Better Collective Reports Record Revenue Growth in Q1 with Focus on M&A Strategy and AdTech Platform
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Danish affiliate Better Collective has achieved impressive growth, with a record revenue increase of 30% in the first quarter ending on March 31, 2023. The company attributes this growth to successful launches in Latin America and US states, as well as strong underlying organic growth.
CEO Jesper Søgaard highlights the transition of Better Collective from a single business to an integrated collective of businesses as a factor contributing to their success. Mergers and acquisitions will continue to be part of their strategic approach.
During Q1, the company focused on its AdTech platform, which enables targeted marketing ads to millions of sports fans visiting their broad portfolio of sports brands. Better Collective has acquired multiple AdTech platforms, taking advantage of existing third-party platforms.
In terms of financial performance, Better Collective's revenue reached €88m, a significant increase from €67.4m in 2022. Operating profit before depreciation, amortisation, and special items grew by 44% to €33.2m. Publishing accounted for 67% of the revenue, while paid media comprised 33%.
Better Collective established various publishing partnerships during the period, including collaborations with Goal, Punch, and Wirtualna Polska. The most substantial growth was seen in paid media, with a 174% year-on-year increase in operating profit.
The company's revenue is primarily derived from established markets, with Europe and the rest of the world contributing 58% and the North American market contributing 42%. The EBITDA margin for both Europe/ROW and North America experienced significant growth.
While Better Collective's cost base increased to €55m, largely due to investments in the AdTech platform and LATHAM expansion, the company maintains its 2023 financial targets. These targets include a revenue range of €305m to €315m, EBITDA before special items of €95m to €105m, and net debt to EBITDA before special items below 2.0.