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Better Collective reports record revenue; strong growth in US business and media partnerships

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Better Collective: Nomination committee Proposal to the Annual General Meeting 2022
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Interim report January 1 – December 31, 2021

Highlights fourth quarter 2021

  • Q4 Group Revenue grew by 44% to 52.8 mEUR (Q4 2020: 36.7 mEUR). Organic revenue growth was 25%
    • The continued large increase in NDCs sent on revenue share contracts has signif- icantly increased future recurring revenue (in Publishing business) but also had a short term dampening effect on revenue and earnings. Combined with an ex- ceptionally low sports win margin, we have estimated an effect of approximately 6 mEUR in the quarter compared to historical average.
  • Q4 Group EBITDA before special items increased 16% to 16.3 mEUR (Q4 2020: 14.1 mEUR). The Group EBITDA-margin before special items was 31% (Publishing 40% and Paid Media 5%).
  • Cash Flow from operations before special items was 13.5 mEUR (Q4 2020: 10.1 mEUR), an increase of 33%. The cash conversion was 82%. By the end of Q4, capital reserves stood at 33.5 mEUR of which cash of 30.1 mEUR and unused bank credit facilities of 3.4 mEUR.
  • New Depositing Customers (NDCs) were >267,000 in the quarter (growth of 74%). NDCs sent on revenue share contracts were >190,000 (growth of 69%).
  • On November 4, Better Collective completed the acquisition of the remaining 40% shares in the US based RotoGrinders Network at a total price of 33 mEUR.
  • On December 8, Better Collective initiated a share buyback program to cover future payments relating to completed acquisitions and incentive programs for up to 10 mEUR.

Financial highlights full year 2021

  • Revenue grew by 94% to 177.1 mEUR (FY 2020: 91.2 mEUR), with organic growth of 29%.
  • EBITDA before special items increased 46% to 55.8 mEUR (FY 2020: 38.2 mEUR). The EBITDA-margin before special items was 32% (Publishing 43% and Paid Media 8%).
  • Special items amounted to a cost of 16.7 mEUR (FY 2020: 0.1 mEUR). It includes an 11.5 mEUR adjustment of the contingent liability related to the 2019 acquisition of Rical LLC, treated as a P/L item under IFRS, as well as income related to an ad- justment of the variable payment recorded in connection with the acquisition of Dutch assets. M&A cost of 6.0 mEUR is related to M&A activities, primarily Action Network, and 2.5 mEUR cost of Management incentive program related to Action Network.
  • Cash Flow from operations before special items was 51.2 mEUR (FY 2020: 38.3 mEUR), an increase of 34%. Cash conversion rate before special items was 92%.
  • On May 26, 2021, Better Collective resolved on a directed share issue of 6.9 million shares, thereby raising gross proceeds of SEK 1,500 million and significantly in- creasing financial flexibility.
  • New Depositing Customers were >857,000 in 2021 (growth of 96%). NDCs sent on revenue share contracts were >607,000 (growth of 70%).

During 2021, Better Collective completed acquisitions of approximately 210 mEUR:

  • On January 1, 2021 Better Collective increased its ownership to 90% of the shares in Mindway AI that specialises in software solutions based on artificial intelligence and neuroscience for identifying, preventing and intervening in at-risk and problem gambling.
  • On March 31, 2021 Better Collective strengthened its position in the Swedish sports betting market by acquiring online sports betting media platform, Rekatochklart. com for 3.8 mEUR.
  • On May 28, Better Collective acquired leading US sports betting media platform, Action Network, for 196 mEUR (240 mUSD), gaining market leadership within sports betting media in the US.
  • On September 24, Better Collective acquired Soccernews.nl, a Dutch online sports betting community, in separate transactions for total upfront payments of 5.9 mEUR.

Significant events of the closure of the period

  • January revenue reached >26 mEUR, more than double vs. 2020, of which 69% was organic growth. Earnings (EBITDA before special items) were >11 mEUR. Performance was boosted by the market opening in the state of New York.
  • On January 21 2022, Better Collective entered into a media partnership with the New York Post to bring the best in commercial sports betting content to the pub- lication’s readership of more than 92 million unique users. The agreement covers the delivery of content, data, and statistics for the betting section of the New York Post. New York state opened for online sports betting on January 8, 2022. Better Collective is off to a great start across all assets, in particular Action Network.
  • On January 11, 2022 the share buyback program of 10 mEUR initiated on December 8, 2021 was completed with 532,482 shares accumulated under the program.
  • The board of directors have implemented a new Long Term Incentive Plan (LTI) for key employees in the Better Collective group (excluding the executive manage- ment). Grants under the new LTI will be in the form of performance share units and share options vesting over a 3-year period. The total value of the 2022 LTI grant program is 1.4 mEUR (Black-Scholes value) measured at the target level.

