Better Collective revenue dips in Q2, yet in line with expectations

Recurring revenue during the period was €52 million, accounting for 64% of total revenue but falling 15% year-on-year due to a 15% drop in revenue share. EBITDA before special items came in at €23 million, reflecting a 28% margin but 21% lower than Q2 2024. Free cash flow amounted to €13 million in Q2 and €21 million for the year to date. New depositing customers (NDCs) reached 300,000 for the quarter, of which 86% were revenue share, down from 501,000 a year earlier.

Group costs decreased by €12 million year-on-year as the affiliate continued the cost efficiency initiatives launched in October 2024, alongside restructuring and reinvestment efforts to drive further efficiencies.

Despite the weaker results, Better Collective CEO Jesper Søgaard said he was “pleased to report that developments have progressed as expected” as the affiliate went through “the final stretch of a transition period” and structural changes in key markets.

Market challenges

Commenting on Brazil, Søgaard reaffirmed its “strong potential to return to growth” and said he was “very satisfied with the first half year’s development”. However, he underlined the “truly competitive” nature of the market and pointed to sportsbooks moving into non-licensed sectors amid the absence of welcome bonuses.

“At the same time, the recent suggestions about increasing taxes shortly after the regulatory framework was introduced have created further uncertainty. In our view, a stable and competitive regulatory landscape is key to unlocking the full value of the Brazilian market – both for the country, sports fans, sportsbooks and partners alike,” Søgaard said.

The quarter’s cash flow was also hit by delayed payments from Brazilian customers due to new regulations and the rollout of fresh commercial and administrative frameworks. These payments were subsequently received in Q3 2025.

In North America, revenue fell by €8 million compared to Q2 2024, partly due to lower marketing spend and the absence of major events such as the North Carolina state launch. Currency fluctuations also reduced revenue in the region by €2 million.

The group attributed the 31% drop in CPA revenue to reduced partner activity in the US. While sponsorship revenue declined 5%, the affiliate stressed this was “in line with expectations and significantly better than market trends”.

Meanwhile, subscription revenue rose 8%, supported by community-based media in North America, and revenue share income in the region grew 7% in Q2, backed by partnerships and player retention.

Segments breakdown

Amid restructuring under “the new BC”, Søgaard noted that the publishing arm “has been at the core” of the initiative, contributing 64% of total revenue and 44% of group EBITDA before special items. However, the division’s revenue in Q2 fell 22% to €52 million, weighed down by developments in Brazil and the US.

Looking ahead, Søgaard said a key focus will be the group’s AdVantage project, aimed at strengthening “advertising monetisation across the business”, alongside scaling publishing operations globally and sustaining product innovation.

Better Collective’s paid media arm was not affected by restructuring, remaining the business’s “key differentiator”. It contributed 31% of group revenue and 29% of EBITDA before special items. Total revenue in the segment dropped 19% to €25 million during the quarter, though CPA revenue increased 6%.

The Esports division, launched as a standalone reporting segment this year, was described by Søgaard as “a powerful growth engine for Better Collective going forward”. Revenue in this area grew 4% year-on-year to €5 million, with sponsorship revenue up 28% and EBITDA margin before special items reaching 56%.

“With HLTV and FUTBIN, we own two of the most influential brands in global Esports media, each serving large and highly engaged communities,” Søgaard said. “By staying close to our communities and investing in innovation, we aim to build lasting loyalty – making these platforms both defensible and valuable for the future.”

Full-year guidance unshaken

Better Collective reaffirmed its 2025 guidance of revenue between €320 and €350 million, EBITDA before special items of €100 to €120 million, free cash flow of €55 to €75 million and net debt to EBITDA below 3x. A 50 to 70% decline in Brazilian revenue share income is expected in the short term, with a €35 to €50 million impact on 2025 EBITDA.

The affiliate also expects €50 million in savings from its cost efficiency programme this year, and recovery in European, Esports, South American (excluding Brazil), Canadian and US operations to contribute an EBITDA boost of €20 to €40 million.

Looking into 2026, Søgaard said the group is confident the FIFA World Cup will generate “meaningful, lasting value”, with partner discussions, product roadmaps and multi-channel campaign planning already underway.

The group also confirmed its 2027 long-term targets, which include returning to positive organic growth in 2026, maintaining an EBITDA margin before special items of 35-40%, strong cash conversion and net debt to EBITDA below 3x.