FULLTEXT DEL 2 AV 3
Årsredovisning 2023
Annual report Page 62
Environmental
metrics
The GHG emissions accounting is based on the interna-
tional standard; A Corporate Accounting and Reporting
Standard, developed by the Greenhouse Gas Protocol
Initiative (GHG Protocol). The GHG Protocol is the most
widely used and recognized international standard for
measuring greenhouse gas emissions on a company
level, and is the basis for the ISO standard 14064-I.
The input is based on consumption data from internal
and external sources, which has then been converted
into tons CO2 equivalents (tCO2e) using generic and/or
specific emission factors. The carbon footprint appraisal
is derived from a combination of our own data collection
and data computation by Carbon Footprint’s analysts.
CO₂ emissions scope 1
Scope 1 comprises CO₂ emissions from heating using oil
and gas refrigerants to cool the crafting facilities and
from the usage of company cars.
CO₂ emissions scope 2
Scope 2 comprises CO₂ emissions from heating and
electricity supplied by external suppliers.
CO₂ emissions scope 3
Scope 3 comprises CO₂ emissions from business travel
by public transportation including flights, working from
home and employee commutes, as well as district heat-
ing distribution and electricity transmission and distri-
bution. Due to the COVID-19 pandemic, we travelled sig-
nificantly less in 2020 and 2021.
CO₂ emissions per average
FTE CO₂ emissions per employee (tons/average FTW) is
calculated on the basis of the total amount of CO₂ emis-
sions (tons ) and the average number of full time em-
ployees (FTE).
CO₂ emissions per mEUR revenue
CO₂ emissions per mEUR revenue (tons/mEUR revenue)
are calculated based on the total amount of CO₂ emis-
sions (tons) and the revenue in m EUR as stated in the
annual accounts 2023.
The overall increase in CO₂ emissions has risen com-
pared to previous years due to multiple mergers and ac-
quisitions, a larger number of employees, an increased
number of offices globally, and a more detailed level of
reporting. These factors have led to increased emissions
across all scopes.
Environmental Unit Target 2023 2022 2021 2020 2019
CO₂ e, scope 1 Metric tons 71.40 10.00 73.88 73.54 13.96
CO₂ e, scope 2 Metric tons 247.40 50.32 70.09 49.99 215.14
CO₂ e, scope 3 Metric tons 2,596.10 1,278.34 346.42 176.88 730.14
Total tons of CO₂e Metric tons 2,914.90 1,338.66 490.39 300.41 959.24
Tons of CO₂e per employee Times 2.33 1.52 0.77 0.72 2.92
Tons of CO₂e per mEUR turnover Times 8.92 4.97 2.77 3.30 15.76
===== SIDA 63 =====
Annual report Page 63
Assessment by scope
and source activity
Flights
Report from travel provider with manual additions of di-
rects bookings.
Home-workers
Employee survey, 35% response rate. Apportioned to
account for the employees which did not respond.
Commuting
Employee survey, 35 % response rate. Apportioned to
account for the employees which did not respond.
Hotel stays
Report from travel provider with manual additions of di-
rects bookings.
Rail, taxi, bus travels and hire cars
Based on cost and distance.
Electricity transmissions & distribution
Primarily utility bills. For the sites where electricity con-
sumption information was not available, but other sites
are located within the same country with a complete da-
taset, this was apportioned based on employee numbers
at the site with the complete dataset and used the num-
ber of staff working at the site.
Purchased goods and services
GHG emissions associated with the Group’s purchase of
goods and services, are calculated as
the amount of direct cost including VAT associated with
a specific type.
Water (and waste water)
Utility bills for all but one office (calculated based on per
person consumption in nearby office).
Assessment by scope and
source activity (tCO2e) 2023 2022 2021 2020 2019
Scope 1 Site gas 6.50 9.43 67.50 65.68 1.84
Refrigerants 22.00 - - - -
Company car travel 42.90 0.57 6.38 7.86 12.12
Scope 1 total 71.40 10.00 73.88 73.54 13.96
Scope 2 Electricity generation 173.60 50.32 66.77 49.99 215.14
Heat fuel 42.00 - - - -
District heating generation 31.80 - 3.32 - -
Scope 2 total 247.40 50.32 70.09 49.99 215.14
Scope 3 Flights 1,948.10 915.48 164.38 126.67 711.84
Home-workers 65.50 144.68 103.69 42.39 -
Commuting 501.30 198.47 62.52 - -
Rail travel 7.40 3.74 8.81 2.34 3.24
Taxi travel 20.00 5.36 1.43 1.81 1.68
Bus travel 3.10 3.64 0.08 0.01 1.01
Hotel accommodation 42.40 - - -
Electricity transmission & distri-
bution - 4.76 5.34 2.52 12.37
District heating distribution - - 0.17 - -
Purchased goods and services 8.30 1.60 - - -
Company electric vehicles
(charged off-site) - 0.61 - - -
Scope 3 total 2,596.10 1,278.34 346.42 176.88 730.14
Total 2,914.90 1,338.66 490.39 300.41 959.24
===== SIDA 64 =====
Annual report Page 64
EU Taxonomy
KPI for revenue
Better Collective’s main activities within sports media
and entertainment are excluded from the taxonomy un-
der 13 .1 Creative, arts and entertainment activities. To
ascertain whether Better Collective has any other eco-
nomic activities which could be eligible for the taxon-
omy, the group has made an analysis of the business
which has not returned any other economic acti vities
that are eligible under the taxonomy.
Better Collective thus reports no eligible revenue for any
eligible activities.
KPI for CAPEX
CAPEX is calculated as the 'Addition of tangible and in-
tangible assets', which is generated from note 12 and 14
of the consolidated financial statements. Included in the
figures is the value from leasing of office buildings (Cap-
italized under IFRS16).
KPI for OPEX
Better Collective has made an analysis of OPEX which
has not returned any economic activities that are eligi-
ble under the taxonomy.
Substantial contributions % Do no significant harm (Y/N)
Revenue
Absolute
Revenue
tEUR
Proportion
of Revenue
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and ecosys-
tems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy
aligned
Revenue Category
Taxonomy aligned activities -
none 0 0%
Taxonomy eligible but not
aligned activities - none 0 0%
Taxonomy non-eligible activi-
ties 326,686 100%
Total 326,686 100% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
===== SIDA 65 =====
Annual report Page 65
Substantial contributions % Do no significant harm (Y/N)
CAPEX
Absolute
CAPEX
tEUR
Proportion
of CAPEX
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy
aligned
CAPEX Category
Taxonomy aligned activities -
none 0 0%
Taxonomy eligible but not
aligned activities 17,410 23%
Taxonomy non-eligible activi-
ties 57,326 77%
Total 74,736 100% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Substantial contributions % Do no significant harm (Y/N)
OPEX
Absolute
OPEX tEUR
Proportion
of OPEX
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources
Circular
economy Pollution
Biodiversity
and
ecosystems
Minimum
safeguards
Taxonomy
aligned
OPEX Category
Taxonomy aligned activities -
none 0 0%
Taxonomy eligible but not
aligned activities - none 0 0%
Taxonomy non-eligible activi-
ties 215,605 100%
Total 215,605 100% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
===== SIDA 66 =====
Annual report Page 66
Annual report Page 66
Statements
===== SIDA 67 =====
Annual report Page 67
Statement by
management
The Board of Directors and the Executive Board have to-
day discussed and approved the annual report of Better
Collective A/S for 2023.
The annual report has been prepared in accordance with
International Financial Reporting Standards as adopted
by the EU and additional requirements of the Danish Fi-
nancial Statements Act.
It is our opinion that the consolidated financial state-
ments and the parent company financial statements
give a true and fair view of the financial position of the
group and the parent company at December 31, 202 3
and of the results of the group’s and the parent com-
pany’s operations and cash flows for the financial year
January 1 – December 31, 2023.
Further, in our opinion, the management’s review gives
a fair review of the development in the group’s and the
parent company’s activities and financial matters, re-
sults of operations, cash flows and financial position as
well as a description of material risks and uncertainties
that the group and the parent company face.
In our opinion, the annual report for the financial year
January 1 – December 31, 2023 with the file name bet-
tercollective-2023-12-31-en.zip , is prepared, in all mate-
rial respects, in compliance with the ESEF Regulation.
We recommend that the annual report be approved at
the annual general meeting.
Copenhagen, March 20, 2024
Executive Management
Jesper Søgaard
CEO & Co-founder
Christian Kirk Rasmussen
COO & Co-founder
Executive Vice President
Flemming Pedersen
CFO
Executive Vice President
Board of Directors
Jens Bager
Chair
Therese Hillman
Vice Chair
Britt Boeskov
Todd Dunlap
Petra von Rohr
Leif Nørgaard René Rechtman
===== SIDA 68 =====
Annual report Page 68
Independent Auditors’
Report
To the shareholders of
Better Collective A/S
Opinion
We have audited the consolidated financial statements
and the Parent Company financial statements of Better
Collective A/S for the financial year January 1 – Decem-
ber 31, 2023, which comprise income statement, state-
ment of comprehensive income, balance sheet, state-
ment of changes in equity, cash flow statement and
notes, including accounting policies, for the Group and
the Parent Company. The consolidated financial state-
ments and the parent company financial statements are
prepared in accordance with IFRS A ccounting Stand-
ards as adopted by the EU and additional requirements
of the Danish Financial Statements Act.
In our opinion, the consolidated financial statements
and the parent company financial statements give a true
and fair view of the financial position of the Group and
the Parent Company at December 31, 2023 and of the
results of the Group's and the Parent Company's opera-
tions and cash flows for the financial year January 1– De-
cember 31, 2023 in accordance with IFRS Accounting
Standards as adopted by the EU and additional require-
ments of the Danish Financial Statements Act.
Our opinion is consistent with our long -form audit re-
port to the Audit Committee and the Board of Directors.
Basis for opinion
We conducted our audit in accordance with Interna-
tional Standards on Auditing (ISAs) and additional re-
quirements applicable in Denmark. Our responsibilities
under those standards and requirements are further de-
scribed in the "Auditor's responsibilities for the audit of
the consolidated financial statements and the Parent
Company financial statements" (hereinafter collectively
referred to as "the financial statements") section of our
report. We believe that the audit evidence we have ob-
tained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with
the International Ethics Standards Board for Account-
ants' International Code of Ethics for Professional Ac-
countants (IESBA Code) and the additional ethical re-
quirements applicable in Denmark, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements and the IESBA Code.
To the best of our knowledge, we have not provided any
prohibited non-audit services as described in article 5(1)
of Regulation (EU) no. 537/2014.
Appointment of auditor
On June 8, 2018, Better Collective A/S completed its In-
itial Public Offering and was admitted to trading and of-
ficial listing on Nasdaq Stockholm. Subsequent to Better
Collective A/S being listed on Nasdaq Stockholm, we
were initially appointed as auditor of Better Collective
A/S on April 25, 2019 for the financial year 2019. We
have been reappointed annually by resolution of the
general meeting for a total consecutive period of 5 years
up until and including the financial year 2023.
Key audit matters
Key audit matters are those matters that, in our profes-
sional judgement, were of most significance in our audit
of the financial statements for the financial year 202 3.
These matters were addressed during our audit of the
financial statements as a whole and in forming our opin-
ion thereon. We do not provide a separate opinion on
these matters. For each matter below, our description of
how our audit addressed the matter i s provided in that
context.
We have fulfilled our responsibilities described in the
"Auditor's responsibilities for the audit of the financial
statements" section, including in relation to the key au-
dit matters below. Accordingly, our audit included the
design and performance of procedures to respond to
our assessment of the risks of material misstatement of
the financial statements. The results of our audi t proce-
dures, including the procedures performed to address
the matters below, provide the basis for our audit opin-
ion on the financial statements.
Valuation of goodwill, domains and websites
Goodwill as well as domains and websites with indefinite
life are not subject to amortisation, but are reviewed an-
nually for impairment, or more frequently if any indica-
tors of impairment are identified. Valuation of goodwill,
domains and websites is signi ficant to our audit due to
the carrying values as well as the management judge-
ment involved in the assessment of the carrying values,
assessment of indefinite life and judgements involved in
impairment testing of the goodwill, domains and web-
sites.
Management prepares and reviews impairment tests for
each of the four identified cash -generating units. Im-
pairment testing is based on the estimated recoverable
amounts of the assets, which for this purpose are deter-
mined based on the value in use. The value in use is
based on a discounted cash flow (DCF) model and is cal-
culated for each cash-generating unit.
Refer to note 13 in the consolidated financial statements
and to note 13 in the financial statements for the Parent
Company.
How our audit addressed the above key audit matter
Our audit procedures included:
===== SIDA 69 =====
Annual report Page 69
• Assessment of the indefinite life assumption in-
cluding examination of data provided by manage-
ment and other sources as well as inquiries to
management and comparison with industry prac-
tice for comparable companies.
• Evaluation of main principles and assumptions for
Management’s identification and assessment of
CGUs.
• Evaluation of the value-in-use model used by Man-
agement, including consideration of the cash-gen-
eration units defined by Management and the rea-
sonableness of key assumptions and input based
on our knowledge of the business and industry to-
gether with available supporting evidence such as
available budgets and externally observable mar-
ket data related to interest rates.
• Evaluation of the disclosures provided by Manage-
ment in note 13 to the consolidated financial state-
ments and in note 13 to the Parent Company finan-
cial statements to applicable accounting standards.
Revenue recognition
The Group’s revenue consists of different revenue
streams, that either are recognised at a point in time or
over time. Further, the Group has agreements with op-
erators that include variable consideration, which is rec-
ognized based on expected performance f or the con-
tract period.
Revenue recognition and measurement of the related
variable consideration for the Group was a matter of
most significance in our audit due to the inherent risk in
the estimates and judgements which Management
makes in the normal course of business as to ti ming of
revenue and measurement of variable consideration.
For details on the revenue, reference is made to note 4
in the consolidated financial statements.
How our audit addressed the above key audit matter
Our audit procedures included:
• Test on a sample basis recognised revenue and re-
lated variable considerations to agreements with
operators.
• Data analytical procedures to test completeness,
accuracy, and timing of the recognition of revenue
and related variable consideration.
• Test of revenue accruals, revenue deferrals and
sales transactions, recognized before and after the
balance sheet date to contracts and other sup-
porting documentation to assess proper revenue
cut-off.
• Assessment whether the applied revenue recogni-
tion criteria follow the Group’s accounting policies
as disclosed in note 4 to the consolidated financial
statements.
• Evaluation of the disclosures provided by Manage-
ment in note 4 to the consolidated financial state-
ments to applicable accounting standards.
Accounting for acquisitions
The Group has in 2023 completed five business combi-
nations. Management has determined the fair value of
the identifiable assets and liabilities acquired. The total
consideration for the five business combinations
amounts to EUR 115 million.
Due to the significant level of management judgement
involved in the estimation of the contingent considera-
tion and estimating the fair value of especially the intan-
gible assets acquired, we considered the accounting for
acquisitions of most significance in our audit.
For details on the acquisitions, reference is made to note
22 in the consolidated financial statements.
How our audit addressed the above key audit matter
Our audit procedures included:
• Assessment of the assumptions and methodology
applied by management to calculate the fair value
of intangible assets acquired as well as the contin-
gent consideration. We have considered the ap-
proach taken by Management, assessed key as-
sumptions, and obtained evidence for the explana-
tions provided, by comparing key assumptions to
market data, where available, underlying account-
ing records, past performance of the acquired busi-
nesses and Management’s forecasts supporting the
acquisitions.
• Assessment of the adequacy of the disclosures in
note 22 related to the acquisitions, including the fair
value of acquired intangible assets, compared to
applicable accounting standards.
Statement on the Management’s review
Management is responsible for the Management's re-
view.
Our opinion on the financial statements does not cover
the Management's review, and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the Management's review
and, in doing so, consider whether the Management's re-
view is materially inconsistent with the financial state-
ments or our knowledge obtained du ring the audit, or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the
Management's review provides the information required
by relevant law and regulations.
===== SIDA 70 =====
Annual report Page 70
Based on the work we have performed, we conclude
that the Management's review is in accordance with the
financial statements and has been prepared in accord-
ance with the requirements of relevant law and regula-
tions. We did not identify any material misstatement of
the Management's review.
Management’s responsibilities for the
financial statements
Management is responsible for the preparation of con-
solidated financial statements and parent company fi-
nancial statements that give a true and fair view in ac-
cordance with IFRS Accounting Standards as adopted
by the EU and additional requirements of the Danish Fi-
nancial Statements Act and for such internal control as
Management determines is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is re-
sponsible for assessing the Group's and the Parent Com-
pany's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and us-
ing the going concern basis of accounting in preparing
the financial statements unless Management either in-
tends to liquidate the Group or the Parent Company or
to cease operations, or has no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance as to
whether the financial statements as a whole are free
from material misstatement, whether due to fraud or er-
ror, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assur-
ance, but is not a guarantee that an audit conducted in
accordance with ISAs and additional requirements ap-
plicable in Denmark will always detect a material mis-
statement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on
the basis of the financial statements.
As part of an audit conducted in accordance with ISAs
and additional requirements applicable in Denmark, we
exercise professional judgement and maintain profes-
sional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstate-
ment of the financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve col-
lusion, forgery, intentional omissions, misrepresen-
tations or the override of internal control.
• Obtain an understanding of internal control rele-
vant to the audit in order to design audit proce-
dures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the
effectiveness of the Group's and the Parent Com-
pany's internal control.
• Evaluate the appropriateness of accounting poli-
cies used and the reasonableness of accounting es-
timates and related disclosures made by Manage-
ment.
