“Q1 showed very strong organic growth and a record quarterly revenue of €67m which was driven by a record intake of new depositing customers and an all-time high gross gaming on revenue share accounts.”
Revenue generated in US markets during the quarter skyrocketed compared to the prior-year period, up to €31.0m from just €5.8m in Q1 2021.
The Rest of World segment brought in the remaining €36.4m, or 54% of total group revenue.
US markets proved to be more profitable for Better Collective, however, with EBITDA from the region reaching €13.0m, compared to just €2.3m in Q1 2021.
This represented 56% of the group’s total EBITDA, as the Rest of World segment generated the remaining €10.1m, or 44% of the total. This represented a decline of 7.3% year-on-year in Rest of World EBITDA, as the EBITDA margin in those regions fell from 33% in Q1 2021 to 28%.
Margins were squeezed during the quarter as a result of low sports win margins following a combination of customer-favourable results, regulatory changes and the introduction of new offers from operators aiming to retain customers and win market share.
Astronomic growth in US markets has been bolstered by Better Collective’s acquired US-facing assets, including Action Network, VegasInsider and Scores&Odds, which has helped the firm establish a leading position within US sports betting media.
Events including the launch of New York’s online sports betting market, March Madness basketball and the Super Bowl all contributed to Better Collective’s US performance in Q1.As Better Collective turns its eye to the future, Ontario’s legalised iGaming and online sports betting market is expected to generate a significant contribution for the business, aided by the firm’s recent €21.4m acquisition of Canada Sports Betting.
Better Collective said it expects Canadian activities to generate in excess of €5m in revenue during the full-year 2022.
Following the end of the quarter, the affiliate made its second largest acquisition to date with the purchase of esports media business Futbin, which focuses on the FIFA franchise, and its related domains.
Taking into account the acquisitions carried out this year, Better Collective has updated its earnings guidance for full-year 2022, which it now expects to be in the region of €85m. It had previously guided to revenue of around €75m.
“We expect to see significant positive synergistic effects with Better Collective’s business going forward.”
The firm’s net profit after tax for the quarter totalled €13.7m, an increase of some 65% over Q1 2021’s €8.3m.
Following the end of the quarter, Better Collective said April revenue was in line with expectations, reaching €19m, some 45% ahead of the prior comparative period.