Better Collective posts revenue up 32% in Q3 amid US shift to revenue share

Digital sports media group Better Collective has shared its third-quarter report. For the period ended September 30, the business delivered year-over-year revenue growth of 32%, amounting to €60 million ($62 million), with organic revenue growth of 23%. Out of the total revenue, about 45% came in during a busy September, reflecting the impact of seasonality in Q3.

EBITDA before special items was at €15 million ($15.5 million), growing by 7% YOY, and with a margin of 24%. The company also had new depositing customers reach about 354,000, implying growth of 73% YOY.

Financial targets are maintained despite “a larger estimated impact” from the ongoing move from CPA to revenue share in the US. As for post-quarter results, October started Q4 with revenue of €26 million ($26.9 million), which implies 50% YOY growth.

“Q3 delivered strong growth for the group, where we continued our good developments despite the turbulent macroeconomic environment,” said Co-founder & CEO Jesper Søgaard. “The most exciting trends for the quarter were the move to revenue share in the US, which has been fast-forwarded, and the group revenue share income continuing to break all-time highs.” 

“We continue our efforts in building strong sports media brands and communities with reliable and cutting-edge content. Monthly, our sports media and communities are visited by 130 million users, and when including our media partnerships, we monthly reach 260 million sports fans,” he added. “As such we funnel an extensive number of returning sport fans who rely on our news, content, data insights, betting tips and educational tools to place more enlightened bets.”

Europe & Rest of World grew “very strong” during Q3, at 38%, despite the low season, driven by LatAm and Media Partnerships. US grew 17%, which Better Collective says signals the seasonally low quarter, and the decreasing ad spend from the sportsbooks. Excluding the move to revenue share, US growth would have been around 30%, said the company.

Revenue share income was at an all-time high in Q3, at €25 million ($25.8 million), which shows 73% YOY growth. The sports win margin increased from Q2 and is now above the same quarter last year, Better Collective further announced. Sports win margin impact was positive by €1.3 million ($1.34 million).

During the quarter, new media partnerships were signed with the Chicago Tribune, and SPORT1 to bring sports betting content to the publications. Additionally, a share buyback program for up to €5 million was initiated. “The purpose of the buyback program is to cover future payments relating to completed acquisitions and LTI programs,” noted the firm.

“We look forward to an action-packed Q4 with an extremely condensed soccer calendar heading into the upcoming FIFA World Cup. Additionally, other major sports are also in peak season,” commented CFO Flemming Pedersen. “We are further satisfied with the development of our esports community FUTBIN, which is heavily skewed towards Q4 as the new FIFA-game launched in September.”

See the full Q3 2022 report here.