Better Collective AS has upgraded its full-year 2022 guidance as the business hits its primary target of generating $100m from US activities.
Publishing a Q4 trading update, the Stockholm-listed media publisher registered group revenues of €86m (+63%). Headline growth mirrors the continued expansion of Better Collective’s US media network, which generated Q4 revenues of €34m (+71%).
Period growth reflected “a record-breaking quarter for Better Collective driven by a strong and broadly based performance combined with an extraordinarily well performing World Cup and a solid launch of regulated sports betting in the US state, Maryland.”
Providing a full-year outlook, Better Collective expects FY2022 revenues to stand at €269m, up 52% on 2021 comparative results of €177m.
Full-year targets are underscored by Better Collective’s US media unit achieving its headline target of generating $101m, which was outlined following the M&A of The Action Network in 2021.
As such, Better Collective upgrades its FY2022 EBITDA forecast to stand at €85m (FY2021: €39m) – as results account for a €35m EBITDA contribution recorded during Q4 trading.
Of significance, Better Collective cities that FY2022 earnings will absorb “a larger move of 14.7m from upfront payments (CPA) to future revenue share in the US’– above its previous of >€10m revealed in Q3.”
FY2022 original outlook had assumed that US activities would only consist of upfront cost-per-acquisition (CPA) payments.
During H2, Better Collective reversed the majority of US media deals towards a rev-share basis which saw the group account for a higher than anticipated €14.7m impact.
Better Collective will maintain its rev-share model in the US, in which it believes that it will benefit from “future growth, less seasonality, and better long-term sportsbook partnerships.”
Better Collective will announce its audited Q4 numbers on 21 February after market close.