• Conclude on the appropriateness of Management's
use of the going concern basis of accounting in pre-
paring the financial statements and, based on the
audit evidence obtained, whether a material uncer-
tainty exists related to events or conditions that
may cast significant doubt on the Group's and the
Parent Company's ability to continue as a going
concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our au-
ditor's report to the related disclosures in the finan-
cial statements or, if such disclosures are inade-
quate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the
date of our auditor's report. However, future events
or conditions may cause the Group and the Parent
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and
contents of the financial statements, including the
note disclosures, and whether the financial
statements represent the underlying transactions
and events in a manner that gives a true and fair
view.
• Obtain sufficient appropriate audit evidence re-
garding the financial information of the entities or
business activities within the Group to express an
opinion on the consolidated financial statements.
We are responsible for the direction, supervision
and p erformance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, includ-
ing any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to com-
municate with them all relationships and other matters
that may reasonably be thought to bear on our inde-
pendence, and where applicable, actions taken to elimi-
nate threats or safeguards applied.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the consolidated fi-
nancial statements and the Parent Company financial
statements of the current period and are therefore the
===== SIDA 71 =====
Annual report Page 71
key audit matters. We describe these matters in our au-
ditor's report unless law or regulation precludes public
disclosure about the matter.
Report on compliance with the ESEF
Regulation
As part of our audit of the Consolidated Financial State-
ments and Parent Company Financial Statements of
Better Collective A/S, we performed procedures to ex-
press an opinion on whether the annual report of Better
Collective A/S for the financial year January 1 – Decem-
ber 31, 2023 with the file name bettercollective-2023-12-
31-en.zip, is prepared, in all material respects, in compli-
ance with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format
(ESEF Regulation) which inc ludes requirements related
to the preparation of the annual report in XHTML format
and iXBRL tagging of the Consolidated Financial State-
ments including notes.
Management is responsible for preparing an annual re-
port that complies with the ESEF Regulation. This re-
sponsibility includes:
• The preparing of the annual report in XHTML for-
mat;
• The selection and application of appropriate iXBRL
tags, including extensions to the ESEF taxonomy
and the anchoring thereof to elements in the taxon-
omy, for all financial information required to be
tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data
and the Consolidated Financial Statements pre-
sented in human readable format; and
• For such internal control as Management deter-
mines necessary to enable the preparation of an an-
nual report that is compliant with the ESEF Regula-
tion.
Our responsibility is to obtain reasonable assurance on
whether the annual report is prepared, in all material re-
spects, in compliance with the ESEF Regulation based
on the evidence we have obtained, and to issue a report
that includes our opinion. The nature, timing and extent
of procedures selected depend on the auditor’s judge-
ment, including the assessment of the risks of material
departures from the requirements set out in the ESEF
Regulation, whether due to fraud or error. The proce-
dures include:
• Testing whether the annual report is prepared in
XHTML format;
• Obtaining an understanding of the company’s
iXBRL tagging process and of internal control over
the tagging process;
• Evaluating the completeness of the iXBRL tagging
of the Consolidated Financial Statements including
notes;
• Evaluating the appropriateness of the company’s
use of iXBRL elements selected from the ESEF tax-
onomy and the creation of extension elements
where no suitable element in the ESEF taxonomy
has been identified;
• Evaluating the use of anchoring of extension ele-
ments to elements in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited
Consolidated Financial Statements.
In our opinion, the annual report for the financial year
January 1 – December 31, 202 3 with the file name bet-
tercollective-2023-12-31-en.zip is prepared, in all mate-
rial respects, in compliance with the ESEF Regulation.
Copenhagen, March 20, 2024
EY Godkendt Revisionspartnerselskab
CVR no. 30 70 02 28
Jan C. Olsen
State Authorised
Public Accountant
MNE no. mne33717
Peter Andersen
State Authorised
Public Accountant
MNE no. mne34313
===== SIDA 72 =====
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Annual report Page 72
Financial
Statements
===== SIDA 73 =====
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Consolidated statement
of profit and loss
Consolidated statement
of comprehensive income
Note tEUR 2023 2022
Profit for the period 39,835 48,075
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Fair value adjustment of hedges for the year - 483 0
Currency translation to presentation currency 1,318 - 905
Currency translation of non-current intercompany loans - 9,440 17,030
11 Income tax 0 - 3,747
Net other comprehensive income/loss - 8,605 12,379
Total comprehensive income/(loss) for the period, net of tax 31,230 60,454
Attributable to:
Shareholders of the parent 31,230 60,454
Note tEUR 2023 2022
3, 4 Revenue 326,686 269,297
Direct costs related to revenue 99,296 92,227
5, 6 Staff costs 88,921 68,639
7 Other external expenses 27,389 23,356
Operating profit before depreciation and amortization (EBITDA) and special items 111,080 85,075
14 Depreciation 3,958 2,321
Operating profit before amortization (EBITA) and special items 107,122 82,754
12 Amortization and impairment 24,283 12,347
Operating profit (EBIT) before special items 82,839 70,407
8 Special items, net - 1,948 - 54
Operating profit 80,891 70,353
9 Financial income 5,987 4,198
10 Financial expenses 28,868 9,587
Profit before tax 58,010 64,964
11 Tax on profit for the period 18,175 16,888
Profit for the period 39,835 48,075
Earnings per share attributable to equity holders of the company
Average number of shares 55,186,772 54,363,312
Average number of warrants - converted to number of shares 2,658,571 2,495,614
Earnings per share (in EUR) 0.74 0.88
Diluted earnings per share (in EUR) 0.70 0.85
===== SIDA 74 =====
Annual report Page 74
Consolidated balance sheet
Note tEUR 2023 2022
Assets
Non-current assets
12, 13 Intangible assets
Goodwill 255,074 183,942
Domains and websites 466,615 460,513
Accounts and other intangible assets 79,740 27,016
Total intangible assets 801,429 671,471
14 Property, plant and equipment
Right of use assets 15,575 6,269
Leasehold improvements, Fixtures and fittings, other plant and equipment 6,006 2,574
Total property, plant and equipment 21,582 8,843
Other non-current assets
Deposits 1,803 726
11 Deferred tax asset 7,236 9,165
Total other non-current assets 9,039 9,891
Total non-current assets 832,050 690,204
Current assets
15 Trade and other receivables 48,954 53,179
Corporation tax receivable 2,252 6,423
Prepayments 4,250 3,926
20 Other current financial assets 6,804 0
20 Cash 43,552 31,497
Total current assets 105,812 95,025
Total assets 937,862 785,229
Note tEUR 2023 2022
Equity and liabilities
16, 17 Equity
Share Capital 554 551
Share Premium 274,580 272,550
Currency Translation Reserve 15,055 23,177
Hedging reserves - 483 0
Treasury Shares - 21,057 - 7,669
Retained Earnings 166,624 124,307
Total equity 435,273 412,917
Non-current Liabilities
20 Debt to credit institutions 248,657 201,708
19 Lease liabilities 13,326 4,962
11 Deferred tax liabilities 84,670 78,167
20 Other long-term financial liabilities 52,443 22,407
Total non-current liabilities 399,096 307,244
Current Liabilities
Prepayments received from customers and deferred revenue 4,262 8,023
18 Trade and other payables 27,838 22,252
Corporation tax payable 6,754 5,221
20 Other financial liabilities 61,938 26,865
20 Debt to credit institutions 0 1,055
19 Lease liabilities 2,702 1,653
Total current liabilities 103,493 65,068
Total liabilities 502,589 372,312
Total Equity and liabilities 937,862 785,229
===== SIDA 75 =====
Annual report Page 75
Consolidated statement of changes in equity
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As of January 1, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917
Result for the period 0 0 0 0 0 39,835 39,835
Fair value adjustment of
hedges 0 0 0 - 483 0 0 - 483
Currency translation
to presentation currency 0 0 - 8,122 0 0 0 - 8,122
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 - 8,122 - 483 0 0 - 8,605
Total comprehensive
income for the year 0 0 - 8,122 - 483 0 39,835 31,230
Transactions with owners
Capital Increase 3 2,030 0 0 0 0 2,033
Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375
Disposal of treasury shares 0 0 0 0 0 0 0
Share based payments 0 0 0 0 0 2,495 2,495
Transaction cost 0 0 0 0 - 13 - 12 - 26
Total transactions with owners 3 2,030 0 0 - 13,389 2,482 - 8,874
At December 31, 2023 554 274,580 15,055 - 483 - 21,057 166,624 435,273
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As of January 1, 2022 546 267,873 10,798 0 - 8,074 73,705 344,848
Result for the period 0 0 0 0 0 48,075 48,075
Fair value adjustment of
hedges 0 0 0 0 0 0 0
Currency translation
to presentation currency 0 0 16,125 0 0 0 16,125
Tax on other
comprehensive income 0 0 - 3,747 0 0 0 - 3,747
Total other
comprehensive income 0 0 12,379 0 0 0 12,379
Total comprehensive
income for the year 0 0 12,379 0 0 48,075 60,454
Transactions with owners
Capital Increase 5 4,677 0 0 0 0 4,683
Acquisition of treasury shares 0 0 0 0 - 14,250 0 - 14,250
Disposal of treasury shares 0 0 0 0 14,656 842 15,498
Share based payments 0 0 0 0 0 1,713 1,713
Transaction cost 0 0 0 0 0 - 28 - 28
Total transactions with owners 5 4,677 0 0 406 2,526 7,615
At December 31, 2022 551 272,550 23,177 0 - 7,669 124,307 412,917
During the period no dividend was paid.
===== SIDA 76 =====
Annual report Page 76
Consolidated statement of cash flow
Note tEUR 2023 2022
Profit before tax 58,010 64,964
Adjustment for finance items 22,882 5,389
Adjustment for special items 1,947 54
Operating Profit for the period before special items 82,839 70,407
Depreciation and amortization 28,241 14,668
Other adjustments of non-cash operating items 2,581 1,690
Cash flow from operations
before changes in working capital and special items 113,661 86,765
21 Change in working capital 5,722 - 16,949
Cash flow from operations before special items 119,384 69,816
Special items, cash flow - 4,744 - 1,393
Cash flow from operations 114,639 68,423
Financial income, received 493 1,682
Financial expenses, paid - 10,712 - 5,666
Cash flow from activities before tax 104,420 64,439
Income tax paid - 15,411 - 16,239
Cash flow from operating activities 89,009 48,200
22 Acquisition of businesses - 57,282 - 14,337
Acquisition of intangible assets - 27,469 - 96,452
Acquisition of property, plant and equipment - 5,143 - 1,804
Sale of property, plant and equipment 3 16
Acquisition of other financial assets - 14,930 0
Change in other non-current assets - 1,427 - 55
Cash flow from investing activities - 106,248 - 112,632
Note tEUR 2023 2022
Repayment of borrowings - 1,486 - 215,993
Proceeds from borrowings 45,490 296,665
Lease liabilities - 2,814 - 1,274
Other non-current liabilities - 483 0
Capital increase 2,033 618
Treasury shares - 13,381 - 14,250
Transaction cost - 26 - 28
Warrant settlement, sale of warrants 0 0
Cash flow from financing activities 29,334 65,737
Cash flows for the period 12,095 1,306
Cash and cash equivalents at beginning 31,497 30,093
Foreign currency translation of cash and cash equivalents - 41 99
Cash and cash equivalents period end 43,552 31,497
Cash and cash equivalents period end
Cash 43,552 31,497
Cash and cash equivalents period end 43,552 31,497
===== SIDA 77 =====
Annual report Page 77
Cashflow statement – specifications
Note tEUR 2023 2022
Acquisition of business combinations:
22 Net Cash outflow from business combinations at acquisition - 57,282 0
Business Combinations
- deferred payments from current period 0 0
Deferred payments
- business combinations from prior periods 0 - 14,337
Total cash flow from business combinations - 57,282 - 14,337
Acquisition of intangible assets:
13 Acquisitions through asset transactions - 50,639 - 144,522
Deferred payments related to acquisition value - 494 29,408
Deferred payments
- acquisitions from prior periods - 9,745 - 121
Intangible assets with no cash flow effect 33,613 24,325
Other investments - 203 - 5,541
Total cash flow from intangible assets - 27,469 - 96,452
Note tEUR 2023 2022
Equity movements with cashflow impact
- from cash flow statement:
Capital increase 2,033 618
Treasury shares - 13,381 - 14,250
Transaction cost - 26 - 28
Total equity movements with cash flow impact - 11,374 - 13,661
Non-cash flow movements on equity:
New shares for M&A payments 0 4,065
Treasury Shares used for payments 0 15,498
Share based payments
- warrant expenses with no cash flow effect 2,495 1,713
Total equity movements with no cash flow impact 2,495 21,275
Total Transactions with owners
- Consolidated statement of changes in equity - 8,879 7,615
===== SIDA 78 =====
Annual report Page 78
1. Accounting policies 79
2. Significant accounting judgements, estimates and assumptions. 81
3. Segment information 83
4. Revenue specification 84
5. Staff and other costs 85
6. Share-based payment plans 87
7. Fees paid to auditors appointed at the annual general meeting 89
8. Special items 90
9. Finance income 91
10. Finance costs 91
11. Income tax 92
12. Intangible assets 94
13. Goodwill and intangible assets with indefinite life 96
14. Property, plant and equipment 98
15. Trade and other receivables 99
16. Issued capital and reserves 100
17. Distributions made and proposed 101
18. Trade and other payables 101
19. Leasing 102
20. Financial risk management objectives and policies 104
21. Change in working capital 108
22. Business combinations 108
23. Related party disclosures 111
24. Group information –subsidiary information 112
25. Other contingent liabilities 114
26. Events after the reporting date 114
Notes to the consolidated
financial statements
===== SIDA 79 =====
Annual report Page 79
Notes
1. Accounting policies
General
The financial statements section of the annual report for the period January 1 – December 31, 2023 comprises both the
consolidated financial statements of Better Collective A/S and its subsidiaries (the Group or the Better Collective Group)
and the separate parent company financial statements (the Parent). The comparative figures cover the period January
1 – December 31, 2022.
Basis for preparation
The consolidated financial statements of Better Collective A/S have been prepared in accordance with IFRS Accounting
Standards as adopted by the EU and additional Danish disclosure requirements for listed companies. Better Collective
A/S is incorporated and domiciled in Denmark.
The Board of Directors and the Executive Board have discussed and approved the annual report for Better Collective
A/S on March 20, 2024. The annual report will be presented to the shareholders of Better Collective A/S for adoption at
the annual general meeting on April 22, 2024.
The accounting policies have been applied consistently during the financial year and for the comparative figures, except
for the scope of operating segments, “Other current assets” and financial instruments.
The scope of operating segments has been modified following changes in management responsibilities as from January
1, 2023. US has been renamed to North America (NA) and will now cover both USA and Canada. Canada was previously
included in the operating segment “Europe and RoW”. 2022 comparative information has been restated.
New financial reporting standards
All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the
financial year beginning on 1 January 2023 have been adopted. The implementation of these new or amended standards
and interpretations had no material impact on the financial statements. For standards implemented prospectively the
comparative figures are not restated.
New financial reporting standards not yet adopted.
The IASB has issued several new or amended standards and interpretations with effective date after December 31, 2023.
None of the standards are expected to have a significant effect for Better Collective A/S.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates.
However, this legislation does not apply to the Group as it has not had a consolidated revenue of more than EUR 750mil-
lion for two out of the last four years. Due to revenue expectations, an overall assessment was made, which concluded
that this will not have any material impact on the Group.
Presentation currency
The Group’s consolidated financial statements and parent financial statements are presented in Euro (EUR), and the
parent company’s functional currency is Danish Kroner (DKK). In general, rounding will occur and cause variances in
sums and percentages in the consolidated and parent company financial statements.
Foreign currencies
For each of the reporting entities in the Group, including subsidiaries and foreign associates, a functional currency is
determined. The functional currency is the currency used in the primary financial environment in which the reporting
entity operates. Transactions denominated in currencies other than the functional currency are foreign currency trans-
actions.
On initial recognition, foreign currency transactions are translated to the functional currency at the exchange rate on
the transaction date. Foreign exchange differences arising between the rate on the transaction date and the rate on the
date of settlement are recognized in profit or loss as financial income or financial expenses.
At the end of a reporting period, receivables and payables and other monetary items denominated in foreign currencies
are translated to the functional currency at the exchange rate on the balance sheet date. The difference between the
exchange rates on the balance sheet date and on the date the receivable or payable was recognized in the latest report-
ing period is recognized in profit or loss as financial income or financial expenses.
In the consolidated financial statements, the statements of comprehensive income of Group entities with a functional
currency other than EUR are translated at the exchange rate on the transaction date, and the balance sheet items are
translated at closing rates. An average exchange rate for each month is used as the exchange rate at the transaction
date in so far as this does not significantly distort the presentation of the underlying transactions. Foreign exchange
differences arising on translation to the EUR presentation currency are recognized in other comprehensive income (OCI)
in a separate translation reserve under equity. On disposal of a reporting entity, the component of other comprehensive
income relating to that particular reporting entity is reclassified to profit or loss. The Parent company has provided non-
current intercompany loans in USD in 2021 to fund acquisitions of assets and business combinations in US. Unrealized
exchange rate gains/losses and related tax impact related to these loans are recognized in Other Comprehensive Income
for the Group.
===== SIDA 80 =====
Annual report Page 80
Notes
1. Accounting policies (continued)
Basis for consolidation
The consolidated financial statements include the parent company Better Collective A/S and its subsidiaries.
