FULLTEXT DEL 3 AV 4
Årsredovisning 2025
Annual report
Page
118
Independent Auditors’
Report
To the shareholders of
Better Collective A/S
Opinion
We have audited the consolidated financial statements
and the parent company financial statements of
Better
Collective
A/S for the financial year 1 January
–
31 De-
cember 2025, which comprise income statement, state-
ment of comprehensive income, balance sheet, state-
ment of changes in equity, cash flow statement and
notes, including material accounting policy information,
fo
r the Group and the Parent Company. The consoli-
dated financial statements and the parent company fi-
nancial statements are prepared in acco
rdance with
IFRS Accounting Standards as adopted by the EU and
additional requirements of the Danish Financial State-
ments Act.
In our opinion, the consolidated financial statements
and the parent company financial statements give a true
and fair view of the financial position of the Group and
the Parent Company at 31 December 2025 and of the re-
sults of the Group's and the Parent C
ompany's opera-
tions and cash flows for the financial year 1 January
–
31
December 2025 in accordance with IFRS Accounting
Standards as adopted by the EU and additional
requirements of the Danish Financial Statements Act.
Our opinion is consistent with our
long
-
form audit re-
port to the Audit Committee and the Board of Directors.
Basis for opinion
We conducted our audit in accordance with Interna-
tional Standards on Auditing (ISAs) and additional re-
quirements applicable in Denmark. Our responsibilities
under those standards and requirements are further de-
scribed in the "Auditor's responsibilities for
the audit of
the consolidated financial statements and the parent
company financial statements" (hereinafter collectively
referred to as "the financial statements") section of our
report. We believe that the audit evidence we have ob-
tained is sufficient a
nd appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants'
International Code of Ethics for Professional Account-
ants (IESBA Code), as applicable to audits of financial
statements of public interest entities
, and the additional
ethical requirements applicable in Denmark to audits of
financial statements of public interest entities. We have
also fulfilled our other ethical responsibilities in accord-
ance with these requirements and the IESBA Code.
To the best of our knowledge, we have not provided any
prohibited non
-
audit services as described in article 5(1)
of Regulation (EU) no. 537/2014.
Appointment of auditor
On 8 June 2018, Better Collective A/S completed its Ini
-
tial Public Offering and was admitted to trading and of
-
ficial listing on Nasdaq Stockholm. Subsequent to Better
Collective A/S being listed on Nasdaq Stockholm, we
were initially appointed as auditor
of Better Collective
A/S on 25 April 2019 for the financial year 2019. We have
been reappointed annually by resolution of the general
meeting for a total consecutive period of
7
years up until
and including the financial year
202
5
.
Key audit matters
Key audit matters are those matters that, in our profes-
sional judgement, were of most significance in our audit
of the financial statements for the financial year 2025.
These matters were addressed during our audit of the
financial statements as a whole an
d in forming our opin-
ion thereon. We do not provide a separate opinion on
these matters. For each matter below, our description of
how our audit addressed the matter is provided in that
context.
We have fulfilled our responsibilities described in the
"Auditor's
responsibilities for the audit of the financial
statements
"
section, including in relation to the key au-
dit matters below. Accordingly, our audit included the
design and performance of procedures to respond to
our assessment of the risks of material misstatement of
the financial statements. The results of our audi
t proce-
dures, including the procedures performed to address
the matters below, provide the basis for our audit opin-
ion on the fina
ncial statements
.
Recoverability
of
the carrying amount
goodwill, do-
mains and websites
Goodwill as well as domains and websites with an indef-
inite useful life are not subject to amortisation but are
reviewed annually for impairment, or more frequently if
indicators of impairment are identified. The valuation of
goodwill, domains and websites
is significant to our au-
dit due to the carrying amounts involved and the man-
agement judgement required in assessing these values,
determining indefinite useful life, and performing im-
pairment testing of goodwill, domains and websites.
Management prepares and reviews impairment tests for
each of the four identified cash
-
generating units. Impair-
ment testing is based on the estimated recoverable
amounts of the assets, which for this purpose are deter-
mined based on value in use. The value i
n use is calcu-
lated for each cash
-
generating unit using a discounted
cash flow (DCF) model.
Refer to note 13 in the consolidated financial statements
and to note 1
1
in th
e financial statements for the
Parent
Company.
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119
How our audit addressed the above key audit matter
Our audit procedures included:
•
Assessment of the indefinite life assumption, in-
cluding examination of data provided by manage-
ment and other sources, as well as inquiries to man-
agement and comparison with industry practice for
comparable companies.
•
Evaluation of the main principles and assumptions
applied in Management’s identification and assess-
ment of CGUs.
•
Evaluation of the value
-
in
-
use model used by Man-
agement, including consideration of the cash
-
gen-
erating units defined by Management and the rea-
sonableness of key assumptions and inputs based
on our knowledge of the business and industry, to-
gether with avai
lable supporting evidence such as
budgets and externally observable market data re-
lated to interest rates.
•
Evaluation of the disclosures provided by Manage-
ment in note 13 to the consolidated financial state-
ments and in note 11 to the Parent Company finan-
cial statements for compliance with applicable ac-
counting standards.
Revenue recognition
The Group’s revenue consists of different revenue
streams that are recognized either at a point in time or
over time. Furthermore, the Group has agreements with
operators that include variable consideration, which is
recognized based on expected performanc
e over the
contract period.
Revenue recognition and measurement of the related
variable consideration were matters of most signifi-
cance in our audit due to the inherent risk in the esti-
mates and judgements made by Management in the nor-
mal course of business regarding the timing of re
venue
and the measurement of variable consideration.
For details on the revenue, reference is made t
o note 4
in the consolidated financial statements and to note 2 in
the financial statements for the parent company.
How our audit addressed the above key audit matter
Our audit procedures included:
•
Tested, on a sample basis, recognised revenue and
related variable consideration against agreements
with operators.
•
Data analytical procedures to test the complete-
ness, accuracy, and timing of revenue recognition
and related variable consideration.
•
Tested revenue accruals, revenue deferrals, and
sales transactions recognised before and after the
balance sheet date against contracts and other
supporting documentation to assess proper reve-
nue cut
-
off.
•
Assessment of whether the applied revenue recog-
nition criteria comply with the Group’s accounting
policies as disclosed in note 4 to the consolidated
financial statements.
•
Evaluation of the disclosures provided by Manage-
ment in note 4 to the consolidated financial state-
ments and in note 2 to the Parent Company
financial statements for compliance with applicable
accounting standards.
Statement on the Management's review
Management is responsible for the Management's re-
view.
Our opinion on the financial statements does not cover
the Management's review, and we do not express any
assurance conclusion thereon.