Jesper Søgaard, Co-founder & CEO of Better Collective, commented:

“An all-time high intake of NDCs and an overall strong performance of our business mark the ending of 2021 – a year of many new opportunities for Better Collective. We managed to deliver growth of 44% over that of last year’s Q4. Our US business delivered prime results following the start of the NFL season, and contributed almost 40% to the total quarterly Group revenue. “

Financial targets 2021

The Group financial targets for 2021 for organic growth (29% vs target of >25%) and Operational Earnings/EBITDA (55.8 mEUR vs target of >55 mEUR) were met. Total revenue ended at 177 mEUR slightly below the target of >180 mEUR. Total revenue and earnings were, as mentioned, affected negatively by an exceptionally low sports win margin in Q4 as well as a high intake of NDCs, which has a short- term dampening effect on margins.

Financial targets 2022

The Board of Directors have decided on new financial targets for the Better Collective Group for the financial year 2022. Excluding potential new M&A-trans- actions:

  • Double-digit organic revenue growth of 15-25%
  • Operating profit (EBITDA before special items) of approx. 75 mEUR
  • Debt leverage (Net interest bearing debt/EBITDA) <3,0
  • High operational cash conversion rate expected to be maintained

Conference call

A telephone conference will be held at 10.00 a.m. CET today by CEO Jesper Søgaard and CFO Flemming Pedersen. The presentation will simultaneously be webcasted, and both the telephone conference and the webcast offer an opportunity to ask questions.

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Expanse Studios Launches in Bulgaria with Inbet

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Expanse Studios, a leader in online gaming innovation, has secured a Bulgarian iGaming license and is now live on Inbet’s website. This expansion brings Expanse Studios’ popular game offerings including turn-based strategies gamified for iGaming, classic slots, traditional card games and the highly-acclaimed ones like Titan Roulette, Clown Fever Deluxe, Wild Icy Fruits, White Wild Whale and Joker Poker to Bulgarian players.

Diverse Gaming Portfolio Now Available to Bulgarian Players

With the Bulgarian market entry, Expanse Studios introduces a versatile gaming experience to Inbet’s platform. The offerings include a dynamic range of games tailored to diverse player preferences:

  • Turn-based strategy games: Leveraging gamification, these games transform traditional strategy gameplay into engaging iGaming experiences, suitable for both novice and experienced players.
  • Classic slots: Players will enjoy a variety of themed slots that combine traditional gameplay with modern graphics and sound.
  • Traditional card games: A selection of popular card games offer something for every card game enthusiast.
  • Titan Roulette: This standout feature, known for its immersive experience and innovative design, continues to be a favorite among roulette players.

Commitment to Quality and Compliance

Expanse Studios not only cultivates a diverse gaming library but also adheres to stringent regulatory standards to ensure a secure and fair gaming environment. The acquisition of the Bulgarian iGaming license is a testament to Expanse Studios’ commitment to compliance and excellence in the gaming industry.

The partnership between Expanse Studios and Inbet marks a significant milestone in Expanse Studios’ expansion efforts. By combining Expanse Studios’ innovative gaming solutions with Inbet’s established market presence, both entities are set to offer a superior gaming experience to players in Bulgaria and potentially beyond. As Expanse Studios continues to develop and release new games monthly, Bulgarian players can look forward to a continually evolving and enriching gaming landscape.

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Week 17/2024 slot games releases

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Week 17/2024 slot games releases
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Here are this weeks latest slots releases compiled by European Gaming

Belatra Games, the specialist online slots developer, is on point with its latest sharply designed game, Golden øks. This Norse-inspired adventure carries on from the popular Axe of Fortune title that hit the market at the turn of the year. Golden øks is set against a 5×3 layout and is brought to life with a powerful soundtrack to heighten the atmosphere.

