Leading iGaming affiliate Better Collective is refusing to budge its 2020 financial targets, despite a near-shutdown on sports caused by coronavirus.
The Copenhagen-based company provided an ‘extraordinary business update‘ yesterday, sharing light on the current situation.
Performing well so far this year
Better Collective mentioned that it “has not been notably affected by COVID-19 until mid-March 2019″. This is despite some games being played behind closed doors, with other events cancelled altogether.
The company also noted that in the first two months of 2020, year-on-year growth had been achieved. Revenue reached €6.9 million in January, a rise of 27% compared to 2019. Of this, 13% was organic growth.
Last month, Better Collective’s earnings amounted to €14.1 million. This was 37% more than during the same period last year, with 21% of that growth being organic. The business update said that “Measured on gross gaming activity in revenue share accounts, player activity in February was all time high.”
“We stay optimistic”
CEO Jesper Søgaard acknowledged the difficult situation that the coronavirus outbreak has caused for everybody, but remains positive about the future. His thoughts on the matter are as follows.
“COVID-19 has in many instances created an unprecedented situation for societies across the world. Just as many other companies, Better Collective will expectedly also be affected by the COVID-19, especially following the postponement of major sports events such as the EURO 2020.
“Nothing is more important than the health and safety of people and we look forward to the return of the sports we all enjoy, including a safe and exciting EURO 2021. Though visibility is currently limited, we stay optimistic that normal sports betting activity levels will be restored – which is why our guidance remains unchanged.”
Better Collective’s financial targets for 2020 include double-digit organic growth, along with overall growth above 30%. It is aiming for its EBITDA to be higher than 40%, with net interest bearing debt/EBITDA below 2.5.
The postponement of Euro 2020 until next year is expected to cost between €2 million and €4 million in earnings. Meanwhile, reduced revenue due to postponed sporting events elsewhere is projected to be €4-6 million.
Despite the chaotic sporting scenario right now, neither esports nor casino have dropped. Better Collective believes that both verticals will continue to perform without disruptions.
It’s expected that sports betting activity will be €6-10 million lower, assuming that all sports are resumed at a regular level in the second half of this year.
Current operating costs are lower than was budgeted for 2020. Since these will stay as they are, the pressure of potential reduced revenue will be somewhat offloaded.