Better Collective highlights fourth quarter 2018

• Q4 Revenue grew by 30% to 12,135 tEUR (Q4 2017: 9,368 tEUR). As expected, organic revenue declined 9%, following the record-breaking Q4 in 2017. Major accounts showed approx. 40% lower commission rate than Q4 2017 influenced mainly by sports results and strong growth in NDCs, as sign-up bonus on new NDCs is offset against revenue share on existing depositors. All other relevant internal KPIs showed strong underlying organic growth (i.e. NDCs, player deposits and sports betting turnover).
• Q4 EBITA before special items increased 51% to 5,382 tEUR (Q4 2017: 3,556 tEUR). The EBITA-margin before special items increased from 43% in Q3 to 44%. Special items were -114 tEUR, resulting in an EBITA after special items of 5,268 tEUR.
• Cash Flow from operations before special items was 5,411 tEUR (Q4 2017: 2,717 tEUR), an increase of 99%. The cash conversion rate adjusted for special items was 97%.
• NDCs grew 91% to more than 76,000 in the quarter (Q4 2017: 40,000).
• On December 21, 2018, Ribacka Group AB, one of the leading Swedish sports Betting affiliates, was acquired at a price of 31 mEUR, including Net Working Capital. The acquisition will be included in the profit and loss from January 1, 2019.
• Better Collective’s bettingexpert.com Tipster API won Best Affiliate Product
• Innovation at SBC Awards 2018.

Financial highlights full year 2018

• In the full year of 2018, revenue grew by 54% to 40,483 tEUR (full year 2017: 26,257 tEUR). Organic revenue growth was 9%.
• In the full year of 2018, EBITA before special items increased 47% to 16,072 tEUR (full year 2017: 10,934 tEUR). The EBITA-margin before special items was 40% for the full year, resulting from 40% in Q2, growing to 43% in Q3, and 44% in Q4. Special items (IPO and M&A costs) were -4,080 tEUR, resulting in an EBITA after special items of 11,992 tEUR.
• Cash Flow from operations before special items was 15,158 tEUR (full year 2017: 9,492 tEUR), an increase of 60%. The cash conversion rate before special items was 89%.
• End of 2018, cash and unused credit facilities amounted to 51 mEUR.
• NDCs exceeded 260,000 (growth of 123%).
• The Net interest bearing debt to EBITDA before special items ratio was 1.37

Conference call

A telephone conference will be held at 10.00 a.m. CET today, February 19, 2019, by CEO Jesper Søgaard and CFO Flemming Pedersen.

Dial in details for participants:

Confirmation Code:        4277806

Denmark:                         +45 32 72 80 42

Sweden:                            +46 (0)8 50692180

United Kingdom:             +44 (0)8445718892

Webcast link

The webcast can also be accessed from www.bettercollective.com and the presentation will be available from 9.00 a.m. CET.

Jesper Søgaard, CEO of Better Collective, commented: “In Q4, we continued to deliver significant growth. However, when comparing to the extraordinarily strong Q4 2017, organic revenue declined as expected. This is explained by the volatility that we face in our line of business, where the timing and results of big sport events plus our strong NDC growth have a direct impact on revenue. For the full year 2018, we are in line with our expectations, and we are well prepared for 2019.”

About Better Collective:

Better Collective’s vision is to empower iGamers through transparency and technology – this is what has made them the world’s leading developer of digital platforms for betting tips, bookmaker information and iGaming communities. Better Collective’s portfolio includes more than 2,000+ websites and products. This includes  bettingexpert.com, the trusted home of tips from expert tipsters and in depth betting theory, and SmartBets, the odds comparison platform made personal.