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Better Collective A/S experienced a tough opening to 2025 trading due to commercial disruptions in Brazil and the continued media adjustments in North American markets.
Despite the downturn, the Copenhagen-and-Stockholm listed media group reaffirmed its full-year 2025 guidance, signalling confidence in the financial recovery of its business, which prioritises cost savings in 2025.
Corporate Revenue for the three months to 31 March fell to €83m, down 13% from €95m in Q1 2024. Group EBITDA before special items dropped 24% to €22m, as margins narrowed to 27%.
Headline results saw Better Collective’s Q1 profits halved to €3.6m (Q12024: €7.6m) as total new depositing customer (NDCs) referred by Better Collective to customers in Q1 dropped by 30% to 316,000.
Brazil: Tough Debut
Brazil officially launched its regulated market on 1 January 2025. While the transition delivered €10m in Q1 revenue, increased activities came at a cost, in which Better Collective attributes a €7m direct EBITDA hit from Brazil’s adjustments.
Bets media with legacy revenue share deals replaced by a tax-heavy structure and tighter advertising rules. Brazilian media and sports assets were impacted directly by a€9m in delayed payments from local partners amid slow onboarding of new administrative frameworks.
Irrespective of a tough debut Co-CEO Jesper Søgaard said early signs remain promising for future growth: “We’re seeing solid migration and sustained wagering from historical users. The structural shift has temporarily affected margins, but Brazil is a high-potential market. We remain confident it will return to growth in 2026.”
Playmaker and BolaVIP assets continue to modify promotions and marketing as welcome bonuses were banned under the new regime, contributing to a slowdown in new depositing customers (NDCs).
However, a positive development saw higher retention of the Brazilian layer than expected, a factor Better Collective believes will pay off over the longer term amid a focus on revshare contracts activated from market launch.
North America adjustments continue
North American revenue dropped 32% year-on-year to €23m, largely due to the absence of another state launch replicating North Carolina, which had boosted Q1 2024.
Organic growth contracted 35%, with CPA deals and hybrid bonuses significantly lower than the previous year. North American activities contributed 28% of total group revenue and 19% of operating profit.
Subscription revenue grew 15%, while revenue share, now the primary vertical, continues its build-up, though earnings continue to be deferred into future quarters.
US media strategy is overseen by Co-CEO Christian Kirk Rasmussen, who stated:: “We’re building a healthier, more durable business in North America. While CPA revenue has cooled, our revenue share base is expanding steadily. This will provide better margins and cash flow visibility over time.”
Europe Flatlines
Revenue across Europe and the rest of the world was broadly flat at €60m (0%). Organic growth fell 8% due to the Brazilian drag, though several legacy markets delivered stable contributions. Europe remains the group’s core profit segment, accounting for 72% of revenue and providing an EBITDA contribution of €18m.
The Publishing unit, which includes affiliate-led and owned media brands, posted €58m in revenue (down 13%), while Paid Media fell 14% to €24.6m. Publishing margins stood at 29%, while Paid Media returned 22%.
Søgaard pointed to the company’s strategic pivot: “We’ve transitioned from a geographically structured business to one aligned by product lines. This is helping us reduce duplication, scale faster, and sharpen operational execution globally.”
Cost Controls Come to Play
Better Collective is pressing ahead with its October 2024 cost efficiency programme, targeting €50m in annual savings. Q1 saw group costs fall €5m (8%), with adjusted savings of €9m when accounting for FX and M&A factors. Over €5m in reductions came from staffing and operational costs.
CFO Flemming Pedersen said: “We’re seeing strong early returns from our efficiency drive. These aren’t just short-term savings — this is a structural reset of our cost base to align with a more scalable business model.”
Cash flow from operations before special items totalled €21m, with a 93% cash conversion rate. The group ended the quarter with €90m in capital reserves, including €25m in cash and €65m in undrawn bank facilities. Net interest-bearing debt stood at €248m, with leverage at 2.33x EBITDA.
Shifts on leadership & portfolio
In April, the company implemented a new Co-CEO structure. Jesper Søgaard continues to oversee external strategy and investor engagement, while Christian Kirk Rasmussen leads innovation, operations, and business development. Former Bain & Co partner Sofie Ejlersen also joined as Chief Operating Officer to execute the group’s transformation plan.
Operationally, the company has restructured around three global business units – Publishing, Paid Media, and Esports, the latter of which will be reported as a standalone division from Q2 onwards.
Management also streamlined its “House of Brands” portfolio to focus on core assets including Action Network, BolaVIP, HLTV, FUTBIN, and AceOdds.
On the capital front, Better Collective completed a €10m share buyback in April and launched a new €10m programme to be executed by the end of August.
Guidance Intact
Management reaffirmed full-year 2025 guidance of revenue of €320–350mand EBITDA before special items of €100–120m. FY2025 is expected to maintain Free cash flow of €55–75m.
Better Collective’s longer-term targets remain unchanged, including an EBITDA margin before special items of 35–40% by 2027.
Co-CEO Søgaard concluded: “This is a transitional year shaped by regulatory friction and market recalibration. But our fundamentals are strong. We are leaner, more focused, and structured to scale. We remain on track to deliver against our full-year targets.”
