Better Collective Q1 revenue down 13% to €83m as Brazil regulation impacts performance
Affiliate group maintains full-year guidance despite weaker US and Brazil results.
Key points:
– Q1 2025 revenue fell 13% year-on-year to €83m, with EBITDA down 24% to €22m
– Brazilian regulatory impact amounted to a €7m revenue and EBITDA headwind
– Group reorganisation introduces Co-CEO model and standalone esports unit
Better Collective has posted first-quarter 2025 revenue of €83m ($93m), a 13% decline compared to the same period last year.
Organic growth dropped by 18%, reflecting headwinds in the US and Brazil. Despite the decline, the group reported EBITDA before special items of €22m, equating to a 27% margin and reiterated its full-year guidance of €320–€350m in revenue and €100–€120m in EBITDA.
The performance was shaped by several factors, including a €7m negative impact from Brazil’s shift to a regulated market, a €5m revenue comparison effect from last year’s North Carolina launch and decreased marketing activity from US partners contributing a further €5m shortfall.
These were partly offset by growth in other markets and the inclusion of Playmaker Capital from February, which added €7m in positive revenue effect.
Recurring revenue declined by 8%, primarily due to a 13% drop in revenue share. However, CPM-based revenue rose 13%, aided by Playmaker Capital and early strength in Brazil’s advertising market.
The group’s cost efficiency programme, initiated in October 2024, remains on track to deliver €50m in annual savings. Group costs fell by €5m, or 8%, in Q1, with over €5m of this attributed to reductions in staff and operational spending.
Good to know: Brazilian operations generated €10m in Q1 revenue, but delayed payments from clients under the new regulatory framework negatively impacted cash flow by €9m
New depositing customers (NDCs) totalled 316,000 for the quarter, down 30% year-on-year, largely due to Brazil’s bonus restrictions and slower acquisition.
Operational restructuring saw the appointment of Christian Kirk Rasmussen as Co-CEO alongside Jesper Søgaard and the creation of three global business units: Publishing, Paid Media and Esports, with the latter to be reported as a standalone segment from Q2.
These latest results follow Better Collective’s strong FY 2024 performance, in which revenue rose 14% to €371m and EBITDA reached €113m. The group also confirmed a €10m share buyback in April and increased its digital audience to 450 million monthly visits globally.
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