FULLTEXT DEL 3 AV 3
Årsredovisning 2024
Annual report Page 123
Notes
1. Accounting policies
General
The financial statements section of the annual report for the period January 1 – December 31, 2024 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, 2023.
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 25, 2025. The annual report will be presented to the shareholders of Better Collective A/S for adoption at
the annual general meeting on April 22, 2025.
The accounting policies have been applied consistently during the financial year and for the comparative figures.
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 2024 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, 2024.
The Group expects to adopt the new standards and interpretations when they become mandatory. None of the stand-
ards are expected to have a significant effect for the consolidated financial statements or the parent financial statements
for the coming financial years. Better Collective is currently assessing the impact IFRS 18 will have on factors such as
presentation of the income statement and cash flow statement and disclosures to be provided in the notes.
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 750 mEUR
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 to fund acquisitions of assets and business combinations in US. Unrealized exchange
rate gains/losses and related tax impact related to these loans are recog nized in Other Comprehensive Income for the
Group.
===== SIDA 124 =====
Annual report Page 124
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 2024 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-
tives 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 based on level 1 (market price) at
the balance sheet date.
The fair value of financial instruments is measured based on level 2. The fair value is measured according to generally
accepted valuation techniques. Market-based input is used to measure the fair value.
Fair Value of financial assets and liabilities is measured based on level 3 - Valuation techniques. In all material aspects
the fair value of the financial assets and liabilities is considered equal to the booked value
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 recognized assets and liabilities. Fair value
changes classified as and fulfilling the criteria for recognition as a fair value hedge ar e recognized 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 recognized on an ongoing basis in the
statement of profit or loss under financial items.
===== SIDA 125 =====
Annual report Page 125
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 could
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.
Management based its assumptions on historical experience and estimates on parameters available when the consoli-
dated financial statements were prepared. Existing circumstances and assumptions about future developments, how-
ever, may change due to market changes or circumstances arising that are beyond the control of the Group. Such
changes are reflected in the assumptions when they occur.
Business combinations
Management may make certain judgements in the process of the classification of a transaction as an asset acquisition
or a business combination. The Group is required to allocate the acquisition cost of entities and activities through busi-
ness 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 projections 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 ac-
quired assets and assumed liabilities and the depreciation and amortization of acquired assets in profit or loss. Reference
is made to note 21 of the consolidated financial statements.
===== SIDA 126 =====
Annual report Page 126
Notes
2. Significant accounting judgements, estimates and assumptions
(continued)
Goodwill, intangible assets with indefinite useful life and impairment
Goodwill, domains and websites are expected to have an indefinite useful life and are therefore not subject to amorti-
zation. Management believes that as long as content is being updated continuously and based on existing technology
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 domains and websites
similar to its peers in the industry. Management reviews this assessment annually to determine whether the indefinite
life continues to be supportable.
Management reviews goodwill, domains and websites for impairment at least once a year. This requires Management 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.
In 2024 Better Collective continues to have four cash generating units with the business acquisitions of AceOdds in-
cluded in Publishing, and the acquisition of Playmaker Capital Playmaker allocated between existing cash generating
units. Goodwill in Playma ker Capital is allocated to the CGU’s; Paid Media (9%), Rest of BC (57%) and North America
(35%) based on the proportional share of the fair value of acquired intangible assets identified in the Purchase Price
Allocation (PPA). This allocation reflects the economic benefits each CGU is expected to generate. The allocation is
provisional due to uncertainties regarding measurement of acquired intangible assets. 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 consider s 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, impairments and cost related to restructuring. Reference is made to note 8 of the consol-
idated financial statements and note 6 of the parent company financial statements.
Deferred tax
Management applies significant estimates when recogniz ing 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 recognized if it is probable that future taxable profit will allow the
deferred tax asset to be recovered.
Other contingent liabilities
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 (refer to note 19
(Group) for details). Other contingent liabilities from partnerships is valued at fair value based on performance targets.
===== SIDA 127 =====
Annual report Page 127
Notes
3. Segment information
Publishing and Paid Media
Better Collective operates two different business models regarding customer acquisition with different earnings-
profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Cost and
Earnings. The Publishing business includes revenue from Better Collective’s proprietary online sports media and media
partnerships where the audience is coming either directly or through organic search results, whereas Paid Media gener-
ates revenue through paid ad-traffic to our brands, thereby running on a lower gross margin.
Publishing Paid Media Group
tEUR 2024 2023 2024 2023 2024 2023
Revenue Share 127,684 120,776 52,598 41,049 180,283 161,825
CPA 40,518 40,590 51,804 63,371 92,323 103,960
Subscription 18,326 17,959 0 0 18,326 17,959
Sponsorships 44,944 29,487 2,382 1,937 47,326 31,424
CPM 32,126 11,333 0 0 32,126 11,334
Other 1,098 182 4 1 1,103 183
Revenue 264,698 220,328 106,789 106,358 371,487 326,686
Cost 180,316 139,685 77,767 75,920 258,084 215,605
Operating profit before depreciation, amorti-
zation and special items 84,381 80,642 29,022 30,438 113,403 111,080
EBITDA-Margin before special items 32% 37% 27% 29% 31% 34%
Special items, net - 10,849 - 1,948 - 37 0 - 10,886 - 1,948
Operating profit before depreciation and
amortization 73,532 78,695 28,985 30,438 102,517 109,132
EBITDA-Margin 28% 36% 27% 29% 28% 33%
Depreciation 6,787 3,909 203 49 6,990 3,958
Operating profit before amortization 66,745 74,785 28,782 30,389 95,527 105,175
EBITA-Margin 25% 34% 27% 29% 26% 32%
Europe & ROW / North America
Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international
brands with a global reach as well as regional brands with a national reach. Better Collective’s regional brands are tai-
lored according to the specific regions or countries and their re spective regulations, sports, betting behaviors, user
needs, and languages. Better Collective reports on the geographical segments Europe & ROW (Rest of World) and North
America, measuring and disclosing separately for Revenue, Cost and Earning
Europe & RoW North America Group
tEUR 2024 2023 2024 2023 2024 2023
Revenue Share 159,671 136,211 20,612 25,614 180,283 161,825
CPA 53,858 49,173 38,465 54,787 92,323 103,960
Subscription 2,787 2,461 15,539 15,499 18,326 17,959
Sponsorships 23,751 18,883 23,576 12,541 47,326 31,424
CPM 23,250 11,186 8,877 150 32,126 11,334
Other 822 172 281 9 1,103 183
Revenue 264,138 218,085 107,349 108,600 371,487 326,686
Cost 167,730 137,902 90,353 77,703 258,084 215,605
Operating profit before depreciation, amorti-
zation and special items 96,407 80,183 16,996 30,897 113,403 111,080
EBITDA-Margin before special items 36% 37% 16% 28% 31% 34%
Special items, net - 2,716 - 1,060 - 8,170 - 888 - 10,886 - 1,948
Operating profit before depreciation and
amortization 93,692 79,123 8,827 30,009 102,517 109,132
EBITDA-Margin 35% 36% 8% 28% 28% 33%
Depreciation 5,794 2,947 1,196 1,011 6,990 3,958
Operating profit before amortization 87,897 76,176 7,631 28,998 95,527 105,175
EBITA-Margin 33% 35% 7% 27% 26% 32%
===== SIDA 128 =====
Annual report Page 128
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:
tEUR 2024 2023
Revenue category
Recurring revenue (Revenue share, Subscription, CPM) 230,735 191,118
CPA, Sponsorships 139,649 135,385
Other 1,103 183
Total revenue 371,487 326,686
%-split
Recurring revenue 62 58
CPA, Sponsorships 38 42
Other 0 0
Total 100 100
The Group has earned 102.7 mEUR (2023: 92.5 mEUR) in revenues from one major customer, which represents 28 % of
the Group’s revenue (2023: 28%). The revenue is related to all operating segments.
EUR 2024 2023
Revenue type
Revenue Share 180,283 161,825
CPA 92,323 103,960
Subscription 18,326 17,959
Sponsorships 47,326 31,424
CPM 32,126 11,334
Other 1,103 183
Total revenue 371,487 326,686
%-split
Revenue Share 49 50
CPA 25 32
Subscription 5 5
Sponsorships 13 10
CPM 8 3
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 recognized 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 revenue 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 recognized over time as
the services under the subscription is delivered.
Sponsorships and CPM: Includes revenue from sales of banners and other marketing fees from customers re-
lated to the Group’s websites and is recognized when the service is delivered. Banner revenue can both be CPM
(Cost per mille impressions) or based on direct fixed fee agreements with customers.
