Regulatory Release 32/2019
Highlights third quarter 2019
- Q3 Revenue grew by 54% to 17,131 tEUR (Q3 2018: 11,134 tEUR). Organic revenue growth was 25%. The total growth in the quarter was affected upwards by the acquisitions in the US and Sweden.
- Q3 EBITA before special items increased 43% to 6,804 tEUR (Q3 2018: 4,760 tEUR). The EBITA-margin before special items was 40% including an expected downwards impact of 4 %-points from the newly acquired US-businesses that on a consolidated level reached a low, positive operating result in this first full quarter.
- Cash Flow from operations before special items was 4,892 tEUR (Q3 2018: 3,532 tEUR), an increase of 39%. The cash conversion was 65%. End of Q3, capital reserves stood at 56 mEUR including net cash of 16 mEUR and unused bank credit facilities of 40 mEUR.
- New Depositing Customers (NDCs) exceeded 85.000 in the quarter (growth of 27%, most of which organic). Recent quarters delivered higher NDC numbers due to seasonality/events.
- We continued our expansion of media partnerships by entering an agreement with The Daily Telegraph for the delivery of our innovative technology and content for sports betting and casino.
- Through a wholly-owned US subsidiary, Better Collective completed the acquisition of the assets of Florida based Vegasinsider.com and Scoresandodds.com for a total transaction price of 18 mEUR that was paid in cash.
- Better Collective completed the acquisition of all shares in the company owning and operating the site mybettingsites.co.uk for up to 2.4 mEUR.
- Better Collective acquired 19.99% (at 0.5 mEUR) of the shares in Mindway AI, which specialises in innovative and advanced software solutions for the identification of at-risk gambling and problem gambling behaviour.
- A new version of the flagship product bettingexpert.com was launched just after Q3. The site is now backed by Better Collective’s innovative micro-service infrastructure that allows to effectively scale the product across US states.
- A new office facility was opened in Nis, Serbia with a capacity of hosting up to approximately 200 employees.
Financial highlights first nine months 2019
- In the first nine months of 2019, revenue grew by 69% to 47,870 tEUR (YTD 2018:28,348 tEUR). Organic revenue growth was 27%.
- In the first nine months of 2019, EBITA before special items grew by 88% to 20,114 tEUR (YTD 2018: 10,690 tEUR). The EBITA-margin before special items was 42% (YTD 2018: 38%). Special items (adjustments to earn-out payments and M&A costs) were -604 tEUR (YTD 2018: -3,966 tEUR), resulting in earnings (EBITA) after special items of 19,510 tEUR (YTD 2018: 6,724 tEUR).
- Cash Flow from operations before special items was 19,052 tEUR (YTD 2018: 9,747 tEUR), an increase of 95%. The cash conversion rate before special items was 90% (YTD 2018: 85%).
- New Depositing Costumers (NDCs) exceeded 313,000 in the first nine months (growth of 74%).
- Organisation; new offices and local organisations have been established in the US (Nashville, New York, Fort Lauderdale), UK and Poland. The average number of employees in the quarter grew to 367.
- In addition to the highlights in Q3, in May, Better Collective acquired 60% of the shares in RiCal LLC, with a commitment to acquire the remaining 40% during 2022-2024.
Other significant events after the closure of the period
- None
A telephone conference will be held at 10.00 a.m. CET on the same day 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.
Dial in details for participants:
Confirmation Code: 7979842
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 8.00 a.m. CET.
Jesper Søgaard, CEO of Better Collective, commented: “Q3 is normally a seasonally weak quarter with lower player activity and with most major sports leagues pausing in July and part of August. With that in mind, I am happy to see such strong business performance with the highest quarterly revenue in the history of BC and continued strong NDC-intake.”
Contacts
Investor Relations: Christina Bastius Thomsen +45 2363 8844, investor@bettercollective.com
Press: Morten Kalum +45 2349 1009, mkalum@bettercollective.com
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 a range of websites and products, among other bettingexpert.com, the trusted home of tips from expert tipsters and in depth betting theory. Better Collective is headquartered in Copenhagen, Denmark, and listed on Nasdaq Stockholm (BETCO).
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