Better Collective has published its Q4 and full-year results for 2018, which were described by the firm’s CEO Jesper Søgaard as being “in line” with expectations.
Q4 2018 revenue grew by 30% to €12.1 million (Q4 2017: €9.4 million) while organic revenue, as anticipated, declined 9% following a record-breaking Q4 2017.
Major accounts showed an approximately 40% lower commission rate than Q4 2017, influenced mainly by sports results and strong growth in NDCs [DEFINE]. All other internal KPIs showed strong underlying organic growth.
Better Collective Q4 EBITDA before special items increased by 51% to €5.3 million (Q4 2017: €3.6 million). The EBITDA margin before special items increased marginally from 43% in Q3 to 44%.
Other highlights for the quarter include the purchase of leading Swedish sports betting affiliate Ribacka Group AB and subsidiary bettingexpert.com’s Tipster API winning Best Affiliate Product Innovation at the 2018 SBC Awards.
“In Q4, we continued to deliver significant growth,” explained Søgaard. “However, when comparing to the extraordinarily strong Q4 2017, organic revenue declined as expected. This is explained by the volatility that we face in our line of business, where the timing and results of big sport events plus NDC growth have a direct impact on revenue.
“For the full year 2018, we are in line with our expectations, and we are well prepared for 2019. The strong growth in NDCs and other relevant KPIs, including player deposits and sports betting turnover, were significantly higher compared to revenue growth and continue the trend we have seen throughout the year. As most NDCs are on revenue-share based contracts my expectation is that this will accelerate future growth.”