In connection with our audit of the financial statements,
our responsibility is to read the Management's review
and, in doing so, consider whether the Management's re-
view is materially inconsistent with the financial state-
ments, or our knowledge obtained d
uring the audit, or
otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the
Management's review provides the information required
by relevant law and regulations.
Based on our procedures, we conclude that the Manage-
ment's review is in accordance with the financial state-
ments and has been prepared in accordance with the re-
quirements of relevant law and regulations. We did not
identify any material misstatement of the
Management's
review.
Management’s responsibilities for the
financial statements
Management is responsible for the preparation of con-
solidated financial statements and parent company
financial statements that give a true and fair view in ac-
cordance with IFRS Accounting Standards as adopted
by the EU and additional requirements of the Danish Fi-
nancial Statements Act and for such internal control as
Management determines is necessary to
enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is re-
sponsible for assessing the Group's and the Parent Com-
pany's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and us-
ing the going concern basis of acc
ounting in preparing
the financial statements unless Management either in-
tends to liquidate the Group or the Parent Company or
to cease operations, or has no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance as to
whether the financial statements as a whole are free
from material misstatement, whether due to fraud or er-
ror, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a hi
gh level of assur-
ance but is not a guarantee that an audit conducted in
accordance with ISAs and additional requirements ap-
plicable in Denmark will always detect a material mis-
statement when it exists. Misstatements can arise from
fraud or error and are co
nsidered material if, individually
or in the aggregate, they could reasonably be expected
===== SIDA 120 =====
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120
to influence the economic decisions of users taken on
the basis of the financial statements.
As part of an audit conducted in accordance with ISAs
and additional requirements applicable in Denmark, we
exercise professional judgement and maintain profes-
sional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstate-
ment of the financial statements, whether due to
fraud or error, design and perform audit proce-
dures responsive to those risks and obtain audit ev-
idence that is sufficient and appropriate to provide
a basis
for our opinion. The risk of not detecting a
material misstatement resulting from fraud is
higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omis-
sions, misrepresentations or the override of inter-
nal control.
•
Obtain an understanding of internal control rele-
vant to the audit in order to design audit proce-
dures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on
the effectiveness of the Group's and the Parent
Company's i
nternal control.
•
Evaluate the appropriateness of accounting poli-
cies used and the reasonableness of accounting es-
timates and related disclosures made by Manage-
ment.
•
Conclude on the appropriateness of Management's
use of the going concern basis of accounting in
preparing the financial statements and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the Group's and
the Parent Company's ability to continue as a going
conce
rn. If we conclude that a material uncertainty
exists, we are required to draw attention in our au-
ditor's report to the related disclosures in the finan-
cial sta
tements or, if such disclosures are inade-
quate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the
date of our auditor's report. However, future events
or conditions may cause the Group and the Parent
Company to cease
to continue as a going concern.
•
Evaluate the overall presentation, structure and
contents of the financial statements, including the
note disclosures, and whether the financial state-
ments represent the underlying transactions and
events in a manner that gives a true and fair view.
•
Plan and perform the group audit to obtain suffi-
cient appropriate audit evidence regarding the fi-
nancial information of the entities or business units
within the group as a basis for forming an opinion
on the group financial statements. We are respon-
sible
for the direction, supervision and review of
the audit work performed for purposes of the
group audit. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, includ-
ing any significant deficiencies in internal control that
we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to com-
municate with them all relationships and other matters
that may reasonably be thought to bear on our i
nde-
pendence, and where applicable, actions taken to elimi-
nate threats or safeguards applied.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the consolidated fi-
nancial statements and the parent company financial
statements of the current period and are ther
efore the
key audit matters. We describe these matters in our au-
ditor's report unless law or regulation precludes public
disclosure about the matter.
Report on compliance with the ESEF
Regulation
As part of our audit of the Consolidated Financial State-
ments and Parent Company Financial Statements of
D
Group A/S
, we performed procedures to express an
opinion on whether the annual report of
D Group A/S
for
the financial year
1
January
–
31
December
2025
with the
file name
bettercollec
tive
-
2025
-
12
-
31
-
en.zip
i
s prepared,
in all material respects, in compliance with the Commis-
sion Delegated Regulation (EU) 2019/815 on the Euro-
pean Single Electronic Format (ESEF Regulation) which
includes requirements related to the preparation of the
annual report in XHTML format and iXBRL
tagging of the
Consolidated Financial Statements including notes.
Management is responsible for preparing an annual re-
port that complies with the ESEF Regulation. This re-
sponsibility includes:
•
The preparing of the annual report in XHTML for-
mat;
•
The selection and application of appropriate iXBRL
tags, including extensions to the ESEF taxonomy
and the anchoring thereof to elements in the tax-
onomy, for all financial information required to be
tagged using judgement where necessary;
•
Ensuring consistency between iXBRL tagged data
and the Consolidated Financial Statements pre-
sented in human readable format; and
•
For such internal control as Management deter-
mines necessary to enable the preparation of an
annual report that is compliant with the ESEF Reg-
ulation.
Our responsibility is to obtain reasonable assurance on
whether the annual report is prepared, in all material re-
spects, in compliance with the ESEF Regulation based
on the evidence we have obtained, and to issue a report
that includes our opinion. The nat
ure, timing and extent
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121
of procedures selected depend on the auditor’s judge-
ment, including the assessment of the risks of material
departures from the requirements set out in the ESEF
Regulation, whether due to fraud or error. The proce-
dures include:
•
Testing whether the annual report is prepared in
XHTML format;
•
Obtaining an understanding of the company’s
iXBRL tagging process and of internal control over
the tagging process;
•
Evaluating the completeness of the iXBRL tagging
of the Consolidated Financial Statements including
notes;
•
Evaluating the appropriateness of the company’s
use of iXBRL elements selected from the ESEF tax-
onomy and the creation of extension elements
where no suitable element in the ESEF taxonomy
has been identified;
•
Evaluating the use of anchoring of extension ele-
ments to elements in the ESEF taxonomy; and
•
Reconciling the iXBRL tagged data with the au-
dited Consolidated Financial Statements.
In our opinion, the annual report of
D Group A/S
for the
financial year
1
January
–
31
December
2025
with the file
na
me
bettercollective
-
2025
-
12
-
31
-
en.zip
is prepared,
in
all material respects, in compliance with the ESEF Reg-
ulation.
Copenhagen,
February
2
5
, 202
6
EY Godkendt Revisionspartnerselskab
CVR no. 30 70 02 28
Mikkel Sthyr
State Authorised
Public Accountant
MNE no.
26693
Kennet Hartmann
State Authorised
Public Accountant
MNE no.
