In Q1 2025, Better Collective reported revenue of €83 million, in line with expectations. Recurring revenue reached €49 million, while EBITDA before special items came in at €22 million, corresponding to a 27% margin. The company’s cost efficiency program remains on track, contributing to improved operational discipline.
Jesper Søgaard, Co-founder & Co-CEO, comments: “Overall, our Q1 results landed in line with our expectations. As we are now building the "New BC", we are setting the stage for future growth by focusing on global scalability and streamlining our House of Brands. This marks the beginning of an exciting new chapter for Better Collective. Thanks to all my colleagues for your continued as we continue navigating market changes.”
Highlights Q1, 2025:
- The Brazilian business delivered €10m in revenue during Q1. The regulatory developments in the Brazilian market impacted revenue and EBITDA with €7m compared to Q1 2024.
- The comparisons from last year’s state launch in North Carolina created a €5m headwind.
- The previously communicated decrease in activity from US partners impacted the quarter negatively with approximately €5m.
- Growth in other business areas, including full effect from acquisitions and positive exchange rate (USD) had net positive revenue impact of €7m.
- The sports win margin impacted revenue and EBITDA negatively by €2.4m.
- The shift towards a regulated market in Brazil from January 1, has so far gone better than expected, where especially player migration has performed well.
Subscription revenue remained flat, while M-based revenue was up by 13% due to the M&A effect from Playmaker Capital, as well as a good start to the year in the Brazilian advertising market.
Group costs decreased by €5m, corresponding to an 8% reduction. The acquisition of Playmaker Capital was closed February 6th, 2024, and consequently Playmaker Capital was only included in two months. When adjusting for this and combined with the FX impact (USD) in the quarter, the reduction in costs versus last year is €9m where more than €5m relates to savings within staff and other operational costs.
The cost decrease reflects the impact of the €50m cost efficiency program initiated in October 2024 which remains on track to be fully realized during 2025.
The Brazilian market officially launched on 1 January 2025, completing its first quarter as a fully regulated market. As anticipated, Q1 represents a seasonally low period in Brazil due to national holidays and the start of the Serie A football league commencing in late March.
Revenue for Brazil in Q1 was €10m and the financial impact was as mentioned €7m on revenue and EBITDA compared to Q1 2024. Better Collective has experienced higher-than-anticipated player migration and wagering activity during the quarter. This means lower churn and better player retention.
Due to regulatory restrictions prohibiting welcome bonuses, acquisition has progressed slower than expected, resulting in fewer NDCs. Due to this, the anticipated increase in competitive activity from sportsbooks has not yet materialized.
Media sales (M) in the market have performed well, with media inventory still sold out. As a result, efforts are currently focused on expanding brand inventory and strengthening local market presence.
“The Brazilian business is expected to return to growth by 2026. Better Collective maintains a strong long-term outlook for Brazil, anticipating it will return to a high-growth market, offsetting the short-term impact observed in the current transition phase,” states the company.
Source: GMB
