Better Collective Q4 2024 results are in, showing strong revenue growth and a boost in recurring income. The company outperformed expectations, with EBITDA exceeding revised targets. Despite market challenges, Better Collective maintains confidence in its long-term growth strategy.
Revenue reached 96 mEUR, up 13%, though organic growth declined by 2%. The US and Brazil performed as forecasted, while Europe, Canada, and esports met expectations.
Recurring revenue rose 28% to 63 mEUR, now 65% of total revenue. Growth was driven by organic revenue share increases and acquisitions of Playmaker Capital and AceOdds.
EBITDA before special items climbed 14% to 34 mEUR, with a 35% margin. The efficiency program contributed to this, delivering cost savings faster than planned.
Cash flow from operations before special items was 20 mEUR, with 60% cash conversion. Trade receivables increased, but payments are expected in Q1 2025.
Brazilian market impact: Revenue from Brazil was 70 mEUR in 2024, 19% of total revenue. New gambling regulations, including 26% tax, could reduce revenue by 15-20 mEUR in 2025.
New Depositing Customers (NDCs): The company delivered 407,000 NDCs, 82% on revenue-share contracts. The Brazilian slowdown caused a 15% drop in NDCs.
Efficiency program: The 50 mEUR efficiency plan was fully implemented, saving 10 mEUR in Q4 and 15 mEUR in total for the quarter. Salaries accounted for 65% of savings.
2025 guidance: Revenue expected at 320-350 mEUR, EBITDA before special items at 100-120 mEUR, and free cash flow at 55-75 mEUR. Net debt to EBITDA is projected below 3x.
Share buyback program: A 10 mEUR share buyback was announced, with a proposal to cancel 1.8% of shares at the upcoming AGM.
CEO Jesper Søgaard about the Better Collective Q4 2024 results “Brazil and the US now represent over half of our 2024 revenues. We remain confident in their long-term potential despite challenges.”
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