Other Revenue: Other revenue primarily consists of rent from subleases and sale of merchandise.
===== SIDA 129 =====
Annual report Page 129
Notes
5. Staff and other costs
tEUR 2024 2023
Wages and salaries 94,023 72,447
Pensions, defined contribution 5,768 3,894
Other social security costs 5,811 4,641
Share-based payments 1,244 2,510
Other staff costs 6,154 5,429
Total staff cost 113,000 88,921
Average number of full-time employees 1,773 1,252
Remuneration to Executive Management
Wages and salaries 1,714 1,592
Pensions, defined contribution 216 169
Other social security costs 3 6
Share-based payments 857 618
Total 2,790 2,385
Remuneration to Board of Directors
Wages and salaries 590 480
Share-based payments 0 0
Total 590 480
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 not qualified
for capitalization.
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 130 =====
Annual report Page 130
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
2024 174 0 79 63 111 58 47 58 590
2023 149 30 59 52 97 52 19 22 480
*Klaus Holse has resigned the Board and Rene Rechtman and Britt Boeskov have assigned to the Board in August 2023.
Remuneration to Executive Management
tEUR
Jesper
Søgaard
Christian Kirk
Rasmussen
Flemming
Pedersen Total
2024
Wages and salaries 582 582 550 1,714
Pensions, defined contribution 64 64 88 216
Other social security costs 1 1 1 3
Share-based payments 257 257 343 857
Total 904 904 982 2,790
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
===== SIDA 131 =====
Annual report Page 131
Notes
6. Share-based payment plans
Long-term incentive programs
In 2024 were outstanding warrants under the 2019 exercised as the last exercise window was in 2024. 25,000 war-
rants related to the 2020 program were exercised and settled in cash during Q4 2024, accordingly no new shares have
been issued in connection with the exercise.
2021 warrants programs
On September 10th, 2021, 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*
On October 1st, 2021, PSUs and share options were issued for a management incentive program related to Action Net-
work, with the right to subscribe for one ordinary share and are classified as equity-settled share-based payment
transactions
2022 LTI program
On January 27, 2022 a new LTI program consisting of Performance Stock Units and stock options was announced. Un-
der the program options and PSUs were granted to certain key employees. Whereas the options have the right to sub-
scribe 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*.
Management Incentive Program:
On March 1, 2022, a new tranche was established for the Management Incentive Program for Action Network. Options
were granted with the right to subscribe for one ordinary share and, are classified as equity-settled share-based pay-
ment transactions*
2023 LTI Program
On January 3, 2023, a new LTI program consisting of Performance Stock Units and stock options was announced. Un-
der the program options and PSUs were granted to certain key employees. Whereas the options have the right to sub-
scribe 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*.
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 partic-
ipants 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*.
2024 LTI Program
On January 2, 2024, a new LTI program consisting of Performance Stock Units and stock options was announced. Un-
der the program 426,870 options and 61,523 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 Board of Directors keeps the right to change the classification of share-based programs, to cash-settle.
Program
Long-term incentive programs
outstanding December, 2024 Vesting period
Exercise period
Exercise price
DKK
Exercise price
EUR (rounded)
2019* 0 2020-2023 2022-2024 64.78 8.69
2020** 0 2021-2023 2023-2025 61.49 8.24
2020* 163,999 2021-2023 2023-2025 106.35 14.26
2021* 377,372 2022-2024 2024-2026 150.41 20.17
2021 US MIP Options 43,358 2021-2024 2024-2026 138.90 18.62
2022 US MIP Options 15,238 2022-2023 2023-2026 107.25 14.38
2022 Options 20,973 2022-2024 2025-2027 130.98 17.56
2022 PSU 62,810 2022-2024 2025-2027
2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.05
2023 Options 236,730 2023-2025 2026-2028 87.06 11.67
2023 PSU 120,650 2023-2025 2026-2028
2024 Options 426,870 2024-2026 2027-2029 173.87 23.31
2024 PSU 55,236 2024-2026 2027-2029
*Key employees and members of executive management
**Following the AGM on April 22, 2020, 25,000 warrants were issued to the new board member, Todd Dunlap.
===== SIDA 132 =====
Annual report Page 132
Notes
6. Share-based payment plans (continued)
Warrant programs impact in the consolidated financial statements
The total share-based compensation expense recognized for the fu ll year 2024 is 1,244 tEUR (2023: 2.509 tEUR). The
weighted average remaining contractual life of warrants to key employees outstanding as of December 31, 202 4, and
2023 was 2.34 and 2.38 years respectively. The weighted exercise prices for outstanding instruments as of December
31, 2024 and 2023 were 18.79 EUR and 14.51 EUR.
Board of
Directors
Executive
Management Key Employees
Total warrants /
options, numbers
Exercise price,
weighted average
EUR
Total Per-
formance
Stock
Units
Grant price,
weighted average
EUR Total Units
Share options outstanding at January 1, 2024 25,000 900,000 1,122,623 2,047,623 15 198,587 14 2,246,210
Granted 0 0 426,870 426,870 23 61,523 23 488,393
Forfeited/expired 0 0 23,457 23,457 9 21,414 17 44,871
Exercised 25,000 600,000 241,496 866,496 9 0 0 866,496
Transferred 0 0 0 0 0 0 0 0
Share options outstanding at December 31, 2024 0 300,000 1,284,540 1,584,540 19 238,696 17 1,823,236
Of this exercisable at the end of the period 0 0 599,967 599,967 18 0 n/a 599,967
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
===== SIDA 133 =====
Annual report Page 133
Notes
6. Share-based payment plans (continued)
7. Fees paid to auditors appointed at the annual general meeting
tEUR 2024 2023
Fee related to statutory audit 590 433
Fees for tax advisory services 0 0
Assurance engagements 287 72
Other assistance 30 76
Total audit fees 907 581
Non-audit services provided by EY amounted to 37 tEUR in 2024, relating to assurance and advisory within ESG assis-
tance and other advisory services. Non-audit services provided by EY did not exceed 70% of the audit fees in accordance
with EU audit legislation.
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 transac-
tions).
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 recognized for equity-settled transactions at each reporting date until the vest-
ing 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 ser-
vice conditions have not been met.
The dilutive effect of outstanding warrants is reflected as additional share dilution in the computation of diluted
earnings 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.
2024 2023
Dividend yield (%) 0% 0%
Expected volatility (%) 48-50% 50%
Risk free interest rate (%) 1.75% - 2.25% 1.75%
Expected life of warrants (years) 4-5 4-5
Share price for exercises (EUR) 10.93 - 25.42 11.78 - 19.42
Exercise price (EUR) 11.67 - 23.31 11.78 - 19.42
Fair Value at grant date (EUR) 5.30 - 23.31 5.35 - 8.91
===== SIDA 134 =====
Annual report Page 134
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, dual listing, adjustment of earn-out payments related to
acquisitions, impairments and restructuring costs are presented in the Income statement in a separate line item la-
belled ‘Special items’. The impact of special items is specified as follows:
Note tEUR 2024 2023
Operating profit 61,447 80,891
Special Items related to:
Special items related to dual listing 0 - 1,129
Special items related to M&A - 2,223 - 10,224
Variable payments regarding acquisitions - cost 0 0
Variable payments regarding acquisitions - income 19,114 9,924
Special items related to Restructuring - 9,193 - 519
Special items related to impairment - 18,584 0
Special items, total - 10,886 - 1,948
Operating profit (EBIT) before special items 72,334 82,839
Amortization and impairment 34,080 24,283
Operating profit before amortization
and special items (EBITA before special items) 106,413 107,122
Depreciation 6,990 3,958
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 113,403 111,080
Due to underperformance from acquisition of SOME content producer and podcast maker Playmaker HQ (not to be
confused with Playmaker Capital), Better Collective and the founders and former owners of Playmaker HQ have
agreed to renegotiate and settle the earn out. The initial acquisition price of Playmaker HQ was 54mUSD of which
15mUSD was upfront cash. The final price agreed is 25mUSD (23m EUR). Consequently, Better Collective have per-
formed an impairment test based on the reassessment, identifying an impairment of 20mUSD (18m EUR) for the CGU
North America,. The net impact on special items is negative 2.4mEUR, resulting from the mentioned goodwill impair-
ment and the recognition of the remaining earn-out as income. On October 28th, it was announced that Management
has decided to streamline the Group’s business to identify and leverage synergies. Costs related to this amounted to 6
mEUR recognized as Special Items related to restructuring.