40036
===== SIDA 122 =====
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122
Independent
A
uditors’
limited assurance
report on
Sustainability
Statements
To the shareholders of Better
Collective A/S
Limited assurance conclusion
We
have conducted a limited assurance engagement on
the Sustainability Statements of Better Collective
A/S
(the Group) included in the Annual Report 2025, pages
55
-
115
(the Sustainability Statements) for the
financial
year 1
January
–
31
December 2025 including disclosures
incorporated by reference listed in the
table ‘Disclosure
requirements and incorporation by reference’ on pages
1
97
-
201 and
58
.
Based on the procedures we have performed and the
evidence we have obtained, nothing has come to
our at-
tention that causes us to believe that the Sustainability
Statements is not prepared, in all material
respects, in
accordance with the Danish Financial Statements Act
section 99 a, including:
•
C
ompliance with the European Sustainability Re-
porting Standards (ESRS), including that the
process
carried out by the management to identify
the information reported in the Sustainability
Statements
(the process) is in accordance with the
description set out
in the section about Double ma-
teriality assessment within the ‘General disclosures’
chapter on pages 6
6
-
7
1
;
•
C
ompliance of the disclosures in the
section
EU
Taxonomy within the ‘Environment’
chapter
on
pages
1
12
-
1
15
of the Sustainability Statements with
Article 8 of EU Regulation 2020/852 (the Taxon-
omy
Regulation).
Basis for
conclusion
We conducted our limited assurance engagement in ac-
cordance with International Standard on Assurance
En-
gagements (ISAE) 3000 (Revised),
Assurance engage-
ments other than audits or reviews of historical
financial
information
(ISAE 3000 (Revised)) and the additional
requirements applicable in Denmark.
The procedures in
a limited assurance engagement vary in nature and tim-
ing from, and are less in extent than for, a reasonable
assurance engagement. Consequently, the level of as-
surance obtained in a limited assu
rance engagement is
substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement
been performed.
We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis
for our conclusion. Our responsibilities under this stand-
ard are further described in
the
Auditor
’
s responsibilities
for the assurance engagement section of our report
.
Our independence and quality management
We are independent of the group in accordance with the
International Ethics Standards Board for Accountants'
International Code of Ethics for Professional Account-
ants (IESBA Code) and the additional ethical require-
ments applicable in Denmark. We have also
fulfilled our
other ethical responsibilities in accordance with these
requirements and the IESBA Code.
EY Godkendt Revisionspartnerselskab applies Interna-
tional Standard on Quality Management 1, which re-
quires the firm to design, implement and operate a sys-
tem of quality management including policies or proce-
dures regarding compliance with ethical requireme
nts,
professional standards and applicable legal and regula-
tory requirements.
Inherent limitations in preparing the
Sustainability Statements
In reporting forward
-
looking information in accordance
with ESRS, management is required to prepare the for-
ward
-
looking information on the basis of disclosed as-
sumptions about events that may occur in the future and
possible future actions by the group. Ac
tual outcomes
are likely to be different since anticipated events fre-
quently do not occur as expected.
Management's responsibilities for the
Sustainability Statements
Management is responsible for designing and imple-
menting a process to identify the information reported
in the Sustainability Statements in accordance with the
ESRS and for disclosing this process
in the section about
Double materiality assessment within the ‘General dis-
closures’ chapter on pages 6
6
-
7
1
of the Sustainability
Statements. This responsibility includes:
•
Understanding the context in which the group's ac-
tivities and business relationships take place and
developing an understanding of its affected stake-
holders
.
•
The identification of the actual and potential im-
pacts (both negative and positive) related to sus-
tainability matters, as well as risks and opportuni-
ties that affect, or could reasonably be expected to
affect, the group's financial position, financial per-
f
ormance, cash flows, access to finance or cost of
capital over the short
-
, medium
-
, or long
-
term
.
•
The assessment of the materiality of the identified
impacts, risks and opportunities related to sustain-
ability matters by selecting and applying appropri-
ate thresholds; and
•
Making assumptions that are reasonable in the cir-
cumstances.
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Management is further responsible for the preparation
of the Sustainability Statements, in accordance with the
Danish Financial Statements Act section 99a, including:
•
Compliance with the ESRS
.
•
Preparing the disclosures in the
section
EU Taxon-
omy within the ‘Environment’
chapter
on pages
112
-
115
of the Sustainability Statements, in compliance
with Article 8 of the Taxonomy Regulation
.
•
Designing, implementing and maintaining such in-
ternal control that management determines is nec-
essary to enable the preparation of the Sustainabil-
ity Statements that is free from material misstate-
ment, whether due to fraud or error; and
•
The
selection and application of appropriate sus-
tainability reporting methods and making assump-
tions and estimates that are reasonable in the cir-
cumstances.
Auditor's responsibilities for the
assurance engagement
Our objectives are to plan and perform the assurance
engagement to obtain limited assurance about whether
the
S
ustainability
S
tatement
s
are
free from material
misstatement, whether due to fraud or error, and to is-
sue a limited assurance report that includes our conclu-
sion.
Misstatements can arise from fraud or error and are con-
sidered material if, individually or in the aggregate, they
could reasonably be expected to influence decisions of
users taken
based on
the
S
ustainability
S
tatement
s
as a
whole
.
As part of a limited assurance engagement in ac-
cordance with ISAE 3000 (Revised) we exercise profes-
sional judgement and maintain professional scepticism
throughout the engagement.
Our responsibilities in re-
spect of the process include:
•
Obtaining an understanding of the process but not
for the purpose of providing a conclusion on the ef-
fectiveness of the process, including the outcome
of the process
.
•
Considering whether the information identified ad-
dresses the applicable disclosure requirements of
the ESRS, and
•
Designing and performing procedures to evaluate
whether the process
is consistent with the
group's
description of its process, as disclosed
in the sec-
tion about Double materiality assessment within
the ‘General disclosures’ chapter on pages 6
6
-
7
1
.
Our other responsibilities in respect of the sustainability
statement include:
•
Identifying disclosures where material misstate-
ments are likely to arise, whether due to fraud or
error; and
•
Designing and performing procedures responsive
to disclosures in the sustainability statement where
material misstatements are likely to arise. The risk
of not detecting a material misstatement resulting
from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the over-
ride of internal control.
Summary of the work performed
A limited assurance engagement involves performing
procedures to obtain evidence about the
Sustainability
Statements.
The nature, timing and extent of procedures selected
depend on professional judgement, including the iden-
tification of disclosures where material misstatements
are likely to arise, whether due to fraud or error, in the
Sustainability Statements.
In conducting our limited as-
surance engagement, with respect to the process, we:
•
Obtained an understanding of the process by per-
forming inquiries to understand the sources of the
information
used by management; and reviewing
the group's internal documentation of its process;
and
•
Evaluated whether the evidence obtained from our
procedures about the Process implemented by the
group's was consistent with the description of the
p
rocess set out
in the section about Double mate-
riality assessment within the ‘General disclosures’
chapter on pages 6
6
-
7
1
.
