A prominent sports wagering media conglomerate, Better Collective, announced a 7% year-on-year reduction in Q4 2023 earnings, totaling €85 million. Despite this decrease, the firm emphasized a 15% surge in recurring income, representing 56% of the overall figure.
Nevertheless, earnings experienced a decline, with EBITDA dropping 16% to €30 million. This reduction was linked to the strategic transition toward revenue-sharing partnerships in the crucial US market and a challenging comparison against a robust Q4 2022, driven by pre-launch sign-ups in Ohio.
Despite the profit downturn, Better Collective witnessed a substantial rise in cash flow, hitting €38 million compared to €21 million in the corresponding period last year.
First-time depositing clients (NDCs) experienced a minor dip of 17%, reaching slightly over 483,000. Significantly, 80% of these new clients were obtained through revenue-sharing contracts, including a considerable portion acquired during the 2022 FIFA World Cup. The North American market demonstrated potential, with a 66% year-on-year growth in NDCs, 55% of which were secured through revenue-sharing arrangements.
Despite the varied results, Better Collective sustained its strategic growth with the purchase of Playmaker Capital for €176 million in November, representing its second-largest acquisition thus far.
Jesper Søgaard, the Chief Executive Officer and co-founder of Better Collective, described the latest acquisition of Action Network as a “game-changing” event, signifying a “substantial turning point” in the company’s path towards becoming a dominant force in the online sports media landscape.
This strategic purchase, coupled with robust internal expansion, boosted Better Collective’s earnings by 21% over the past year, reaching €327 million. The company experienced particularly remarkable growth in recurring income, which soared by 47%. Their adjusted earnings before interest, taxes, depreciation, and amortization also demonstrated notable progress, rising 31% to €111 million. Although the final quarter did witness a minor decline, 2023 as a whole seems to have been a highly prosperous year for Better Collective.
Søgaard, commenting on these figures, highlighted the “powerful collective endeavor throughout the organization” that fueled their lucrative expansion. He mentioned that Better Collective persisted in making strategic allocations throughout the year, laying the groundwork for sustained achievements in the times ahead. He finished by stating, “2023 was a year where we moved considerably nearer to fulfilling our aspirations.”