Record number of NDCs fuels Better Collective’s 44% revenue growth in Q4
Danish affiliate cites rapid US growth as key factor for growth, although net profit fell 21% to €17.3m for full-year 2021
An all-time high intake of NDCs was highlighted as the primary reason for Better Collective’s Q4 2021 growth as revenue surged 44%, or 25% organically, to €53m.
The Copenhagen-based affiliate revealed NDCs jumped 75% compared with Q4 2020 to over 267,000, while those customers on revenue share contracts were up 69% to 190,000.
Revenue for the 12 months January to December 2021 was up 94% to €177.1m, or organic growth of 25%, while EBITDA came in at €16.6m for Q4 and €55.8m for the year, up 46% on 2021. EBITDA margin before special items was 32%.
However, net profit after tax slumped 21% from €21.9m for the whole of 2020 to €17.3m last year.
US growth was pinpointed as a particular highlight for the affiliate which purchased the remaining 40% share in US-based sports betting affiliate RotoGrinders for €33m in November. The original 60% was purchased in 2019. The firm has also recently signed a deal with the New York Post to provide sports betting content through its Action Network subsidiary.
The US is already Better Collective’s single biggest market and approaching the same profitability as the European market despite its relative infancy.
Q4 delivered €19.9m in US revenue for the company which is just under 40% of total group revenue and 468% greater than in 2020 (€3.5m).
CEO Jesper Søgaard said: “Overall, our US business delivered prime results following the start of the NFL season and during the quarter US revenue reached €20m. For the full year 2022, we expect revenues above $100m from the US business.”
In the rest of the world, the group reported Q4 revenue was €32.9m, down 1% on the €33.2m recorded in the comparative period in 2020. The drop was blamed on legislative changes throughout Europe as well as a lower than average sports win margin thanks to customer-friendly results.
After Q4, Better Collective reported that January 2022 revenue more than doubled, of which 69% was organic growth, to €26m.
At the time of writing, Better Collective’s share price had slid 7% to SEK145, although the stock had been down as much as 13% when the Nasdaq Stockholm first opened.