In conducting our limited assurance engagement, with
respect to the Sustainability Statements, we:
•
Obtained an understanding of the group's report-
ing processes relevant to the preparation of its Sus-
tainability Statements by obtaining an understand-
ing of the group's control environment, processes
and information systems relevant to the prepara-
tion of the
Sustainability Statements but not evalu-
ating the design of control activities, obtaining ev-
idence about their implementation or testing their
operating effectiveness
.
•
Evaluated whether material information identified
by the process is included in the Sustainability
Statements
.
•
Evaluated whether the structure and the presenta-
tion of the Sustainability Statements are in accord-
ance with the ESRS
.
•
Performed inquiries of relevant personnel and ana-
lytical procedures on selected information in the
Sustainability Statements
.
•
Performed substantive assurance procedures on
selected information in the Sustainability State-
ments
.
•
Evaluated methods, assumptions and data for de-
veloping material estimates and forward
-
looking
information and how these methods were applied
.
•
Obtained an understanding of the process to iden-
tify EU taxonomy eligible and aligned economic ac-
tivities for turnover, CAPEX and OPEX and the cor-
responding disclosures in the Sustainability State-
ments
.
===== SIDA 124 =====
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124
•
Evaluated compliance processes, methods, and
data for covered activities, assessed minimum safe-
guards compliance through personnel inquiries,
and conducted analytical procedures on EU taxon-
omy aligned disclosures
•
Evaluated the presentation and use of EU taxon-
omy templates in accordance with relevant re-
quirements; and
•
Reconciled and ensured consistency between the
reported EU taxonomy economic activities and the
items reported in the primary financial statements
including the disclosures provided in related notes.
Copenhagen,
February
25, 202
6
EY Godkendt Revisionspartnerselskab
CVR no. 30 70 02 28
Mikkel Sthyr
State Authorised
Public Accountant
MNE no. 26693
Lars Fermann
State Authorised
Public Accountant
MNE no. 45879
Annual report
Page
124
===== SIDA 125 =====
Annual report
Page
125
Statement of profit and loss
126
Statement of comprehensive income
126
Balance sheet
127
Statement of changes in equity
128
Cash flow statement
129
Financial
Statements
===== SIDA 126 =====
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126
C
onsolidated statement
of profit and loss
Note
tEUR
2025
2024
3
, 4
Revenue
336,669
371,487
Direct costs related to revenue
101,943
107,167
5, 6
Staff costs
100,218
113,000
10
Other external expenses
32,455
37,917
Operating profit before depreciation and amortization (EBITDA) and special items
102,053
113,403
14
Depreciation
6,864
6,990
Operating profit before amortization (EBITA) and special items
95,189
106,413
12
Amortization and impairment
33,807
34,080
Operating profit (EBIT) before special items
61,382
72,334
7
Special items, net
-
10,411
-
10,886
Operating profit
50,971
61,447
8
Financial income
5,437
7,310
9
Financial expenses
25,227
25,893
Profit before tax
31,181
42,865
11
Tax on profit for the period
7,590
8,850
Profit for the period
23,591
34,014
Earnings per share attributable to equity holders of the company
Average number of shares
62,401,060
61,876,816
Average number of warrants
-
converted to number of shares
2,657,332
2,339,557
Earnings per share (in EUR)
0.41
0.55
Diluted earnings per share (in EUR)
0.39
0.53
Consolidated statement
of comprehensive income
Note
tEUR
2025
2024
Profit for the period
23,591
34,014
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent pe-
riods:
Fair value adjustment of hedges for the year
542
-
180
Currency translation to presentation currency
-
19,623
6,297
Currency translation of non
-
current intercompany loans
-
34,999
17,325
11
Income tax
7,571
-
1,589
Net other comprehensive income/loss
-
46,509
21,853
Total comprehensive income/(loss) for the period, net of tax
-
22,918
55,867
Attributable to:
Shareholders of the parent
-
22,918
55,867
===== SIDA 127 =====
Annual report
Page
127
C
onsolidated balance sheet
Note
tEUR
2025
2024
Assets
Non
-
current assets
12, 13
Intangible assets
Goodwill
333,483
360,988
Domains and websites
520,484
553,886
Accounts and other intangible assets
9
8
,
207
117,628
Total intangible assets
95
2
,
174
1,032,501
14
Tangible assets
Right of use assets
11,038
15,929
Leasehold improvements, Fixtures and fittings, other plant and equipment
4,178
6,704
Total tangible assets
15,216
22,633
Other non
-
current assets
Deposits
1,804
1,940
11
Deferred tax asset
4,086
4,573
Total other non
-
current assets
5,890
6,513
Total non
-
current assets
97
3
,
280
1,061,647
Current assets
15
Trade and other receivables
73,596
63,763
11
Corporation tax receivable
6,049
2,934
Prepayments
7,70
2
6,101
19
Cash
13,494
37,674
Total current assets
100,841
110,472
Total assets
1,07
4
,1
2
1
1,172,119
Note
tEUR
2025
2024
Equity and liabilities
16
Equity
Share Capital
620
631
Share Premium
469,444
469,460
Reserves
-
45,56
3
16,089
Retained Earnings
206,50
3
199,749
Total equity
631,004
685,929
Non
-
current Liabilities
19
Debt to credit institutions
259,946
259,691
1
8
Lease liabilities
8,309
12,560
11
Deferred tax liabilities
81,526
98,673
19
Other long
-
term financial liabilities
30,665
42,030
Total non
-
current liabilities
380,446
412,955
Current Liabilities
Prepayments received from customers and deferred revenue
13,506
10,275
17
Trade and other payables
26,207
26,894
11
Corporation tax payable
2,291
4,764
1
7
Other financial liabilities
1
7
,
000
26,926
18
Lease liabilities
3,667
4,376
Total current liabilities
62,6
7
1
73,235
Total liabilities
44
3
,
1
1
7
486,190
Total Equity and liabilities
1,07
4
,1
2
1
1,172,119
===== SIDA 128 =====
Annual report
Page
128
Consolidated statement of changes in equity
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As at January 1, 2025
631
469,460
36,941
-
517
-
20,336
199,749
685,929
Result for the period
0
0
0
0
0
2
3
,
59
1
2
3
,
59
1
Fair value adjustment of hedges
0
0
0
542
0
0
542
Currency translation to
presentation currency
0
0
-
19,62
3
0
0
0
-
19,62
3
Currency translation of non
-
cur-
rent intercompany loans
0
0
-
34,999
0
0
0
-
34,999
Tax on other
comprehensive income
0
0
7,690
-
119
0
0
7,571
Total other
comprehensive income
0
0
-
46,93
2
423
0
0
-
46,
509
Total comprehensive
income for the year
0
0
-
46,93
2
423
0
2
3
,
59
1
-
2
2
,
91
8
Transactions with owners
Capital Decrease
-
11
-
16
0
0
20,336
-
20,309
0
Acquisition of treasury shares
0
0
0
0
-
35,590
0
-
35,590
Disposal of treasury shares
0
0
0
0
112
0
112
Share based payments
0
0
0
0
0
3,508
3,508
Transaction cost
0
0
0
0
0
-
36
-
36
Total transactions with owners
-
11
-
16
0
0
-
15,142
-
16,837
-
32,006
At December 31, 2025
620
469,444
-
9,99
1
-
94
-
35,47
8
20
6
,
50
3
63
1
,
004
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Hedging
reserves
Treasury
shares
Retained
earnings
Total
equity
As at January 1, 2024
554
274,580
15,055
-
483
-
21,057
166,624
435,273
Result for the period
0
0
0
0
0
34,014
34,014
Fair value adjustment of hedges
0
0
0
-
180
0
0
-
180
Currency translation to
presentation currency
0
0
6,297
0
0
0
6,297
Currency translation of non
-
cur-
rent intercompany loans
0
0
17,325
0
0
0
17,325
Tax on other
comprehensive income
0
0
-
1,735
146
0
0
-
1,589
Total other
comprehensive income
0
0
21,887
-
34
0
0
21,853
Total comprehensive
income for the year
0
0
21,887
-
34
0
34,014
55,867
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
36,941
-
517
-
20,336
199,749
685,929
During the period no dividend was paid.