Belatra grows games portfolio with Golden øks title

Endorphina, has announced the release of its brand-new title, Jolly Queen, which will join its portfolio on April 27th. Jolly Queen is a 5-reel, 5-row fruit slot with 50 fixed paylines, introducing players to the lifestyle of the nobles. On top of the aristocratic ambiance, Jolly Queen provides players with Free Games, allowing them to master the reels.

Endorphina releases its newest title - Jolly Queen!

Evoplay has released Candy Craze, a vibrant slot stacked with features and modifiers, including the powerful Gum Drop Multiplier which boosts win potential. Set amidst the backdrop of sumptuous sweets within a cloudy landscape, the 5×5 cascading reels title gives players a sugary rush when the Gum Drop Multiplier activates, revealing a mystery value at the end of each winning spin up to x100, enhancing the chance for wins during the main game and Free Spins.

Yggdrasil, a leading iGaming publisher, has revived the gold rush in a jackpot-filled game that embodies the spirit of old west prospecting in Gold Frontier Jackpots FastPot5™. Fans of lower volatility slots with straightforward mechanics that get fortune seekers right to the heart of the action are tasked with gathering keys to enter the treasure bonus game.

Relax Gaming is offering players some opulence in its latest release Sultan Spins. This high volatility slot sees its gold-trimmed reels set against a sprawling desert metropolis. Players have the chance to rack up riches via an entertaining free spins feature and lucrative local jackpot.

Greentube has introduced its latest title in the popular Diamond Link ™ series, Diamond Link ™: Mighty Dwarves Inc. Set deep in underground mines, this adventurous 5×3 slot is packed with innovative features for ample chance to win across its 25 paylines when players spin the reels adorned with hammers, hard hats and laser symbols.

Get your eyes ready because it’s time to take a trip to the pet centre to meet the ugliest, quirkiest, wildest-looking pets you’ve ever seen in the brand new slot, Fugly Pets, from Stakelogic. Fugly Pets takes players to a banged-up old pet store to explore its collection of weird and charming, downright ugly pets. Meet a scruffy parrot, a catnip crazed kitty, and an unfortunate-looking little dog.

 

 

Load your tackle box, bait your hook and get ready to reel in the catch of the day in Fishin’ The Biggest from Apparat Gaming, the in-demand German software provider’s latest splash hit slot that sees players trawl the sea for free spins and massively multiplied prizes. Played over five reels, three rows and ten fixed paylines, Fishin’ The Biggest is a highly-volatile title with an outdoor angling theme.

Thunderkick has announced the launch of Midas Golden Touch 2, the highly-anticipated sequel to the acclaimed 2019 original. This latest release invites players to rediscover an enchanted realm where everything King Midas touches turns to gold. The 3×5 video slot boasts 15 paylines and showcases Thunderkick’s signature high-quality design and innovative features.

Belatra Games, the specialist online slots developer, has served up another classic with its tasty Chef’s Sticky Fruits slot. This latest release from Belatra’s studio  is a vibrant and juicy addition to its renowned catalogue of slots. It’s a 5×4 slot game bursting with colour that’s heightened with an upbeat, retro soundtrack that perfectly captures the essence of fun at the heart of every play.

Belatra serves up tasty Chef’s Sticky Fruits slot

3 Oaks Gaming has launched 3 China Pots: Hold and Win, the first time the company has integrated the popular 3 Pots mechanic within a Far East-themed title. The latest instalment from 3 Oaks to incorporate the 3 Pots functionality sees players transported to the allure of the Orient, where the Extra, Double and Multi modifiers influence the Bonus Game once activated.

3 Oaks Gaming presents a feature-rich trip to the Far East in 3 China Pots: Hold and Win

Pragmatic Play has unleashed roaming wild re-spins and random guaranteed wins in Release the Bison. Symbols of the American frontier abound in this 5×4 slot, where hitting four or more rampaging bison triggers the wild re-spin feature, during which all wilds roam the reels to boost win potential.

Blueprint Gaming’s latest slot release tasks players to look for the leprechaun’s pot of gold under the water rather than at the end of the rainbow in Plenty O’ Fish, a 6×4 hybrid of sea creatures and shimmering rewards. Players must look to unlock a tackle box of treasure with a jaunty leprechaun being the key to wins, lurking behind a dynamically coloured underwater background that changes when the bonus game is triggered.

