Better Collective lays out long-term targets following strong 2022
Stockholm-listed affiliate anticipating continued M&A drive and revenue CAGR of 20% through to 2027
Better Collective has laid out ambitious growth targets through to 2027 as the affiliate giant looks to capitalise on a positive 2022.
As part of the firm’s Capital Markets Day, Better Collective said growth in the US and Latam, as well as the development of the company’s proprietary ads display platform, would be the key drivers for future growth.
The Stockholm-listed operator posted a 52% year-on-year (YoY) rise in full-year 2022 revenue to €269.3m while EBITDA jumped 53% to €85.1m.
Looking ahead to 2023, Better Collective has set financial targets including revenue landing between €290m and €300m for the year.
The board is also anticipating EBITDA of between €90m and €100m.
Better Collective also said these targets did not include the impact of M&A activity, hinting the firm could make more moves this year.
Touching on the 2023 expectations and the rationale behind the targets, Better Collective said: “Better Collective invests in growing organically and will incur additional 2023 cost to investment in establishing a stronger presence in Latam and other emerging markets where regulation is or is expected to facilitate operations.
“An investment in the build-up of a proprietary technology platform for display advertising, the Adtech Platform, will be made. The initiatives imply an estimated €10m in added costs in 2023, in addition to the existing cost base. The group will continue to push for revenue share in the US, and notes that the 2023 calendar is not as condensed as 2022’s with state launches and a men’s soccer World Cup.”
Better Collective also detailed its long-term expectations between 2023 and 2027, with these targets including M&A activity.
The group is expecting a compound annual growth rate (CAGR) of 20+% for revenue and an EBITDA margin (before special items) of between 30% and 40%.
In a joint statement, Better Collective CEO Jesper Søgaard and chair Jens Bager said: “We believe we are in an attractive spot in the digital sports media market. We are experts in maximising the value of large readerships by utilising our unique skills and diversified business models.
“This skill will prove beneficial as we continue our organic and acquisitive growth strategy within the digital sports media landscape.
“In connection with our new vision, we have set out new long-term financial targets. These targets showcase how we expect this new vision to be a continued high growth journey for Better Collective and its shareholders,” the pair added.