Better Collective celebrated its best ever Q2 in 2023, as revenue rose 39% to €78.1m.

Earnings breakdown

The business pointed out that the revenue increase gave it an organic year-on-year growth rate (excluding businesses acquired after Q2 2022) of 29%.

Of the total, €46m was recurring revenue, an increase of 67% year-on-year.

Breaking down the figures by region, €55.2m or 70.6% of the total came from the Europe and Rest of World segment, up 32.3% year-on-year.

The remaining €22.9m came from North America, as the region showed a year-on-year growth rate of 59.9%.

Better Collective generated EBITDA before special items of €29m, up 135% year-on-year, at an EBITDA margin of 37%.

Cash flow from operations before special items during the quarter came to €34m, up some 55%, while the business held capital reserves of €78m including €65m of cash as of the end of the quarter.

New depositing customers (NDCs) totalled more than 500,000 in Q2, implying a year-on-year growth rate of 32%.

Better Collective added that 87% of those NDCs had been sent to operators on revenue share contracts.

The busines added that Skycon, the digital display advertising company it acquired in April 2023, had “already delivered strong performance after swift onboarding.”

Management commentary

“Q2 turned out to be an exceptional quarter with strong growth building on the momentum generated in previous quarters,” said Better Collective co-founder & CEO, Jesper Søgaard.

“This was driven by a great performance across the group, highlighting the Americas and our media partnerships as key factors.

“Driven by successful acquisitions and a strong team to execute on our strategy, I am pleased with the progress we are making towards our vision to become the leading digital sports media group.

“In North America we have continued our investments despite tougher market conditions and I am proud to see that we are now reaping the benefits as operational earnings have moved from negative last year to a 33% margin during this low season quarter,” Søgaard concluded.

Financial targets upgrade

Previously in June, Better Collective had upgraded its financial targets for the full-year 2023.

Revenue is expected to fall between €315m and €325m for the year, up from a previously issued guidance range between €305m and €315m.

EBITDA before special items for the full year is expected to total between €105m and €115m, up from previous guidance of €95m to €105m.

Following the end of the reporting period, Better Collective said July trading showed revenue of €23m, implying a year-on-year growth rate of 39% for the month.

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