Better Collective advances US business shift amid ‘strong’ Q3
Better Collective has reflected on a “highly promising” accelerated business shift in the US after the media group exited a Q3 with “strong growth” despite the turbulent macroeconomic environment.
This has seen the group maintain full-year targets despite anticipating a “larger estimated impact of €10m (revenue and EBITDA)” stemming from a decision to switch its US network from CPA to revenue share deals.
“The ongoing move from CPA to revenue share in the US, is looking highly promising. Last year, few deemed it doable to operate on revenue share in the US,” said Jesper Søgaard, Co-Founder and CEO.
Adding: “At Better Collective we have always favoured revenue share agreements as we consistently invest for the long-term. This also means our products are already built to cater to these types of agreements.”
Third quarter revenue for the company grew 23 per cent year-on-year to close the reporting period at €59.72m (2021: €45.41m), driven by a “continuously high number of NDCs” as well as “solid numbers” across the Europe and rest of the world segments.
This aforementioned division saw revenue increase 38.39 per cent to €42.88m (2021: €30.98m), while the US closed at €16.83m, up 16.7 per cent to €14.42m.
Better Collective also underlined that “revenue share income was all-time high” of €25m, up 73 per cent year-on-year, while new depositing customers stood at 354,000 which also represents a 73 per cent increase.
Third quarter EBITDA increased 7.1 per cent YoY to €14.55m (2021: €13.58m), with Europe and the rest of world up 68.43 per cent to €13.89m (2021: €8.25m) driven by LatAm and media partnerships. The US slipped to €660,000 (2021: €5.53m).
“Q3 delivered strong growth for the group, where we continued our good developments despite the turbulent macroeconomic environment,” noted Søgaard.
“The most exciting trends for the quarter were the move to revenue share in the US, which has been fast forwarded, and the group revenue share income continuing to break all-time highs.”
Adding: “Q3 saw strong group growth of 32 per cent where Europe & ROW continued its strong performance showing 38 per cent YOY growth despite it being a low season quarter. Once again, the main drivers were LatAm and the media partnerships.
“In the US, the business performance was solid although impacted by the low season. Q3 is a fluctuating quarter with two slow months followed by September with the NFL kick-off.
“Consequently, most revenue also came in the month of September. Further, US performance was impacted by NBA and NHL games being pushed into Q3 during 2021, but not in 2022.”
Year-to-date revenue came in at €183m, which outperformed full-year 2021 comparatives of €177m, alongside a YTD EBITDA of €48m, which also traded above the €39m generated through the past year.
Closing its Q3 trading statement, Better Collective declared an operating profit of €9.5m, reversing like-for-like 2021 losses of €360,000. YTD EBIT tracked at €39.5m.