Subsidiaries are entities over which the Better Collective Group has control. The Group has control over an entity when
the Group is exposed to or has rights to variable returns from its involvement in the entity and has the ability to affect
those returns through its power over the entity. Only potential voting rights considered to be substantive at the balance
sheet date are included in the control assessment. The Group re -assesses if it controls an investee if facts and circum-
stances indicate that there are changes to one or more of the elements of control. Consolidation of a subsidiary begins
when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary.
The consolidated financial statements are prepared by combining uniform items. On consolidation, intercompany in-
come and expenses, shareholdings, intercompany accounts and dividend as well as realized and unrealized profit and
loss on transactions between the consolidated companies are eliminated.
iXBRL reporting
Better Collective A/S has filed the Annual Report for 2023 in the European Single Electronic Format (ESEF), XHTML
format, that can be displayed in a standard browser. The primary statements and notes in the consolidated financial
statements are tagged using extensible Business Reporting Language (iXBRL), which complies with the ESEF taxonomy
included in the ESEF Regulation.
Accounting policies
Fair value measurement
The Group uses the fair value concept in connection with certain disclosure requirements and for recognition of deriva-
tive and business combinations . Fair value is defined as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date (“exit price”).
The fair value is a market-based and not an entity-specific measurement. The entity uses the assumptions that the mar-
ket participants would use for the pricing of the asset or liability based on the current market conditions, including risk
assumptions. The entity’s purpose of holding the asset or settling the liability is thus not taken into account when the
fair value is determined.
The fair value measurement is based on the principal market. If a principal market does not exist, the measurement is
based on the most advantageous market, i.e. the market that maximises the price of the asset or liability less transaction
and transport costs.
All assets and liabilities measured at fair value, or in respect of which the fair value is disclosed, are categorized into
levels within the fair value hierarchy based on the lowest level input that is significant to the entire fair value measure-
ment, see below:
Level 1: Quoted priced in an active market for identical assets or liabilities
Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly
Level 3: Inputs that are not based on observable market data (valuation techniques that use inputs that are not
based on observable market data)
Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet
date. (Fair Value Level 1)
Derivative financial instruments
Derivative financial instruments are recognized on the trade date and are measured at fair value. Positive and negative
fair values are included in other current receivables or other current payables in the statement of financial position.
Positive and negative fair values are only offset if the Group has a right and an intention to settle several derivative
financial instruments net (by means of settlement of differences). Fair value is determined based on generally accepted
valuation methods using available observable market data.
When entering into contracts for derivative financial instruments, an assessment is made of whether the instrument
qualifies for hedge accounting, including whether the instrument hedges recognize d assets and liabilities. Fair value
changes classified as and fulfilling the criteria for recognition as a fair value hedge are recognize d in the statement of
profit or loss together with changes in the value of the specific portion of the asset or liability that has been hedged.
Fair value changes in the part of the derivative financial instruments which is classified as and qualifies for recognition
as a future cash flow hedge and which effectively hedges against changes in the value of the hedged item are recognized
in other comprehensive income as a separate hedging reserve. When the underlying hedged item is realize d, any gain
or loss on the hedging transaction is transferred from equity and recognized together with the hedged item. Fair value
changes that do not meet the criteria for treatment as hedging instruments are recognize d on an ongoing basis in the
statement of profit or loss under financial items.
===== SIDA 81 =====
Annual report Page 81
Notes
1. Accounting policies (continued)
Business combinations (common-control)
The modified uniting-of-interest method is applied to vertical mergers in which the participating entities are subject to
the Parent’s control. Under this method, assets and liabilities of the participating entities are recognized at the amounts
at which they are recognized in the consolidated financial statements of the parent forming part of the merger. Vertical
mergers are recognized at the merger date without restatement of comparative figures.
Cash flow statement
The Cash Flow Statement shows the cash flows of the Group for the year, distributed on operating activities, investing
activities, and financing activities for the year, changes in cash and cash equivalents, and the cash and cash equivalents
at the beginning and the end of the year, respectively.
The cash flow effect of acquisitions of businesses is shown separately in cash flows from investing activities. Cash flows
from acquired businesses are recognized in the cash flow statement from the date of acquisition.
Cash flow from operating activities
Cash flows from operating activities are determined as profit for the year adjusted for noncash operating items, the
change in working capital and income tax paid.
Cash flow from investing activities
Cash flows from investing activities comprise payments in connection with the acquisition and sale of businesses, intan-
gible assets, plant and machinery and financial assets.
Cash flow from financing activities
Cash flows from financing activities comprise change in the size or composition of the Group’s share capital and related
costs as well as borrowing, repayment of interest-bearing debt, re-payment of lease liabilities, and payment of dividends
to shareholder.
Notes
2. Significant accounting judgements, estimates and assumptions
The preparation of the Group’s consolidated financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the accompanying
disclosures, as well as the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates co uld
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods. The key accounting judgements, estimates, and assumptions, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Manage-
ment based its assumptions and estimates on parameters available when the consolidated financial statements were
prepared. Existing circumstances and assumptions about future developments, however, may change due to uncertainty
about the situation in Ukraine, market changes or circumstances arising that are beyond the control of the Group. Such
changes are reflected in the assumptions when they occur.
Climate change and sustainability risks
To Better Collective, the key ESG/sustainability risks lie within the social and governance spaces and less within the
environment space. While minimizing emissions is an embedded part of the Group's targets, management does not
consider climate change to have a material impact on the accounting estimates and judgements prepared by manage-
ment in relation to the 2023 consolidated and parent company financial statements.
In preparing the consolidated financial statements for 2023, management has also considered the impact of social and
governance to the extent possible. As always, safer gambling is a key element in our sustainability efforts, as the focus
on safer gambling and being a responsible business is what grants us our social license to operate. As sports betting
becomes more widespread, more countries are amending or implementing new gambling laws and regulations. We have
processes for being continuously updated on regulation, and accounting estimates (e.g. estimate of fair value and value
in use) are based on information available to management. At 31 December 2023, it is assessed that social and govern-
ance risks have not had a material impact on accounting estimates.
===== SIDA 82 =====
Annual report Page 82
Notes
2. Significant accounting judgements, estimates and assumptions
(continued)
Business combinations
The Group is required to allocate the acquisition cost of entities and activities through business combinations on the
basis of the fair value of the acquired assets and assumed liabilities. The Group uses external and internal valuations to
determine the fair value. The valuations include management estimates and assumptions as to future cash flow projec-
tions from the acquired business and selection of models to compute the fair value of the acquired components and
their depreciation period. Estimates made by Management influence the amounts of the acquired assets and assumed
liabilities and the depreciation and amortization of acquired assets in profit or loss. Reference is made to note 22 of the
consolidated financial statements.
Goodwill, intangible assets with indefinite useful life and impairment
Goodwill and domain names and websites are expected to have an indefinite useful life and are therefore not subject to
amortization. Management believes that as long as content is being updated continuously and based on existing tech-
nology there is no foreseeable limit to the period on which the assets can generate revenues and cash flow from the
underlying business activities of the sportsbooks . Consequently, Management has assessed indefinite life of domain
names and websites similar to its peers in the i ndustry. Management reviews this assessment annually to determine
whether the indefinite life continues to be supportable.
Management reviews goodwill and domain names and websites for impairment at least once a year. This requires Man-
agement to make an estimate of the projected future cash flows from the continuing use of the cash-generating unit to
which the assets are allocated and also to choose a suitable discount rate for those cash flows. Management has assessed
that the cash generating units identified in 202 1 (Paid Media (Paid Media Europe & ROW) ), HLTV, US, Europe & ROW )
continue, and that the asset and business acquisitions of Skycon is included in Paid Media, Playmaker HQ is included in
US and Sporty Solutionz Private Limited(India), Digital Sport media I Norden AB, Torcedores.com and Tipsbladet ApS
are included in Rest of Better Collective, respectively. Performance and cash flows from domain names and websites
owned by the individual cash generating units are allocated and forms the basis for impairment . Reference is made to
note 13 of the consolidated financial statements.
If the events and circumstances do not continue to support a useful life assessment and the projected future cash flows
from the intangible assets is less than the assets’ carrying value, an impairment loss will be recognized . In addition,
Management will change the indefinite useful life assessment from indefinite to finite and this change will be accounted
for prospectively as a change in accounting estimate.
Revenue from agreements with variable components
The Group has agreements with customers that include variable revenue, e.g. agreements where the CPA and hybrid
deals value depends on the achievement of NDC targets . CPA revenue under these contracts is recognized with the
number of NDCs delivered and the estimated CPA value based on expected performance for the contract period.
Special items
Significant expenses and income, which Better Collective considers not part of ordinary business operations , are pre-
sented in the Income statement in a separate line item labelled ‘Special items’ in order to distinguish these items from
other income statement items, and provide a more transparent and comparable view of Better Collective’s ongoing
performance. Types of expenses and income included in special items include cost related to dual listing, M&A, adjust-
ments to Earn -out payments, cost related to re structuring, income from divestiture of non- strategic assets and cost
related to the Action Network Management Incentive Program. Reference is made to note 8 of the consolidated financial
statements and note 6 of the parent company financial statements.
Deferred tax
Management applies significant estimates when recognizing and measuring deferred tax assets. Deferred tax assets,
including the tax base of tax loss carryforwards, are recognized if it is assessed that there will be sufficient future taxable
income against which the temporary differences and unutilised tax losses can be utilised.
This assessment is based on budgets and business plans for the following years, including planned business initiatives.
Deferred tax assets are tested annually and are only recogniz ed if it is probable that future taxable profit will allow the
deferred tax asset to be recovered.
Contingent consideration
Contingent consideration resulting from business combinations is valued at fair value at the acquisition date as part of
the business combination. When the contingent consideration meets the definition of a financial liability, it is subse-
quently remeasured to fair value at each reporting date. The determination of the fair value is based on discounted cash
flows. The key assumptions take into consideration the probability of meeting the performance target (see Note 22
(Group) for details).
===== SIDA 83 =====
Annual report Page 83
Notes
3. Segment information
Better Collective reports on the geographical segments North America (NA) and Europe & Rest of World (ROW), meas-
uring and disclosing separately for Revenue, Cost and Earnings. The group also reports on the segments Publishing and
Paid Media.
Publishing and Paid Media
The Publishing business segment includes revenue from Better Collective’s proprietary online platforms and media part-
nerships where the online traffic is coming either directly or through organic search results, whereas Paid Media gener-
ates revenue through paid ad -traffic to our website s, thereby running on a significantly lower earnings margin. The
segment reporting includes these two segments. The performance for the Publishing and Paid Media Segments is pre-
sented in the below table:
Publishing Paid Media Group
tEUR 2023** 2022 2023 2022 2023** 2022
Revenue Share 120,776 83,750 41,049 17,868 161,825 101,618
CPA 40,590 55,398 63,371 63,757 103,960 119,155
Subscription 17,959 17,042 0 0 17,959 17,042
Other revenue 41,004 30,867 1,937 615 42,941 31,482
Revenue 220,328 187,057 106,358 82,241 326,686 269,297
Cost 139,685 115,376 75,920 68,846 215,605 184,222
Operating profit before depreciation,
amortization and special items 80,642 71,681 30,438 13,394 111,080 85,075
EBITDA-Margin before special items 37% 38% 29% 16% 34% 32%
Special items, net - 1,948 - 54 0 0 - 1,948 - 54
Operating profit
before depreciation and amortization 78,695 71,627 30,438 13,394 109,132 85,021
EBITDA-Margin 36% 38% 29% 16% 33% 32%
Depreciation 3,909 2,306 49 15 3,958 2,321
Operating profit before amortization 74,785 69,321 30,389 13,379 105,174 82,700
EBITA-Margin 34% 37% 29% 16% 32% 31%
Europe & ROW / North America
Better Collective has reported on the geographical segments North America and Europe & RoW (Rest of World), meas-
uring and disclosing separately for Revenue, Cost and Earnings. The scope of operating segments has been modified
following changes in management responsibilities as from January 1, 2023. US has been renamed to North America (NA)
and will now cover both USA and Canada. Canada was previously included in the operating segment “Europe and RoW”.
2022 comparative information has been restated.
The performance of the segments is monitored at the level of operating profit before amortiz ation and special items,
hence assets and liabilities for individual segments are not presented.
The performance for North America and Europe & ROW segments is presented in the below table:
Europe & RoW North America Group
tEUR 2023 2022* 2023** 2022* 2023** 2022
Revenue Share 136,211 90,874 25,614 10,745 161,825 101,618
CPA 49,173 54,061 54,788 65,094 103,960 119,155
Subscription 2,461 1,539 15,499 16,464 17,959 17,042
Other revenue 30,241 22,802 12,700 7,719 42,941 31,482
Revenue 218,085 169,275 108,600 100,022 326,686 269,297
Cost 137,902 115,620 77,703 68,602 215,605 184,222
Operating profit before depreciation,
amortization and special items 80,183 53,656 30,897 31,420 111,080 85,075
EBITDA-Margin before special items 37% 32% 28% 31% 34% 32%
Special items, net - 1,060 - 1,360 - 888 1,306 - 1,948 - 54
Operating profit
before depreciation and amortization 79,123 52,296 30,009 32,725 109,132 85,021
EBITDA-Margin 36% 31% 28% 33% 33% 32%
Depreciation 2,947 1,671 1,011 650 3,958 2,321
Operating profit before amortization 76,176 50,625 28,998 32,075 105,174 82,700
EBITA-Margin 35% 30% 27% 32% 32% 31%
*2022 figures have been restated for the transfer of Canada and renaming USA to North America (NA) (3,6 mEUR) and for Revenue Share and CPA because of the reclassification of upfront payments related to hybrid revenue share contracts impacting 5.9 mEUR.
**Reclassification has been made on 1,851 tEUR in 2023 figures for North America since publishing Q4 report. The effected lines are revenue share and Other. Recurring revenue has been adjusted accordingly.
===== SIDA 84 =====
Annual report Page 84
Notes
4. Revenue specification
In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition
(CPA), Subscription Revenue, Banner revenue/CPM (Cost per million impressions) and Other, as follows:
The Group has earned 92.5 mEUR (2022: 65.5 mEur) in revenues from one major customer, which represents 28 % of
the Group’s revenue (2022:24%). The revenue is related to all operating segments.
tEUR 2023** 2022*
Revenue type
Revenue Share 161,825 101,618
CPA 103,960 119,155
Subscription 17,959 17,042
Other revenue 42,941 31,482
Total revenue 326,686 269,297
%-split
Revenue Share 50 38
CPA 32 44
Subscription 5 6
Other revenue 13 12
Total 100 100
tEUR 2023** 2022*
Revenue category
Recurring revenue (Revenue share, Subscription, CPM) 191,118 127,573
CPA, Fixed Fees 135,385 140,436
Other 183 1,288
Total revenue 326,686 269,297
%-split
Recurring revenue 58 48
CPA, Fixed Fees 42 52
Other 0 0
Total 100 100
Accounting policies
Revenue
The Group’s revenue consists of four different revenue streams, that either are recognized at a point in time or
over time. Further, the Group has agreements with sportsbooks that include variable consideration, which is
recognized based on expected performance for the contract period.
Revenue share: In a revenue share model the Group receives a share of the revenues that a sportsbook has
generated from a player betting or gambling on their platform, the player initially having been referred from one
of the Group’s websites. Revenue is recogni zed at a point in time equal to the month that it is earned by the
respective sportsbook.
Hybrid revenue: Revenue recognized under the hybrid revenue model consists of upfront revenue share (one -
time upfront fee for each new referred player) and revenue share for the amount that aggregate revenue share
exceeds the aggregate upfront revenue share. Upfront reven ue share is recognized at a point in time equal to
the month in which the player referral is made. Revenue share is recognized once the aggregate revenue share
exceeds the upfront revenue share and is recognized at a point in time equal to the month that it is earned by
the respective sportsbook.
Cost per acquisition (CPA): For CPA deals, the sportsbook pays a one-time upfront fee for each referred player
who deposits money on their platform. Cost per acquisition consists of a pre -agreed rate with the sportsbook .
Revenue is recognized at a point in time equal to the month in which the deposits are made.
Subscription Revenue: Subscription revenue is subscription fees received by players who subscribe to services
provided by the Group’s websites, primarily in the US market. Subscription revenue is recogni zed over time as
the services under the subscription is delivered.
Other Revenue: Other revenue primarily includes revenue from sales of banners and other marketing fees from
customers related to the Group’s websites and is recognized when the service is delivered. Banner revenue can
both be CPM (Cost per million impressions) or based on direct fixed fee agreements with customers.
*2022 figures have been restated for the transfer of Canada and renaming USA to North America (NA) (3,6 mEUR) and for Revenue Share and CPA because of the reclassification of upfront payments related to hybrid revenue share contracts impacting 5.9 mEUR.
**Reclassification has been made on 1,851 tEUR in 2023 figures for North America since publishing Q4 report. The effected lines are revenue share and Other. Recurring revenue has been adjusted accordingly.
===== SIDA 85 =====
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Notes
5. Staff and other costs
tEUR 2023 2022
Wages and salaries 72,447 55,656
Pensions, defined contribution 3,894 3,168
Other social security costs 4,641 3,333
Share-based payments 2,510 1,935
Other staff costs 5,429 4,548
Total staff cost 88,921 68,639
Average number of full-time employees 1,252 878
Remuneration to Executive Management
Wages and salaries 1,592 1,512
Pensions, defined contribution 169 132
Other social security costs 6 0
Share-based payments 618 97
Total 2,385 1,741
Remuneration to Board of Directors
Wages and salaries 480 317
Share-based payments 0 0
Total 480 317
Accounting policies
Direct cost related to revenue
Direct cost related to revenue contains cost of running the websites and includes, content pro-
duction, domain name registration, domain hosting, and external development cost.
