Better Collective’s Impressive Financials Set the Stage for a Successful 2024

Stockholm and Copenhagen-listed media group Better Collective A/S has surpassed its 2023 revenue target despite challenging conditions in the US market during the fourth quarter. While Q4 results saw the company exceed its full-year revenue target of between €315 million ($340.6 million) and €325 million ($351.4 million), shares declined in response to the dip in Q4 performance, though leadership remains optimistic.

Most Metrics Experienced Substantial Growth

The year-end trading results reveal revenues of €327 million ($353.6 million), up from €269 million ($290.9 million)  in FY2022, marking a growth of 21%. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at €110 million ($119 million), compared to €85 million ($92 million) in the previous financial year, indicating a growth of 31%. These results exceeded the enhanced targets revised in June 2023, highlighting untapped growth potential.

The Better Collective publishing network generated revenues of €220 million ($237.9 million), showing an 18% increase from the comparative results of €187 million (202.2 million) in FY2022. Operating profits for this unit contributed €78 million ($84.3 million). Recurring revenue, primarily from revenue share income, experienced substantial growth, reaching €189 million ($204.3 million), a 47% increase.

Better Collective has set separate financial targets for the full year 2024, including revenue of up to €420 million ($454 million) and EBITDA of up to €135 million (146 million), factoring in the impact of the Playmaker Capital acquisition. However, a 27% year-on-year revenue collapse in January, where transitions to revenue-share contracts impacted US results, temporarily dashed investor confidence.

The Company Remains at the Forefront of Sports Entertainment

Despite the recent downturn, Better Collective’s diversified media portfolio, serving 270 million monthly visits organically and through mergers and acquisitions, should remain resistant to macroeconomic pressures. Better Collective noted a fast-paced transition towards revenue-share contracts, which should provide long-term value despite temporary disruptions.

CEO Jesper Søgaard expressed satisfaction with the results, highlighting the team’s effort to achieve profitable growth while making strategic investments for the future. He emphasized progress towards becoming the leading digital sports media group, noting that the company would continue providing consistent value to its many partners.

It brings me great satisfaction to witness the ongoing development of engaging sports content and the expansion of our audiences across our sports media brands.

Jesper Søgaard, Better Collective CEO

Looking ahead to 2024, Søgaard expressed confidence that Better Collective would maintain strong operational earnings while continuing investments in the future. The company’s ambitious 2023 acquisitions set the stage for sustained growth and operational excellence, allowing it to leverage its portfolio of leading sports media brands to provide customers with world-leading content.