Revenue and Profitability Dip in Challenging Quarter
Better Collective, a global leader in digital sports media and betting affiliation, has reported a 13% year-on-year decline in Q1 2025 revenue, falling to €83 million, compared to €95.4 million in the same quarter last year. The downturn also affected profitability, with EBITDA before special items down 24% to €22 million, yielding a 27% margin.
The revenue drop was driven by a mix of external and internal challenges, most notably regulatory changes in Brazil, which caused a €7 million headwind to both revenue and EBITDA. Compounding this was the absence of a major US market launch like North Carolina in Q1 2024 and lower marketing spending from American partners, both contributing approximately €5 million each to the overall shortfall.
Brazil and the US Weigh Heavily on Organic Growth
Organic growth fell 18% year-on-year, reflecting sluggish new user acquisition. The number of new depositing customers (NDCs) dropped 30% to 316,000 — attributed to Brazil’s restrictions on promotional bonuses and slower user onboarding due to regulatory uncertainty.
Despite these challenges, Better Collective reaffirmed its full-year guidance of €320–€350 million in revenue and €100–€120 million in EBITDA, suggesting confidence in recovery through the remainder of 2025.
The company also acknowledged that while Brazilian operations generated €10 million in revenue during Q1, delayed client payments under the new regulatory framework strained cash flow by nearly €9 million.
Playmaker Capital Integration Softens the Blow
The inclusion of Playmaker Capital, acquired in early February, added a €7 million boost in revenue, particularly in CPM-based advertising, which grew by 13%. This partly offset the 13% drop in revenue share and 8% decline in recurring revenue.
Better Collective’s ongoing cost efficiency programme, launched in late 2024, is delivering early results. Operating costs dropped by €5 million, or 8%, largely from reductions in staff and overhead.
Leadership Shake-up and Strategic Realignment
In a significant operational overhaul, Christian Kirk Rasmussen was appointed Co-CEO alongside Jesper Søgaard, marking a move toward a dual leadership structure. Simultaneously, the company reorganized into three global business units: Publishing, Paid Media, and Esports — the latter of which will be reported as a standalone segment starting Q2.
This restructuring aims to streamline decision-making and enhance focus in specialized growth areas. It also positions the group to adapt faster to regulatory shifts and market volatility.
Looking Ahead
Despite a rocky start to 2025, Better Collective enters the rest of the year with a clear roadmap, backed by structural changes, digital audience growth — now reaching 450 million monthly visits — and a €10 million share buyback programme launched in April.
With regulatory hurdles in Brazil expected to stabilize and a leaner operational model in place, the company remains cautiously optimistic about its ability to deliver on long-term strategic goals.