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, Impairment, cost related to restructuring and
dual listing.
===== SIDA 135 =====
Annual report Page 135
Notes
9. Finance income
tEUR 2024 2023
Exchange gains 4,199 3,090
Interest Income 1,303 251
Other financial income 1,808 2,647
Total finance income 7,310 5,987
10. Finance costs
tEUR 2024 2023
Exchange losses 5,580 4,432
Interest expenses 14,536 12,146
Interest - right of use assets (Leasing) 811 425
Fair value adjustment 0 8,126
Other financial costs 4,965 3,739
Total finance costs 25,893 28,868
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 136 =====
Annual report Page 136
Notes
11. Income tax
Total tax for the year is specified as follows:
tEUR 2024 2023
Tax for the period 8,850 18,175
Tax on other comprehensive income 1,589 0
Total 10,440 18,175
Income tax on profit for the year is specified as follows:
tEUR 2024 2023
Deferred tax 1,282 3,641
Current tax 7,181 16,400
Adjustment from prior years 387 - 1,867
Total 8,850 18,175
Tax on the profit for the year can be explained as follows:
tEUR 2024 2023
Specification for the period:
Calculated 22% tax of the result before tax 9,430 12,762
Adjustment of the tax rates
in foreign subsidiaries relative to the 22% - 3,731 1,955
Tax effect of:
Special items 1,082 868
Special items - taxable items 0 - 233
Other non-taxable income - 670 - 410
Other non-deductible costs 1,719 3,461
Unrecognized tax losses carried forward 633 2,010
Tax deductible 0 - 371
Adjustment of tax relating to prior periods 387 -1,867
Total 8,850 18,175
Effective tax rate 20.6% 31.3%
tEUR 2024 2023
Deferred tax liabilities
Deferred tax liabilities January 1 77,434 69,002
Additions from business acquisitions 12,693 6,120
Adjustments of deferred tax in profit and loss 1,282 3,641
Exchange rate adjustment 2,691 - 1,329
Deferred tax liabilities December 31 94,100 77,434
Deferred tax is recognized in the balance sheet as:
Deferred tax asset 4,573 7,236
Deferred tax liability 98,673 84,670
Deferred tax liabilities December 31 94,100 77,434
Deferred tax is related to:
Intangible assets 116,193 90,130
Tangible assets - 143 322
Liabilities - 25 1,040
Other - 6,404 - 4,196
Tax loss carry forward - 15,521 - 9,862
Deferred tax liabilities December 31 94,100 77,434
===== SIDA 137 =====
Annual report Page 137
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 regards the portion
that relates to entries directly in equity. Tax expense relating to amounts recognized in other comprehensive income is recognized in other c omprehensive 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 and 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 balance 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 income 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 138 =====
Annual report Page 138
Notes
12. Intangible assets
tEUR Goodwill
Domains
and
websites
Accounts
and other
intangible
assets* Total
Cost
As of January 1, 2024 255,074 466,615 140,065 861,754
Additions 0 0 31,082 31,082
Acquisitions through business combinations 109,906 76,523 41,510 227,939
Transfer 0 0 - 295 - 295
Disposals 0 0 - 4,655 - 4,655
Currency Translation 15,158 10,748 3,359 29,265
At December 31, 2024 380,138 553,886 211,066 1,145,091
Amortization and impairment
As of January 1, 2024 0 0 60,325 60,325
Amortization for the period 0 0 33,966 33,966
Impairment for the period** 18,584 0 0 18,584
Amortization on disposed assets 0 0 - 2,151 - 2,151
Currency translation 566 0 1,298 1,864
At December 31, 2024 19,150 0 93,438 112,588
Net book value at December 31, 2024 360,988 553,886 117,628 1,032,501
*Accounts and other intangible assets consist of accounts (65,525 tEUR), Media Partnerships (49,461 tEUR), Development projects
(2,088 tEUR) and software and others (554 tEUR).
**Disclosed under special items
tEUR Goodwill
Domains
and
websites
Accounts
and other
intangible
assets* Total
Cost
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
Transfer 0 0 0 0
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
Impairment for the period 0 0 0 0
Amortization on disposed assets 0 0 0 0
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).
===== SIDA 139 =====
Annual report Page 139
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 struct ure and
internal financial controls.
Intangible assets
Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Inta ngible assets acquired in a business combination or asset acquisitions are measured at fair value at the acquisition date. Expendit ures 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 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 li fe from indefinite to finite is made on a prospective basis.
Development projects consist of costs such as salaries and other costs that are directly attributable to the development project, recognised from the time at which the development project first qualifies for recognition as an asset.
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 o f 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 basis of amortization, which is calculated as cost less any residual value, is amortized on a straight-line basis over the
expected useful life or contractual terms. The expected useful lives of long-lived assets are as follows:
Goodwill Indefinite
Domains and websites Indefinite
Accounts 3-5 years
Media Partnerships 1-10 years
Software 3 years
Development projects 3 years
Notes
12. Intangible assets (continued)
===== SIDA 140 =====
Annual report Page 140
Notes
13. Goodwill and intangible assets with indefinite life
The Group added intangible assets in 2024 from business combinations of AceOdds and Playmaker Capital. Goodwill
and domains 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. The Group’s
impairment test for goodwill and domains and websites with indefinite life are based on a value-in-use basis.
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 2024 Better Collective continues to have four cash generating units with the business acquisitions of Aceodds in-
cluded in Publishing, and the acquisition of Playmaker Capital Playmaker allocated between existing cash generating
units. Goodwill in Playma ker Capital is allocated to the CGU’s; Paid Media (9%), Rest of BC (57%) and North America
(35%) based on the proportional share of the fair value of acquired intangible assets identified in the Purchase Price
Allocation (PPA). This allocation reflects the economic benefits each CGU is expected to generate. The allocation is
provisional due to uncertainties regarding measurement of acquired intangible assets. Performance and cash flows from
domains and websites owned by the individual cash generating units are allocated for the basis for impairment.
Carrying amount of goodwill and Domains and Websites for the CGUs
2024
tEUR North America HLTV Paid Media Rest of BC Total
Goodwill 147,852 17,795 87,662 107,678 360,988
Domains and Websites 254,780 20,610 0 278,496 553,886
2023
tEUR North America 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
Recoverable amount
When testing for impairment, the Group estimates a recoverable amount for goodwill and for domains and websites.
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 North America, HLTV, Paid Media and the rest of Better Collective, the Group has performed an impairment
test on goodwill and domains and websites as of 31 December, 2024, on a value -in-use basis. Key estimates in the im-
pairment 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.
The Group uses a 10 -year forecast in the Discounted Cash Flow (DCF) model, including a 3 -year budget and a 7 -year
projection leading to steady-state. This period is chosen due to high expected growth in the initial years, with growth
gradually reducing to a steady rate by the terminal period. A shorter forecast would result in an inflated terminal value.
Therefore, a 10-year period allows for a more accurate present value of the groups assets for impairment assessment.
Management has based the value-in-use by estimating the present value of future cash flows from a three-year forecast
for 2025-2027. The forecast indicates an average annual revenue growth up to 11% in 2028 and a normalized average
margin of 33%. Beyond th e forecast, EBITDA growth, cash conversion and tax -rates have been projected with a time
horizon of 7 years until 2034. From 2028 onward, the average gross profit growth rate is estimated to decline. In 2028,
the average growth rate is projected to be 9% and the decline continues, reaching 3% by 2034, stabilizing thereafter at
a theoretical steady state level in the terminal period.
Based on expected 2034 EBITDA and cash flow, management has applied a terminal value growth rate of 2.5%. The cash
flows assume a discount factor of 9.3% for HLTV, Paid Media, Rest of BC and 11 % for North America based on the Group’s
weighted average cost of capital (WACC) in all years 2025- 2034, with individual tax rates per country (22 -25%). The
applied pre-tax discount rate was 12% in 2023 for all CGU’s.
===== SIDA 141 =====
Annual report Page 141
Notes
13. Goodwill and intangible
assets with indefinite life
(continued)
As at December 31, 2024 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, except for the impairment
regarding Playmaker HQ, disclosed as special items. The Board of Directors have approved the inputs to the impairment
testing and are satisfied that the judgements made are appropriate
Sensitivity test
Sensitivity tests have been performed to determine the lowest forecast and terminal period growth rates and/or high-
est discount rates that can occur in the CGUs with indefinite useful life. The sensitivity shows that an increase of 1% in
WACC will not result in any impairment loss.
===== SIDA 142 =====
Annual report Page 142
13. Goodwill and intangible
assets with indefinite life (continued)
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.
