Regulatory release no. 10

Acquisitions and FIFA World Cup drives high performing second quarter

Highlights second quarter 2018

  • Q2 Revenue grew by 93% to 9,662 tEUR (Q2 2017: 5,002 tEUR). Organic revenue growth was 41%.
  • Q2 EBITA before special items increased 90% to 3,843 tEUR (Q2 2017: 2,022 tEUR). Special items include certain IPO-cost and M&A cost that were expensed over the P&L; total 3,722 tEUR. The EBITA-margin before special items was 40%.
  • Cash Flow from operations before special items was 3,733 tEUR (Q2 2017: 2,193 tEUR), an increase of 70%. The cash flow from operations was 1,566 tEUR, a decline of 29% from Q2 2017, due to special items charged in Q2 2018. The cash conversion rate adjusted for special items was 93%.
  • New Depositing Costumers (NDCs) exceeded 66,000 in the quarter (growth > 200%), which is a new company record.
  • On June 8, 2018 the company completed an IPO on Nasdaq Stockholm main market. The IPO was completed by mostly selling newly issued shares, bringing net cash proceeds to the company of approximately 65 mEUR net of cash settlement of employee warrants of 2.4 mEUR.
  • Two acquisitions were completed in Q2; In April, the leading Danish sports- and casino affiliate SpilXperten and other portfolio websites were acquired in an asset deal. In late June, the Austria based company Bola Webinformation GmbH, with its flagship website wettbasis.com, was acquired, securing a leading position in the large German speaking markets. The combined transactional value for the two acquisitions can amount to more than 42 mEUR, of which 33 mEUR were paid upon closing.
  • Following the US Supreme Court decision to repeal the PASPA-act (The Professional and Amateur Sports Betting Act), Better Collective increased its market presence with the launch of a new website us-bookies.com adding to the current presence through global websites. Better Collective is currently assessing various ways of entering the US market on a broader scale.
  • Bank financing of up to 40 mEUR was secured through arrangements with Nordea Bank and Danske Andelskassers Bank.
  • At June 30, 2018, cash and unused credit facilities was 61 mEUR.
  • Better Collective was ranked no. 1 in the EGR Power Affiliates list in May 2018.

Financial highlights first six months 2018

  • In the first half of 2018, revenue grew by 68% to 17,214 tEUR (YTD 2017: 10,247 tEUR). Organic revenue growth was 20%.
  • In the first half of 2018, EBITA before special items increased 30% to 5,931 tEUR (YTD 2017: 4,563 tEUR). The EBITA-margin before special items was 34%.
  • Cash Flow from operations before special items was 6,215 tEUR (YTD 2017: 3,605 tEUR), an increase of 72%. The cash flow from operations was 3,917 tEUR, an increase of 9% from YTD 2017. The cash conversion rate before special items was 97%.

Significant events after the closure of the reporting period

  • On July 31, 2018, the leading Greek sports betting affiliate was taken over through acquisition of the two companies, WBS I.K.E. Online Marketing Services Ltd. and KAPA Ltd. The price of the acquisition was 3.2 mEUR paid upfront, a deferred payment of 0.8 mEUR, plus a variable payment of maximum 0.4 mEUR.

Conference call

A conference call for investors, analysts and media will be held today, August 28, 2018, at 10:00 a.m. CET and can be joined online link. Presentation material for the call will be available on the website one hour before the call.

To participate, please dial:

Confirmation code 1766602

The UK: +44 (0)330 336 91281

Denmark: +45 35 15 80 49

Sweden: +46 (0)8 5033 6574

Jesper Søgaard, CEO of Better Collective, commented: “Q2 2018 not only turned out to be the best performing quarter in the company’s history. It also saw Better Collective’s entry on the Nasdaq Stockholm stock exchange, our largest M&A deal to date, and a breakthrough in sports betting legislation in the US”.

Contact

CEO: Jesper Søgaard

CFO: Flemming Pedersen

Investor Relations: Christina Bastius Thomsen +45 2363 8844 investor@bettercollective.com

This information is such information as Better Collective A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 8.00 a.m. CET on August 28, 2018.

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.

Attachment