Better Collective primed to seal €45m acquisition despite faltering Q2 revenue
Affiliate giant signs letter of intent to acquire unnamed egaming firm as second quarter revenue falls 4%
Better Collective recorded a 4% fall in Q2 2020 revenue as the affiliate firm paid a price for its exposure to sports betting during the coronavirus pandemic. The Danish company recorded €15.3m in Q2 revenue, compared to €15.8m in Q2 2019, with Better Collective citing the sports shutdown from mid-March through to April and May as the key reason for the depreciation. However, positive revenue growth was recorded in June, rising 20%, and post-Q2 in July with revenue rising 16% to €6.1m. Q2 EBITA was down 7% to €6.3m (€6.8m) while post-tax profit increased slightly year-on-year to €3.9m (€3.7m). New depositing customers (NDCs) plummeted by 36% to just 71,000 for Q2 as the cancellation of sporting events reduced interest in sports betting.
Despite the financial implications of the pandemic, Better Collective noted a H1 2020 revenue rise of 18% year-on-year to €36.2m (€30.7m) and an EBITA increase of 12% to €19.8m (€13.3m). Better Collective has also signed a letter of intent to acquire an undisclosed egaming company for up to €45m. The company in question recorded H1 2020 revenue of more than €40m and more than €8m in EBITDA. The company noted that it expects to complete “one or more acquisitions before year end”, which will in turn result in a revenue increase. The affiliate also revealed it is rebuilding its US-facing site vegasinsider.com, which it expects to launch ahead of the start of the NFL season in September, as well as ramping up efforts to attain licences across the States.