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 transf erred, 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 (including 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 goodwill.
If uncertainties regarding identification or measurement of acquired assets, liabilities or contingent liabilities or determination 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 op eration 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, plant and equipment and investments in subsidiaries is assessed 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 tested 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 section “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 143 =====
Annual report Page 143
Notes
14. Tangible assets
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost
At January 1, 2024 19,537 9,939 29,476
Additions 3,508 2,772 6,280
Acquisitions through business combinations 0 0 0
Transfer 0 295 295
Disposals - 1,240 - 428 - 1,668
Currency Translation 2,435 599 3,034
At December 31, 2024 24,239 13,177 37,416
Depreciation and impairment
At January 1, 2024 3,962 3,933 7,894
Depreciation for the period 4,680 2,310 6,990
Depreciation on disposed assets - 782 - 321 - 1,103
Currency translation 450 551 1,001
At December 31, 2024 8,310 6,473 14,782
Net book value at December 31, 2024 15,929 6,704 22,633
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost
As of 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
As of 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
===== SIDA 144 =====
Annual report Page 144
Notes
14. Tangible assets (continued)
Notes
15. Trade and other receivables
tEUR 2024 2023
Trade receivables 35,522 42,086
Accrued revenue 21,036 4,723
Other receivables 7,205 2,144
Total receivables 63,763 48,954
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 the 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 19 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
Tangible assets
Tangible assets are measured at cost less accumulated depreciation 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 tangible 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 tangible assets, and right of use assets, as well as any impairment 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 10 years
Fixtures and fittings, other plant and equipment 3- 5 years
Where individual components of an item of tangible assets have different useful lives, they are accounted for
as separate items, which are depreciated separately. The basis of depreciation is calculated considering the
residual value at the end of the expected useful life and less any impairment. The depreciation period and re-
sidual value are determined at the time of acquisition and are reassessed every year. Where the residual value
exceeds the carrying amount of the asset, no further depreciation charges are recognized.
===== SIDA 145 =====
Annual report Page 145
Notes
16. Issued capital and reserves
tEUR 2024 2023 2022 2021 2020
Share capital:
Opening balance 554 551 546 469 464
Capital increase 77 2 5 77 5
Total 631 554 551 546 469
The share capital consists of 63,076,627 shares of nominal EUR 0.01 each.
Share buy-back-2024
Throughout 2024 the company purchased 1,220,188 Better Collective A/S shares at an average price of 16.83 EUR.
102,431 treasury shares were used as final payment of contingent liabilities related to the 2024 acquisition of AdeOdds.
1,387,580 treasury shares purchased from previous year were used as final payment of contingent liabilities related to
the 2024 acquisition of Playmaker Capital.
By the end of 2024 Better Collective A/S had 1,117,757 treasury shares.
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.
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.
Hedging reserves
Changes in the effective portion of the fair value of derivative financial instruments that are designated and
qualify as a cash flow hedge of items that will impact the income statement are recognised in the hedging
reserve within equity.
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 finan-
cial 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.
===== SIDA 146 =====
Annual report Page 146
Notes
17. Trade and other payables
tEUR 2024 2023
Trade Payables 10,173 10,936
Other payables 16,721 16,902
Total payables 26,894 27,838
18. Leasing
Right-of-use assets
tEUR Buildings Cars Total
Balance at January 1, 2024 15,575 0 15,575
Additions 3,508 0 3,508
Disposals - 1,240 0 - 1,240
Modifications 0 0 0
Exchange rate adjustment 1,985 0 1,985
Depreciation - 4,680 0 - 4,680
Depreciation on disposed assets 782 0 782
Balance at December 31, 2024 15,929 0 15,929
Balance at January 1, 2023 6,236 33 6,269
Additions 12,368 0 12,368
Disposals - 2,485 - 50 - 2,535
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 15,577
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 147 =====
Annual report Page 147
Notes
18. Leasing (continued)
Lease liabilities
tEUR 2024 2023
Maturity analysis - contractual undiscounted cash flows
Less than one year 4,376 1,714
One to five years 13,830 15,262
More than five years 935 702
Total undiscounted cash flows 19,141 17,678
Total lease liabilities 16,936 16,028
Current 4,376 2,702
Non-current 12,560 13,326
The total cash outflow for leases during 2024 was 4,384 tEUR (2023: 2,814 tEUR).
Amounts recognized in the consolidated income statement
tEUR 2024 2023
Interest on lease liabilities 811 425
Expenses relating to short- term lease 98 457
Expenses relating to lease of low value assets 0 82
Accounting policies
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right 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 under-
lying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation
and impairment losses, and adjusted for a ny remeasurement of 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
recognized, 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 include 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 commencement 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 purchase 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 148 =====
Annual report Page 148
Notes
19. 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, BRL, CAD
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 2024 impact of the fluctuating USD on the USD loan in the parent company was a
positive impact on 17.3 mEUR compared to a negative impact on - 9,4 mEUR in 2023 . The exchange rate adjustments
and corresponding tax impact on these loans are included in Other Comprehensive Income for the group.
The Board of Directors has in general decided not to hedge currency exchange risk given the underlying inherent risk
and the capital structure.
The historic exposure to currency fluctuations has not had a material 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. With 260.8 mEUR drawn on
the facility as of December 2024.
Better Collective has entered two hedging contracts regarding the interest rate risk for the period October 2024 to
October 2026, nominal amount of 550 mDKK each securing the interest rate at 2.32% and 2.34% respectively.
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 interest rate risk arising from deposits held
are short-term and non-material.
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, 2024, the Group’s impairment for expected loss is included in the trade receivables (ref note 15).
Covenants
The Group facility w ith 260.8 mEUR drawn at December 2024 is subject to a covenant requiring that debt leverage,
defined as net debt divided by 12 months rolling adjusted EBIT DA before special items , must not exceed 3. 25x. The
covenant is tested and reported end of each quarter until the maturity of the facility. The Group has no indication of any
difficulties in complying with this covenant.
===== SIDA 149 =====
Annual report Page 149
Notes
19. Financial risk management objectives and policies
(continued)
Expected credit loss on receivables from trade receivables as of December 31, 2024:
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2024
Not Due 0.0% 21,934 0 21,934
Less than 30 days 0.3% 6,856 18 6,839
Between 31 and 60 days 0.5% 3,219 17 3,202
Between 61 and 90 days 2.0% 918 19 899
More than 91 days 24.1% 3,490 842 2,648
Total 2.5% 36,417 895 35,522
Limited losses were recognized during 2024 and the weighted credit loss has slightly increased compared to 2023.
Expected credit loss on receivables from trade receivables as of December 31, 2023:
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
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
===== SIDA 150 =====
Annual report Page 150
Notes
19. 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
2024
Non-derivative financial instruments:
Financial liabilities measured at fair value
Earn-out consideration 8,617 8,617 8,617 8,617 0 0
Financial liabilities measured at amortized
costs
Lease liabilities 16,936 16,936 19,141 4,376 13,830 935
Trade and other payables 26,894 26,894 26,894 26,894 0 0
Deferred payment on acquisitions 1,454 1,454 1,454 533 921 0
Debt to credit institutions 259,691 259,691 289,123 10,388 278,735 0
Other financial liabilities 58,885 58,885 58,885 17,775 41,109 0
Derivative financial instruments:
Financial liabilities measured at fair value
Derivates used as hedging instrument 662 662 662 0 662 0
Total financial instruments 373,139 373,139 404,776 68,583 335,257 935
Assets:
Trade and other receivables 63,763 63,763 63,763 63,763 0 0
Other current financial assets 0 0 0 0 0 0
Cash 37,674 37,674 37,674 37,674 0 0
Total financial assets 101,437 101,437 101,437 101,437 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
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 151 =====
Annual report Page 151
Notes
19. 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 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 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, 202 4, Better Collective has drawn 2 61 mEUR (2023: 249 mEUR) out of the total committed club
facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its
3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a
100mEUR higher accordion option with expiry at the end of October 2026.
