including Action Network, The Nation Network and Canada Sports Betting would support further expansion of its North American revenue share model.

Looking ahead, Better Collective maintained its 2026 guidance, forecasting organic revenue growth of 7% to 12% and EBITDA before special items growth of 8% to 18%, both in constant currencies. Management also reiterated plans for €40 million of share buybacks this year and expects net debt-to-EBITDA to remain below 3x.