===== SIDA 129 =====
Annual report
Page
129
Consolidated statement of cash flow
Note
tEUR
2025
2024
Profit before tax
31,18
1
42,865
Adjustment for finance items
19,790
18,583
Adjustment for special items
10,411
10,886
Operating Profit for the period before special items
61,38
2
72,334
Depreciation and amortization
40,671
41,070
Other adjustments of non
-
cash operating items
2,695
1,244
Cash flow from operations
before changes in working capital and special items
104,74
8
114,647
Change in working capital
-
10,29
5
-
13,638
Cash flow from operations before special items
94,453
101,009
Special items, cash flow
-
12,858
-
18,390
Cash flow from operations
81,595
82,619
Financial income, received
274
3,111
Financial expenses, paid
-
14,673
-
19,501
Cash flow from activities before tax
67,196
66,228
Income tax paid
-
16,012
-
16,731
Cash flow from operating activities
51,184
49,497
9
Acquisition of businesses
-
9,691
-
120,451
7
Acquisition of intangible assets
-
24,741
-
33,532
Acquisition of tangible assets
-
347
-
3,942
Sale of other financial assets
0
3,232
Change in other non
-
current assets
100
-
136
Cash flow from investing activities
-
34,679
-
154,829
Note
tEUR
2025
2024
Repayment of borrowings
0
-
136,321
Proceeds from borrowings
0
124,196
Lease liabilities
-
4,560
-
4,384
Other non
-
current liabilities
0
-
434
Capital increase
0
146,362
Treasury shares
-
35,590
-
20,336
Transaction cost
-
36
-
3,018
Warrant settlement, sale of warrants
-
371
-
6,911
Cash flow from financing activities
-
40,557
99,154
Cash flows for the period
-
24,051
-
5,624
Cash and cash equivalents at beginning
37,674
43,552
Foreign currency translation of cash and cash equivalents
-
129
-
254
Cash and cash equivalents period end
13,494
37,674
Cash and cash equivalents period end
Cash
13,494
37,674
Cash and cash equivalents period end
13,494
37,674
===== SIDA 130 =====
Annual report
Page
130
Cashflow statement
–
specifications
Note
tEUR
2025
2024
Acquisition of business combinations:
21
Net Cash outflow
from business combinations at acquisition
0
-
70,318
Business Combinations
deferred payments from current period
0
0
Deferred payments
-
business combinations from prior periods
-
9,691
-
50,133
Total cash flow from business combinations
-
9,691
-
120,451
Acquisition of intangible assets:
Acquisitions through asset transactions
0
-
5,806
Deferred payments related to acquisition value
0
0
Deferred payments
-
acquisitions from prior periods
0
-
8,500
Other investments
-
2
4
,
741
-
19,226
Total cash flow from intangible assets
-
2
4
,
741
-
33,532
Note
tEUR
2025
2024
Equity movements with cashflow impact
-
from cash flow statement:
Capital increase
0
146,362
Treasury shares
-
35,590
-
20,336
Transaction cost
-
36
-
3,018
Warrant settlement, sale of warrants
-
371
-
6,911
Total equity movements with cash flow impact
-
35,997
116,097
Non
-
cash flow movements on equity:
New shares for M&A payments
0
46,837
Treasury Shares used for payments
112
30,075
Share based payments
-
warrant expenses with no cash flow effect
3,879
1,780
Total equity movements with no cash flow impact
3,991
78,692
Total Transactions with owners
-
Consolidated statement of changes in equity
-
32,006
194,788
===== SIDA 131 =====
Annual report
Page
131
1. Accounting policies
132
2. Significant accounting judgements, estimates and assumptions
135
3. Segment information
137
4. Revenue specification
139
5. Staff and other costs
140
6. Share
-
based payment plans
142
7. Special items
145
8. Financial income
146
9. Financial expenses
146
10. Fees paid to auditors appointed at the annual general meeting
146
11. Income tax
147
12. Intangible assets
149
13. Goodwill and intangible assets with indefinite life
151
14. Tangible assets
154
15. Trade and other receivables
155
16. Issued capital and reserves
156
17. Trade and other payables
157
18. Leases
157
19. Financial risk management objectives and policies
159
20. Change in working capital
163
21. Business combinations
163
22. Related party disclosures
164
23. Group information
–
subsidiary information
165
24. Other contingent liabilities
166
25. Events after the reporting date
166
Notes to the consolidated
financial statements
===== SIDA 132 =====
Annual report
Page
132
Notes
1.
Accounting policies
General
The financial statements section of the annual report for the period January 1
–
December 31,
202
5
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 Janua
ry
1
–
December 31,
202
4
.
Basis for preparation
The consolidated financial statements of Better Collective A/S have been prepared in accordance with IFRS Accounting
Standards as
issued by the International Accounting Standards Board (IASB) and in accordance with IFRS Accounting
Standards as endorsed
by the EU and
further
requirements
in the Danish Financial Statements Act.
Better Collective A/S
is incorporated and domiciled in Denmark.
The accounting policies have been applied consistently during the financial year and for the comparative figures.