Staff cost
Staff cost include wages and salaries, including compensated absence and pension to the Com-
pany’s employees, as well as other social security contributions, etc. The item is net of refunds
from public authorities. Costs related to long term employee benefits, e.g. share-based payments,
are recognized in the period to which they relate.
Other external expenses
Other external expenses include the year’s expenses relating to the Company’s core activities,
including expenses relating to sale, advertising, administration, premises, bad debts, etc.
===== SIDA 86 =====
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Notes
5. Staff and other costs (continued)
Board & Committee Fees
tEUR
Jens
Bager
Klaus
Holse
Leif
Nørgaard
Petra
von Rohr
Therese
Hillman
Todd
Dunlap Rene Rechtman Britt Boeskov Total
2023 149 30 59 52 97 52 19 22 480
2022 104 37 44 37 59 37 0 0 317
Remuneration to Executive Management Jesper
Søgaard
Christian
Kirk
Rasmussen
Flemming
Pedersen Total
2023
Wages and salaries 516 516 560 1.592
Pensions, defined contribution 45 45 79 169
Other social security costs 1 1 4 6
Share-based payments 177 177 264 618
Total 739 739 907 2.385
2022
Wages and salaries 497 497 518 1.512
Pensions, defined contribution 34 34 64 132
Other social security costs 0 0 0 0
Share-based payments 19 19 59 97
Total 550 550 641 1.741
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Notes
6. Share-based payment plans
2019 program:
During the year 2023 the company did not grant any warrants under this program.
During the year 2023, employees have exercised warrants corresponding to 191,081 shares issued.
2020 program:
During the year 2023 the company did not grant any warrants under this program.
During the year 2023, employees have exercised warrants corresponding to 26,668 shares issued.
2021 Warrant programs:
On September 10th, 2021, 422,500 new warrants were granted to certain key employees, all with the right to subscribe
for one ordinary share and are classified as equity-settled share-based payment transactions*. The vesting periods range
from 2022-2024 and the exercise periods range from 2024 to 2026.
Expenses for the first two vesting periods have been recognized based on the realized retention (75%) and performance
factors (100%).
On October 1st, 2021, 473,563 PSUs and 201,238 share options were issued for a management incentive program related
to Action Network, with the right to subscribe for one ordinary share and are classified as equity -settled share-based
payment transactions*. The vesting periods range from 2022-2024 and the exercise periods range from 2022 to 2026.
Expenses for the first vesting period have been recognized based on the realized retention (75%) and performance
factors (100%) and for the final two remaining vesting period expenses are recognized based on expected retention
(75%) and performance factors (0%)
During the year 2023, employees have exercised Performance Stock Units corresponding to 0 shares issued.
* The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled.
2022 LTI program:
On January 27, 2022 a new LTI program consisting of Performance Stock Units and stock options was announced. Under
the program 24,564 options and 7 3,894 PSUs were granted to certain key employees . Whereas the options have the
right to subscribe for one ordinary share , the PSUs have a performance-based element that can increase to two shares
for one PSU – both are classified as equity -settled share-based payment transactions*. The vesting period runs from
2022-2025 and the exercise period runs from 2025 to 2027.
* The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled.
Management Incentive Program:
On March 1, 2022, a new tranche was established for the Management Incentive Program for Action Network. Under the
program 94,529 PSUs and 44,458 options were granted with the right to subscribe for one ordinary share and , are
classified as equity-settled share-based payment transactions*.
During the year 2023, employees have exercised Performance Stock Units corresponding to 34,531 shares issued.
* The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled.
2023 LTI program:
On January 3, 2023, a new LTI program consisting of Performance Stock Units and stock options was announced. Under
the program 240,927 options and 137,819 PSUs were granted to certain key employees. Whereas the options have the
right to subscribe for one ordinary share, the PSUs have a performance -based element that can increase to two shares
for one PSU – both are classified as equity -settled share-based payment transactions*. The vesting period runs from
2023-2026 and the exercise period runs from 2026 to 2028.
* The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled.
2023 CXO program:
On April 25th, 2023, a new CXO program consisting of stock options was approved by the board of directors. Under the
program 300,000 options were granted to the chief executive management. Each option granted gives the participants
the right to subscribe for one ordinary share subject to a performance -based element . Transactions under the CXO
program are classified as equity -settled share-based payment transactions*. The vesting period runs from 202 3-2026
and the exercise period runs from 2026 to 2028.
* The Board of Directors keeps a right to change classification of the share-based programs, to a cash-settled.
===== SIDA 88 =====
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Notes
6. Share-based payment plans (continued)
Warrant programs impact in the consolidated financial statements:
The total share- based compensation expense recogni zed for the full year 202 3 is 2,509 tEUR (2022: 2,871 tEUR), The
cost of the MIP Action program is included as special items and amounts to 0 EUR in 2023 (2022 : 936 tEUR). The
weighted average remaining contractual life of warrants to key employees outstanding as of December 31, 202 3, and
2022 was 2.38 and 2.63 years respectively. The weighted exercise prices for outstanding instruments as of December
31, 2023 and 2022 were 14.51 EUR and 13.85 EUR.
Board of
Directors
Executive
Management Key personnel
Total warrants /
options, numbers
Exercise price,
weighted average
EUR
Total Performance
Stock Units
Grant price,
weighted average
EUR Total Units
Share options outstanding at January 1, 2023 25,000 600,000 1,293,949 1,918,949 13 441,154 18 2,360,103
Granted 0 300,000 240,932 540,932 12 137,819 12 678,751
Forfeited/expired 0 0 194,509 194,509 17 345,855 17 540,364
Exercised 0 0 217,749 217,749 9 34,531 14 252,280
Transferred 0 0 0 0 0 0 0 0
Share options outstanding at December 31, 2023 25,000 900,000 1,122,623 2,047,623 15 198,587 14 2,246,210
Of this exercisable at the end of the period 25,000 600,000 425,181 1,050,181 10 0 n/a 1,050,181
Share options outstanding at January 1, 2022 25,000 724,644 1,459,305 2,208,949 11 422,175 19 2,631,124
Granted 0 0 69,022 69,022 15 168,423 16 237,445
Forfeited/expired 0 0 43,241 43,241 14 46,651 18 89,892
Exercised 0 124,644 191,137 315,781 2 102,793 19 418,574
Transferred 0 0 0 0 0 0 0 0
Share options outstanding at December 31, 2022 25,000 600,000 1,293,949 1,918,949 13 441,154 18 2,360,103
Of this exercisable at the end of the period 0 300,000 120,333 420,333 9 0 n/a 420,333
===== SIDA 89 =====
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Notes
6. Share-based payment plans (continued)
7. Fees paid to auditors appointed at the annual general meeting
Non-audit services provided by EY amounted to 76 tEUR in 2023, relating to advisory services in relation to assurance
and advisory in relation to ESG, various tax advisory services, due diligence services and other advisory services. Non -
audit services provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation.
2023 2022 2021 2020 2019
Dividend yield (%) 0% 0% 0% 0% 0%
Expected volatility (%) 50% 50% 50% 45-50% 35%
Risk free interest rate (%) 1,75% 0% 0% 0% 0%
Expected life of warrants (years) 4-5 4-5 4.4-5 5 5
Share price (EUR) 11.78 - 19.42 14.42 - 17.60 18,34 12.21 7.89
Exercise price (EUR) 11.78 - 19.42 14.42 - 17.60 19.44 13.76 8.68
Fair Value at grant date (EUR) 5.35 - 8.91 5.50-7.50 7.19 4.73 2.17
tEUR 2023 2022
Fee related to statutory audit 433 318
Fees for tax advisory services 0 0
Assurance engagements 72 25
Other assistance 76 0
Total audit fees 581 343
Accounting policies
Share-based payments
Key employees (including the Executive Management of the Group) receive remuneration in the form of share -based
payments, whereby they render services as consideration for equity instruments (equity-settled transactions).
The cost is recognized in staff costs, together with a corresponding increase in equity (other capital reserves), over the
period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The
cumulative expense recogni zed for equity -settled transactions at each reporting date until the vesting date, reflects
the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments
that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement
in cumulative expense recognized as at the beginning and end of that period.
No expense is recognized for awards that do not ultimately vest because non -market performance and/or service
conditions have not been met.
The dilutive effect of outstanding warrants is reflected as additional share dilution in the computation of diluted earn-
ings per share.
When warrants are exercised, the Company issues new shares. The proceeds received are credited to share capital for
the par value of the shares and share premium for the remainder.
===== SIDA 90 =====
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Notes
8. Special items
Special items consist of recurring and non-recurring items that management does not consider to be part of the group’s
ordinary operating activities, i.e. acquisition costs, adjustment of earn-out payments related to acquisitions, and restruc-
turing costs are presented in the Income statement in a separate line item labelled ‘Special items. The impact of special
items is specified as follows:
Note tEUR 2023 2022
Operating profit 80,891 70,353
Special Items related to:
Special items related to dual listing - 1,129 0
Special items related to M&A - 10,224 - 1,263
Variable payments regarding acquisitions - cost 0 - 192
Variable payments regarding acquisitions - income 9,924 2,467
Special items related to Restructuring - 519 - 130
Special items related to Management Incentive Program 0 - 936
Special items, total - 1,948 - 54
Operating profit (EBIT) before special items 82,839 70,407
Amortization and impairment 24,283 12,347
Operating profit before amortization
and special items (EBITA before special items) 107,122 82,754
Depreciation 3,958 2,321
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 111,080 85,075
Accounting policies
Special items
Significant expenses and income, which Better Collective considers not part of ordinary business operations,
are presented in the Income statement in a separate line item labelled ‘Special items’ in order to distinguish
these items from other income statement items and provide a more transparent and comparable view of Bet-
ter Collective’s ongoing performance. Types of expenses and income included in special items include cost
related to dual listing, M&A, adjustments to Earn -out payments, cost related to res tructuring, income from
divestiture of non-strategic assets, dual listing and cost related to the Action Network Management Incentive
Program.
===== SIDA 91 =====
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Notes
9. Finance income
10. Finance costs
tEUR 2023 2022
Exchange losses 4,432 4,543
Interest expenses 12,146 3,839
Interest - right of use assets (Leasing) 425 150
Fair value adjustment 8,126 0
Other financial costs 3,739 1,055
Total finance costs 28,868 9,587
tEUR 2023 2022
Exchange gains 3,090 4,170
Interest income 251 5
Other financial income 2,647 23
Total finance income 5,987 4,198
Accounting policies
Financial income and expenses
Financial income and expenses are recognized in the income statements at the amount that concerns the fi-
nancial year. Net financials include interest income and expenses, interest expenses calculated according to
IFRS16, foreign exchange adjustments, fees related to credit facilities, gains and losses on the disposal of se-
curities, as well as allowances and surcharges under the advance-payment-of-tax scheme, etc.
===== SIDA 92 =====
Annual report Page 92
Notes
11. Income tax
Total tax for the year is specified as follows:
tEUR 2023 2022
Tax for the period 18,175 16,888
Tax on other comprehensive income 0 3,747
Total 18,175 20,635
Income tax on profit for the year is specified as follows:
tEUR 2023 2022
Deferred tax 3,641 6,785
Current tax 16,400 10,153
Adjustment from prior years - 1,867 - 49
Total 18,175 16,888
Tax on the profit for the year can be explained as follows:
tEUR 2023 2022
Specification for the period:
Calculated 22% tax of the result before tax 12,762 14,292
Adjustment of the tax rates
in foreign subsidiaries relative to the 22% 1,955 1,563
Tax effect of:
Special items 868 - 83
Special items - taxable items - 233 - 243
Other non-taxable income - 410 - 150
Other non-deductible costs 3,461 1,558
Unrecognized tax losses carried forward 2,010 0
Tax deductable - 371 0
Adjustment of tax relating to prior periods -1,867 -49
Total 18,175 16,888
Effective tax rate 31.3% 26.0%
tEUR 2023 2022
Deferred tax liabilities
Deferred tax January 1 69,002 60,050
Additions from business acquisitions 6,120 0
Adjustments of deferred tax in profit and loss 3,641 6,785
Exchange rate difference - 1,329 2,166
Deferred tax December 31 77,434 69,002
Deferred tax is recognized in the balance sheet as:
Deferred tax asset 7,236 9,165
Deferred tax liability 84,670 78,167
Deferred tax December 31 77,434 69,002
Deferred tax is related to:
Intangible assets 90,130 78,235
Property, plant and equipment 322 - 68
Liabilities 1,040 0
Other - 4,196 0
Tax losses carried forward - 9,862 - 9,165
Deferred tax December 31 77,434 69,002
The group has total tax asset of 2,010t EUR related to tax losses carried forward, which are not recognized in the finan-
cial statement due to the uncertainty of utilizing the tax asset. Of not recognized tax losses carry forwards 2,010t EUR,
may be carried forward for up to 3 years.
===== SIDA 93 =====
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Notes
11. Income tax (continued)
Accounting policies
The tax expense for the year, which comprises current tax and changes in deferred tax, is recognized in the income statement as regards the portion that relates to the profit/loss for the year, and directly in equity as regard s the portion
that relates to entries directly in equity. Tax expense relating to amounts recognized in other comprehensive income is recognized in other comprehensive income. Tax is provided on the basis of the tax rules and tax rates applicable in
the individual countries where Better Collective has a tax presence.
Current and deferred tax
Current tax liabilities and current tax receivables are recognized in the balance sheet as tax computed on the year’s taxable income adjusted for tax on the previous year’s taxable income and tax paid on account.
Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount an d the tax value of assets and liabilities. Deferred tax liabilities as well as deferred tax assets are recognized .
However, deferred tax is not recognized on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise
at the date of acquisition without affecting either profit/loss for the year or taxable income.
Deferred tax assets, including the tax value of tax loss carry forwards, are recognized under other non-current assets at the expected value of their utilization; either as a set-off against tax on future income or as a set-off against deferred
tax liabilities in the same legal tax entity and jurisdiction.
Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balanc e sheet date when the deferred tax is expected to crystallize as current tax.
Joint taxation of the parent Company and Danish subsidiaries
The Parent Company is subject to the Danish rules on compulsory joint taxation of the Group’s Danish subsidiaries. Subsidiari es are included in the joint taxation arrangement from the date when they are included in the consolidated
financial statements and up to the date when they are excluded from the consolidation.
The Parent Company acts as administration company for the joint taxation arrangement and consequently settles all corporate i ncome tax payments with the tax authorities.
On payment of joint taxation contributions, the Danish corporation tax charge is allocated between the jointly taxed entities in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities
that have been able to use the tax losses to reduce their own taxable income.
Joint taxation contributions payable and receivable are recognized in the balance sheet as corporation tax receivable or corporation tax payable.
===== SIDA 94 =====
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Notes
12. Intangible assets
tEUR Goodwill
Domains and
websites
Accounts and other
intangible assets* Total
Cost or valuation
As of January 1, 2023 183,942 460,513 63,705 708,159
Additions 0 3,412 53,914 57,326
Acquisitions through business combinations 75,335 10,842 29,579 115,756
Disposals 0 0 - 6,531 - 6,531
Currency Translation - 4,203 - 8,151 - 602 - 12,956
At December 31, 2023 255,074 466,615 140,065 861,754
Amortization and impairment
As of January 1, 2023 0 0 36,688 36,688
Amortization for the period 0 0 24,283 24,283
Currency translation 0 0 - 646 - 646
At December 31, 2023 0 0 60,325 60,325
Net book value at December 31, 2023 255,074 466,615 79,740 801,429
*Accounts and other intangible assets consist of accounts (30,474 tEUR), Media Partnerships (48,769 tEUR) and software and others
(497 tEUR).
tEUR Goodwill
Domains and
websites
Accounts and other
intangible assets* Total
Cost or valuation
As of January 1, 2022 178,182 329,276 36,827 544,285
Additions 0 118,185 26,337 144,522
Acquisitions through business combinations 0 0 0 0
Disposals 0 0 0 0
Currency Translation 5,760 13,051 540 19,351
At December 31, 2022 183,942 460,513 63,705 708,159
Amortization and impairment
As of January 1, 2022 0 0 24,374 24,374
Amortization for the period 0 0 12,348 12,348
Currency translation 0 0 - 33 - 33
At December 31, 2022 0 0 36,688 36,688
Net book value at December 31, 2022 183,942 460,513 27,016 671,471
*Accounts and other intangible assets consist of accounts (10,659 tEUR), Media Partnerships (15,794 tEUR) and software and others
(563 tEUR).
===== SIDA 95 =====
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Notes
12. Intangible assets (continued)
Accounting policies
Goodwill and intangible assets
Goodwill
Goodwill is initially recognized at cost. Subsequently, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortized and impairment losses on goodwill are not reversed.
The carrying amount of goodwill is allocated to the Group’s cash -generating units at the date of acquisition. Impairment is performed once a year as of December 31 or more frequently if events or changes in circumstances indicate that there is an impairmen t. An
impairment loss is recognized if the recoverable amount of the cash-generating unit to which goodwill has been allocated is less than the carrying amount of the cash -generating unit. Identification of cash-generating units is based on the management structure and
internal financial controls.
Intangible assets
Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination or asset acquisitions are measured at fair value at the acquisition date. Expenditures relating to
internally generated intangible assets are recognized in profit or loss when incurred.
Intangible assets with a finite useful life are amortized over their useful life and reviewed for impairment whenever there is an indication that the asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least
at each year end.
Agreements related to media partnerships are measured at fair value of the fixed payments related to the agreement at the starting date. The value is amortized over the lifetime of the agreement
Intangible assets with indefinite useful lives (domains and websites) are not amortized, but are tested for impairment annually, either individually or at the cash- generating unit level. The assessment of indefinite life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit or loss when the asset is derecognized.