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 2022
Cash flows
Net
Non cash
flow
changes 2023
Cash flows
Net
Non cash
flow
changes 2024
Non-current financing liabilities 201,708 44,004 2,945 248,657 10,858 177 259,691
Leasing and other non-current
liabilities 4,962 - 483 8,847 13,326 - 434 - 332 12,560
Current financing liabilities 0 0 0 0 0 0 0
Leasing current liabilities 1,653 - 2,814 3,863 2,702 - 4,384 6,058 4,376
Total liabilities from financing
activities 208,322 40,708 15,655 264,685 6,040 5,903 276,627
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 152 =====
Annual report Page 152
Notes
20. Change in working capital
tEUR 2024 2023
Change in receivables - 5,016 4,224
Prepaid expenses - 1,692 - 325
Prepayment from customers 5,566 - 3,762
Change in trades payable, other debt - 12,497 5,585
Change in working capital, total - 13,638 5,722
21. Business combinations
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 considera-
tion 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
are consolidated into Better Collective Group from the closing date.
tEUR
Purchase amount 110,762
Cash and cash equivalents 4,840
Shares 73,314
Cash outflow 32,608
The transferred consideration was in cash and shares in Better Collective A/S.
21. Business combinations (continued)
Acquired net assets at the time of acquisition tEUR
Domains and websites 76,523
Customer Relations 7,446
Technology 2,137
Other assets 18,034
Deferred tax liabilities - 18,376
Other liabilities - 68,314
Identified net assets 17,450
Goodwill 93,312
Total consideration 110,762
A goodwill of 93,312 tEUR emerged from the acquisition of Playmaker Capital 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 expecta-
tions given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible.
Transaction costs related to the acquisition of Playmaker Capital amounts to 6,420 tEUR. Transaction costs are ac-
counted for in the income statements under “special items” since the announcement. The acquisition was completed on
February 6, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted
to 375 mEUR and result after tax would have amounted to 37 mEUR. The purchase price allocation is provisional due to
uncertainties regarding measurement of acquired intangible assets.
Acquisition of AceOdds
On May 16, 2024 Better Collective announced the acquisition of AceOdds for a total price consideration of 43 mEUR.
The consideration consist of 38 mEUR in cash and 2mEUR as shares in Better Collective A/S. AceOdds is a UK sports
betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's presence
across the UK, significantly. The acquisition is a strategic move for Better Collective with significant synergistic oppor-
tunities. The acquisition was closed on 16 May 2024, and AceOdds are consolidated into Better Collective Group from
the closing date.
===== SIDA 153 =====
Annual report Page 153
21. Business combinations (continued)
tEUR
Purchase amount 42,969
Cash and cash equivalents 2,919
Shares 2,340
Cash outflow 37,710
The transferred consideration was in cash and shares in Better Collective A/S.
Acquired net assets at the time of acquisition tEUR
Accounts 31,927
Other receivables and assets 680
Cash 2,919
Corporate Tax - 1,420
Deferred Tax Liability - 7,982
Identified net assets 26,124
Goodwill 16,845
Total consideration 42,969
A goodwill of 16,845 tEUR emerged from the acquisition of AceOdds 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 goodwill is not tax deductible.
Transaction costs related to the acquisition of AceOdds amounts to 283 tEUR. Transaction costs are accounted for in
the income statements under “special items” since the announcement. The acquisition was completed on May 16, 2024.
If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 376 mEUR and
result after tax would have amounted to 38 mEUR. The purchase price allocation is provisional due to uncertainties
regarding measurement of acquired intangible assets.
Acquisitions 2023
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
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 154 =====
Annual report Page 154
21. Business combinations (continued)
been completed on January 1, 2023 the group’s revenue would have amounted to 332 mEUR and result after tax would
have amounted to 43 mEUR.
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
the PPA was revised in 2023. 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 opportunities. In order to reach
the full earn-out payment, Playmaker HQ will have to generate >75 mUSD in accumulating revenues 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 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.
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
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 would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR.
===== SIDA 155 =====
Annual report Page 155
21. 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.
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
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.
22. Related party disclosures
The Group has registered the following shareholders with 5% or more equity interest:
• J Søgaard Holding ApS, 16.92 %,Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark
• Chr. Dam Holding ApS, 16.92 %, Sankt Annæ plads 26-28, 1250 Copenhagen, Denmark
• BLS Capital Fondsmæglerselskab A/S, 11.67 %, Strandvejen 724, 2930 Klampenborg
Jesper Søgaard and Christian Kirk Rasmussen each hold 16.92% of the shares in Better Collective A/S through their
respective holding companies. Moreover, BLS Capital Fondsmæglerselskab A/S held 11.67 % by the end of 2024 and
increased their shares to over 15% in 2025. The remaining shares are held by other shareholders.
The Group’s related parties with significant influence include the Group’s Board of Directors, Executive Management,
and close family members of these persons. Related parties also include companies in which this circle of persons has
significant interests.
There have been transactions related to sublease of the Headquarters and related cost with Better Holding ApS and
MM Properties ApS, total amounting 61k EUR. The transactions have all been on arm length.
Management remuneration and long-term incentive programs are disclosed in note 5 and 6.
===== SIDA 156 =====
Annual report Page 156
Notes
23. Group information –subsidiary information
The consolidated financial statements of the Group as of December 31, 2024 include the following subsidiaries:
Name Note Ownership Country
Better Collective D.o.o. 100% Serbia
Better Collective SAS 100% France
Bola Webinformation GmbH A 100% Austria
Better Collective Greece P.C. 100% Greece
Kapa Media Services Ltd. 100% Malta
Better Collective Malta Ltd. D 100% Malta
Better Collective Sweden AB 100% Sweden
Digital Sportmedia i Norden AB F 100% Sweden
Better Collective Poland SP Z o o 100% Poland
Moar Performance Ltd B 100% United Kingdom
Better Collective Romania SRL 100% Romania
Better Collective USA Inc. 100% USA
Atemi Ltd. C 100% Malta
Better Collective UK Services Ltd (Former: Your Media Ltd) C 100% United Kingdom
Solid Software Ltd (AceOdds) C 100% United Kingdom
Mindway AI ApS H 90% Denmark
Better Collective Netherlands B.V. 100% Netherlands
Better Collective Portugal, Unipessoal Lda 100% Portugal
Better Collective Canada Inc. G 100% Canada
Austin Holding Co 100% Canada
Better Collective Brasil Ltda 100% Brazil
Goalmedia Tecnologia E Marketing Digital S.A. 99% Brazil
Better Collective Colombia SAS 100% Colombia
Tipsbladet ApS 100% Denmark
Better Collective Operational Services India Private Limited 100% India
Playmaker Capital Inc. D 100% Canada
La Poche Bleue Inc. D, E 100% Canada
The Nation Network Inc. D, E 100% Canada
PMKR US Inc. D, E 100% USA
Futbol Sites LLC D, E 100% USA
Futbol Sites MX S.A. De C.V. D, E 100% Mexico
AERIS S.A. D, E 100% Uruguay
YB Media, LLC D, E 100% USA
Odenton Company S.A. D, E 100% Uruguay
===== SIDA 157 =====
Annual report Page 157
23. Group information –subsidiary information (continued)
24. Other contingent liabilities
Other contingent liabilities
There are no other contingent liabilities in 2024.
25. Events after the reporting date
Better Collective’s Board and Executive Management propose to the Annual General Meeting that the 1.8% holding of
own shares as of December 31, 2024, be canceled.
Better Collective has decided to launch a new share buyback of 10 mEUR.
Name Note Ownership Country
Wedge Traffic Limited D, E 100% United Kingdom
Wedge Traffic, Inc. D, E 100% USA
Flop Midias Ltda. D, E 100% Brazil
SPRK Midias E Eventos Ltda. D, E 100% Brazil
Futbol Sites Colombia S.A.S. D, E 100% Colombia
FSN SRL D, E 99% Argentina
Sociedad Commercial Futbol Sites Network Chile Limitada D, E 99% Chile
Sociedad Commercial Futbol Dale Ideas Limitada D, E 100% Chile
A Better Collective GmbH and Hebiva Beteiligungen GmbH are merged with Bola Webinformation GmbH as the continuing company as of 05.10.2024 retroactively to 01.01.2024.
B Skycon Ltd is merged with Moar Performance Ltd as the continuing company as of 30.04.2024 retroactively to 01.01.2024.
C Subsidiaries are 100% owned by Moar Performance Ltd
D Subsidiaries are acquired or established in 2024
E Subsidiaries are 100% owned by Playmaker Capital Inc.
F Subsidiaries are 100% owned by Better Collective Sweden AB
G Subsidiaries are 100% owned by US Inc.
H As per December 31, 2024, the value of non-controlling interests is 0 EUR.