Applying materiality
The Consolidated financial statements are a result of processing large numbers of transactions and aggregating those
transactions into classes according to their nature or function. The transactions are presented in classes of similar items
in the Consolid
ated financial statements. If a line item is not individually material, it is aggregated with other items of a
similar nature in the Consolidated financial statements or in the notes.
Management provides the specific disclosures required by IFRS Accounting Standards unless the information is not
applicable or is considered immaterial to the decision making of the primary users of these financial statements.
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 202
5
have been adopted. The implementation of these new or amended standards
and interpretations had no material impact on the financial statements.
New financial reporting standards not yet adopted
.
Furthermore, new or amended IFRS Accounting Standards and interpretations issued by the IASB that have not yet
become effective are generally not adopted until they become effective and endorsed by the EU. The Group does not
anticipate any significant impact on the Consolidated financial statements in the period of initial application from the
adoption of these new standards and amendments, apart from IFRS 18 ‘Presentation and Disclosure in Financial State-
ments’ which replaces
IAS 1 effective from 1 January
2027. IFRS 18 is to be implemented retrospectively with effect from
1 January 2026, and the comparison figures are to be restated accordingly.
The new IFRS 18 is expected to change the presentation of the Income statement and will introduce three new
catego-
ries; operating
-
, investment
-
and financing activities in addition to the existing categories income taxes and discontinued
activities. The standard includes requirements for aggregation and disaggregation of financial information. IFRS 18 will
also add additional disclosures but will
not change any accounting policies on recognition and measurement, hence it
will not change reported net results
.
Amendments to IAS 7 Statement of Cash Flows
require
the starting point for the cash flow statement to be operating
profit which is a change from current starting point result before tax. Presentation of dividends
received,
interest income
and expenses in the cash flow statement will be changed
according
to the changes in the profit and loss statement.
The Group is in the process of assessing the full extent of the changes introduced by the amendments
to
both the
primary financial statements and the notes. Based on the preliminary analysis, the anticipated significant effects on the
consolidated financial
statements
are as follows:
Goodwill is required
to be
presented as a separate line item in the balance sheet and not to be included in the intangi-
ble assets
Special items are to be allocated among operating, investing, and financing activities.
Interest received and interest paid will be classified under investing activities and financing activities, respectively, and
will be presented consistently in the statement of cash flows. Interest arising from leasing are to be presented as part
of the fi
nancing activities.
Foreign exchange differences arising from borrowings will be presented under financing activities, while those related
to trade receivables and payables will be classified under operating activities.
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 t
he consolidated and parent company financial statements.
===== SIDA 133 =====
Annual report
Page
133
Notes
1. Accounting policies (continued)
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. T
ransactions 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 settleme
nt 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 rec
lassified 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.
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
202
5
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 co
mplies 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
deriv-
atives
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
market participants would use for the pricing of the asset or liability based on the current market conditions, including
risk assumptions. Th
e 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
maximizes
the price of the asset or liability less transac-
tion and transport costs.
===== SIDA 134 =====
Annual report
Page
134
Notes
1. Accounting policies (continued)
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
ac-
cepted 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
recognize
d
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
recognize
d together with the hedged item.
Fair value
changes that do not meet the crite
ria for treatment as hedging instruments are
recognize
d on an ongoing basis in the
statement of profit or loss under financial items.
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 t
hey 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 beginni
ng 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
recognize
d 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 shareholde
r
.
===== SIDA 135 =====
Annual report
Page
135
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 t
he 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 amo
rtization of acquired assets in profit or loss. Reference
is made t
o note 2
1
of the c
onsolidated financial statements.
Goodwill, intangible assets with indefinite useful life and impairment
Goodwill
,
domain
s
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 domain
s
and websites
similar to its peers in the industry. Mana
gement reviews this assessment annually to determine whether the indefinite
life continues to be supportable.
Management reviews goodwill
,
domain
s
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.
During 2025, Better Collective implemented a new global organisational structure, transitioning from a geographically
anchored setup to a structure built around three global business units: Publishing, Paid Media, and Esports. This trans-
formation reflects
the strategic development of the Group and is further supported by the introduction of Esports as a
separate reporting segment from Q2 2025, anchored by flagship platforms such as HLTV and FUTBIN. The new structure
enhances internal steering, operational a
lignment, and external transparency. As a consequence, the Group has reas-
sessed the identification of its cash
-
generating units in accordance with IAS 36.
Following this assessment, the Group now identifies three CGUs: Publishing, Paid Media, and Esports. These CGUs rep-
resent the lowest level at which goodwill and other intangible assets are monitored for internal management purposes
and where independent ca
sh inflows are generated.
The previous CGU structure applied has therefore been replaced,
and historical comparative information has been updated to reflect the new CGU structure where relevant.
Goodwill arising from prior acquisitions has been reallocated to the new CGUs based on management’s direct knowledge
of how each acquired business integrates into and generates value within the revised organisational structure. This ap-
proach reflects the m
anner in which synergies and future economic benefits are expected to be realised following the
transition to the three global business units
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
(New depositing customers)
.
CPA revenue under these con-
tracts
is
recognized
with the number of NDCs delivered and the estimated CPA value based on expected performance
for the contract period.
===== SIDA 136 =====
Annual report
Page
136
Notes
2. Significant accounting judgements, estimates
and assumptions (continued)
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
acquisition costs, adjust-
ment of earn
-
out payments related to acquisiti
ons, impairments, disputes
,
restructuring costs
and lease contract termi-
nations
. Reference is made to note
8
of the consolidated financial statements and note
6
of the parent company financial
statements.
Deferred tax
Management applies significant estimates when
recogniz
ing and measuring deferred tax assets. Deferred tax assets,
including the tax base of tax loss carryforwards, are
recogniz
ed if it is assessed that there will be sufficient future taxable
income against which the temporary differences and unutilised tax losses can be utilised.
This assessment is based on budgets and business plans for the following years, including planned business initiatives.
Deferred tax assets are tested annually and are only
recogniz
ed if it is probable that future taxable profit will allow the
deferred tax asset to be recovered.
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 remeasure
d 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 n
ote
19
(Group) for details).
Other conti
ngent liabilities from partnerships
is valued at
fair va
l
ue
based on
performance target
s
.
===== SIDA 137 =====
Annual report
Page
137
Notes
3.
