Better Collective revenue surges 40% in Q2 2022 as US flourishes
US revenue leaps 90% as Copenhagen-based affiliate reports massive jump in new depositing customers
Better Collective has reported a 40% year-on-year (YoY) increase in its revenue for Q2 2022
The affiliate posted a quarterly revenue of €56m (£47.28m), up from the €40m recorded in Q2 2021.
Breaking down the firm’s revenue by its two divisions, publishing returned €38.1m, representing a 46% YoY increase from €26.1m in Q2 2021.
Paid media represented €17.9m, with a smaller YoY rise of 28% from €14m in Q2 2021.
When looking at the revenue generated per region, the US revenue jumped 90% to €13.2m from €7m in Q2 2021, driven Better Collective’s continued expansion strategy in the market.
Having acquired Action Network and having penned partnerships with the likes of the Philadelphia Inquirer and Chicago Tribune, Better Collective confirmed it expected to deliver US revenue of more than $100m by the end of 2022.
Alongside announcing its quarterly results, Better Collective confirmed it had entered into a commercial partnership with Boston.com to further compound its position in the US.
The deal will see Better Collective provide readers of Boston.com with betting odds and tips for upcoming games and analysis of teams and players, as well as direct links to sports betting platforms for easy placement of wagers.
The Rest of World and Europe segment grew 30% from €33.1m to €42.9m, with growth due to the successful media partnerships and operations in Latam.
In its latest financial period, the affiliate revealed group EBITDA before special items was down 3% to €12.2m from €12.7m, with an EBITDA margin of 22%.
Better Collective also reported a massive surge in new depositing customers for Q2 2022, recording a growth of 93% to 387,000, of which 317,000 were on revenue share.
The Stockholm-listed business noted key achievements for the quarter, including the acquisition of FUTBIN in April for €105m, the second biggest acquisition in the firm’s history.
When incorporating these results into how the firm performed in the first half of 2022, revenue was 57% up YoY, sitting at €123.4m.
Speaking on the results, CEO Jesper Søgaard stated that the rest of 2022 looks bright for Better Collective with a busy schedule ahead for the company.
Søgaard said: “Since founding Better Collective, we have managed to stay largely unaffected by the business cycle and the external environment, a trend I expect to continue.
“I now look forward to an action packed H2 where we expect all-time high activities in Q4 mainly driven by the NFL kick-off and the new FIFA game launch in September, and most major sports leagues being live,” Søgaard added.
Søgaard also noted the firm’s M&A roadmap showed no signs of slowing with a strong target list despite the macroeconomic conditions.
He said: “M&A is part of our DNA and our 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. On the back of this we are working on other financing options should an opportunity arise.”
Better Collective’s shares, at the time of writing, were up 7.48% to SEK152.4 (£12.12).