Costs related to maintenance of intangible assets, are not capitalized on the balance sheet but recognized in profit and loss in the financial year they are incurred.
Amortization
The item comprises amortization of intangible asset, as well as any impairment losses recognized for these assets during the period.
The basis of amortization, which is calculated as cost less any residual value, is amortized on a straight-line basis over the expected useful life. The expected useful lives of long-lived assets are as follows:
Goodwill Indefinite
Domains and websites Indefinite
Accounts 3 years
Media Partnerships 1-10 years
Software 3 years
===== SIDA 96 =====
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Notes
13. Goodwill and intangible assets with indefinite life
The Group added intangible assets in 2023 from asset transactions of Sporty Solutionz Private Limited (India) and ac-
quisitions from business combinations of Skycon Limited, Playmaker HQ, Digital Sport media I Norden AB,
Torcedores.com and Tipsbladet ApS, as described in note 22. For 2022, they arose from asset transactions of FUTBIN
and Canada Sports Betting. Goodwill and domain names and websites arising on business combinations are not subject
to amortization, but are reviewed annually for impairment, or more frequently if there are any indicators of impairment
that are noted during the year.
Cash-generating units
Goodwill from a business combination is allocated to cash-generating units in which synergies are expected to be gen-
erated from the acquisition. A cash -generating unit represents the smallest identifiable group of assets that together
have cash inflows that are largely independent of the cash inflows from other assets. In 2023 Better Collective continues
to have four cash generating units with the asset and business acquisitions of Skycon included in Paid Media, Playmaker
HQ included in US and Sporty Solutionz Private Limited (India), Digital Sport media I Norden AB, Torcedores.com and
Tipsbladet ApS are included in Rest of Better Collective, respectively. Performance and cash flows from domain names
and websites owned by the individual cash generating units are allocated and form the basis for impairment.
Carrying amount of goodwill and Domains and Websites for the CGUs:
Recoverable amount
When testing for impairment, the Group estimates a recoverable amount for goodwill and for domain names and web-
sites. The recoverable amount is the higher of the asset or cash-generating unit’s fair value less costs of disposal and its
value in use. The recoverable amount is normally determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets. The recoverable amount of
domains and websites has been determined on the level of the cash-generating units, as explained above.
Impairment test:
For all CGUs US, HLTV, Paid Media and the rest of Better Collective, the Group has performed an impairment test on
goodwill and domain names and websites as of December 31, 2023, on a value-in-use basis. Key estimates in the impair-
ment test are growth in revenue, gross profits, discount rate and growth expectations in the terminal period. These are
based on current and future development in the four CGUs and on historical data, including expected long-term market
growths. Data is based on both internal and external data sources.
Management has based the value in use by estimating the present value of future cash flows from a three-year forecast
approved by the Board of Directors corresponding to the Group’s long- term forecast for 2024-2026. The forecast indi-
cates an average annual gross profit growth of 23% during the forecast period, predicated on market development
assumptions and communicated long-term target. Beyond the approved forecast, EBITDA growth, cash conversion and
tax-rates have been projected with a time horizon of 7 years until 2033. From 2027 onward, the average gross profit
growth rate is estimated to decline. In 2027, the average growth rate is projected to be 15% and the decline continues,
reaching 3% by 2033, stabilizing thereafter at a theoretical steady state level in the terminal period. Based on expected
2033 EBITDA and cash flow , management has applied a terminal value rate of 2%. The cash flows assume a discount
factor of 12% (pre-tax discount rate 15%) based on the Group’s weighted average cost of capital (WACC) in all years
2024-2033, with individual tax rates per country (22-25%).
As at December 31, 2022 and December 31, 2023 the Board of Directors have evaluated goodwill, domains and websites
for impairment. The results of the impairment tests for goodwill and domains and websites showed that the recoverable
amount exceeded the carrying value and that there was no impairment loss to be recognized . The Board of Directors
have approved the inputs to the impairment testing and are satisfied that the judgements made are appropriate.
2023
tEUR US HLTV Paid Media Rest of BC Total
Goodwill 126.399 17.812 73.771 37.092 255.074
Domains and Websites 213.764 20.551 0 232.300 466.615
2022
tEUR US HLTV Paid Media Rest of BC Total
Goodwill 97.708 17.777 41.178 27.279 183.942
Domains and Websites 221.462 20.551 0 218.500 460.513
===== SIDA 97 =====
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Notes
13. Goodwill and intangible
assets with indefinite life
(continued)
Sensitivity test
The sensitivity of the impairment results has been as-
sessed to test the impact of changes in cash flows and
discount rate. The test concludes that even negative
changes will not result in impairment of any of the cash-
generating units (CGUs). The sensitivity test shows the
lowest possible grow th rate must be 0% or the highest
possible discount rate must be 30 % before any of the
CGUs becomes impaired, which are unlikely to occur.
Other domains and websites:
Further to the CGUs, acquired domains and websites
with indefinite life have been individually evaluated for
indicators of impairment. The evaluation is based on ac-
tual traffic on the websites, as well as actual and ex-
pected revenue and NDCs generated by t he accounts
with sportsbooks that are linked to the websites. In 2023
there has been no indicators for impairment.
Accounting policies
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The acquisition date is the date when Better Collective A/S effectively obtains control over the acquired
business. Any costs directly attributable to the acquisition are expensed as incurred.
If a put and call option exist, the put and call option is taken into consideration when assessing the ownership of the business . If a put and call option exist , the put and call
option is taken into consideration when assessing the ownership of the business.
The acquired businesses’ identifiable assets, liabilities and contingent liabilities are measured at fair value at the acquis ition date. Identifiable intangible assets are recognized
if they are separable or arise from a contractual right. Deferred tax related to the revaluations is recognized.
The consideration paid for a business consists of the fair value of the agreed consideration in the form of the assets transferred, equity instruments issued, and liabilities assumed
at the date of acquisition. If part of the consideration is contingent on future events, such consideration is recognized at fair value. Subsequent changes in the fair value of
contingent consideration are recognized in the income statement as special items. A positive excess (goodwill) of the consideration transferred (includi ng any previously held
equity interests and any non-controlling interests in the acquired business) over the fair value of the identifiable net assets acquired is recorded as go odwill.
If uncertainties regarding identification or measurement of acquired assets, liabilities or contingent liabilities or determi nation of the consideration transferred exist at the
acquisition date, initial recognition will be based on provisional values. Any adjustments in the provisional values, including goodwill, are adjusted retrospectively, until 12
months after the acquisition date, and comparative figures are restated.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, from the acquisition date, goodwill
acquired in a business combination is allocated to each of the Group’s cash -generating units that are expected to benefit from the combination, irrespective of whether other
assets or liabilities of the acquired business combination are assigned to those units.
Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation
is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in these circumstances is measured based
on the relative fair values of the disposed operation and the portion of the cash generating unit retained.
Impairment
The carrying amounts of goodwill, intangible assets, property, plant and equipment and investments in subsidiaries is assesse d for impairment on an annual basis. Impairment
tests are conducted on assets or groups of assets when there is evidence of impairment. Furthermore, goodwill and intangible assets with indefinite useful lives are tes ted on
an annual basis as at December 31. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount).
The recoverable amount is the higher of the net selling price of an asset and its value in use. Reference is made to the sect ion “Impairment test” for actual assumptions.
The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the
disposal of the asset or the group of assets after the end of the useful life.
Impairment losses are recognized in the income statement under depreciation and amortization . Previously recognized impairment losses are reversed when the reason for
recognition no longer exists. Impairment losses on goodwill are not reversed.
===== SIDA 98 =====
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Notes
14. Property, plant and equipment
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost or valuation
At January 1, 2023 9,777 4,995 14,772
Additions 12,368 5,042 17,410
Acquisitions through business combinations 0 0 0
Disposals - 2,536 - 70 - 2,606
Currency Translation - 72 - 29 - 100
At December 31, 2023 19,537 9,939 29,476
Depreciation and impairment
At January 1, 2023 3,508 2,421 5,929
Depreciation for the period 2,671 1,287 3,958
Depreciation on disposed assets - 2,200 220 - 1,980
Currency translation - 17 5 - 12
At December 31, 2023 3,962 3,933 7,894
Net book value at December 31, 2023 15,575 6,006 21,582
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost or valuation
At January 1, 2022 5,328 3,216 8,544
Additions 5,240 1,805 7,045
Acquisitions through business combinations 0 0 0
Disposals - 811 - 50 - 861
Currency Translation 20 25 45
At December 31, 2022 9,777 4,995 14,772
Depreciation and impairment
At January 1, 2022 2,620 1,558 4,179
Depreciation for the period 1,443 878 2,321
Depreciation on disposed assets - 605 - 64 - 669
Currency translation 49 49 99
At December 31, 2022 3,508 2,421 5,929
Net book value at December 31, 2022 6,269 2,574 8,843
===== SIDA 99 =====
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Notes
14. Property, plant and equipment (continued)
Notes
15. Trade and other receivables
tEUR 2023 2022
Trade receivables 42,086 35,824
Accrued revenue 4,723 12,197
Other receivables 2,144 5,158
Total receivables 48,954 53,179
Accounting policies
Receivables
Receivables are measured at amortized cost, which usually corresponds to nominal value.
Write-downs on trade receivables are based on the simplified expected credit loss model. Credit loss allowances
on individual receivables are provided for when objective indications of credit losses occur such as customer
bankruptcy and uncertainty about t he customers’ ability and/or willingness to pay, etc. In addition to this, al-
lowances for expected credit losses are made on the remaining trade receivables based on a simplified ap-
proach. Reference is made to note 20 of the consolidated financial statements regarding credit risk.
Prepayments
Prepayments recognized under “Assets” comprise prepaid expenses regarding subsequent financial reporting
years.
Cash
Cash consist of cash and cash equivalents in financial institutions.
Accounting policies
Property, plant and equipment
Property, plant and equipment Property, plant and equipment are measured at cost less accumulated deprecia-
tion and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until
the time at which the asset is ready for use.
Gains and losses from the disposal of property, plant and equipment are recognized in the income statement as
depreciation. Gains or losses are calculated as the difference between the selling price less selling costs and the
carrying amount at the date of disposal.
Depreciation
The item comprises depreciation of property, plant , and equipment, and right of use assets, as well as any im-
pairment losses recognized for these assets during the period.
The basis of depreciation, which is calculated as cost less any residual value, is amortized on a straight-line ba-
sis over the expected useful life. The expected useful lives of long-lived assets are as follows:
Right of use assets and leasehold improvements Up to 7 years
Fixtures and fittings, other plant and equipment 3- 5 years
Where individual components of an item of property, plant and equipment have different useful lives, they are
accounted for as separate items, which are depreciated separately. The basis of depreciation is calculated con-
sidering the residual value at the end of the expected useful life and less any impairment. The depreciation pe-
riod and residual value are determined at the time of acquisition and are reassessed every year. Where the re-
sidual value exceeds the carrying amount of the asset, no further depreciation charges are recognized.
===== SIDA 100 =====
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Notes
16. Issued capital and reserves
tEUR 2023 2022 2021 2020 2019
Share capital:
Opening balance 551.5 546.3 469.0 464.3 404.9
Capital increase 2.2 5.2 77.2 4.8 59.4
Total 553.7 551.5 546.3 469.0 464.3
The share capital consists of 55,367,418 shares of nominal EUR 0.01 each.
Share buy-back-2023
Throughout 2023 the company purchased 784 ,952 Better Collective A/S shares at an average price of 1 7.1 EUR. After
the completion of the 2023 share buy-back programs Better Collective A/S had 1,387,580 treasury shares.
Share buy-back-2022
Throughout 2022 the company purchased 949,870 Better Collective A/S shares at an average price of 13.3 EUR.
879,824 treasury shares were used as final payment of contingent liabilities related to the 2019 acquisition of Rotogrind-
ers, settlement of tranche 1 of the Action Network Management Incentive Program, and final settlement of the variable
payment related to the acquisition of HLTV.
Share buy-back-2021
In March 2021 the company purchased 3,532 shares at an average price of 16.5 EUR to cover board fees payable in shares.
241 treasury shares were used in April 2021 as part of variable payment together with newly issued shares.
In December 2021 a share buy-back program of up to 10 mEUR was announced. As of December 31, 2021, 445,575 shares
had been purchased and were held at an average price of 18.1 EUR. The purpose of the buyback program was to cover
future payments relating to completed acquisitions and to cover established Incentive Plans.
Accounting policies
Equity
Treasury shares
Treasury shares are own equity instruments that are re -acquired. They are recognized at cost as a deduction
from equity in the reserve for treasury shares. The difference between par value and the acquisition price and
consideration (net of directly attributable transaction costs) and dividends on treasury shares are recognized
directly in equity in retained earnings.
Share premium
Share premium can be used for dividend.
Currency translation reserve
Foreign exchange differences arising on translation of Group entities and parent company to the EUR presen-
tation currency are recognized in other comprehensive income (OCI) in a separate currency translation re-
serve under equity. On disposal of a reporting entity, the component of other comprehensive income relating
to that reporting entity is reclassified to profit or loss.
===== SIDA 101 =====
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Notes
17. Distributions made and proposed
18. Trade and other payables
tEUR 2023 2022
Trade payables 10,936 10,484
Other payables 16,902 11,768
Total payables 27,838 22,252
tEUR 2023 2022
Declared and paid during the year on ordinary shares 0 0
Proposed dividend on ordinary shares 0 0
Accounting policies
Proposed dividends
Dividends proposed for the year are recognized as a liability when the distribution is authorized by the share-
holders at the annual general meeting (declaration date). Dividends expected to be distributed for the financial
year will be presented as a separate line item under “Equity”.
Proposed dividends on ordinary shares are subject to approval at the Annual General Meeting.
Accounting policies
Prepayments consist of payments received from customers relating to income in subsequent periods. Prepay-
ments are mainly classified as current, as the related revenue is recognized within one year.
Trade payables are obligations to pay for goods or services acquired in the normal course of business. Trade
payables are initially reported at fair value and, subsequently, at amortized cost using the effective interest
method.
Other payables comprise amounts owed to staff, including wages, salaries and holiday pay; amounts owed to
the public authorities, including taxes payable, VAT, excise duties, interest expenses etc.
Other financial liabilities comprise amounts payable to sellers as a result of business combinations and asset
acquisitions.
===== SIDA 102 =====
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Notes
19. Leasing
Right-of-use assets
tEUR Buildings Cars Total
Balance at January 1, 2023 6,236 33 6,269
Additions 12,368 0 12,368
Disposals - 2,485 - 50 - 2,536
Modifications 73 0 73
Exchange rate adjustment - 135 0 - 135
Depreciation - 2,660 - 3 - 2,663
Depreciation on disposed assets 2,180 20 2,200
Balance at December 31, 2023 15,575 0 15,576
Balance at January 1, 2022 2,707 - 0 2,707
Additions 5,190 50 5,240
Disposals - 811 0 - 811
Modifications 0 0 0
Exchange rate adjustment - 19 0 - 19
Depreciation - 1,436 - 17 - 1,453
Depreciation on disposed assets 605 0 605
Balance at December 31, 2022 6,236 33 6,269
Lease liabilities
tEUR 2023 2022
Maturity analysis - contractual undiscounted cash flows
Less than one year 1,714 1,685
One to five years 15,262 3,467
More than five years 702 2,169
Total undiscounted cash flows 17,678 7,321
Total lease liabilities 16,028 6,614
Current 2,702 1,653
Non-current 13,326 4,962
The total cash outflow for leases during 2023 was 2,814 tEUR (2022: 1,424 tEUR).
Amounts recognized in the consolidated income statement
tEUR 2023 2022
Interest on lease liabilities 425 150
Expenses relating to short- term lease 457 295
Expenses relating to lease of low value assets 82 0
===== SIDA 103 =====
Annual report Page 103
Notes
19. Leasing (continued)
Accounting policies
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the ri ght to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short -term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets represent
the right to use the underlying assets.
Right-of-use assets
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right -of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement o f lease liabilities (due to indexation of lease payments or extension of leases). The cost of right -of-use assets includes the amount of lease liabilities recognize d, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments includ e fixed payments (including in substance fixed
payments) less any lease incentives receivable.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate of 4%, at the lease commenc ement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease
term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to extend the term of lease.
Short-term leases and leases of low-value assets
The Group applies the short -term lease recognition exemption to its short -term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a p urchase option). It also applies the
lease of low-value assets recognition exemption to leases. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.
===== SIDA 104 =====
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Notes
20. Financial risk management objectives and policies
The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency exchange risk and
interest rate risk), credit risk, and liquidity risk. The Group has established principles for overall risk management, which
seek to minimize potential adverse effects on the Group’s performance.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. For the Group, market risk comprises foreign currency risk and interest rate risk.
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the
Group’s international operating activities. The Group’s revenues are mainly denominated in DKK, EUR, USD, and GBP,
with limited revenues in SEK and PLN. The revenue in individual currencies is determined by the underlying betting
currency at the sportsbook level as well as the exchange rates used by the sportsbook when calculating the revenue
share. The currency fluctuations impact these processes and is the inherent risk. Across the Group, expenses have a
general pattern which is in line with the revenue in the individual currencies. The expenses mainly origin in DKK, EUR,
GBP, and USD, with limited spending in SEK, RON , PLN and BRL. The DKK exchange rate is fixed to the EUR. For GBP
and USD, the expenses are linked to and follow the revenue in the entities operating in UK and US, respectively.
