Better Collective Navigates Revenue Dip Amidst Strategic Growth in Q4 2023

The sports wagering media conglomerate, Better Collective, experienced a 7% revenue reduction in the final quarter of 2023, reaching €85 million (roughly $91.9 million USD). This decline occurred despite a 15% rise in recurring income compared to the previous year, constituting 56% of the company’s overall revenue for the quarter.

The firm ascribes the revenue drop to two main elements: the US market’s transition towards a profit-sharing structure and a challenging comparison to the preceding year, which witnessed a surge in Ohio registrations before the commencement of sports wagering in the state. Nevertheless, Better Collective announced substantial growth in cash flow, which more than doubled to €38 million relative to the corresponding period last year.

New depositing clients (NDCs) decreased by 17% year-on-year, with slightly over 483,000 in Q4. The company emphasized the expanding influence of the US market, with 11,500 new depositing clients originating from North America, a 66% year-on-year increase.

Despite some uneven outcomes, Better Collective sustained its strategic growth with the purchase of Playmaker Capital for €176 million in November. This signified the company’s second-largest acquisition thus far.

Jesper Søgaard, Better Collective’s CEO and co-founder, was visibly enthusiastic, labeling their latest acquisition as “groundbreaking” and “a substantial stride towards becoming the dominant force in digital sports media.” His excitement is understandable. Better Collective has been on a roll throughout 2023, achieving remarkable year-over-year revenue expansion of 21%, reaching an impressive €327 million. The real attention-grabber is their recurring revenue, which surged by a staggering 47%. Furthermore, their EBITDA, excluding certain one-off items, experienced a robust increase of 31%, hitting €111 million. Despite a few minor setbacks this quarter, it’s evident that 2023 has been a year of triumphs for Better Collective.

Søgaard encapsulated the company’s achievements, remarking, “Throughout 2023, our global team united to deliver a year of lucrative expansion, all while maintaining strategic investments to shape our future… 2023 signifies a year where we made considerable progress towards realizing our aspirations.”