Booming Games has launched its latest sweet sensation to its collection of engaging slot games – Fruit Heaven Hold and Win™. This is a deliciously designed 5×3 slot game with 25 paylines, which promises players an exciting experience full of fantastic fruity features and Stacked Wilds.

Wazdan is multiplying jackpots in the follow-up to its top-performing game Mighty Wild™: Panther Grand Gold Edition. Venturing to the depths of the jungle where a black panther rules the reels on a 5×3 gameboard, the new edition provides even larger win potential. With the increased value of the Cash symbols and Cash Infinity™ symbols, there is also a more lucrative Grand Jackpot of 1500x the base bet.

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Conferences in Europe

CasinoBeats Summit 2024: Providing the Tools to Balance Innovation and Regulation in the Digital Age

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As the industry seeks optimal methods to responsibly integrate innovative technology, the upcoming CasinoBeats Summit will provide delegates with an exploration of the latest emerging technologies, regulatory frameworks and future trends to ensure a safe yet immersive gaming experience for players.

The Industry and Leadership track will take place across both core days of the CasinoBeats Summit, May 22 to 23 at the InterContinental Malta. Panel sessions will delve into key topics such as global gaming regulations, the evolving digital payment landscape and an in-depth exploration of the world of M&A.

The panel entitled Responsible Gambling in the Digital Age will delve into the latest responsible gambling initiatives influencing the digital landscape. Expert speakers Pedro Romero (RG Consultant and psychologist, University of Gibraltar), Matthew Curtis (Head of Responsible Gaming, L&L), Georgia Wise (Head of Responsible Gaming, PlayNorth), Eduards Jakubovs (Head of Responsible Gaming, Betsson) and panel moderator Maris Catania (Senior SG Consultant, SG: Certified) will analyse the impact of landmark regulatory guidelines such as the 3.4.3 regulation on remote customer interaction and the United Kingdom’s ‘white paper’ as well as discuss the latest distinctions between regulated, grey and black markets.

The Industry Trends and Future Predictions panel will look at the future of the casino sector, examining upcoming industry trends and their potential impact. Industry leaders Itai Zak (Executive Director, Digicode, and former/ex-Chief Executive Officer, SBTech), Matthew D’Emanuele (Chief Executive Officer, Yolo Entertainment), Alexander Martin (Chief Executive Officer, SKS365), Inesa Glazaite (Chief Commercial Officer, iGaming Platform), Dmitry Starostenkov (Chief Executive Officer, EvenBet) alongside panel moderator Martyn Elliott (Project Director, SBC Media) will offer insights into key emerging markets, innovative game formats and strategies to effectively cater to evolving player needs.

Commencing the second day is the panel entitled The Evolving Landscape of Gaming Sector Payments, which will explore the current state of the industry’s payment sector. Expert speakers Sean Spiteri (Head of Payment Solutions, PressEnter), Enrico Giancaterina (Managing Director, Funtech) and Ian Perrygrove (Chief Risk Officer, Kwiff) will discuss the current payment innovations driven by the casino sector, analyse the future of digital payment methods and the potential risks of such rapid innovations.

The Navigating the Future: Global Gaming Regulations panel will explore strategies to effectively address the challenges posed by current and future global regulations. Regulator representatives Aideen Shortt, (Advisor to the Minister, Curacao), Andrew Lyman (Gambling Commissioner and Executive Director, Gibraltar), Andrew Rhodes (Chief Executive, Gambling Commission) and Brandon Debattista (Deputy Chief Regulatory Officer, Malta Gaming Authority) will provide insights into their respective markets whilst assessing the possibility of a unified global regulatory standard and the importance of cross-market collaboration.

Additionally, track attendees will have the opportunity to garner insights into the world of acquisition and investment during an exclusive IMGL-led masterclass, Acquisition Strategy: Gearing up for Investment, which is set to take place on Thursday, May 23, the second core day of the event.

For groups of three or more, you can purchase the Group Pass Ticket and gain access to all three days of the CasinoBeats Summit for the discounted price of €400 per person (a saving of €200 per ticket). Additionally, operators and affiliates can apply for a free pass to the event.

You can keep up-to-date with the latest news, speakers and exhibitor additions and conference content by subscribing to the bi-weekly CasinoBeats Summit LinkedIn newsletter.

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