The major currency exposure in Better Collective arises from the conversion of the USD and GBP denominated entities
to the reporting currency, as well as the long -term loan provided from the parent company to Better Collective US Inc
to finance the US acquisitions . The 202 3 impact of the fluctuating USD was 4.7 mEUR on a n EBITDA level, vs. 202 2
exchange rate, whereas the impact on the USD loan in the parent company was -9.4 mEUR. The exchange rate adjust-
ments and corresponding tax impact on these loans are included in Other Comprehensive Income for the group if any.
The Board of Directors has in general decided not to hedge currency exchange risk given the underlying inherent risk
and the capital structure, however The Board of Directors has in 2023 decided to hedge currency exchange risk related
to the acquisition of Playmaker Capital and the consideration to be transferred consisting of 55 mCAD and 29 mUSD.
Excluding the 2022 impact from the fluctuating USD, the historic exposure to currency fluctuations has not had a mate-
rial impact on the Group’s financial condition or results of operations . Management deems that a sensitivity analysis
showing how profit or pre -tax equity would have been impacted by changes in these foreign exchange rates is not
deemed necessary.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Group’s exposure to interest rate risk arises mainly from club financing with floating
interest signed in October 2022 and in august 2023 extended by 3 years to October 2026. The interest rate risk arising
from deposits held are short -term and non-material. With ~248.7 mEUR drawn on the facility as of December 2023, an
increase in the interest of 1 %-point will drive an additional 2 mEUR in finance costs. However, management expects to
reduce the credit facility in the short to medium term, as the Group is generating positive cash flows, and therefore
exposure to interest rate risk is considered minimal.
The Group regularly monitors its interest rate risk and considers it to be insignificant, therefore an interest rate sensitivity
analysis is not deemed necessary.
Credit risk
The Group’s credit risks mainly relate to receivables. The risks are monito red on an ongoing basis and customers are
individually assessed for credit limits and exposure. Based on this the exposure is in general considered insignificant.
As per December 31, 2023, the Group’s impairment for expected loss is included in the trade receivables (ref note 15).
===== SIDA 105 =====
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Notes
20. Financial risk management objectives and policies
(continued)
Expected credit loss on receivables from trade receivables as of December 31, 2023:
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2023
Not Due 0.5% 28,997 134 28,863
Less than 30 days 0.2% 8,786 22 8,764
Between 31 and 60 days 0.7% 2,936 20 2,916
Between 61 and 90 days 2.5% 1,704 43 1,661
More than 91 days 18.4% 5,644 1,039 4,605
Total 2.6% 48,067 1,258 46,809
Limited losses were recognized during 2023 and the weighted credit loss has slightly increased compared to 2022.
Expected credit loss on receivables from trade receivables as of December 31, 2022:
Liquidity risk
The Group is exposed to liquidity risk in relation to meeting future obligations associated with its financial liabilities,
which mainly include trade payables, other payables, earn-outs and deferred M&A payments, and the credit facility.
The group ensures adequate liquidity through the management of cash flow forecasts and close monitoring of cash
inflows and outflows.
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2022
Not Due 0.4% 32,452 136 32,316
Less than 30 days 0.7% 9,563 71 9,493
Between 31 and 60 days 0.5% 4,537 24 4,513
Between 61 and 90 days 2.3% 369 8 361
More than 91 days 26.4% 1,821 481 1,340
Total 1.5% 48,742 721 48,021
===== SIDA 106 =====
Annual report Page 106
Notes
20. Financial risk management objectives and policies (cont’d)
The following table summarizes the maturities of the Group’s financial obligations.
tEUR
Carrying
amount Fair Value Total < 1 year 2 – 5 years > 5 years
2022
Non-derivative financial instruments:
Financial liabilities measured at fair value
through profit and loss
Earn-out consideration 30,058 30,058 30,425 15,425 15,000 0
Other financial liabilities measured at fair
value 17,269 17,269 17,622 9,610 8,012 0
Financial liabilities measured at amortized
costs
Lease liabilities 6,614 6,614 7,321 1,685 3,467 2,169
Trade and other payables 22,252 22,252 22,252 22,252 0 0
Deferred payment on acquisitions 1,944 1,944 1,949 1,858 90 0
Debt to credit institutions 201,708 201,708 215,021 6,656 208,364 0
Derivative financial instruments:
Financial liabilities measured at fair value
Derivates used as hedging instrument 0 0 0 0 0 0
Total financial instruments 279,846 279,846 294,589 57,487 234,933 2,169
Assets:
Trade and other receivables 53,179 53,179 53,179 53,179 0 0
Other current financial assets 0 0 0 0 0 0
Cash 31,497 31,497 31,497 31,497 0 0
Total financial assets 84,677 84,677 84,677 84,677 0 0
tEUR
Carrying
amount Fair Value Total < 1 year 2 – 5 years > 5 years
2023
Non-derivative financial instruments:
Financial liabilities measured at fair value
through profit and loss
Earn-out consideration 60,491 60,491 60,491 35,985 24,506 0
Other financial liabilities measured at fair
value 51,367 51,367 51,367 24,382 26,985 0
Financial liabilities measured at amortized
costs
Lease liabilities 16,028 16,028 17,678 1,714 15,262 702
Trade and other payables 27,838 27,838 27,838 27,838 0 0
Deferred payment on acquisitions 2,524 2,524 2,524 1,571 952 0
Debt to credit institutions 248,657 248,657 287,829 13,825 274,003 0
Derivative financial instruments:
Financial liabilities measured at fair value
Derivates used as hedging instrument - 483 - 483 - 483 - 483 0 0
Total financial instruments 406,421 406,421 447,242 104,832 341,708 702
Assets:
Trade and other receivables 48,954 48,954 48,954 48,954 0 0
Other current financial assets 6,804 6,804 6,804 6,804 0 0
Cash 43,552 43,552 43,552 43,552 0 0
Total financial assets 99,310 99,310 99,310 99,310 0 0
===== SIDA 107 =====
Annual report Page 107
Notes
20. Financial risk management objectives and policies (cont’d)
Fair value of Earn-out consideration, contingent consideration, and other financial
liabilities
All liabilities measured at fair value, or in respect of which the fair value is disclosed, are categorized into levels within
the fair value hierarchy based on the lowest level input that is significant to the entire fair value measurement, see be-
low:
Level 1: Quoted priced in an active market for identical assets or liabilities
Level 2: Inputs other than quoted prices included in Level 1 that are observable either directly or indirectly
Level 3: Inputs that are not based on observable market data (valuation techniques that use inputs that are not
based on observable market data)
The fair value of Earn -Out consideration, and o ther financial liabilities is measured based on weighted probabilities of
assessed possible payments discounted to present value (level 3). Derivates are measured at fair value based on gener-
ally accepted valuation methods using available observable market data (level 2).
Fair value of short term liabilities and financial assets
In all material aspects the financial liabilities are current/short termed. Non-current loans and overdraft facility are sub-
ject to a variable interest rate. Thus, the fair value of the liabilities is considered equal to the booked value.
Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet
date. (Fair Value Level 1)
Capital Management
For the purpose of the Group’s capital management, capital includes issued capital, share premium, and all other equity
reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to
maximize shareholder value and to maintain an optimal capital structure. The Group manages its capital structure and
makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Group
may adjust the dividend payment to shareholders, issue new shares or return capital to shareholders.
Credit facilities
As per December 31, 2023, Better Collective has drawn 248.7 mEUR (2022: 201.7) out of the total committed club facility
of 319 mEUR established with Nordea, Nykredit, and Citibank. In August Better Collective extended the club -financing
from October 2022 with Nordea, Nykredit and Citibank by 3 years to October 2026 as well as executing the accordion
option increasing available facilities with 72 mEUR, leaving the group with a total financing of 319 mEUR where afore-
mentioned 248.7 mEUR has been utilized.
Net debt includes current and non-current debt to financial institutions and other financial liabilities, less cash and cash
equivalents.
Change in liabilities arising from financing activity
tEUR 2021
Cash flows
Net
Non cash
flow
changes 2022
Cash flows
Net
Non cash
flow
changes 2023
Non-current financing liabilities 121,025 80,672 11 201,708 44,004 2,945 248,657
Leasing and other non-current
liabilities 1,521 0 3,441 4,962 - 483 8,847 13,326
Current financing liabilities 0 0 0 0 0 0 0
Leasing current liabilities 1,347 - 1,274 1,579 1,653 - 2,814 3,863 2,702
Total liabilities from financing
activities 123,893 79,398 5,031 208,322 40,708 15,655 264,685
Accounting policies
Cash
Cash comprise cash at bank and on hand.
Liabilities
The Group’s liabilities include prepayments from customers, trade payables and overdraft facility. Liabilities are
classified as current if they fall due for payment within one year or earlier. If this condition is not met, they are
classified as non-current liabilities.
Earn-out amounts are measured at fair value through profit and loss.
Debt to credit institutions are at initial recognition measured at fair value less transaction cost and subse-
quently measured at amortized cost.
Other financial liabilities comprise amounts payable to sellers as a result of business combinations and asset
acquisitions as well as media partnerships.
===== SIDA 108 =====
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Notes
21. Change in working capital
tEUR 2023 2022
Change in receivables 4,224 - 23,020
Prepaid expenses - 325 - 1,690
Prepayment from customers - 3,762 4,530
Change in trades payable, other debt 5,585 3,231
Change in working capital, total 5,722 - 16,949
22. Business combinations
Acquisition of Skycon Limited
On April 14, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for a total consideration up to
51 mEUR (45 mGBP) with an initial consideration of 28.3 mEUR (25 mGBP) on a cash and debt -free basis. Skycon is a
global display advertising company and perfectly complements Better Collective’s Paid Media division. The acquisition
is a strategic move for Better Collective with significant synergistic opportunities.
The transferred consideration was in cash and a earn out payable in cash.
A goodwill of 32,239 tEUR emerged from the acquisition of Skycon as an effect of the difference between the transferred
consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given
the strong platform and significant synergistic opportunities. The earn outs are based on certain financial performance
targets in the 12 months post-closing period. The goodwill is not tax deductible.
Transaction costs related to the acquisition of Skycon amounts to 381 tEUR in 2023. Transaction costs are accounted for
in the income statements under “special items”. The acquisition was completed on April 14, 2023. If the transaction had
been completed on January 1, 2023 the group’s revenue YTD would have amounted to 332 mEUR and result after tax
would have amounted to 43 mEUR.
tEUR
Purchase amount 56,029
Cash and cash equivalents 3,647
Earn out 22,614
Cash outflow 29,767
Acquired net assets at the time of acquisition tEUR
Accounts and other intangible assets 24,227
Accrued Income 2,372
Trade receivables 45
Cash 3,647
Deferred Tax Liability - 6,502
Identified net assets 23,790
Goodwill 32,239
Total consideration 56,029
===== SIDA 109 =====
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Notes
22. Business combinations (continued)
Acquisition of Playmaker HQ
On July 3, after the end of Q2, 2023 Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 51
mEUR (54 mUSD) with an initial consideration of 14.1 mEUR (15 mUSD) on a cash and debt- free basis. Playmaker HQ is
a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group special-
izes in providing original entertainment and sports content with exclusive athlete collaborations and creator talent
mainly targeting the US market.
tEUR
Purchase amount 38,864
Cash and cash equivalents 0
Earn out 23,968
Cash outflow 14,896
The transferred consideration was in cash and a earn out payable in cash.
Acquired net assets at the time of acquisition tEUR
Accounts and other intangible assets 5,352
Accounts receivable 320
Trade payables - 94
Total net assets 5,578
Goodwill 33,286
Total consideration 38,864
The acquisition of Playmaker HQ was included in the balance sheet for the condensed consolidated interim report ended
September 30, 2023 based on a provisional assessment. The opening balance was amended per December 31, 2023 and
a revised PPA is therefore included in this report. The revised PPA includes an adjustment on goodwill of 5,850 tEUR.
Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportu-
nities. In order to reach the full earn-out pay ment, Playmaker HQ will have to generate >75 mUSD in accumulating rev-
enues and >25 mUSD in accumulating operational earnings (EBITDA) during the first three years post acquisition . The
goodwill is tax deductible.
Transaction costs related to the acquisition of Playmaker HQ amounts to 347 tEUR in 2023. Transaction costs are ac-
counted for in the income statements under “special items”. The acquisition was completed on July 3, 2023. If the trans-
action had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 330 mEUR and result
after tax would have amounted to 39 mEUR.
Other acquisitions 2023
On August 15, 2023 Better Collective announced the acquisition of four brands SvenskaFans.com, Hockeysverige.se,
Fotbolldirekt.se and Innebandymagazinet.se by acquiring Digital Sportmedia i Norden AB from Everysport Group to
further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash
and debt-free basis.
On September 4, 2023 Better Collective announced the acquisition of the platform Torcedores.com, by acquiring
Goalmedia Technologia E Marketing Digital S.A. The acquisition strengthens Better Collectives position in the South
American region through the ac quisition of leading national Brazilian sports media platform Torcedores.com. Adding
the first Brazilian sports media brand to the group, Better Collective will leverage its best- in-class digital expertise in
one of the world’s fastest growing markets.
A goodwill of 6,614 tEUR emerged from the acquisitions as an effect of the difference between the transferred consid-
eration and the fair value of acquired net assets. The goodwill is not tax deductible.
Transaction costs related to the acquisition of Digital Sport Media i Norden AB and Torcedores amounts to 484 tEUR in
2023. Transaction costs are accounted for in the income statements under “special items”. The acquisitions were com-
pleted on August 15, 2023 and September 4, 2023. If the transactions had been completed on January 1, 2023 the group’s
revenue YTD would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR. The purchase
price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets.
Acquired net assets at the time of acquisition tEUR
Domains 6,650
Contingent liabilities - 1,902
Deferred tax liabilities - 1,308
Net assets (other) - 1,099
Total net assets 2,341
Goodwill 6,614
Total consideration 8,955
===== SIDA 110 =====
Annual report Page 110
Notes
22. Business combinations (continued)
Acquisition of Tipsbladet.dk
On September 18, 2023 Better Collective announced the acquisition of Tipsbladet.dk ApS to further expand its position
in Denmark for a total consideration of 6.5 mEUR on a cash and debt-free basis with closing 2 October 2023.
tEUR
Purchase amount 7,432
Cash and cash equivalents 0
Earn Out 1,500
Cash outflow 5,932
The transferred consideration was in cash and a earn out payable in cash.
A goodwill of 3,196 tEUR emerged from the acquisition of Tipsbladet as an effect of the difference between the trans-
ferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations
given the strong platform and significant synergistic opportunities. The earn outs are based on certain performance
targets in the 12 months post-closing period. The goodwill is not tax deductible.
Transaction costs related to the acquisition of Tipsbladet amounts to 42 tEUR in 2023. Transaction costs are accounted
for in the income statements under “special items”. The acquisition was completed on October 2, 2023. If the transaction
had been completed on January 1, 2023 the group’s revenue would have amounted to 328 mEUR and result after tax
would have amounted to 39 mEUR. The purchase price allocation is provisional due to uncertainties regarding measure-
ment of acquired intangible assets.
Earn-out considerations
Earn-out considerations are related acquisitions and is at the acquisition date recognised at a fair value.
The fair value of the earn -out considerations are measured based on weighted probabilities of assessed possible pay-
ments discounted to present value. Management expects that the conditions will be met.
The difference between fair value and future payments of the earn -out considerations and other financial liabilities will
be recognised in the profit and loss.
Acquisition after the balance sheet date
Acquisition of Playmaker Capital
On November 6, 2023 Better Collective announced the acquisition of Playmaker Capital for a total price consideration
of 176 mEUR. The consideration comprises 35 % cash and a cap of 65 % shares in Better Collective A/S. The consideration
is financed partly by own cash and utilization of available facilities of 72 mEUR as well as a share consideration.
The share consideration payable to Playmaker Capital shareholders, a total of 3,143,009 Better Collective shares, has
been provided by Better Collective delivering 1,387,580 existing shares held as treasury shares and by issuing 1,755,429
new shares.
Playmaker Capital is a leading digital sports media group that owns and operates several strong sports media brands
across the Americas. The acquisition has been closed on 6 February 2024, and Playmaker Capital will be consolidated
into Better Collective Group from the closing date.
As per the date of publication of the annual report it has not been possible to obtain sufficient financial data to fulfill
reporting requirements according to IFRS3. Therefore, the opening balance, the acquired net assets at the time of the
acquisition and goodwill are not included in these financial statements.
Acquired net assets at the time of acquisition tEUR
Domains 4,192
Deferred tax liabilities - 917
Cash - 587
Net assets (other) 1,548
Total net assets 4,236
Goodwill 3,196
Total consideration 7,432
===== SIDA 111 =====
Annual report Page 111
23. Related party disclosures
The Group has registered the following shareholders with 5% or more equity interest:
• J Søgaard Holding ApS, 19.27 %,Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark
• Chr. Dam Holding ApS, 19.27 %, Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark
Christian Kirk Rasmussen and Jesper Søgaard each hold 19.27% of the shares in Better Collective A/S, through respec-
tive holding companies. The remaining shares are held by other shareholders.
Leading employees
The Group’s related parties with significant influence include the Group’s Board of Directors, Executive Management
and Key Employees in the parent company and close family members of these persons. Related parties also include
companies in which this circle of persons has significant interests.
Management remuneration and warrant programs are disclosed in note 5 and 6.
