Better Collective’s 2024 full-year and fourth-quarter results demonstrate the firm’s leading positions in Brazil and the US, according to Co-Founder and CEO Jesper Søgaard.
The gaming media group reported FY2024 revenue has risen to €371m, a 14% increase year-over-year, while recurring revenue was reported to be €231m. Operations in Brazil represent 19% of the total revenue reported throughout the year, showcasing the firm’s strong focus in the region.
“In just a few years, Brazil and the US have emerged as key growth drivers for our business, now representing more than half of our 2024 Group revenues,” Søgaard commented.
“We have strategically leveraged our strong organic and inorganic growth performance to secure leading positions in these growing markets for Better Collective. Despite the unforeseen challenges which arose in the second half of 2024 in those markets, our confidence in the long-term potential remains strong.”
While revenue for Q4 2024 increased by 13% to €96m, organic growth declined by 2%. The company has stated “that the US and Brazilian markets performed as anticipated, while the rest of the business – including Europe, Canada, and esports – grew in line with expectations”.
In January, Brazil launched a regulated betting market after legislation introduced by the country’s President was approved by Congress last year. Better Collective was already an active player in the region before the launch and predicted a financial slowdown ahead of January.
Recurring revenue for Q4’2024 was €63m, marking a growth of 28%. This made up 65% of group revenues, which was driven by organic revenue share growth, plus the acquisitions of Playmaker Capital and AceOdds.
EBITDA for FY2024 stood at €113m, up 2%, but the company’s debt remains 2x above its EBITDA.
Meanwhile, EBITDA for the quarter was €34m, up 14% and exceeded the recent guidance provided in connection with the downgrade in October. According to the firm, this trend was primarily driven by revenues ending in the high end of the range, as well as its cost-efficiency programme being implemented faster than expected.
In addition to seeing growth in South America and Europe, the company highlighted progress made in esports. While esports has been steadily growing in popularity for some time, it has only recently intensified its relationship with the betting industry.
Better Collective acquired the e-football gaming community Futbin in 2022. At the time, the betting and gaming firm saw more than 100 million people visit its esports platforms every month – a figure that has continued to rise.
Søgaard said: “I am pleased with the growth we saw over the year in key areas, including our Europe, Canada, and South American businesses, as well as the advancements we made in our esports business.”
A tough year to follow
H1 2024 was highlighted as a difficult period to compete in the market, as the EUROs, Copa America and the North Carolina state launch all took place last summer.
Additionally, Better Collective predicts that the Brazilian market launch will provide several challenges, such as taxation and added costs on net gaming revenues, as well as expected customer churn. This has led the firm to estimate between a 50-70% decline in Brazilian revenue share income short term, which will impact EBITDA for 2025 by an estimated €35-50m.
On a more positive note, Better Collective expects growth in its European, esport, Canadian and South American businesses – excluding Brazil. The firm predicts this will give an EBITDA before special items growth boost of between €20-40 during 2025.
Søgaard concluded: “As we have progressed into 2025, our focus is on commercial execution, business development and capital allocation. Supported by our exceptional team and our leading House of Brands, we are well-positioned to seize the many opportunities ahead.”
