Better Collective Surpassed 2022 Targets, Hopes to Do Even Better in 2023
Better Collective recorded record-breaking organic growth of its revenues thanks to the overperformance of various segments
Better Collective has published its interim report for Q4 2022. In the period between October 1 and December 31, the company’s metrics rose across the board, contributing to the record-breaking results it already expected.
In Q4 2022, the company’s revenue reached around $91.6 million (converted to USD), which represents a growth of 63% year-on-year. Recurring revenue almost doubled, sitting at almost $44 million at the end of the quarter. Revenue share income went up by 81% year-on-year to $32.1 million.
EBITDA before special items was $37.4 million representing a stellar growth of 115% year-on-year and a margin of 41%.
Better Collective also recorded its highest number of new depositing customers yet at 580,000. This translates into a growth of 117%, 78% of which was sent on revenue share contracts.
Better Collective concluded that January was also a very successful month for the company, during which it managed to rake in revenue of $39.4 million. This was favorably impacted by Better Collective’s launch in Ohio.
In Q4, Better Collective initiated a share buyback program for up to 5 million Euros, seeking to cover future payments related to completed acquisitions and LTI programs. It managed to buy 394,645 of its shares back and is planning another buyback program.
2022 Was a Great Year for the Company
Overall, 2022 was a very successful period for Better Collective, which recorded annual revenue of $286.5 million, a figure that is 52% higher than the one recorded in 2021. The company also reported an EBITDA before special items of $90.5 million.
Better Collective’s new depositing customers count skyrocketed to 1,680,000, representing a growth of 96%. In addition, earnings per share increased by over 150% year-on-year.
Better Collective targeted organic revenue growth of 20-30%. In reality, the company surpassed this number, recording organic revenue growth of 34% instead. The company also met its EBITDA and net debt to EBITDA targets.
Better Collective expects revenue of $308-319 million for 2023. Its EBITDA before special items target is between $95.8 and $106.4 million. Finally, the company hopes to reduce its net debt to EBITDA from <3 to <2.
In 2023, the company will also make additional investments in the LATAM region and other emerging markets. Better Collective will also continue to consolidate its presence in the United States.
CEO Søgaard Applauded His Team’s Efforts
The company’s founder and chief executive officer, Jesper Søgaard, addressed his company’s performance. He praised the Q4 2022 results, saying that the quarter was a strong period for diversification and cementing synergies.
Søgaard noted that the year saw Better Collective continue its strife to become the “Leading Digital Sports Media Group.” The group delivered strongly on revenues and operating earnings and is poised to do just as well if not better in 2023.
Søgaard pointed out that the FIFA World Cup greatly benefited the company, which began preparing for the event many months ahead.
The CEO noted that he is very optimistic about 2023.
After the overwhelmingly good start to January, I look forward even more to 2023. January was boosted by the Ohio launch – giving us our best month ever – with revenues of >37 mEUR – implying growth of >40%, despite tough comparisons to the New York launch in January 2022, where we doubled the revenue from 2021.
Jesper Søgaard, CEO, Better Collective
Søgaard concluded that he would like to round off 2022 by thanking all his dedicated colleagues and partners for their hard work.
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