Better Collective Q4 2023 – a year of growth and transformation

News Team 1 month ago
Better Collective Q4 2023 – a year of growth and transformation

Better Collective, a leading digital sports media group, has reported strong performance for Q4 2023, with revenue of EUR 85 million, exceeding the 2023 revenue target.

The company’s recurring revenue was EUR 47 million, marking a growth of 15 percent. Despite a decrease of 16 percent in EBITDA before special items, which was EUR 30 million, the EBITDA margin remained at 35 percent.

This performance allowed EBITDA to end in the high end of the range for the year. The company’s January trading saw a revenue of EUR 27 million, down 27 percent, following tough comparisons from the strong launch of sports betting in Ohio the previous year.

Despite this, the company’s full-year performance for 2023 was robust, with a revenue of EUR 327 million, up 21 percent on top of the 52 percent growth the previous year. The recurring revenue for the year was EUR 189 million, showing a growth of 47 percent.

Better Collective’s EBITDA before special items for the year was EUR 111 million, up 31 percent, with an EBITDA margin of 34 percent.

The company exceeded its 2023 financial targets, with revenue surpassing the target of EUR 315-325 million, EBITDA in the high end of the target range of EUR 105-115 million, and the debt target met at less than 2:1 ratio, demonstrating strong financial management.

Detailed look at Better Collective’s performance

Looking ahead to 2024, Better Collective has set ambitious financial targets. The company aims for a revenue of EUR 390-420 million, which would represent a growth of 19-29 percent, and an EBITDA before special items of EUR 125-135 million, a growth of 13-22 percent.

Better Collective has successfully achieved its target range of EUR 105-115 million. Furthermore, the company has managed to maintain its debt at a level that is less than triple its earnings, demonstrating strong financial management.

This provides a detailed look at Better Collective’s performance. The company not only reached its financial target but also kept its debt significantly lower than its earnings, reflecting its robust financial strategy.

In Q4 2023, Better Collective’s group revenue was flat at EUR 85 million, with organic revenue growth of -7 percent.

Despite this, the strong performance made it possible to exceed the full year guidance on revenue.

The company’s recurring revenue was EUR 47 million, posting a 15 percent growth, implying higher quality revenue. Recurring revenue makes up 56 percent of the total group revenue. The group’s EBITDA before special items was EUR 30 million, down 16 percent year-on-year.. The group’s EBITDA margin before special items was 35 percent.

EBITDA was mainly impacted by the ongoing transition to revenue share in the US and the tough comparison from the Ohio state launch pre-registration. Cash flow from operations before special items was EUR 38 million. The cash conversion was 124 percent. By the end of 2023, capital reserves stood at EUR 122 million of which cash of EUR 43 million, and other current financial assets of EUR 7 million and unused credit facilities of EUR 72 million.

In conclusion, Better Collective’s performance in Q4 2023 demonstrates the company’s resilience and adaptability in a rapidly evolving market. The company’s strong performance, particularly in recurring revenue, indicates a focus on sustainable growth. The company’s ambitious targets for 2024 reflect its confidence in its strategic direction and its ability to navigate the challenges of the market. As Better Collective continues to innovate and expand, it is poised to remain a leader in the digital sports media group sector.

————-Stop Press: the next SiGMA Eurasia Summit takes place in Dubai between 25 – 27 FebruaryThe next SiGMA Africa Summit takes place in Cape Town between 11-13 March The fourth edition of SiGMA Eurasia will once again be held at the InterContinental Dubai Festival City. Held between the 25 and 27 February 2024, the summit provides invaluable networking opportunities for industry professionals, gain exposure to the latest tech and innovations in the sector, meet key decision makers, and gain insight into new marketsSiGMA Africa event kicks off in Cape Town, South Africa on the 11 March. Building on the success of its inaugural edition in Nairobi, Kenya, in January 2023, SiGMA Group recognizes the need to foster collaboration and innovation within the industry.

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