Better Collective, a leading digital sports media group, reported a 21% increase in revenue for 2023 compared to the previous year, surpassing its earnings target of €315m-€325m.
Recurring revenue also saw a substantial rise of 47%, reaching €189m.
The company observed a 31% growth in EBITDA before special items, amounting to €111m, aligning with its objective range of €105m-€115m.
The EBITDA margin stood at 34%, consistent with the group’s target range of 30%-40%.
Jesper Søgaard, Founder and CEO of Better Collective, commented, “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 of becoming the leading digital sports media group.”
Better Collective achieved €85m in revenue during Q4, meeting its 2023 revenue target.
Recurring revenue for Q4 increased by 15% to €47m, indicating a focus on higher quality revenue. However, organic revenue growth for Q4 was -7%.
EBITDA before special items for Q4 decreased by 16% compared to 2022, standing at €30m, with an EBITDA margin of 35%.
Better Collective attributed this decline to the ongoing transition to revenue sharing in the US.
January trading saw a 27% decrease in revenue to €27m, which the company attributed to tough comparisons from its successful launch of sports betting in Ohio the previous year.
Nevertheless, Better Collective recorded its strongest-ever month in January 2023.
Better Collective reported a 17% decrease in new depositing customers (NDC) for Q4, citing the high number of NDC during the 2022 Fifa World Cup as the reason for the decline.
The company sent a record 1.9 million NDC during 2023, a 14% increase.
Cash flow from operations before special items increased to €38m in Q4 2023, up from €21m in Q4 2022. By the end of 2023, Better Collective had capital reserves of €122m.
Following the acquisition of Playmaker Capital for €176m, Better Collective revised its 2023-2027 targets, raising its EBITDA margin before special items to a 35%-40% objective.
Revenue compound annual growth rate (CAGR) and net debt to EBITDA targets remained at +20% and below 3x respectively.
Better Collective also welcomed BLS Capital Fondsmæglerselskab A/S as a new major shareholder and is now listed on Nasdaq Stockholm and Nasdaq Copenhagen.
The company raised its 2024 financial targets, aiming for revenue of €390m-€420m and EBITDA of €125m-€135m, while keeping net debt to EBITDA below 3x.
It anticipates a flat revenue and earnings impact from the Playmaker Capital acquisition in 2024, with expectations of growth over time.