Better Collective reports all-time-high revenue of €40m in Q2
US segment performs stronger than expected with Action Network still to be consolidated as CEO Jesper Søgaard hails media partnership strategy
Better Collective has reported a 162% year-on-year rise in revenue to a record-high €40m (£34.2m) for Q2 2021 driven by the strong performance of its US market assets.
Group EBITDA before special items jumped 90% to €12.7m on an EBITDA margin of 32%, albeit achieved during a weak comparison period due to the lack of sports in Q2 2020 amid Covid-19.
New depositing customers (NDCs) also reached a new quarterly record of 197,000 following implied annual growth of 179%.
One of those special items was the $240m acquisition of US sports betting media brand Action Network in May 2021.
That purchase has not yet been consolidated, but the US was still one of the affiliate’s main revenue drivers in Q2, with performance stronger than expected despite it being low season for sports.
US NDCs matched a very strong Q1 in Q2, with the majority of growth driven by Better Collective’s VegasInsider and RotoGrinders assets.
Revenue from the US segment was €7m in Q2, more than five times the amount generated in the prior corresponding period of 2020.
Breaking down overall group revenue by segment, Better Collective’s publishing division provided 65% at €26.1m, mainly thanks to Euro 2020 and its portfolio of media partnerships.
In 2019, Better Collective signed two media partnerships with The Telegraph in the UK and with nj.com in New Jersey.
The vision of the partnerships was to combine traditional media traffic with Better Collective’s sports betting affiliate competences while using different online channels to direct customers to operators.
“Late last year, we reached proof-of-concept and since then, we have entered three new media partnerships,” said Better Collective CEO Jesper Søgaard.
Better Collective CEO Jesper Søgaard
“In Q2 we saw a real breakthrough and I am very pleased to see that our strategy and efforts have paid off, and I truly believe that Better Collective has a unique set of competences in this area.
“We can provide relevant content under an external media’s strict editorial guidelines, and at the same time provide betting information that support the sign-up process with online sportsbooks.
“On this basis, we have decided to seek more partnerships with big online media around the world,” he added.
The firm’s paid media segment, which includes lead generation through PPC and social media advertising, accounted for the remaining 35% at €14m.
The affiliate’s full-year financial targets remain unchanged with Better Collective seeking to generate revenue in excess of €180m for 2021.