Affilaite Better Collective has released its financial results for Q4 and the 2023 financial year. For Q4, the company made €85m ($91.9m) (down 7%), with recurring revenue up 15% year-on-year at €47m – 56% of total group revenue. However, EBITDA before special items was down, at €30m for a 16% decrease.
The cause of the decreased EBITDA, according to the company, was the changing market towards revenue share contracts in the US and the tough comparison with Ohio's pre-registration for launch in Q4 2022.
Despite this, cash flow grew significantly, up to €38m from Q4 2022’s €21m.
New depositing customers (NDC) were down 17% for Q4, at just over 483,000. Of these NDCs, 80% were sent via revenue-share contracts, with 300,000 of the total NDCs sent during the World Cup 2022. Furthermore, of the total NDCs 115,000 were sent in the US, with 55% under revenue share contracts. This reflects NDC growth of 66% in North America.
Despite the fluctuation in the company’s various metrics, Better Collective was able to make several notable acquisitions in Q4. In November, the company acquired Playmaker Capital in its second-largest to-do acquisition, costing €176m. Better Collective Co-Founder & CEO Jesper Søgaard described the acquisition as “transformative” and a “milestone in our journey towards becoming a leading digital sports media group."
Overall, annual revenue for Better Collective came to €327m for an increase of 21%. Recurring revenue rose significantly, up 47%, while EBITDA before special items came to €111m, up 31%. Despite the declines this quarter, it seems to have been an overall positive year for Better Collective.
On the results, Søgaard said: “In 2023, a great team effort across the group secured a prosperous year marked by profitable growth, all while continuing our strategic investments to lay the foundation for the future... 2023 stands out as a year where we made significant progress towards our vision.”
