Better Collective’s revenue in the marketing-affiliate sector was primarily generated from revenue share affiliation, bringing in €11.8m, a slight decrease of 0.2% compared to the previous year. Despite record wagering activity on revenue share accounts, the majority of bets had low margins, resulting in a slight decline in the amount distributed to Better Collective. If margins had been at average levels, an additional €2m could have been earned. Better Collective’s CEO, Jesper Søgaard, expressed excitement about activity returning to pre-Covid levels after a period of reduced activity due to sports calendar changes.
The cost-per-acquisition affiliation brought in an additional €2.5m, an increase of 0.5%. However, while these remain the top two sources of revenue, their share of the overall revenue decreased as non-affiliate sources became more prominent. Subscription revenue saw significant growth of 23.2%, amounting to €1.6m, while other revenue increased by 54.6% to reach €2.4m.
Direct costs related to revenue amounted to €2.4m, a 25.7% increase, and staff costs totaled €5.4m, a 3.4% increase. Depreciation costs increased by 58% year-on-year, reaching €324,000, while other costs decreased by 30.7%, amounting to €1.9m. These factors resulted in an operating profit of €8.0m, a growth of 17.6%. After considering amortisation costs of €6.6m, Better Collective’s operating profit before special items reached €6.6m, a 20.0% increase.
With the inclusion of special items, the affiliate’s income increased to €6.7m. After accounting for a net financial loss of €126,000, which was significantly less than the previous year, the pre-tax profit totaled €6.5m, a substantial growth of 45.8%. Better Collective paid €1.7m in tax, resulting in a final profit of €4.9m, a robust increase of 49.3% compared to the previous year.
Jesper Søgaard stated that the results over the past six months have aligned with expectations set at the beginning of the pandemic. The company maintained its full-year financial guidance, demonstrating effective management during challenging times.
Better Collective recently announced the completion of its acquisition of pay-per-click specialist Atemi Group for £40m (€44.1m/$51.8m). This acquisition allows Better Collective to enhance its presence in the marketing-affiliate field and social media, leveraging Atemi Group’s expertise as an approved advertiser. The CEO highlighted the acquisition as a crucial step towards their goal of becoming the leading sports betting aggregator globally. The acquisition positions Better Collective as the leader in customer acquisition for online operators, delivering premium traffic and attracting high-intent players.
In the first half of 2020, Better Collective experienced a year-on-year increase in revenue and net profit, despite an 18% decline in new depositing customers due to the suspension of major sports events.
