FULLTEXT DEL 3 AV 3
Årsredovisning 2023
Annual report Page 132
Notes
19. Financial risk management objectives and policies (cont’d)
Expected credit loss on receivables from trade and subsidiaries can be specified as follows:
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2023
Not Due 0.0% 9,326 1 9,325
Less than 30 days 0.3% 3,770 9 3,761
Between 31 and 60 days 0.7% 478 3 475
Between 61 and 90 days 2.5% 268 7 261
More than 91 days 25.0% 1,753 438 1,315
Total 2.9% 15,596 458 15,137
Receivables from subsidiaries 0% 295,169 0 295,169
Limited losses were recognized during 2023 and the weighted credit loss has slightly increased compared to 2022.
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2022
Not Due 0.0% 10,875 0 10,875
Less than 30 days 0.2% 4,067 10 4,057
Between 31 and 60 days 0.7% 1,593 11 1,582
Between 61 and 90 days 2.5% 105 3 103
More than 91 days 25.0% 1,036 259 777
Total 1.6% 17,676 283 17,393
Receivables from subsidiaries 0% 303,744 0 303,744
Liquidity risk
The parent company is exposed to liquidity risk in relation to meeting future obligations associated with its financial
liabilities, which mainly include trade payables, other payables and the credit facility. The parent company ensures ad-
equate liquidity through the management of cash flow forecasts and close monitoring of cash inflows and outflows.
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Notes
19. Financial risk management objectives and policies (cont’d)
The following table summarizes the maturities of the parent company’s financial obligations.
Contractual cash flows:
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 34,184 34,184 34,184 33,951 233 0
Other financial liabilities measured at fair
value 46,848 46,848 46,848 22,772 24,076 0
Financial liabilities measured at amortized
costs
Lease liabilities 7,507 7,507 8,186 1,758 6,428 0
Trade and other payables 11,495 11,495 11,495 11,495 0 0
Deferred payment on acquisitions 2,524 2,524 2,524 1,571 952 0
Payables to subsidiaries 4,055 4,055 4,055 4,055 0 0
Loans from subsidiaries 7,937 7,937 8,096 8,096 0 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
Derivatives used as hedging instrument - 483 - 483 - 483 - 483 0 0
Total financial instruments 362,725 362,725 402,734 97,041 305,693 0
Assets:
Non-current financial assets, subsidiaries 282,016 282,016 304,577 5,640 298,937 0
Trade and other receivables 15,735 15,735 15,735 15,735 0 0
Receivable from subsidiaries 13,153 13,153 13,153 13,153 0 0
Other current financial assets 6,804 6,804 6,804 6,804 0 0
Cash 17,825 17,825 17,825 17,825 0 0
Total financial assets 335,533 335,533 358,094 59,157 298,937 0
Contractual cash flows:
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 8,438 8,675 3,643 5,032 0
Financial liabilities measured at amortized
costs
Lease liabilities 372 372 379 363 16 0
Trade and other payables 5,719 5,719 5,719 5,719 0 0
Deferred payment on acquisitions 91 91 95 5 90 0
Payables to subsidiaries 3,053 3,053 3,053 3,053 0 0
Loans from subsidiaries 17,769 17,769 18,124 18,124 0 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
Derivatives used as hedging instrument 0 0 0 0 0 0
Total financial instruments 267,208 258,770 281,492 52,989 228,503 0
Assets:
Non-current financial assets, subsidiaries 273,515 273,515 300,866 5,470 295,396 0
Trade and other receivables 17,163 17,163 17,163 17,163 0 0
Receivable from subsidiaries 30,229 30,229 30,229 30,229 0 0
Other current financial assets 0 0 0 0 0 0
Cash 8,705 8,705 8,705 8,705 0 0
Total financial assets 329,612 329,612 356,963 61,567 295,396 0
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Notes
19. Financial risk management objectives and policies
(continued)
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 other 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 gen -
erally 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 parent company’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 parent company’s
capital management is to maximize shareholder value and to maintain an optimal capital structure. The parent com-
pany manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or
adjust the capital structure, the parent company 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 79,617 1,066 201,708 44,435 2,514 248,657
Leasing and other non-current liabilities 330 0 - 314 16 461 5,547 6,024
Current financing liabilities
Payables to subsidiaries 9,273 11,549 0 20,822 - 8,829 0 11,993
Debt to credit institutions 0 1,055 0 1,055 0 - 1,055 0
Leasing current liabilities 328 - 336 364 356 - 1,273 2,400 1,483
Total liabilities from financing activities 130,955 91,885 1,116 223,956 34,794 9,406 268,156
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Notes
20. Change in working capital
tEUR 2023 2022
Change in receivables 1,428 - 9,901
Changes in Intercompany balances 8,247 10,086
Prepaid expenses 66 - 1,188
Prepayment - from Customers - 1,271 1,583
Change in trades payable, other debt 5,776 1,673
Change in working capital, total 14,246 2,253
21. Other contingent liabilities
Other contingent liabilities
The Parent Company is jointly taxed with the Danish subsidiaries, Tipsbladet ApS and Mindway AI ApS. HLTV Aps was
merged into Better Collective A/S as of 01.01.2023 and is no longer under joint taxation. As administration company,
the Company has unlimited joint and several liability, together with the subsidiaries, for payment of Danish corporation
taxes and withholding taxes on dividends, interest and royalties within the joint taxation group. Any subsequent cor-
rections of income subject to joint taxation and withholding taxes, etc., may entail that the entities’ liability will in-
crease.
22. Related party disclosures
In addition to the disclosures in note 23 of the consolidated financial statements, the parent company’s related parties
include subsidiaries, cf. note 24 to the consolidated financial statements and note 5 to the parent company’s financial
statements.
