Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Better Collective AS (BTRCF, Financial) successfully navigated regulatory changes in Brazil, with player migration and post-regulation activity exceeding expectations.
- The company achieved significant cost savings, reducing expenses by approximately EUR9 million year over year in Q1, with a EUR50 million cost efficiency program on track.
- A strategic shift to a global management structure with three core business units (publishing, paid media, and eSports) aims to enhance scalability and operational efficiency.
- The company launched a new EUR10 million share buyback program, following a previous EUR10 million buyback earlier in the year.
- Better Collective AS (BTRCF) reported a record 450 million monthly visits across its platforms, indicating strong audience engagement and potential for alternative monetization strategies.
Negative Points
- Revenue declined by 14% compared to the previous quarter and 13% year over year, primarily due to regulatory changes in Brazil and tough comparables in the US.
- The absence of welcome bonuses in Brazil's new regulated environment slowed new customer acquisition, impacting NDC volumes.
- Lower marketing activity from US partners contributed to a EUR5 million revenue impact, reflecting challenges in the US market.
- EBITDA decreased by EUR7 million in the quarter, influenced by revenue-related impacts from Brazil and the US.
- The ongoing ban on welcome bonuses in Brazil poses a challenge for customer acquisition and market competitiveness.
Q & A Highlights
Q: What is keeping Better Collective from revising the underlying assumptions in the Brazilian market despite performing better than expected?
A: Jesper Soegaard, CEO, explained that while Q1 performance in Brazil was in line with expectations, there remains uncertainty due to the recent start of the soccer season and the absence of welcome bonuses. These factors, along with the challenge of offshore markets offering bonuses, affect market channelization and competitiveness. Therefore, they are cautious about revising assumptions until more stability is observed.
Q: Can you elaborate on the decline in New Depositing Customers (NDCs) and the underlying trend?
A: Jesper Soegaard noted that the decline in NDCs is partly due to the lack of welcome bonuses in Brazil, which is a significant trigger for new customer acquisition. In North America, the absence of new state launches, which previously drove NDCs, also contributed to the decline. Despite this, the company remains focused on attracting high-value customers and is pleased with the recurring revenue development.
Q: How is the US sports book environment evolving, and what impact does it have on Better Collective?
A: Jesper Soegaard stated that the US market is performing in line with expectations. The company has adjusted its organization to cater to the current market landscape and is focused on maintaining a strong market position. They anticipate opportunities with more states legalizing sports betting and igaming, which could change the competitive landscape.
Q: What are the expectations for the 2026 FIFA World Cup, and how might it impact Better Collective?
A: Jesper Soegaard expressed excitement about the 2026 FIFA World Cup, which is expected to be the biggest betting event ever, especially since it will be hosted in North America. This presents a significant opportunity for Better Collective, as they anticipate increased activity in their core markets of Europe, North America, and South America.
Q: What is the potential for further share buybacks beyond the initial EUR10 million program?
A: Flemming Pedersen, CFO, mentioned that while the board has approved a new EUR10 million buyback program, they are cautious due to market uncertainties, particularly in Brazil. They will assess the situation as it evolves and cannot provide further guidance at this time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