Transactions with related parties have been as follows:
tEUR 2023 2022
Capital increase - gross 0 0
Sale of warrants 0 0
Warrants settled, net of tax 0 0
Warrants Board member (included in board remuneration) 0 0
===== SIDA 112 =====
Annual report Page 112
Notes
24. Group information –subsidiary information
The consolidated financial statements of the Group as of December 31, 2023 include the following subsidiaries:
Name * Ownership Country City Currency Capital local currency
Better Collective D.o.o. 100% Serbia Niš tRSD 620
Better Collective SAS 100% France Paris tEUR 100
Hebiva Beteiligungen GmbH 100% Austria Vienna tEUR 40
Better Collective GmbH** 100% Austria Vienna tEUR 19
Bola Webinformation GmbH 100% Austria Vienna tEUR 35
Better Collective Greece P.C. 100% Greece Thessaloniki tEUR 10
Kapa Media Services Ltd. 100% Malta Naxxar EUR 240
Better Collective Sweden AB 100% Sweden Stockholm tSEK 50
Digital Sportmedia i Norden AB 100% Sweden Stockholm tSEK 25
Better Collective Poland SP Z o o 100% Poland Krakow tPLN 5
Moar Performance Ltd *** 100% United Kingdom London GBP 1
Better Collective Romania SRL 100% Romania Bucharest tRON 50
Better Collective USA Inc*** 100% USA New York tUSD 2,239
Skycon Ltd 100% United Kingdom London tGBP 1
Atemi Ltd 100% Malta St Julians tGBP 1
Better Collective UK Services Ltd (Former: Your Media Ltd) 100% United Kingdom Tunbridge Wells GBP 2
Mindway ApS 90% Denmark Aarhus tDKK 65
Better Collective Netherlands B.V. 100% Netherlands Amsterdam EUR 1
Better Collective Portugal, Unipessoal Lda 100% Portugal Lisbon EUR 1
Better Collective Canada Inc 100% Canada Vancouver tUSD 0
Austin Holding Co 100% Toronto Canada tUSD 0
Better Collective Brasil Ltda 100% Brasil Rio de Janeiro tBRL 625
Goalmedia Tecnologia E Marketing Digital S.A. 100% Brasil São Paulo tBRL 10,122
Tipsbladet ApS 100% Denmark Copenhagen tDKK 80
Better Collective Operational Services India Private Limited 100% India Mumbai tINR 100
* HLTV ApS has been merged with the parent company as the continuing company and has thus been removed from the list.
** Better Collective GmbH is 100% owned by Hebiva Beteilgungen GmbH.
*** Subsidiaries are 100% owned by Moar Performance Ltd
**** Action Network has been merged with Better Collective USA Inc. as the continuing company as of 31.12.2023
===== SIDA 113 =====
Annual report Page 113
Notes
24. Group information –subsidiary information (continued)
The consolidated financial statements of the Group as of December 31, 2022 include the following subsidiaries:
Name Ownership Country City Currency Local currency
Better Collective GmbH* 100% Austria Vienna tEUR 36
Hebiva Beteiligungen GmbH 100% Austria Vienna tEUR 40
Better Collective SAS 100% France Paris tEUR 100
Better Collective D.o.o. 100% Serbia Niš tRSD 620
Bola Webinformation GmbH 100% Austria Vienna tEUR 35
Better Collective Greece P.C. 100% Greece Thessaloniki tEUR 10
Kapa Media Services Ltd. 100% Malta Naxxar EUR 1,200
Better Collective Sweden AB 100% Sweden Stockholm tSEK 50
Better Colllective UK Ltd 100% United Kingdom Stoke on Trent tGBP 1
Better Collective Poland SP Z o o 100% Poland Krakow tPLN 5
MOAR Performance Ltd 100% United Kingdom London tGBP 1
Better Collective Romania SRL 100% Romania Bucharest tRON 50
Better Collective USA Inc 100% USA New York tUSD 1
Better Collective Tennessee LLC** 100% USA Tennessee tUSD 2,239
Atemi Ltd 100% Malta St Julians tGBP 1
Hot Media Corp**** 100% British Virgin Islands Tortola tGBP 0
Force Media Inc**** 100% British Virgin Islands Tortola tGBP 0
Pedia Publications Ltd**** 100% Guernsey St. Peter Port tGBP 67
5 Star Traffic Ltd**** 100% British Virgin Islands Tortola tGBP 0
FTD LABS Ltd**** 100% Guernsey St. Peter Port tGBP 0
Better Collect UK Services Ltd (Former: Your Media Ltd)**** 100% United Kingdom Tunbridge Wells tGBP 0
HLTV ApS 100% Denmark Aarhus tDKK 50
Mindway ApS 100% Denmark Aarhus tDKK 65
Action Network Inc.*** 100% USA New York tUSD 0
Better Collective Netherlands B.V. 100% Netherlands Amsterdam tEUR 1
Better Collective Portugal, Unipessoal Lda 100% Portugal Lisbon tEUR 0
Better Collective Brasil LTDA 100% Brasil Rio de Janeiro tBRL 10
* Better Collective GmbH is 100% owned by Hebiva Beteiligungen GmbH.
** Better Collective Tennessee LLC was merged in to Better Collective US Inc. On July
1st, 2022
***Action Network Inc. are 100% owned by Better Collective USA Inc.
**** Subsidiaries are 100% owned by Atemi Ltd.
===== SIDA 114 =====
Annual report Page 114
Notes
25. Other contingent liabilities
Other contingent liabilities
There are no other contingent liabilities in 2023.
26. Events after the reporting date
The transaction of Playmaker Capital closed on February 6, 2024, following which Playmaker Capital has been consoli-
dated into the Better Collective group.
Better Collective raised 10% or 1,081.9 mDKK in an accelerated book building process to prepare for future M&A. The
demand in the placing was substantial and with BLS Capital Fondsmæglerselskab A/S as an anchor taking 50% of the
deal making it possible to place all shares without a discount to the market price.
Better Collective announced a new major shareholder as BLS Capital Fondsmæglerselskab A/S now has 11.7% of the
voting rights.
Also, Better Collective is now included in the Nasdaq Stockholm and Nasdaq Copenhagen Large Cap Index with compa-
nies that have a market cap higher than 1 bnEUR.
===== SIDA 115 =====
Annual report Page 115
Statement of profit and loss 116
Statement of comprehensive income 116
Balance sheet 117
Statement of changes in equity 118
Cash flow statement 119
Annual report Page 115
Parent Company
Financial
Statements
===== SIDA 116 =====
Annual report Page 116
Statement of profit and loss
Note tEUR 2023 2022
2 Revenue 98,513 65,282
Other operating income 12,516 14,797
Direct costs related to revenue 23,071 14,292
3, 4 Staff costs 40,796 25,061
12 Depreciation 1,438 540
5 Other external expenses 18,632 17,248
Operating profit before amortization (EBITA) and special items 27,091 22,939
10 Amortization 9,908 3,875
Operating profit (EBIT) before special items 17,182 19,064
6 Special items, net 312 - 1,168
Operating profit 17,494 17,896
7 Financial income 70,010 72,388
8 Financial expenses 45,054 35,057
Profit before tax 42,450 55,227
9 Tax on profit for the period 3,181 8,279
Profit for the period 39,269 46,949
Statement of comprehensive income
Note tEUR 2023 2022
Profit for the period 39,269 46,949
Other comprehensive income
Other comprehensive income that may be
reclassified to profit or loss in subsequent periods:
Fair value adjustment of hedges for the year - 483 0
Currency translation to presentation
currency - 910 22
Currency translation of non-current
intercompany loans 0 0
9 Income tax 0 0
Net other comprehensive income/loss - 1,393 22
Total comprehensive income/(loss) for the period,
net of tax 37,877 46,970
===== SIDA 117 =====
Annual report Page 117
Balance sheet
Note tEUR 2023 2022
Assets
Non-current assets
10, 11 Intangible assets
Goodwill 17,812 0
Domains and websites 167,831 144,374
Accounts and other intangible assets 50,418 13,287
Total intangible assets 236,061 157,661
12 Property, plant and equipment
Right of use assets 7,469 334
Fixtures and fittings, other plant and equipment 2,494 410
Total property, plant and equipment 9,962 744
Financial assets
13 Investments in subsidiaries 234,330 190,448
14 Receivables from subsidiaries 282,016 273,515
Deposits 940 174
Total financial assets 517,285 464,137
Total non-current assets 763,308 622,542
Current assets
16 Trade and other receivables 15,735 17,163
19 Receivables from subsidiaries 13,153 30,229
Tax receivable 1,479 5,913
Prepayments 2,453 2,519
Other current financial assets 6,804 0
19 Cash 17,825 8,705
Total current assets 57,450 64,529
Total assets 820,758 687,071
Note tEUR 2023 2022
Equity and liabilities
15 Equity
Share Capital 554 551
Share Premium 274,580 272,550
Currency Translation Reserve - 336 574
Hedging reserves - 483 0
Treasury shares - 21,057 - 7,669
Retained Earnings 189,953 145,047
Total equity 443,211 411,054
Non-current Liabilities
19 Debt to credit institutions 248,657 201,708
18 Lease liabilities 6,024 16
9 Deferred tax liabilities 13,832 6,141
19 Other non-current financial liabilities 25,261 19,543
Total non-current liabilities 293,774 227,408
Current Liabilities
Prepayments received from customers and deferred revenue 312 1,583
17 Trade and other payables 11,495 5,719
19 Payables to subsidiaries 11,993 20,822
Tax payable 196 30
19 Other current financial liabilities 58,295 19,045
Debt to credit institutions 0 1,055
18 Lease liabilities 1,483 356
Total current liabilities 83,773 48,609
Total liabilities 377,547 276,017
Total equity and liabilities 820,758 687,071
===== SIDA 118 =====
Annual report Page 118
Statement of changes in equity
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054
Result for the period 0 0 0 0 0 39,269 39,269
Fair value adjustment of
hedges 0 0 0 - 483 0 0 - 483
Currency translation
to presentation currency 0 0 - 910 0 0 0 - 910
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 - 910 - 483 0 0 - 1,393
Total comprehensive income
for the year 0 0 - 910 - 483 0 39,269 37,877
Transactions with owners
Capital Increase 3 2,030 0 0 0 3,154 5,187
Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375
Disposal of treasury shares 0 0 0 0 0 0 0
Share based payments 0 0 0 0 0 2,495 2,495
Transaction cost 0 0 0 0 - 13 - 12 - 26
Total transactions with owners 3 2,030 0 0 - 13,389 5,636 - 5,720
At December 31, 2023 554 274,580 - 336 - 483 - 21,057 189,953 443,211
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As of January 1, 2022 546 267,873 552 0 - 8,074 94,223 355,121
Result for the period 0 0 0 0 0 46,949 46,949
Fair value adjustment of
hedges 0 0 0 0 0 0 0
Currency translation
to presentation currency 0 0 22 0 0 0 22
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 22 0 0 0 22
Total comprehensive income
for the year 0 0 22 0 0 46,949 46,970
Transactions with owners
Capital Increase 5 4,677 0 0 0 0 4,683
Acquisition of treasury shares 0 0 0 0 - 14,250 0 - 14,250
Disposal of treasury shares 0 0 0 0 14,656 842 15,498
Share based payments 0 0 0 0 0 3,061 3,061
Transaction cost 0 0 0 0 0 - 28 - 28
Total transactions with owners 5 4,677 0 0 406 3,875 8,963
At December 31, 2022 551 272,550 574 0 - 7,669 145,047 411,054
During the period no dividend was paid.
===== SIDA 119 =====
Annual report Page 119
Statement of cash flows parent
Note tEUR 2023 2022
Profit before tax 42,450 55,227
Adjustment for finance items - 24,956 - 37,331
Adjustment for special items - 312 1,168
Operating Profit for the period before special items 17,182 19,064
Depreciation and amortization 11,346 4,415
Other adjustments of non-cash operating items 1,380 2,139
Cash flow from operations before changes in working capital and special items 29,908 25,619
20 Change in working capital 14,246 2,253
Cash flow from operations before special items 44,154 27,871
Special items, cash flow - 4,744 - 1,227
Cash flow from operations 39,410 26,644
Dividend received 51,698 20,088
Other Financial income, received 2,471 2,566
Financial expenses, paid - 10,712 - 5,296
Cash flow from ordinary activities before tax 82,867 44,002
Income tax paid 4,398 - 11,011
Cash flow from operating activities 87,265 32,992
10 Acquisition of businesses - 54,203 - 5,252
10 Acquisition of intangible asset - 24,928 - 92,636
12 Acquisition of property, plant and equipment - 2,527 - 322
12 Sale of property, plant and equipment 0 0
Non-current loans to subsidiaries - 13,000 - 200
Acquisition of other financial assets - 14,930 0
Change in other non-current assets - 766 - 4
Cash flow from investing activities - 110,354 - 98,415
Note tEUR 2023 2022
19 Repayment of borrowings - 1,055 - 215,993
19 Proceeds from borrowings 45,490 296,665
Lease liabilities - 1,273 - 336
Other non-current liabilities 460 0
Capital increase 2,033 618
Treasury Shares - 13,375 - 14,250
Transaction cost - 26 - 28
Cash flow from financing activities 32,254 66,675
Cash flows for the period 9,165 1,252
Cash and cash equivalents at beginning 8,705 7,452
Foreign currency translation of cash and cash equivalents - 45 1
Cash and cash equivalents period end 17,825 8,705
Cash and cash equivalents period end
Cash 17,825 8,705
Cash and cash equivalents period end 17,825 8,705
===== SIDA 120 =====
Annual report Page 120
1. Accounting policies 121
2. Revenue specification 121
3. Staff costs 122
4. Share-based payments 122
5. Fees paid to auditors appointed at the annual general meeting 122
6. Special items 123
7. Finance income 123
8. Finance costs 123
9. Income tax 124
10. Intangible assets 125
11. Intangible assets with indefinite life 126
12. Property, plant and equipment 127
13. Investments in subsidiaries 128
14. Non-current financial assets 129
15. Issued capital and reserves 130
16. Trade and other receivables 130
17. Trade and other payables 130
18. Leasing 130
19. Financial risk management objectives and policies 131
20. Change in working capital 135
21. Other contingent liabilities 135
22. Related party disclosures 135
Notes to the parent
financial statement
===== SIDA 121 =====
Annual report Page 121
Notes
1. Accounting policies
Reference is made to notes to the consolidated financial statements. For the treatment of subsidiaries reference is
made to note 7.
2. Revenue specification
In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition
(CPA), Subscription Revenue and Other, as follows:
tEUR 2023 2022
Revenue category
Recurring revenue (Revenue share, Subscription, CPM) 78,907 57,264
CPA, Fixed Fees 19,329 8,018
Other 276 0
Total revenue 98,513 65,282
%-split
Recurring revenue 80 88
CPA, Fixed Fees 20 12
Other 0 0
Total 100 100
tEUR 2023 2022
Revenue type
Revenue Share 66,709 48,152
CPA 737 2,490
Subscription 1,014 572
Other 30,051 14,068
Total revenue 98,513 65,282
%-split
Revenue Share 68 74
CPA 1 4
Subscription 1 1
Other 30 21
Total 100 100
The parent company has earned 46.0 mEUR in revenues from one major customer, which represents 47% of the parent
company’s revenue (2022: 57%). The revenue is related to all operating segments.
Accounting policies
Reference is made to note 4 of the consolidation financial statement.
Other operating income: Other operating income in the Parent Company consists of management fees for
subsidiaries and rent income from subsidiaries and external. Other operating income is recognized at the time
of delivery of the services.
===== SIDA 122 =====
Annual report Page 122
Notes
3. Staff costs
tEUR 2023 2022
Wages and salaries 17,620 13,924
Pensions, defined contribution 1,265 1,116
Other social security costs 242 163
Share-based payments 1,380 1,935
Other staff costs 92 235
Intercompany personnel costs 20,197 7,688
Total staff cost 40,796 25,061
Average number of full-time employees 160 134
*Average number of full-time employees does not include recharged personal cost.
For remuneration of Key employees , Executive Management and the Board of Directors, reference is made to the
disclosures in note 5 of the consolidated financial statements.
4. Share-based payments
Better Collective A/S has issued share options to key employees and members of the Executive Board of the Com-
pany. Refer to note 6 to the consolidated financial statements for a list of current incentive share option schemes and
a description of the assumptions used for the valuation of the share options granted in 2023. Total costs recognized in
2023 amounted 1,380 tEUR (2022: 1,935 tEUR)
The volume-weighted average share price for options exercised in the financial year was 20.7 EUR per share at the
date of exercise.
