Better Collective reports 7% Q3 revenue rise as sports betting margin bites
Danish affiliate giant suggests low sports margin reduced third-quarter revenue by as much as €2m
Better Collective has reported a Q3 2020 revenue rise of 7% to €18.3m (£16.3m) despite a 3% dip in organic growth for the period.
The Copenhagen-based affiliate firm said Q3 saw record high sports wagering in rev-share accounts, although this was impacted by a low sports betting margin that reduced revenue by around €2m.
Third quarter EBITA before special items increased by 18% to €8m, up from €6.8m in the same period in 2019. The EBITA margin before special items increased to 44% as costs were kept low.
New Depositing Customers (NDCs) reached 97,000 in the quarter amid a 13% rise as sports leagues returned to normal from mid-September after Covid-19 disruption.
In March 2020, Better Collective issued a trading update as the coronavirus pandemic interrupted business, warning full-year revenue could be reduced by as much as €10m.
Cost-saving measures introduced from 1 April and the return have sports have combined to return Q3 performance much closer to pre-Covid levels.
Better Collective CEO Jesper Søgaard said: “In general, the market development has so far been in line with the assumptions we made mid-March when we decided to provide an extraordinary business update based on this unprecedented situation.
“I am very proud of the way we are steering the business during these difficult times, and that we can maintain our full-year financial guidance considering these unusual circumstances.
“Cautiously expecting that the remainder of 2020 and 2021 will be filled with sports activities and high levels of betting activity, we believe that we are well positioned to take our part of a global market that is getting back on the growth track.
“While some of the cost reductions were temporary measures isolated to Q2, we have also managed to implement cost savings on a more consistent basis. In the coming quarters we expect to cautiously increase the cost base again to ensure that we support our long-term strategy,” he added.
Shortly after the reporting period, Better Collective acquired UK-centric PPC casino affiliate Atemi Group for €44m.