It’s now clear where Better Collective is getting its confidence to go on a shopping spree. The sports wagering media group has made a number of acquisitions lately that will strengthen its position in the market. After the company posted its earnings report for the first quarter of the year this week, it becomes apparent how. Better Collective saw, when comparing the quarterly results with those from a year earlier, organic revenue growth of 19% in the quarter and group revenue growth of 86%.
Better Collective Becomes a Bettor’s Target
Better Collective is rapidly becoming a go-to solution for bettors through a number of key acquisitions. It purchased 90% of Mindway AI at the beginning of the year and followed that up with the purchase of Action Network, announced at the beginning of this month. While the acquisition of Action Network was the largest to date for the company, it has also bought HLTV, Rekatochklart, and Atemi over the past year to expand its global footprint.
2020 was already a good year for the company, despite the global COVID-19 pandemic, and 2021 has helped fuel Better Collective’s growth even more. Its revenue for the first quarter was a “record high” as it came in at $47 million, an 86% increase over the $25.3 million it reported for the first quarter of last year. The company’s publishing activity was responsible for most of this, providing 61% of the revenue, while “Paid Media” contributed 31%. EBITDA (earnings before interest, taxes, depreciation, and amortization) was up, as well, climbing 46% to $16 million. For the first quarter of last year, Better Collective reported an EBITDA of $11 million.
US Market to Boost Better Collective
As the US gambling market recovers from COVID-19, it is expected to expand exponentially from where it was in 2019. Part of this is fueled by the need by states to capture lost revenue, but also because of the evolving sentiment toward gambling across the country. As more support for gaming activity is found, with 2021 expected to see substantial growth, Better Collective is ready to reap the rewards and has a lot of faith in the revenue capabilities in the country.
This is reinforced by the company’s CEO, Jesper Søgaard, who increased the revenue outlook as a result. Better Collective now expects US revenue to reach more than $100 million by the end of next year, with greater results following. He points out that analysts “expect the US sports betting market to expand >4x until 2025 and >20x in the next decade,” which will give Better Collective, and the entire gaming industry, massive growth. Because of the way this year has already started for the company, it revised its previous outlook for its full-year productivity. It had expected group revenue to come in at around $194 million, but now forecasts, if everything stays on track, that it will be able to report revenue of over $218.1 million for the