Segment information
Publishing, Paid Media and Esports
Better Collective operates three distinct business models for customer acquisition, each with unique earnings profiles:
Publishing, Paid Media, and Esports. Publishing generates revenue from Better Collective’s owned and operated sports
media network and i
ts partnerships. Paid Media involves purchasing advertising on search engines, social media, and
third
-
party sports media platforms, thereby operating with a lower gross margin. Due to recent organizational restruc-
turing
, Esports
is
reported separately
from Q2, 2025
. Esports has been carved out from Publishing. This change reflects
our strategic commitment to capitalizing on growth opportunities within Esports
Publishing**
Paid Media
Esports
Group
tEUR
2025
2024*
2025
2024
2025
2024*
2025
2024
Revenue Share
110,995
125,676
45,441
52,598
1,048
2,009
157,484
180,283
CPA
19,950
40,485
60,049
51,804
41
33
80,040
92,323
Subscription
18,031
18,326
0
0
0
0
18,031
18,326
Sponsorships
36,809
35,358
19
2,382
11,952
9,586
48,78
1
47,326
CPM
24,094
23,390
0
0
6,875
8,736
30,969
32,126
Other
1,364
1,09
9
0
4
0
0
1,364
1,103
Revenue
211,243
244,334
105,510
106,789
19,916
20,365
336,669
371,487
Cost
144,668
172,179
80,504
77,767
9,444
8,137
234,616
258,084
Operating profit before depreciation, amortization and special items
66,575
72,155
25,006
29,022
10,472
12,226
102,053
113,403
EBITDA
-
Margin before special items
32%
30%
24%
27%
53%
60%
30%
31%
Special items, net
-
10,313
-
10,849
-
98
-
37
0
0
-
10,411
-
10,886
Operating profit before depreciation and
amortization
56,262
61,306
24,908
28,985
10,472
12,226
91,642
102,517
EBITDA
-
Margin
27%
25%
24%
27%
53%
60%
27%
28%
Depreciation
6,669
6,787
195
203
0
0
6,864
6,990
Operating profit before amortization
49,593
54,519
24,713
28,782
10,472
12,226
84,77
8
95,527
EBITA
-
Margin
23%
22%
23%
27%
53%
60%
25%
26%
*
2024 figures
have
been adjusted due to the new segmentation, where Esports has been carved out from Publishing as a distinct segment.
** Majority of costs related to support functions are presented under Publishing
.
===== SIDA 138 =====
Annual report
Page
138
Notes
3.
Segment information (continued)
Geographical segments
Europe & RoW
North America
Group
tEUR
2025
2024
2025
2024
2025
2024
Revenue Share
135,175
159,671
22,309
20,612
157,484
180,283
CPA
59,463
53,858
20,577
38,465
80,040
92,323
Subscription
3,493
2,787
14,538
15,539
18,031
18,326
Sponsorships
23,065
23,751
25,716
23,576
48,781
47,326
CPM
21,227
23,250
9,742
8,877
30,969
32,126
Other
1,110
822
253
281
1,364
1,103
Revenue
243,534
264,138
93,135
107,349
336,669
371,487
Cost
167,496
167,730
67,120
90,353
234,616
258,084
Operating profit before depreciation,
amortization and special items
76,038
96,407
26,015
16,996
102,053
113,403
EBITDA
-
Margin before special items
31%
36%
28%
16%
30%
31%
Special items, net
-
7,671
-
2,716
-
2,740
-
8,170
-
10,411
-
10,886
Operating profit before depreciation and
amortization
68,367
93,692
23,275
8,827
91,642
102,517
EBITDA
-
Margin
28%
35%
25%
8%
27%
28%
Depreciation
5,612
5,794
1,252
1,196
6,864
6,990
Operating profit before amortization
62,755
87,897
22,023
7,631
84,77
8
95,527
EBITA
-
Margin
26%
33%
24%
7%
25%
26%
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 t
o the specific regions or countries and their respective 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 sepa
rately for Revenue, Cost and Earnings.
===== SIDA 139 =====
Annual report
Page
139
Notes
4.
Revenue specification
In accordance with IFRS 15 disclosure requirements, total revenue is split on revenue
category
and
revenue types
as
follows:
tEUR
2025
2024
Revenue category
Recurring revenue (Revenue share, Subscription, CPM)
206,484
230,735
CPA, Sponsorships
128,821
139,649
Other
1,364
1,103
Total revenue
336,669
371,487
%
-
split
Recurring revenue
6
2
62
CPA, Sponsorships
38
38
Other
0
0
Total
100
100
%
-
split
2025
2024
Revenue Share
4
7
4
9
CPA
24
2
5
Subscription
5
5
Sponsorships
14
1
3
CPM
9
8
Other
0
0
Total
100
100
The Group has earned
79
mEUR
(202
4
:
10
3
mEUR
)
in revenues from one major customer, which represents
2
3
% of the
Group’s revenue (202
4
:
2
8
%).
The revenue is related to all operating segments
.
Better Collective has generated over 10% of its total revenue in each of the following
countries:
United
States
24%
amounting to
82
mEUR
(2024: 2
8
% and 103 mEUR)
, U
nited
Kingdom 2
3
% amounting to 76
mEUR
(2024: 17% and 63
mEUR)
, Brazil
1
5
% amounting to
4
9
mEUR (2024:
20
% and 7
3
mEUR
)
.
Accounting policies
Revenue
The Group’s revenue consists of 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 recog-
nized 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 reve
nue 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
Cost per Mille
(CPM)
:
Includes revenue from sales of banners and other marketing fees from
customers related to the Group’s websites and is recognized when the service is delivered. Banner revenue can
both be CPM (Cost per
M
ille 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 140 =====
Annual report
Page
140
Notes
5.
Staff and other costs
tEUR
2025
2024
Wages and salaries
82,062
94,023
Pensions, defined contribution
5,733
5,768
Other social security costs
4,979
5,811
Share
-
based payments
2,695
1,244
Other staff costs
4,749
6,154
Total staff cost
100,218
113,000
Average number of full
-
time employees
1,504
1,773
Remuneration to Executive Management
Wages and salaries
1,528
1,714
Pensions, defined contribution
196
216
Other social security costs
3
3
Share
-
based payments
97
2
857
Total
2,69
9
2,790
Remuneration to Board of Directors
Wages and salaries
590
590
Share
-
based payments
33
0
Total
623
590
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
includes
wages and salaries, including compensated absence and pension to the
Group
’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 recog-
nized in the period to which they relate.
Other external expenses
Other external expenses include the year’s expenses relating to the
Group
’s core activities, includ-
ing expenses relating to sale, advertising, administration, premises, bad debts, etc.
===== SIDA 141 =====
Annual report
Page
141
Notes
5
. Staff and other costs (continued)
Board & Committee Fees
tEUR
Jens
Bager
Therese
Hillman
Leif
Nørgaard
Thomas Stig
Plenborg
*
Todd
Dunlap
Rene
Rechtman
Britt
Boeskov
Petra
von Rohr
*
Total
2025
174
111
79
44
58
47
58
19
590
2024
174
111
79
0
58
47
58
63
590
*
Petra
von Rohr
has
resigned
from
the Board and
Thomas Stig Plenborg
has been
selected
to the Board in
April
20
25
.