===== SIDA 158 =====
Annual report Page 158
Statement of profit and loss 159
Statement of comprehensive income 159
Balance sheet 160
Statement of changes in equity 161
Cash flow statement 162
Annual report Page 158
Parent Company
Financial
Statements
===== SIDA 159 =====
Annual report Page 159
Statement of profit and loss
Note tEUR 2024 2023
2 Revenue 129,221 98,513
Other operating income 21,435 12,516
Direct costs related to revenue 21,306 23,071
3, 4 Staff costs 52,240 40,796
12 Depreciation 2,978 1,438
5 Other external expenses 26,487 18,632
Operating profit before amortization (EBITA) and special items 47,645 27,091
10 Amortization 13,420 9,908
Operating profit (EBIT) before special items 34,225 17,182
6 Special items, net 960 312
Operating profit 35,186 17,494
7 Financial income 80,222 70,010
8 Financial expenses 34,749 45,054
Profit before tax 80,658 42,450
9 Tax on profit for the period 9,549 3,181
Profit for the period 71,109 39,269
Statement of comprehensive income
Note tEUR 2024 2023
Profit for the period 71,109 39,269
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 - 180 - 483
Currency translation to presentation
currency - 2,688 - 910
Currency translation of non-current
intercompany loans 0 0
9 Income tax 146 0
Net other comprehensive income/loss - 2,722 - 1,393
Total comprehensive income/(loss) for the period, net of tax 68,387 37,877
===== SIDA 160 =====
Annual report Page 160
Balance sheet
Note tEUR 2024 2023
Assets
Non-current assets
10, 11 Intangible assets
Goodwill 17,795 17,812
Domains and websites 169,227 167,831
Accounts and other intangible assets 46,543 50,418
Total intangible assets 233,565 236,061
12 Tangible assets
Right of use assets 7,750 7,469
Fixtures and fittings, other plant and equipment 2,891 2,494
Total tangible assets 10,641 9,962
Financial assets
13 Investments in subsidiaries 377,085 234,330
14 Receivables from subsidiaries 372,121 282,016
Deposits 1,000 940
Total financial assets 750,206 517,285
Total non-current assets 994,413 763,308
Current assets
16 Trade and other receivables 22,089 15,735
19 Receivables from subsidiaries 39,698 13,153
Tax receivable 0 1,479
Prepayments 3,220 2,453
Other current financial assets 0 6,804
19 Cash 12,667 17,825
Total current assets 77,675 57,450
Total assets 1,072,088 820,758
Note tEUR 2024 2023
Equity and liabilities
Equity
Share Capital 631 554
Share Premium 469,460 274,580
Reserves - 23,876 - 21,876
Retained Earnings 260,171 189,953
Total equity 706,387 443,211
Non-current Liabilities
19 Debt to credit institutions 259,691 248,657
18 Lease liabilities 6,043 6,024
9 Deferred tax liabilities 18,375 13,832
19 Other non-current financial liabilities 34,887 25,261
Total non-current liabilities 318,996 293,774
Current Liabilities
Prepayments received from customers and deferred revenue 4,612 312
17 Trade and other payables 6,302 11,495
19 Payables to subsidiaries 17,579 11,993
Tax payable 2,433 196
19 Other current financial liabilities 13,856 58,295
18 Lease liabilities 1,924 1,483
Total current liabilities 46,705 83,773
Total liabilities 365,701 377,547
Total equity and liabilities 1,072,088 820,758
===== SIDA 161 =====
Annual report Page 161
Statement of changes in equity
tEUR
Share
capital
Share
premium
Currency
transla-
tion re-
serve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As of January 1, 2024 554 274,580 - 336 - 483 - 21,057 189,952 443,211
Result for the period 0 0 0 0 0 71,109 71,109
Fair value adjustment of
hedges 0 0 0 - 180 0 0 - 180
Foreign currency translation 0 0 - 2,688 0 0 0 - 2,688
Tax on other
comprehensive income 0 0 0 146 0 0 146
Total other
comprehensive income 0 0 - 2,688 - 34 0 0 - 2,722
Total comprehensive income for the year 0 0 - 2,688 - 34 0 71,109 68,387
Transactions with owners
Capital Increase 77 194,880 0 0 0 - 1,758 193,199
Acquisition of treasury shares 0 0 0 0 - 22,533 0 - 22,533
Disposal of treasury shares 0 0 0 0 23,254 9,017 32,271
Share based payments 0 0 0 0 0 - 5,131 - 5,131
Transaction cost 0 0 0 0 0 - 3,018 - 3,018
Total transactions with owners 77 194,880 0 0 721 - 890 194,788
At December 31, 2024 631 469,460 - 3,024 - 517 - 20,336 260,171 706,387
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
transla-
tion re-
serve
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
Foreign currency translation 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 - 21,057 189,952 443,211
During the period no dividend was paid.
===== SIDA 162 =====
Annual report Page 162
Statement of cash flows parent
Note tEUR 2024 2023
Profit before tax 80,658 42,450
Adjustment for finance items - 45,473 - 24,956
Adjustment for special items - 960 - 312
Operating Profit for the period before special items 34,225 17,182
Depreciation and amortization 16,397 11,346
Other adjustments of non-cash operating items 659 1,380
Cash flow from operations before changes in working capital and special items 51,281 29,908
20 Change in working capital - 25,073 14,246
Cash flow from operations before special items 26,208 44,154
Special items, cash flow - 7,637 - 4,744
Cash flow from operations 18,571 39,410
Dividend received 33,886 51,698
Other Financial income, received 3,365 2,471
Financial expenses, paid - 12,484 - 10,712
Cash flow from ordinary activities before tax 43,338 82,867
Income tax paid - 708 4,398
Cash flow from operating activities 42,630 87,265
10 Acquisition of businesses - 59,331 - 54,203
12 Acquisition of intangible asset - 20,538 - 24,928
Acquisition of tangible assets - 1,447 - 2,527
Sale of tangible assets 0 0
Non-current loans to subsidiaries - 94,005 - 13,000
Acquisition of other financial assets 0 - 14,930
Sale of other financial assets 3,232 0
Change in other non-current assets 0 - 766
Cash flow from investing activities - 172,090 - 110,354
Note tEUR 2024 2023
19 Repayment of borrowings - 113,271 - 1,055
19 Proceeds from borrowings 124,129 45,490
Lease liabilities - 2,092 - 1,273
Other non-current liabilities - 546 460
Capital increase 146,362 2,033
Treasury Shares - 20,336 - 13,375
Transaction cost - 3,018 - 26
Warrant settlement, sale of warrants - 6,911 0
Cash flow from financing activities 124,317 32,254
Cash flows for the period - 5,142 9,165
Cash and cash equivalents at beginning 17,826 8,705
Foreign currency translation of cash and cash equivalents - 17 - 45
Cash and cash equivalents period end 12,667 17,825
Cash and cash equivalents period end
Cash 12,667 17,825
Cash and cash equivalents period end 12,667 17,825
===== SIDA 163 =====
Annual report Page 163
1. Accounting policies 164
2. Revenue specification 164
3. Staff costs 165
4. Share-based payments 165
5. Fees paid to auditors appointed at the annual general meeting 165
6. Special items 166
7. Finance income 166
8. Finance costs 166
9. Income tax 167
10. Intangible assets 168
11. Intangible assets with indefinite life 169
12. Tangible assets 170
13. Investments in subsidiaries 171
14. Non-current financial assets 171
15. Issued capital and reserves 172
16. Trade and other receivables 172
17. Trade and other payables 172
18. Leasing 172
19. Financial risk management objectives and policies 173
20. Change in working capital 177
21. Other contingent liabilities 177
22. Related party disclosures 177
Notes to the parent
financial statement
===== SIDA 164 =====
Annual report Page 164
Notes
1. Accounting policies
Reference is made to notes to the consolidated financial statements. For the treatment of subsidiaries reference is
made to note 23.
2. Revenue specification
In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition
(CPA), Subscription Revenue, Sponsorships and Other, as follows:
tEUR 2024 2023
Revenue category
Recurring revenue (Revenue share, Subscription, CPM) 98,933 78,907
CPA, Sponsorships 29,618 19,329
Other 670 276
Total revenue 129,221 98,513
%-split
Recurring revenue 76 80
CPA, Sponsorships 23 20
Other 1 0
Total 100 100
The parent company has earned 46.1 mEUR (2023: 46.0 mEUR) in revenues from one major customer, which repre-
sents 36% of the parent company’s revenue (2023: 47%). The revenue is related to all operating segments.
tEUR 2024 2023
Revenue type
Revenue Share 89,030 66,709
CPA 11,951 737
Subscription 1,155 1,014
Sponsorships 17,667 18,591
CPM 8,748 11,184
Other 670 276
Total revenue 129,221 98,513
%-split
Revenue Share 69 68
CPA 9 1
Subscription 1 1
Sponsorships 13 19
CPM 7 11
Other 1 0
Total 100 100
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 165 =====
Annual report Page 165
Notes
3. Staff costs
tEUR 2024 2023
Wages and salaries 17,601 17,620
Pensions, defined contribution 1,745 1,265
Other social security costs 278 242
Share-based payments 659 1,380
Other staff costs - 210 92
Intercompany personnel costs 32,167 20,197
Total staff cost 52,240 40,796
Average number of full-time employees 181 160
*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 dis-
closures 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 2024. Total costs recognized in
2024 amounted 659 tEUR (2023: 1,380 tEUR).
