Better Collective A/S Earnings Call Highlights Growth and Challenges

Better Collective A/S ((SE:BETCO)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Better Collective A/S painted a picture of mixed sentiments, with notable achievements tempered by external challenges. The company reported strong growth in North American revenue share and successful cost efficiency measures, alongside the launch of an innovative product, Playbook. However, these positives were offset by a revenue decline due to factors such as a low sports win margin and regulatory hurdles in Brazil.

North American Revenue Share Growth

The earnings call highlighted a significant achievement in North America, where the revenue share more than doubled compared to the previous year. This growth has substantially strengthened the base of recurring revenue in the region, showcasing Better Collective’s successful market penetration and strategic focus.

Launch of Playbook

A major highlight of the call was the introduction of Playbook, an AI-powered betting solution. This launch marks a significant milestone for Better Collective, with millions of bets placed shortly after its debut. The product is expected to enhance user engagement and drive further growth in the company’s offerings.

Cost Efficiency Achievements

Better Collective has made notable strides in cost management, with group costs trending downward. The company reported an 18% reduction in costs since mid-2024, reflecting the successful execution of its cost efficiency programs. This achievement underscores the company’s commitment to maintaining financial discipline while pursuing growth.

Financial Flexibility Enhanced

To support its strategic priorities, Better Collective entered into a new 3-year committed bank facility worth EUR 319 million. This move enhances the company’s financial flexibility, providing a solid foundation for future investments and growth initiatives.

Revenue Decline

Despite the positive developments, the company faced a 4% decline in group revenue, amounting to EUR 78 million. This decline was attributed to a record low sports win margin and ongoing regulatory transitions in Brazil, which posed significant challenges to the company’s financial performance.

Sports Win Margin Impact

The earnings call revealed that a record low sports win margin negatively impacted revenue by EUR 10 million. This factor affected both the revenue and EBITDA, highlighting the volatility and risk associated with the sports betting industry.

Brazil Regulatory Challenges

Ongoing regulatory challenges in Brazil continued to impact Better Collective’s performance, contributing a EUR 4 million negative impact. The company is navigating these transitions, which remain a critical area of focus for future stability and growth.

Forward-Looking Guidance

Looking ahead, Better Collective maintained its financial guidance for the year, anticipating a strong performance in Q4, traditionally the largest quarter due to the busy sports season. Despite facing significant revenue impacts from external factors, the company achieved a group revenue of EUR 78 million and an EBITDA of EUR 21 million. The North American market remains a key growth driver, with the value of deposits rising to EUR 726 million, up 2% year-over-year. The company continues to focus on cost efficiency and product innovation, as evidenced by the successful launch of Playbook.

In conclusion, Better Collective’s earnings call reflected a balanced narrative of growth and challenges. While the company achieved significant milestones in North America and product innovation, external factors such as sports win margins and regulatory issues in Brazil posed hurdles. Nevertheless, the company remains optimistic about its future prospects, supported by strong financial guidance and strategic initiatives.