Better Collective’s 2023 revenue was up 21% year-on-year, on top of the 52% growth recorded the previous year. This exceeded its target of €315m-€325m that it revealed in its 2022 earnings. Recurring revenue stood at €189m, again up 47%.
Better Collective also saw a rise in EBITDA before special items, up 31% to €111m, again in the high end of its €105m-€115m objective. EBITDA margin was 34%, fitting with the group’s target of 30%-40% it set out in its 2022 report.
Jesper Søgaard, Better Collective founder and chief executive, said: “In 2023, a great team effort across the group secured a prosperous year marked by profitable growth, all while continuing our strategic investments to lay the foundation for the future.
“2023 stands out as a year where we made significant progress towards our vision of becoming the leading digital sports media group.”
Q4 2023 for Better Collective
Better Collective accumulated €85m in revenue during Q4, allowing the group to meet its 2023 revenue target. The group’s recurring revenue in Q4 was 15% up at €47m, with the company saying this implied “higher quality revenue”.
Group revenue for Q4 was €1m less than it generated in Q4 2022, with organic revenue growth of -7%.
EBITDA before special items stood at €30m for Q4, down 16% on 2022, though EBITDA margin was at 35%, finishing in the high end of the 2023 range. Better Collective pointed to the ongoing transition to revenue share in the US for its dip in EBITDA before special items.
The group’s January trading saw revenue dip 27% to €27m. Better Collective put this down to tough comparisons from its successful launch of sports betting in Ohio last year, with January 2023 Better Collective’s strongest ever month.
As a result of sizeable fluctuations seen within quarters such as Q4 2023, Better Collective says it will no longer report on trading for the first month of the following quarter.
Better Collective’s new depositing customers (NDC) for Q4 were 17% down at 483,000, though the group cited the 300,000 NDC during the 2022 World Cup as the reason for the drop. Of the 483,000, 115,000 were sent in the US. In total, Better Collective sent a record 1.9 million NDC during 2023, up 14%.
Cash flow from operations before special items was €38m, up €17m from Q4 2022’s figure of €21m. By the end of 2023, Better Collective’s capital reserves were €122m, made up with €43m in cash, other current financial assets of €7m and unused credit facilities of €72m.
Better Collective’s acquisitions in FY2023
Following the close of Q4, Better Collective acquired Playmaker Capital for €176m in the group’s second largest deal ever. The company believes this will strengthen its North American position as well as give it “market leadership” in South America.
Following the close of the Playmaker Capital deal, Better Collective revised its 2023-2027 targets, raising its EBITDA margin before special items to a 35%-40% objective from 30%-40% previously.
Revenue compound annual growth rate (CAGR) and net debt to EBITDA targets remained at +20% and below 3x respectively.
Also following the close of Q4, Better Collective announced BLS Capital Fondsmæglerselskab A/S as a new major shareholder with 6.7% of the voting rights. The group is also now included on Nasdaq Stockholm and Nasdaq Copenhagen.
2024 targets
Better Collective’s strong 2023 has meant it has raised its 2024 financial targets, with an objective to reach €390m-€420m, implying growth of 19%-29%.
It’s also eyeing growth of 13%-22% in its EBITDA, looking to generate €125m-€135m, while Better Collective is also hoping to keep net debt to EBITDA below 3x.
Better Collective has factored in an 11-month impact from its Playmaker Capital acquisition, though it said it expected that deal to produce flat revenue and earnings for 2024. However, it believes the acquisition will “ramp up over time”.
Original article: https://igamingbusiness.com/finance/better-collective-exceeds-2023-revenue-targets-eyes-double-digit-growth/
