Sports betting media group Better Collective shared Monday its financial results for the second quarter of the year. For the period ended June 30, the company reported revenue of €56 million ($55.8 million), a 40% increase from the prior-year period. As for the first six months of 2022, revenue grew by 57% to €123.4 million ($123.1 million).

The business also reported that quarterly EBITDA was down 3% year-on-year to €12.2 million ($12.1 million), with an EBITDA margin of 22%. Meanwhile, cash flow from operations more than doubled year-on-year to €22.5 million ($22.4 million), while new depositing customers grew 93% year-on-year to 387,000.

Breaking figures down, publishing revenue, which includes revenue from proprietary online platforms and media partnerships where the online traffic comes directly or through organic search results, was 46% higher at €38.1 million ($37.9 million). Paid media revenue also increased by 27.9% year-over-year to €17.9 million ($17.8 million).

In terms of geographical performance, revenue from Europe and the Rest of the World segment jumped 29.6% to €42.9 million ($42.7 million), while US revenue rocketed 88.9% to €13.2 million ($13.1 million), which according to the company’s CEO makes the country the largest single market for the group.

Expenses were higher across all core areas, with revenue costs up 45.8% to €20.7 million ($20.6 million).

Jesper Søgaard, Co-founder & CEO of Better Collective, commented: “Q2 was a productive quarter. Revenues from revenue share contracts as well as NDCs were at an all-time high of €22 million and >387.000, respectively. Our geographical diversification really proved its worth as the Europe & RoW Publishing business continued its strong momentum for both revenue and earnings.”

“Our US business showed 90% topline growth and a negative EBITDA, which runs in line with our strategy to continue large-scale investments in what rapidly has become our largest single market,” further commented Søgaard.

Among highlights for the period, the group made its second-largest acquisition ever in the period buying esports brand Futbin and its related domains for €105 million. 

Additionally, the company entered into a commercial partnership with the New York Post to deliver technology and commercial content for online sports wagering through its proprietary sports betting platform Action Network. 

In the second quarter, the company also acquired the assets of the Canada Sports Betting platform for a purchase price of €21.4 million ($23.5 million), and updated its financial targets for the year.

Also taking place in the quarter was the appointment of Mikkel Munch-Jacobsgaard as Director of Investor Relations, with the executive bringing “insight and network in the international capital markets through long experience from a role as Institutional Equity Sales at both Danske Bank and SEB.” Lastly, the company also took first place in the EGR Power Affiliate 2022 ranking for the fifth consecutive year.

Better Collective said it will continue to pursue expansion for its North American business. Growth in the US during the quarter is partly credited with having helped drive the 40% increase in revenue in what is traditionally a seasonally low period for the affiliate giant.

Additionally, Søgaard said the group is open to exploring new acquisition opportunities, stating “M&A is part of our DNA” and that the company’s target list “remains strong.”

“We expect to remain active, but we also have a clear focus on our capital allocation and are aware of the current market turmoil that makes capital raises less relevant and sometimes share buybacks more relevant,” he noted.

See Better Collective’s full Q2 results here.

Original article: https://www.yogonet.com/international/news/2022/08/23/63951-better-collective-sees-revenue-up-40–in-q2-with-us-as-the-largest-market-company-keen-on-north-american-expansion

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