Better Collective has released its annual and sustainability reports for 2019.
The company has pledged its commitment to the UN’s Global Compact, in addition to the UN’s Sustainable Development Goals (SDGs).
In addition to the release of its two reports, the Copenhagen-headquartered affiliate has announced changes to its financial calendar.
A year of financial growth
In the 12 months ending on 31st December 2019, Better Collective reported revenue reaching €67.5 million. 2018’s figure was €40.5 million, representing a rise of 67%. Since 2017, the company has achieved a compound annual growth rate (CAGR) of 60%.
Organic growth contributed 26% to the above percentage, with revenue share accounting for 68% and 16% being sourced from cost-per-acquisition (CPA). The remaining 10% came from other income streams.
EBITDA also went up in 2019, hitting €27.2 million. In the previous year, that figure was €16.1 million.
Chairman Jens Bager expanded on the main reasons behind this continued growth last year.
His words were as follows.
“Through acquisitions, we have invested significantly in growing our market share, our leading position, and the number of offices and employees.
“Growing through acquisitions and adding new offices and employees at the pace that Better Collective has done in recent years requires a firm focus on integration and management development.”
Bager also acknowledged the current challenges facing the gambling industry. However, he is confident that Better Collective will be able to continue thriving.
“2020 may turn out to be a challenging year for the sports betting industry as Covid-19 is impacting societies, businesses and sports events. As we publish this report, our financial targets for 2020 remain intact. We have a strong balance sheet and financing position.”
US market will be key
Better Collective’s US expansion is in anticipation of the market maturing into a global force. Bager believes that the market may “surpass Europe in the next five-to-ten years.”
He expanded on this with the following.
“Gaining a foothold in the US market by means of two significant acquisitions in 2019, we expect to find new business from the organic approach as the states regulate, while not ruling out additional collaborations and acquisitions.”
Meanwhile, CEO Jesper Søgaard was happy to continue performing well financially – even with the acquisition of new businesses across the Atlantic.
Søgaard said the following.
“We even managed to absorb the newly acquired US businesses and still meet our earnings target of >40% EBITA-margin. All this combined makes me very satisfied with this year’s performance.
“In 2019, we continued our focus on developing and maturing our branded products with high-quality content and user experience. We want to bring value to our users and enhance the entertainment of betting, which is the driving factor for our product development and our strategy in general.
“We signed new media partnerships, hosted our first bookmaker award show and expanded our business in the newly opened US market. Through these initiatives, Better Collective has in 2019 moved towards becoming a more broad-based sports media group working on a variety of platforms.”
Operating a sustainable business
Better Collective’s sustainability report revealed a variety of initiatives, including running a compliant business with an emphasis on responsible gambling.
The company also pointed to its purchase of shares in Mindway AI, a tool which uses neuroscience to detect potential problem gamblers. This took place in September 2019.
Better Collective also hosted a ‘make BC greener’ workshop session last summer. In this, the company’s employees spoke about ways they could make the business more environmentally-friendly.
Changing the financial calendar
With the expected election of a new board member to come, Better Collective has altered its financial calendar.
It’s planned that the Q1 2020 financial report will be published on 15th May.