Notes
5. Fees paid to auditors appointed at the annual general meeting
tEUR 2024 2023
Fee related to statutory audit 504 360
Fees for tax advisory services 0 0
Assurance engagements 287 72
Other assistance 30 76
Total audit fees 821 508
Non-audit services provided by EY amounted to 37 tEUR in 2024, relating to assurance and advisory within ESG assis-
tance and other advisory services. Non-audit services provided by EY did not exceed 70% of the audit fees in accordance
with EU audit legislation.
===== SIDA 166 =====
Annual report Page 166
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 2024 2023
Operating profit 35,186 17,494
Special Items related to:
Special items related to Dual Listing 0 - 1,129
Special items related to M&A - 247 - 8,484
Variable payments regarding acquisitions - cost 0 0
Variable payments regarding acquisitions - income 2,549 9,924
Special items related to Restructuring - 1,342 - 0
Special items, total 960 312
Operating profit (EBIT) before special items 34,225 17,182
Amortization and impairment 13,420 9,908
Operating profit before amortization
and special items (EBITA before special items) 47,645 27,091
Depreciation 2,978 1,438
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 50,622 28,528
Notes
7. Finance income
tEUR 2024 2023
Exchange gains 34,197 10,000
Interest Income 1,068 61
Interest income, group entities 10,759 5,841
Dividend income 34,186 51,698
Other financial income 11 2,410
Total finance income 80,222 70,010
8. Finance costs
tEUR 2024 2023
Exchange losses 15,566 20,804
Interest expenses 14,387 12,041
Interest - right of use assets (Leasing) 319 159
Interest expenses, group entities 296 374
Fair value adjustment 0 8,126
Other financial costs 4,181 3,550
Total finance costs 34,749 45,054
===== SIDA 167 =====
Annual report Page 167
Notes
9. Income tax
Total tax for the year is specified as follows:
tEUR 2024 2023
Tax for the period 9,549 3,181
Tax on other comprehensive income 146 0
Total 9,695 3,181
Income tax of profit from the year is specified as follows:
tEUR 2024 2023
Deferred tax 4,529 2,993
Current tax 5,393 205
Adjustment from prior years - 373 - 17
Total 9,549 3,181
Tax on the profit for the year can be explained as follows:
tEUR 2024 2023
Specification for the period:
Calculated 22% tax of the result before tax 17,745 9,339
Tax effect of:
Non-taxable income - 7,850 - 11,785
Non-deductible costs 217 3,634
Other tax adjustments - 189 0
Unrecognized tax losses carried forward 0 2,010
Adjustment from prior years - 373 - 17
Total 9,549 3,181
Effective tax rate 11.8% 7.5%
tEUR 2024 2023
Deferred tax liabilities
Deferred tax liabilities January 1* 13,832 10,672
Adjustments of deferred tax in profit and loss 4,529 2,993
Exchange rate adjustment 14 167
Deferred tax liabilities December 31 18,375 13,832
Deferred tax is recognized in the balance sheet as:
Deferred tax asset 0 0
Deferred tax liability 18,375 13,832
Deferred tax liabilities December 31 18,375 13,832
Deferred tax is related to:
Intangible assets 18,432 14,536
Property, plant and equipment - 57 - 2
Liabilities 0 2,056
Tax loss carry forward 0 - 2,758
Deferred tax liabilities December 31 18,375 13,832
*Deferred tax liability at January 1 2023 was adjusted by 4,5 tEUR due to the HLTV merger in 2023.
===== SIDA 168 =====
Annual report Page 168
Notes
10. Intangible assets
tEUR Goodwill
Domains and
websites
Accounts and other
intangible assets* Total
Cost
As of January 1, 2024 17,812 167,831 72,754 258,397
Additions 0 0 12,978 12,978
Disposals 0 0 - 2,748 - 2,748
Currency Translation - 17 1,396 - 69 1,309
At December 31, 2024 17,795 169,227 82,914 269,936
Amortization and impairment
As of January 1, 2024 0 0 22,336 22,336
Amortization for the period 0 0 14,794 14,794
Amortization on disposed assets 0 0 - 1,374 - 1,374
Currency translation 0 0 615 615
At December 31, 2024 0 0 36,371 36,371
Net book value at December 31, 2024 17,795 169,227 46,543 233,565
*Accounts and other intangible assets consist of accounts ( 1,980 tEUR), Media Partnerships (44,332 tEUR) and software and others
(232 tEUR).
tEUR Goodwill**
Domains and
websites***
Accounts and other
intangible assets* Total
Cost
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 cost at the January 1, 2023 was adjusted with 20,592 tEUR due to HLTV merger in 2023
===== SIDA 169 =====
Annual report Page 169
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, 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. Management has determined that, the parent company will
continue to have to two CGU’s; HLTV and Rest of BC.
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:
2024
tEUR HLTV Rest of BC Total
Goodwill 17,795 0 17,795
Domains and Websites 20,610 148,617 169,227
2023
tEUR HLTV Rest of BC Total
Goodwill 17,812 0 17,812
Domains and Websites 20,551 147,280 167,831
Recoverable amount
When testing for impairment, Better Collective estimates a recoverable amount for goodwill and for domain 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 tha t 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, HLTV and the rest of Better Collective, the Management has performed an impairment test on goodwill
and domains and websites as of December 31, 202 4, on a value-in-use basis. Key estimates in the impairment 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 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
for 2025-2027. The forecast indicates an average annual revenue growth up to 11% in 2028 and a normalized average
margin of 33%. Beyond th e forecast, EBITDA growth, cash conversion and tax -rates have been projected with a time
horizon of 7 years until 2034. From 2028 onward, the average gross profit growth rate is estimated to decline. In 2028,
the average growth rate is projected to be 9% and the decline continues, reaching 3% by 2034, stabilizing thereafter at
a theoretical steady state level in the terminal period.
Based on expected 2034 EBITDA and cash flow, management has applied a terminal value growth rate of 2.5%. The cash
flows assume a discount factor of 9.3% for HLTV and Rest of BC based on the Group’s weighted average cost of capital
(WACC) in all years 2025 -2034, with individual tax rates per country (22 -25%). The applied pre-tax discount rate was
12% in 2023 for all CGU’s.
As at December 31, 2024 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.
===== SIDA 170 =====
Annual report Page 170
Notes
12. Tangible assets
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost or valuation
As of January 1, 2024 8,422 3,817 12,239
Additions 2,223 1,447 3,670
Disposals 0 - 84 - 84
Currency Translation - 7 - 4 - 11
At December 31, 2024 10,637 5,177 15,814
Depreciation and impairment
As of January 1, 2024 954 1,323 2,277
Depreciation for the period 1,941 1,043 2,984
Depreciation on disposed assets - 7 - 80 - 87
Currency translation - 1 - 1 - 2
At December 31, 2024 2,887 2,286 5,172
Net book value at December 31, 2024 7,750 2,891 10,641
tEUR Right of use assets
Fixtures and fit-
tings, other plant
and equipment Total
Cost
As of 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
As of 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
===== SIDA 171 =====
Annual report Page 171
Notes
13. Investments in subsidiaries
tEUR 2024 2023
Subsidiaries
Cost at January 1 234,330 156,715
Additions 142,912 78,034
Exchange rate to reporting currency - 157 - 419
Cost at December 31 377,085 234,330
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 31 377,085 234,330
Reference is made to note 23 of the consolidated financial statements for a list of companies in the Better Collective
Group.
Investments in subsidiaries have been assessed for impairment in 2024 and 2023 and did not lead to any impairment
in neither 2024 nor 2023. 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, 2024 282,016 0 282,016
Additions 71,242 1,000 72,242
Disposals - 201 0 - 201
Exchange rate adjustment 19,064 0 19,064
Cost at December 31, 2024 372,121 1,000 373,121
Value adjustment at January 1, 2024 0 0 0
Impairment 0 0 0
Value adjustment at December 31, 2024 0 0 0
Carrying amount at December 31, 2024 372,121 1,000 373,121
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
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.