Transactions with related parties have been as follows:
tEUR 2023 2022
Income Statement
Other Operating income 12,516 13,701
Intercompany revenue - 7,849 - 9,175
Purchases 4,149 7,093
Interest expense 374 254
Interest income 5,841 5,905
Dividend income 51,698 20,088
Balance Sheet
Long-term financial assets 282,016 273,515
Receivables from subsidiaries 13,153 30,229
Short term loans and payables to subsidiaries 11,993 20,822
Management remuneration and share option programs are disclosed in note 5 and note 6 to the consolidated financial
statements.
There have not been other transactions with the Board of Directors, the Executive Directors, major shareholders or
other related parties during the year.
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Alternative Performance Measures and Definitions 137
Annual report Page 136
Other
===== SIDA 137 =====
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The group uses and communicate certain Alternative Performance Measures (“APM”), which are not defined under IFRS.
Such are not to replace performance measures defined and under IFRS. The APM’s may not be indicative of the group’s
historical operating results, nor are such m easures meant to be predictive of the group’s future results. The group be-
lieves however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s
future operating performance, and its ability to service its debt . Accordingly, the APMs are disclosed to permit a more
complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business
performance is evaluated by the Management. The group believes that the presentation of these APMs enhances an
investor’s understanding of the group’s operating performance and the group’s ability to service its debt. Accordingly,
the group discloses the APM’s to permit a more complete and comprehensive analysis of its operating performan ce
relative to other companies and across periods, and of the group’s ability to service its debt. However, these APM’s may
be calculated differently by other companies and may not be comparable with APM’s with similarly titled measures used
by other compa nies. The group’s APMs are not measurements of financial performance under IFRS and should not be
considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other
measures of performance derived in accordance w ith IFRS. The group’s APM’s have important limitations as analytical
tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as
reported under IFRS. Our currently applied APM’s are summarized and described below.
Alternative Performance Measures
Alternative
Performance Measure Description SCOPE
Earnings per share
(EPS)
Net Profit for the period / (Average number
of shares - Average number of treasury
shares held by the company)
The group reports this APM for users to monitor de-
velopment in the net profit per share.
Diluted earnings
per share
Net profit for the period / (Average number
of shares + Average number of outstanding
warrants - Average number of treasury
shares held by the company)
The group reports this APM for users to monitor de-
velopment in the net profit per share, assuming full
dilution from active warrant programs.
Operating profit
before amortization
(EBITA)
Operating profit plus amortizations Better Collective reports this APM to allow monitor-
ing and evaluation of the Group’s operational profit-
ability.
Alternative
Performance Measure Description SCOPE
Operating profit
before amortizations
margin (%)
Operating profit before amortizations / reve-
nue
This APM supports the assessment and monitoring
of the Group’s performance and profitability
EBITDA before
special items
EBITDA adjusted for special items This APM supports the assessment and monitoring
of the Group’s performance as well as profitability
excluding special items that do no stem from ongo-
ing operations, providing a more comparable meas-
ure over time.
Operating profit
before amortizations
and special items
margin (%)
Operating profit before amortizations and
special items / revenue
This APM supports the assessment and monitoring
of the Group’s performance as well as profitability
excluding special items that do no stem from ongo-
ing operations, providing a more comparable meas-
ure over time.
Special items Items that are considered not part of ongoing
business
Items that are not part of ongoing business, e.g. cost
related to M&A and restructuring, adjustments of
earn-out payments.
Net Debt / EBITDA
before special items*
(Interest bearing debt, minus cash and cash
equivalents) / EBITDA before special items on
rolling twelve months basis
This ratio is used to describe the horizon for pay
back of the interest-bearing debt and measures the
leverage of the funding.
Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current
liabilities using current assets.
Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the
company is funded by equity
Cash conversion rate
before special items
(Cash flow from operations before special
items + Cash from CAPEX) / EBITDA before
special items
This APM is reported to illustrate the Group’s ability
to convert profits to cash
NDC New depositing customers A key figure to reflect the Group’s ability to fuel
long-term revenue and organic growth
Alternative Performance Measures
and Definitions
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Alternative
Performance Measure Description SCOPE
Organic Growth Revenue growth as compared to the same pe-
riod previous year. Organic growth from ac-
quired companies or assets are calculated
from the date of acquisition measured against
the historical baseline performance.
Reported to measure the ability to generate growth
from existing business
Recurring revenue Recurring revenue is a combined set of reve-
nues that is defined as recurring as manage-
ment considers that the sources of these rev-
enue streams will continuously generate reve-
nue over a variable period of time and size e.g.
if players continue to bet with sportsbooks
with which BC has revenue share agreements,
customers continue current subscriptions or if
BC on a current basis receive revenues from
customers having current marketing agree-
ments in respect of banners, etc. on the
group’s websites. Accordingly, it includes
Revenue share income, CPM /Advertising and
subscription revenues.
The group reports this APM to distinguish between
what management consider as recurring revenue
streams and what management consider as non-re-
curring revenue streams, e.g. revenues reflecting
one-time settlements with sportsbooks.
*Net debt definition has been changed from Q3, 2023 so it is excluding earn-outs. Comparatives have been changed accordingly.
Definitions
Term Description
PPC Pay-Per-Click
SEO Search Engine Optimization
Sports win margin Sports net player winnings (sportsbooks) / sports wagering
Sports wagering The value of bets placed by the players
Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue
share income, CPM/Advertising and subscription revenues
Board The Board of Directors of the company
Executive management Executives that are registered with the Danish Company register
Company Better Collective A/S, a company registered under the laws of Denmark
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Annual report Page 139
Better Collective A/S
Sankt Annæ Plads 26-28
1250 Copenhagen K
Denmark
CVR no 27 65 29 13
+45 29 91 99 65
info@bettercollective.com
bettercollective.com