Better Collective has recently unveiled its financial results for the fourth quarter of 2023 and the overall fiscal year. This comprehensive analysis delves into the intricacies of their financial performance, shedding light on key metrics, challenges, and noteworthy achievements.
In Q4 2023, Better Collective reported a total revenue of €85 million ($91.9 million), marking a slight decrease of 7% compared to the previous quarter. Despite this dip in overall revenue, the company witnessed a commendable 15% year-on-year increase in recurring revenue, amounting to €47 million, which constituted 56% of the total group revenue. However, EBITDA before special items experienced a downturn, declining by 16% to €30 million.
The primary contributing factor to the diminished EBITDA was attributed to the evolving market landscape, particularly the transition towards revenue share contracts in the United States. Additionally, the comparison with the pre-registration phase for the launch in Ohio during Q4 2022 posed a challenging benchmark.
Nevertheless, amidst these fluctuations, Better Collective demonstrated substantial growth in cash flow, surging to €38 million from the €21 million recorded in Q4 2022.
New depositing customers (NDC) saw a decline of 17% in Q4, totaling slightly over 483,000. Notably, 80% of these NDCs were acquired through revenue-share contracts, with a significant portion originating from the World Cup 2022, amounting to 300,000 NDCs. Moreover, within the US market, 115,000 NDCs were acquired, with 55% under revenue share contracts, showcasing a remarkable 66% growth in North America.
Despite the challenges faced during Q4, Better Collective executed several strategic acquisitions, notably acquiring Playmaker Capital in November. This acquisition, amounting to €176 million, marked a pivotal moment for the company, as described by Better Collective Co-Founder & CEO Jesper Søgaard, who hailed it as “transformative” and a “milestone” towards the company’s vision of becoming a leading digital sports media group.
For the entire fiscal year of 2023, Better Collective reported a robust annual revenue of €327 million, reflecting an impressive 21% increase. Recurring revenue witnessed a substantial surge, rising by 47%, while EBITDA before special items reached €111 million, up by 31% from the previous year. Despite the setbacks experienced in Q4, the overall performance for the year indicates a positive trajectory for Better Collective.
Jesper Søgaard expressed satisfaction with the company’s performance, emphasizing the collaborative efforts that led to a prosperous year marked by profitable growth. He underscored the significance of strategic investments in laying the foundation for future success, highlighting 2023 as a year of significant progress towards their overarching vision.
Better Collective’s financial results for Q4 2023 and the full fiscal year underscore a resilient performance amidst evolving market dynamics and challenges. Despite the fluctuations in certain metrics, the company’s strategic acquisitions, revenue growth, and CEO’s optimistic outlook position Better Collective for continued success in the competitive landscape of the iGaming affiliate industry.