Notes
5. Fees paid to auditors appointed at the annual general meeting
Non-audit services provided by EY amounted 76 tEUR in 2023, relating to advisory services in relation to assurance
and advisory in relation to ESG, various tax advisory services, due diligence services and other advisory services. Non-
audit services provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation.
tEUR 2023 2022
Fee related to statutory audit 360 265
Fees for tax advisory services 0 0
Assurance engagements 72 25
Other assistance 76 0
Total audit fees 508 290
===== SIDA 123 =====
Annual report Page 123
Notes
6. Special items
Significant income and expenses, which Better Collective consider not part of ordinary business are presented in the
Income statement in a separate line item labelled ‘Special items’. The impact of special items is specified as follows:
tEUR 2023 2022
Operating profit 17,494 17,896
Special Items related to:
Special items related to dual listing - 1,129 0
Special items related to M&A - 8,484 - 1,227
Variable payments regarding acquisitions - cost 0 59
Variable payments regarding acquisitions - income 9,924 0
Special items, total 312 - 1,168
Operating profit (EBIT) before special items 17,182 19,064
Amortization and impairment 9,908 3,875
Operating profit before amortization
and special items (EBITA before special items) 27,091 22,939
Depreciation 1,438 540
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 28,529 23,479
Notes
7. Finance income
tEUR 2023 2022
Exchange gains 10,000 46,394
Interest Income 61 0
Interest income, group entities 5,841 5,905
Dividend income 51,698 20,088
Other financial income 2,410 0
Total finance income 70,010 72,388
8. Finance costs
tEUR 2023 2022
Exchange losses 20,804 30,131
Interest expenses 12,041 3,712
Interest - right of use assets (Leasing) 159 21
Interest expenses, group entities 374 254
Fair value adjustment 8,126 0
Other financial costs 3,550 939
Total finance costs 45,054 35,057
===== SIDA 124 =====
Annual report Page 124
Notes
9. Income tax
Total tax for the year is specified as follows:
Income tax of profit from the year is specified as follows:
tEUR 2023 2022
Deferred tax 2,993 4,154
Current tax 205 4,181
Adjustment from prior years - 17 - 56
Total 3,181 8,279
Tax on the profit for the year can be explained as follows:
tEUR 2023 2022
Specification for the period:
Calculated 22% tax of the result before tax 9,339 12,150
Tax effect of:
Non-taxable income - 11,785 - 4,419
Non-deductible costs 3,634 604
Unrecognized tax losses carried forward 2,010 0
Adjustment from prior years - 17 - 56
Total 3,181 8,279
Effective tax rate 7.5% 15.0%
tEUR 2023 2022
Deferred tax liabilities
Deferred tax liabilities January 1* 10,672 1,996
Adjustments of deferred tax in profit and loss 2,993 4,154
Exchange rate adjustment 167 - 9
Deferred tax liabilities December 31 13,832 6,141
Deferred tax is recognized in the balance sheet as:
Deferred tax asset 0 0
Deferred tax liability 13,832 6,141
Deferred tax liabilities December 31 13,832 6,141
Deferred tax is related to:
Intangible assets 14,536 6,209
Property, plant and equipment - 2 - 68
Liabilities 2,056 0
Tax loss carry forward - 2,758 0
Deferred tax liabilities December 31 13,832 6,141
*Deferred tax liability at January 1 2023 was adjusted by 4,5 tEUR due to the HLTV merger in 2023.
tEUR 2023 2022
Tax for the period 3,181 8,279
Tax on other comprehensive income 0 0
Total 3,181 8,279
===== SIDA 125 =====
Annual report Page 125
Notes
10. Intangible assets
tEUR Goodwill**
Domains and
websites***
Accounts and other
intangible assets* Total
Cost or valuation
As of January 1, 2023 17,812 164,966 25,086 207,863
Additions 0 3,183 52,022 55,205
Disposals 0 0 - 4,302 - 4,302
Currency Translation 0 - 318 - 52 - 369
At December 31, 2023 17,812 167,831 72,754 258,397
Amortization and impairment
As of January 1, 2023 0 0 11,798 11,798
Amortization for the period 0 0 10,558 10,558
Amortization on disposed assets 0 0 - 650 - 650
Currency translation 0 0 630 630
At December 31, 2023 0 0 22,336 22,336
Net book value at December 31, 2023 17,812 167,831 50,418 236,061
*Accounts and other intangible assets consist of accounts amounted to (3,927 tEUR), Media Partnerships (45,994 tEUR) and software
and others amounted to 497 tEUR.
**Goodwill cost at the January 1, 2023 was adjusted with 17,812 tEUR due to HLTV merger in 2023
*** Domains and websites l cost at the January 1, 2023 was adjusted with 20,592 tEUR due to HLTV merger in 2023
tEUR Goodwill
Domains and
websites
Accounts and other
intangible assets* Total
Cost or valuation
As of January 1, 2022 0 26,189 11,179 37,368
Additions 0 118,185 13,907 132,092
Disposals 0 0 0 0
Currency Translation 0 - 1 0 - 1
At December 31, 2022 0 144,374 25,086 169,460
Amortization and impairment
As of January 1, 2022 0 0 7,922 7,922
Amortization for the period 0 0 3,875 3,875
Amortization on disposed assets 0 0 0 0
Currency translation 0 0 2 2
At December 31, 2022 0 0 11,798 11,798
Net book value at December 31, 2022 0 144,374 13,287 157,662
*Accounts and other intangible assets consist of accounts (5,550 tEUR), Media Partnerships (7,174 tEUR), and software and others (563
tEUR).
===== SIDA 126 =====
Annual report Page 126
Notes
11. Intangible assets with indefinite life
Intangible assets consist of goodwill and domains and websites. The parent company’s domains and websites arise
from asset acquisitions. Goodwill arises from the merger of HLTV in 2023.
Goodwill, domains, and websites are not subject to amortization, but are reviewed annually for impairment, or more
frequently if there are any indicators of impairment noted during the year.
Cash-generating units
A cash-generating unit represents the smallest identifiable group of assets that together have cash inflows that are
largely independent of the cash inflows from other assets. Previously, management concluded that the Parent Com-
pany comprised a single cash-generating unit. However, following the merger between Better Collective and HLTV in
2023, management has determined that HLTV constitutes an independent CGU. As a result, the Management has de-
cided to include a separate CGU for HLTV.
Performance and cash flows from goodwill, domains and websites owned by the individual cash generating units are
allocated and form the basis for impairment.
Carrying amount of goodwill and Domains and Websites for the CGUs :
Recoverable amount
When testing for impairment, the Group estimates a recoverable amount for goodwill and for domain names and web-
sites. The recoverable amount is the higher of the asset or cash-generating unit’s fair value less costs of disposal and its
value in use. The recoverable amount is normally determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets. The recoverable number of
domains and websites has been determined on the level of the cash-generating units, as explained above.
Impairment test:
For all CGUs US, HLTV, Paid Media and the rest of Better Collective, the Group has performed an impairment test on
goodwill and domain names and websites as of December 31, 2023, on a value-in-use basis. Key estimates in the impair-
ment test are growth in revenue, gross profits, discount rate and growth expectations in the terminal period. These are
based on current and future development in the four CGUs and on historical data, including expected long-term market
growths. Data is based on both internal and external data sources.
Management has based the value in use by estimating the present value of future cash flows from a three-year forecast
approved by the Board of Directors corresponding to the Group’s long- term forecast for 2024-2026. The forecast indi-
cates an average annual gross profit growth of 23% during the forecast period, predicated on market development
assumptions and communicated long-term target. Beyond the approved forecast, EBITDA growth, cash conversion and
tax-rates have been projected with a time horizon of 7 years until 2033. From 2027 onward, the average gross profit
growth rate is estimated to decline. In 2027, the average growth rate is projected to be 15% and the decline continues,
reaching 3% by 2033, stabilizing thereafter at a theoretical steady state level in the terminal period. Based on expected
2033 EBITDA and cash flow, management has applied a terminal value rate of 2%. The cash flows assume a discount
factor of 12% (pre- tax discount rate 15%) based on the Group’s weighted average cost of capital (WACC) in all years
2024-2033, with individual tax rates per country (22-25%).
As at December 31, 2022 and December 31, 2023 the Board of Directors have evaluated goodwill, domains and web -
sites for impairment. The results of the impairment tests for goodwill and domains and websites showed that the re -
coverable amount exceeded the carrying value and that there was no impairment loss to be recognized. The Board of
Directors have approved the inputs to the impairment testing and are satisfied that the judgements made are appropri-
ate.
2023
tEUR HLTV Rest of BC Total
Goodwill 17,812 0 17,812
Domains and Websites 20,551 147,280 167,831
2022
tEUR HLTV Rest of BC Total
Goodwill 0 0 0
Domains and Websites 0 144,374 144,374
===== SIDA 127 =====
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Notes
12. Property, plant and equipment
tEUR Right of use assets
Fixtures and
fittings, other plant
and equipment Total
Cost or valuation
At January 1, 2023 1,553 1,292 2,845
Additions 8,299 2,527 10,826
Disposals - 1,585 0 - 1,585
Currency Translation 156 - 3 153
At December 31, 2023 8,422 3,817 12,239
Depreciation and impairment
At January 1, 2023 1,219 882 2,101
Depreciation for the period 1,040 398 1,438
Depreciation on disposed assets - 1,387 0 - 1,387
Currency translation 82 43 125
At December 31, 2023 954 1,323 2,277
Net book value at December 31, 2023 7,469 2,494 9,962
tEUR Right of use assets
Fixtures and
fittings, other plant
and equipment Total
Cost or valuation
At January 1, 2022 1,502 970 2,472
Additions 50 322 373
Disposals 0 0 0
Currency Translation 0 0 0
At December 31, 2022 1,553 1,292 2,845
Depreciation and impairment
At January 1, 2022 901 660 1,561
Depreciation for the period 318 222 540
Depreciation on disposed assets 0 0 0
Currency translation 0 0 0
At December 31, 2022 1,219 882 2,101
Net book value at December 31, 2022 334 410 744
===== SIDA 128 =====
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Notes
13. Investments in subsidiaries
Name* Domicile
Interest
%
Equity
tEUR
Profit/loss
tEUR
Equity
tEUR
Profit/loss
tEUR
Subsidiaries
Better Collective D.o.o. Serbia 100% 1,637 615 1,017 92
Better Collective SAS France 100% 13,007 15,381 14,116 12,868
Hebiva Beteiligungen GmbH Austria 100% 1,140 1,058 1,530 1,458
Better Collective GmbH** Austria 100% 1,108 1,066 35 1,466
Bola Webinformation GmbH Austria 100% 6,226 6,182 6,742 6,707
Better Collective Greece P.C. Greece 100% 2,289 923 1,344 292
Kapa Media Services Ltd. Malta 100% 70 63 387 57
Better Collective Sweden AB Sweden 100% 3,102 2,079 3,198 2,069
Digital Sportmedia i Norden AB Sweden 100% 181 113
Better Collective Poland SP Z o o Poland 100% 708 231 413 158
Moar Performance Ltd United Kingdom 100% 7,082 8,218 2,261 2,151
Better Collective Romania SRL Romania 100% 104 26 78 - 11
Better Collective USA Inc*** USA 100% 8,843 6,408 - 18,642 - 5,888
Skycon Ltd United Kingdom 100% 772 7,092 0 0
Atemi Ltd Malta 100% 932 279 73 2,513
Better Collective UK Services Ltd (Former: Your Media Ltd)**** United Kingdom 100% 879 462 196 354
Mindway ApS Denmark 90% - 1,375 - 357 - 1,021 - 90
Better Collective Netherlands B.V. Netherlands 100% - 42 44 - 97 - 136
Better Collective Portugal, Unipessoal Lda Portugal 100% 141 105 36 36
Better Collective Canada Inc Canada 100% 115 48 57 53
Austin Holding Co Canada 100% - 23 0 - 23 - 23
Better Collective Brasil Ltda Brazil 100% 503 399 - 4 - 4
Goalmedia Tecnologia E Marketing Digital S.A. Brazil 100% - 855 - 381 0 0
Tipsbladet ApS Denmark 100% 933 - 138 0 0
Better Collective Operational Services India Private Limited India 100% - 1,317 - 1,353 0 0
* HLTV ApS has been merged with the parent company as the continuing company and has thus been removed from the list.
** Better Collective GmbH is 100% owned by Hebiva Beteilgungen GmbH.
*** Subsidiaries are 100% owned by Moar Performance Ltd
**** Action Network has been merged with Better Collective USA Inc. as the continuing company as of 31.12.2023
===== SIDA 129 =====
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Notes
13. Investments in subsidiaries (continued)
tEUR 2023 2022
Subsidiaries
Cost at January 1** 156,715 189,318
Additions* 78,034 1,130
Exchange rate to reporting currency - 419 0
Cost at December 31 234,330 190,448
Value adjustment at January 1 0 0
Impairment 0 0
Reversal of impairment 0 0
Value adjustment at December 31 0 0
Carrying amount at December 31 234,330 190,448
Reference is made to note 22 of the consolidated financial statements for acquisition of businesses.
Investments in subsidiaries have been assessed for impairment in 2023 and 2022 and did not lead to any impairment in
neither 2023 nor 2022. Reference is made to note 13 of the consolidated financial statement.
14. Non-current financial assets
tEUR
Receivables from Subsidiar-
ies
Other non-current
financial assets Total
Cost at January 1, 2023 273,515 0 273,515
Additions 18,024 0 18,024
Disposals 0 0 0
Exchange rate adjustment - 9,523 0 - 9,523
Cost at December 31, 2023 282,016 0 282,016
Value adjustment at 1 January, 2023 0 0 0
Impairment 0 0 0
Value adjustment at 31 December, 2023 0 0 0
Carrying amount at 31 December, 2023 282,016 0 282,016
Cost at January 1, 2022 245,349 0 245,349
Additions 200 0 200
Disposals 0 0 0
Exchange rate adjustment 27,966 0 27,966
Cost at December 31, 2022 273,515 0 273,515
Value adjustment at 1 January, 2022 0 0 0
Impairment 0 0 0
Value adjustment at 31 December, 2022 0 0 0
Carrying amount at 31 December, 2022 273,515 0 273,515
Accounting policies
Investments in subsidiaries
Investments in subsidiaries and other investments are measured at cost. If the cost exceeds the recoverable
amount, the carrying amount is reduced to such lower value.
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Notes
15. Issued capital and reserves
Reference is made to the disclosures in note 16 of the consolidated financial statements.
16. Trade and other receivables
tEUR 2023 2022
Trade receivables 12,571 10,266
Accrued revenue 2,267 6,827
Other receivables 898 71
Total receivables 15,735 17,163
17. Trade and other payables
tEUR 2023 2022
Trade Payables 3,966 593
Other payables 7,529 5,125
Total payables 11,495 5,719
18. Leasing
Right-of-use assets
tEUR Buildings Cars Total
Balance at January 1, 2023 301 33 334
Additions 8,299 0 8,299
Disposals - 1,534 - 50 - 1,585
Modifications 34 0 34
Exchange rate adjustment 39 0 39
Depreciation - 1,037 - 3 - 1,040
Depreciation on disposed assets 1,367 20 1,387
Balance at December 31, 2023 7,469 0 7,469
Balance at January 1, 2022 601 0 601
Additions 0 50 50
Disposals 0 0 0
Modifications 0 0 0
Exchange rate adjustment 0 0 0
Depreciation - 300 - 17 - 317
Depreciation on disposed assets 0 0 0
Balance at December 31, 2022 301 33 334
Lease liabilities
tEUR 2023 2022
Maturity analysis - contractual undiscounted cash flows
Less than one year 1,758 363
One to five years 6,428 16
More than five years 0 0
Total undiscounted cash flows 8,186 379
Total lease liabilities 7,507 372
Current 1,483 356
Non-current 6,024 16
The total cash outflow for leases in 2023 was 1.276 tEUR (2022: 336 tEUR).
===== SIDA 131 =====
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Notes
18. Leasing (continued)
Amounts recognized in the consolidated income statement
tEUR 2023 2022
Interest on lease liabilities 159 21
Expenses relating to short- term lease 0 0
Expenses relating to lease of low value assets 43 0
19. Financial risk management objectives and policies
The parent company’s activities expose it to a variety of financial risks: market risk (including foreign currency ex-
change risk and interest rate risk), credit risk, and liquidity risk. The parent company has established principles for
overall risk management, which seek to minimize potential adverse effects on the parent company’s performance.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. For the parent company, market risk comprises foreign currency risk and interest rate risk.
Foreign currency risk
Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The parent company´s exposure to the risk of changes in foreign exchange rates relates
primarily to the parent company’s international operating activities. The parent company’s revenues are mainly de-
nominated in DKK and EUR, with limited revenues in GBP, USD, and PLN. The majority of the parent company’s ex-
penses are employee costs, which are denominated in the Group entities’ functional currency, DKK together with ex-
penses. Expenses have a pattern there is in line with the revenue. The expenses are mainly in DKK, EUR and limited
GBP, USD, and PLN. The DKK rate is fixed to the EUR. Since revenues in other foreign currencies than DKK and EUR
(GBP, USD, and PLN) are limited and expenses in GBP, USD, and PLN reduces the exposure, the parent company is not
overly exposed to foreign currency risk for the ongoing operations.
The parent company has provided long-term intercompany loans in USD to Better Collective US, Inc. to fund the acqui-
sitions in the US. The unrealized exchange rate gains/losses are recorded in the profit and loss in the parent company.
A strengthening of the USD vs. EUR of 10% will have a positive impact on the parent company of 28 mEUR, whereas a
weakening of the USD vs. EUR of 10% will have a negative impact of 28 mEUR on the parent company.
Beyond the impact due to loans mentioned above, the historic exposure to currency fluctuations has not had a mate-
rial impact on the parent company’s financial condition or results of operations. Accordingly, Management deems that
a further sensitivity analysis showing how profit or pre-tax equity would have been impacted by changes in these for-
eign exchange rates is not necessary.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The parent company’s exposure to interest rate risk arises mainly from club financing
signed in October 2022 and in august 2023 extended by 3 years to October 2026. Interest rate risk arising from depos-
its held are short-term and non-material. With ~246.8 mEUR drawn on the facility as of December 2023, an increase in
the interest of 1 %-point will drive additional 2 mEUR in finance costs. However, management expects to re-pay the
credit facility in the short to medium term, as the parent company is generating positive cash flows, and therefore ex-
posure to interest rate risk is considered minimal.
The parent company regularly monitors its interest rate risk and considers it to be insignificant, therefore an interest
rate sensitivity analysis is not deemed necessary.
Credit risk
As per January 1, 2018 the parent company implemented IFRS 9 using the simplified expected credit loss model. The
model implies that the expected loss over the lifetime of the asset is recognized in the profit and loss immediately and
is monitored on an ongoing basis until realization. The parent company has very limited overdue trade receivables and
historically there has been minimal losses on trade receivables and the subsidiaries have a high liquidity ratio. The in-
puts to the expected credit loss model reflects this.
As per December 31, 2023 the parent company’s impairment for expected loss is included in the trade receivables (ref
note 15).
===== SIDA 132 =====