===== SIDA 172 =====
Annual report Page 172
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 2024 2023
Trade receivables 13,486 12,571
Accrued revenue 7,947 2,267
Other receivables 656 898
Total receivables 22,089 15,735
17. Trade and other payables
tEUR 2024 2023
Trade Payables 2,814 3,966
Other payables 3,488 7,529
Total payables 6,302 11,495
18. Leasing
Right-of-use assets
tEUR Buildings Cars Total
Balance at January 1, 2024 7,469 0 7,469
Additions 2,223 0 2,223
Disposals 0 0 0
Modifications 0 0 0
Exchange rate adjustment - 6 0 - 6
Depreciation - 1,941 0 - 1,941
Depreciation on disposed assets 7 0 7
Balance at December 31, 2024 7,750 0 7,751
Balance at January 1, 2023 301 33 334
Additions 8,299 0 8,299
Disposals - 1,534 - 50 - 1,584
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
Lease liabilities
tEUR 2024 2023
Maturity analysis - contractual undiscounted cash flows
Less than one year 1,892 1,758
One to five years 6,238 6,428
More than five years 0 0
Total undiscounted cash flows 8,130 8,186
Total lease liabilities 7,967 7,507
Current 1,924 1,483
Non-current 6,043 6,024
The total cash outflow for leases in 2024 was 2.092 tEUR (2023: 1.276 tEUR).
===== SIDA 173 =====
Annual report Page 173
Notes
18. Leasing (continued)
Amounts recognized in the consolidated income statement
tEUR 2024 2023
Interest on lease liabilities 319 159
Expenses relating to short- term lease 17 0
Expenses relating to lease of low value assets 0 43
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.
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
with floating interest signed in October 2022 and in august 2023 extended by 3 years to October 2026. With 260.8
mEUR drawn on the facility as of December 2024. Better Collective has entered two hedging contracts regarding the
interest rate risk for the period October 2024 to October 2026, nominal amount of 550 mDKK each securing the inter-
est rate at 2.32% and 2.34% respectively.
Management expects to reduce the credit facility in the short to medium term, as the parent company is generating
positive cash flows, and therefore exposure to interest rate risk is considered minimal. The interest rate risk arising from
deposits held are short-term and non-material.
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
The parent company uses a simplified IFRS 9 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 mini-
mal losses on trade receivables and the subsidiaries have a high liquidity ratio. The inputs to the expected credit loss
model reflects this.
As per December 31, 2024 the parent company’s impairment for expected loss is included in the trade receivables (ref
note 15).
===== SIDA 174 =====
Annual report Page 174
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
2024
Not Due 0.0% 7,736 1 7,735
Less than 30 days 0.3% 4,028 11 4,017
Between 31 and 60 days 1.1% 437 5 432
Between 61 and 90 days 3.4% 207 7 200
More than 91 days 31.0% 1,596 494 1,102
Total 3.7% 14,004 518 13,486
Receivables from subsidiaries 0% 411,819 0 411,819
Limited losses were recognized during 2024 and the weighted credit loss has slightly increased compared to 2023.
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
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.
===== SIDA 175 =====
Annual report Page 175
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
2024
Non-derivative financial instruments:
Financial liabilities measured at fair value
through profit and loss
Earn-out consideration 0 0 0 0 0 0
Financial liabilities measured at amortized
costs
Lease liabilities 7,967 7,967 8,130 1,892 6,238 0
Trade and other payables 6,302 6,302 6,302 6,302 0 0
Deferred payment on acquisitions 921 921 921 0 921 0
Payables to subsidiaries 17,579 17,579 17,579 17,579 0 0
Loans from subsidiaries 0 0 0 0 0 0
Debt to credit institutions 259,691 259,691 289,123 10,388 278,735 0
Other financial liabilities measured at fair
value 47,823 47,823 47,823 47,624 41,109 0
Derivative financial instruments:
Financial liabilities measured at fair value
Derivatives used as hedging instrument 662 662 662 0 662 0
Total financial instruments 340,945 340,945 370,540 83,785 327,666 0
Assets:
Non-current financial assets, subsidiaries 372,121 372,121 465,151 18,606 446,545 0
Trade and other receivables 22,089 22,089 22,089 22,089 0 0
Receivable from subsidiaries 39,698 39,698 39,698 39,698 0 0
Other current financial assets 0 0 0 0 0 0
Cash 12,667 12,667 12,667 12,667 0 0
Total financial assets 446,575 446,575 539,605 93,060 446,545 0
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
===== SIDA 176 =====
Annual report Page 176
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, 202 4, Better Collective has drawn 2 61 mEUR (2023: 249 mEUR) out of the total committed club
facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its
3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a
100mEUR higher accordion option with expiry at the end of October 2026.
Change in liabilities arising from financing activity
tEUR 2022
Cash flows
Net
Non cash
flow
changes 2023
Cash flows
Net
Non cash
flow
changes 2024
Non-current financing liabilities 201,708 44,435 2,514 248,657 10,858 177 259,691
Leasing and other non-current
liabilities 16 461 5,547 6,024 - 546 565 6,043
Current financing liabilities
Payables to subsidiaries 20,822 - 8,829 - 0 11,993 5,586 0 17,579
Debt to credit institutions 1,055 0 - 1,055 0 0 0 0
Leasing current liabilities 356 - 1,273 2,400 1,483 - 2,092 2,533 1,924
Total liabilities from financing
activities 223,957 34,794 9,405 268,156 13,806 3,275 285,237
===== SIDA 177 =====
Annual report Page 177
Notes
20. Change in working capital
tEUR 2024 2023
Change in receivables - 6,354 1,428
Changes in Intercompany balances - 17,058 8,247
Prepaid expenses - 767 66
Prepayment - from Customers 4,300 - 1,271
Change in trades payable, other debt - 5,193 5,776
Change in working capital, total - 25,073 14,246
21. Other contingent liabilities
Other contingent liabilities
The Parent Company is jointly taxed with the Danish subsidiaries, Tipsbladet ApS and Mindway AI ApS. As administra-
tion 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 corrections of income subject to joint taxation and withholding taxes, etc., may entail that the entities’
liability will increase.
The Parent Company has issued a letter of subordination to Mindway AI ApS regarding continued financial support.
The letter of subordination is unrestricted and expires 12 months after the balance sheet date.
22. Related party disclosures
In addition to the disclosures in note 22 of the consolidated financial statements, the parent company’s related parties
include subsidiaries, cf. note 23 to the consolidated financial statements.
Transactions with related parties have been as follows:
tEUR 2024 2023
Income Statement
Other Operating income 21,435 12,516
Intercompany revenue - 1,765 - 7,849
Purchases 44,750 4,149
Interest expense 296 374
Interest income 10,759 5,841
Dividend income 34,186 51,698
Balance Sheet
Long-term financial assets 376,021 282,016
Receivables from subsidiaries 34,570 13,153
Short term loans and payables to subsidiaries 16,351 11,993
Management remuneration and share option programs are disclosed in note 5 and note 6 in the consolidated financial
statements.
There have been transactions related to sublease of the Headquarters and related cost with Better Holding ApS and
MM Properties ApS, total amounting 61k EUR. The transactions have all been on arm length.
There have not been other transactions with the Board of Directors, the Executive Directors, major shareholders or
other related parties beside above transactions.
===== SIDA 178 =====
Annual report Page 178
Alternative Performance Measures and Definitions 179
Annual report Page 178
Other
===== SIDA 179 =====
Annual report Page 179
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 companies. 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 with 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
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.
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.
Alternative
Performance Measure Description SCOPE
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
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
Alternative Performance Measures
and Definitions
===== SIDA 180 =====
Annual report Page 180
Alternative
Performance Measure Description SCOPE
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.
CLV The Customer Lifetime Value (CLV) shows
expected revenue generated throughout the
lifetime of a New Depositing Customer
(NDC). This measure is pivotal for under-
standing how much value a NDC is antici-
pated to bring to the Group. The prerequi-
sites going into the CLV are a number of fac-
tors such as average value, average fre-
quency, NDC lifespan and churn rate.
Average revenue per NDC x NDC lifespan
A key figure to assess the value of NDCs generated
by the Group, providing critical insights into NDC
profitability. It allows the Group to identify the most
valuable segments and optimize marketing strate-
gies accordingly.
*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
===== SIDA 181 =====
Annual report Page 181
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