Better Collective drops revenue expectation for FY 2024
Affiliate releases trading update explaining decision to downgrade guidance made due to lower activity from US partners
Ahead of the publication of its Q3 report, Better Collective has adjusted its financial guidance for full year 2024, decreasing its revenue expectation from €395m to €425m to between €355m and €375m (£296m-£313m) following an assessment of preliminary performance for the third quarter.
The downgrade came mainly as a result of lower-than-expected activity from its US partners, Better Collective said.
This led the affiliate to update its preliminary unaudited numbers for Q3 2024 to €81m and EBITDA (before special items) to €22m.
In the light of Better Collective’s assessment for Q3 – which included the first six weeks of high season in the US – for its full-year 2024 guidance, the firm has changed its EBITDA (before special items) from €130m-€140m to €100m-€110m.
Net debt to EBITDA remains below €3m, while expected revenue now comes in at €355m to €375m, having previously been set at between €395m and €425m for the year.
Better Collective also noted it expects activity in the Brazilian market to slow down ahead of its market launch in January 2025.
However, the affiliate added that it was confident in the long-term potential growth of both Brazil and the US markets.
In the update, Better Collective stated that following “large acquisitions and the market outlook” the group is looking to undertake a streamlining process to “identify and leverage synergies” and “optimise the organisation accordingly”.
The company said this would generate more than €50m in annualised operational cost savings, and confirmed the initiatives will be implemented over the coming months and to full effect in 2025.
Jesper Søgaard, Better Collective CEO and co-founder, explained: “Since 2017, Better Collective has grown significantly both organically and through 35 acquisitions expanding our team while adding increased complexity to our organisation.
“As external market conditions shift, it’s important for us to recalibrate our spending and investment strategies to ensure sustainable long-term success.”
He added: “We are currently implementing adjustments that will better prepare us for the future and I am confident that Better Collective will emerge even stronger following this exercise.
“We operate in a market with strong underlying growth, despite being subject to volatility, and we are well-equipped to adapt and are strategically positioned to sustain our growth in the future.”
Better Collective is set to release its Q3 figures on November 13.
The affiliate bought AceOdds in May for €45m and completed the acquisition of Playmaker Capital in February.