Better Collective Faces Strategic Recalibration amid Rising Market Pressures
Better Collective, a prominent betting and affiliate company, is navigating strategic challenges that have prompted a realignment of its operational model and financial targets. The business reported a Q3 increase in revenue by 7.7% to EUR 81.2 million ($85.69 million), with recurring revenue settling at EUR 52.8 million ($55.73 million). Organic sales, however, came in 6% short of expectations.Â
Some Key Metrics Underperformed
Lower-than-anticipated partner activity in the United States and a predicted slowdown in the Brazilian market, where new regulations are expected in the coming year, have forced Better Collective to cut its revenue and EBITDA estimates for the full fiscal year. The company expects revenues of EUR 355-375 million ($375-396 million), down from the previous forecast of EUR 395-425 million ($417-449 million) and adjusted EBITDA of EUR 100-110 million ($106-116 million).
The company’s adjusted EBITDA reached EUR 22.3 million ($23.53 million) for Q3, showing growth compared to last year, yet operating profits fell, marking a decline to EUR 8.9 million ($9.39 million) from EUR 11.5 million ($12.14 million). These financial results reveal the complicated decisions facing the business as it attempts to adapt to shifting market conditions.
The Company Should Emerge Stronger than Ever
Better Collective CEO Jesper Søgaard acknowledged that although the US and Brazilian markets present growth opportunities, they also offer specific challenges. He discussed Brazil’s fast-approaching regulated market launch, noting that young, evolving markets require strategic recalibrations to align with growth trajectories and deliver sustained profitability.
Brazil has seen an increasing slowdown all year heading into the expected regulation. We are committed to navigating this, like done historically in more mature regulations.
Jesper Søgaard, Better Collective CEO
Better Collective has undertaken significant restructuring to manage such economic headwinds. A thorough review of operational expenses resulted in the company downsizing its workforce by around 15%, impacting more than 300 employees. Søgaard was grateful to these team members for their contributions and added that the measure was needed due to streamlining efforts following Better Collective’s recent acquisition streak.
Søgaard confirmed that cost-cutting efforts were necessary to maintain the momentum of key business areas while recalibrating for current market demands. Paid Media and Media Partnerships remained at the core of Better Collective’s business model and received extra support. Meanwhile, non-revenue-driving expenses saw optimizations, reducing the financial strain on the company.
I am optimistic that this strategic recalibration will lead to a stronger foundation for future growth, allowing us to continue delivering exceptional value to our partners and stakeholders.
Jesper Søgaard, Better Collective CEO
Looking ahead, Søgaard was bullish on Better Collective’s prospects, underscoring that the changes do not signify a fundamental shift in the business model but instead address temporary market conditions. He underlined that the company’s portfolio of brands remains intact, providing a stable foundation for continued growth and future investment in innovation.
