Better Collective FY24 preliminary results: EBITDA exceeds guidance
However, this guidance was reduced by €30m in Q3 due to challenging business circumstances
Key Points
- Better Collective reported revenue of €371m ($384.3m), at the high end of its €355 – €375m target
- EBITDA for FY24 totaled €113m, above its €100-110m target
- Both targets were reduced in Q3, in part due to challenges in the US
- Market reacts positively, with share price up 14%
Better Collective has released its preliminary unaudited financial results for FY24. In total, the super affiliate reported €371m ($384.3m) in revenue, at the high end of its €355-€375m target. This is a 13.5% increase from the €327m reported in last year’s preliminary results, and follows a pattern of revenue growth seen throughout the year, with revenue up 8%, 27% and 8% across Q1, Q2 and Q3 respectively.
However, it is notable that this range, as well as its EBITDA range, was reduced in Q3, from €395-425m to €355-375m and from €130-140m to €100-110m respectively. The move followed challenging circumstances in America – it has been hypothesized that the dominance of FanDuel and DraftKings has made the role of affiliates less effective due to lacking market diversity – where segment profit went from €2.6m in Q3 2023 to -€1.6m in Q3 2024.
The affiliate also verified its €50m cost reduction plan in its Q3 report; a decision Co-Founder and CEO Jesper Søgaard called “emotional” on LinkedIn. The plan saw the affiliate adapt to new market developments and reconsider M&A synergies, while lowering operating costs and terminating >300 members of staff.
It seems, however, that these decisions have boosted results in the short term, as the preliminary unaudited financial results noted a FY24 EBITDA before special items of approximately €113m, above the aforementioned €100-110m target.
Net debt to EBITDA before special items has remained in line with targets at below 3x. The market has reacted positively, with stocks up 14% to DKK 77 ($10.69).
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