Remuneration to Executive Management
tEUR
Jesper
Søgaard
Christian Kirk
Rasmussen
Flemming
Pedersen
Total
202
5
Wages and salaries
489
489
550
1,528
Pensions, defined contribution
54
54
88
196
Other social security costs
1
1
1
3
Share
-
based payments
257
257
45
8
9
72
Total
801
801
1,09
7
2,
69
9
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
===== SIDA 142 =====
Annual report
Page
142
Notes
6.
Share
-
based payment plans
Long
-
term
incentive
programs impact in the consolidated financial statements
The total share
-
based compensation expense recognized for the full year 202
5
is
2
,
695
tEUR (202
4
:
1,244
tEUR). The
weighted average remaining contractual life of warrants to key employees outstanding as of December 31, 202
5
, and
202
4
was
3
.
77
and 2.3
4
years respectively. The weighted exercise prices for outstanding instruments as of December
31, 202
5
and 202
4
were
15
.
02
EUR and 18.79 EUR.
Long
-
term incentive programs
In
202
5
,
outstanding
PSU 2022
released
whereof 9,914 were transferred as shares and the rest were
settled in cash
,
accordingly no new shares have been issued in connection with the
release
.
The 2020
program was not exercised by
any of the participants and the warrants were cancelled in 2025.
202
1
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 sh
are
-
based payment transactions*.
Management Incentive Program:
On March 1, 2022, a new tranche was established for the Management Incentive Program for Action Network.
O
ptions
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, t
he 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 f
or 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 or
dinary 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*.
Program
Long
-
term incentive programs
outstanding December, 202
5
Vesting period
Exercise period
Exercise price
DKK
Exercise price
EUR (rounded)
2020
*
0
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,
346
2022
-
2024
2025
-
2027
130.98
17.56
2022
PSU
0
2022
-
2024
2025
-
2027
2023 CXO Options
180
,000
2023
-
2025
2026
-
2028
142.08
19.05
2023 Options
23
4
,
525
2023
-
2025
2026
-
2028
87.06
11.67
2023
PSU
1
11,631
2023
-
2025
2026
-
2028
2024 Options
412,305
2024
-
2026
2027
-
2029
173.87
23.31
2024
PSU
4
6
,
782
2024
-
2026
2027
-
2029
0
2025 Options
1,
054,896
2025
-
2028
2028
-
2030
78.20
10.48
202
6
Options
150,000
202
5
-
202
8
202
8
-
20
30
7
6
.
20
10.
2
0
*Key employees and members of executive management
===== SIDA 143 =====
Annual report
Page
143
Notes
6
. Share
-
based payment plans (continued)
2025 LTI Program
On March 7, 2025, a new LTI program consisting of stock options was announced. Under the program 1,144,577 options
were granted to certain key employees with the right to subscribe for one ordinary share. Transactions under the 2025
LTI program are classif
ied as equity
-
settled share
-
based payment transactions*.
202
6
LTI Program
In
December, 2025, a new LTI program consisting of stock options was announced. Under the program
up to
7
50
,
000
options
are to
be
granted to certain key employees with the right to subscribe for one ordinary share.
The initial grant
to the member of executive management will occur in December 2025, whereas the initial grant for other Participants
will occur in early 2026.
Flemming Pedersen
,
CFO
, has on the Company’s annual general meeting held on Tuesday
16
December
2025 been granted
150
,000 stock options. Transactions under the 202
6
LTI program are classified as eq-
uity
-
settled share
-
based payment transactions*.
*The Board of Directors keeps the right to change the classification of share
-
based programs, to cash
-
settle.
2025
2024
Dividend yield (%)
0%
0%
Expected volatility (%)
48
-
50%
48
-
50%
Risk free interest rate (%)
1.75%
-
2.25%
1.75%
-
2.25%
Expected life of warrants (years)
4
-
5
4
-
5
Share price (EUR)
9.54
-
13.51
10.93
-
25.42
Exercise price (EUR)
10.
32
-
23.31
11.67
-
23.31
Fair Value at grant date (EUR)
5.30
-
23.82
5.30
-
23.31
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 expe
nse 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 expen
se 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.
===== SIDA 144 =====
Annual report
Page
144
Notes
6. Share
-
based payment plans (continued)
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, 2025
0
300,000
1,284,540
1,584,540
19
238,696
17
1,823,236
Granted
25,000
150,000
1,119,577
1,294,577
10
0
0
1,294,577
Forfeited/expired
0
0
271,077
271,077
13
17,473
19
288,550
Performance adjusted
0
0
0
0
0
15,227
17
15,227
Exercised/released
0
0
0
0
0
47,583
17
47,583
Cancelled
0
120,000
0
120,000
19
0
0
120,000
Share options outstanding at December 31, 2025
25,000
330,000
2,133,040
2,488,040
15
158,413
15
2,646,453
Of this exercisable at the end of the period
0
0
456,314
456,314
20
0
n/a
456,314
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
===== SIDA 145 =====
Annual report
Page
145
Notes
7.
Special items
Special items consist of recurring and non
-
recurring items that management does not consider to be part of
Better
Collective’s
ordinary operating activities, i.e. acquisition costs, adjustment of earn
-
out payments related to
acquisi-
tions
, impairments
, disputes
,
restructuring costs
and
lease contract terminations
are presented in
the Income state-
ment in a separate line item labelled ‘Special items’.
During 2025 Better Collective
continued
the initiatives to stream-
lining Better Collective
’
s business leveraging synergies. Costs related to this amounted to c. 7 mEUR in 2025, recog-
nised as Special Items related to restructuring.
The impact of special items is specified as follows:
tEUR
2025
2024
*
Operating profit
50,971
61,447
Special Items related to:
M&A
-
835
-
2,223
Variable payments regarding acquisitions
-
income
0
19,114
R
edundancies, r
estructuring
and
other
non
-
recurring expenses
-
9
,
576
-
9,193
I
mpairment
0
-
18,584
Special items, total
-
10,411
-
10,886
Operating profit (EBIT) before special items
61,382
72,334
Amortization and impairment
33,807
34,080
Operating profit before amortization
and special items (EBITA before special items)
95,189
106,413
Depreciation
6,864
6,990
Operating profit before depreciation, amortization,
and special items (EBITDA before special items)
102,053
113,403
*
In 2024 Better Collective and the founders and former owners of Playmaker HQ agreed to renegotiate and settle the
earn out due to underperformance from acquisition of SOME content producer and podcast maker Playmaker HQ (not
to be confused with Playmaker C
apital). The initial acquisition price of Playmaker HQ was 54
mUSD of which 15
mUSD
was upfront cash. The final price agreed is 25
mUSD (23
mEUR). Consequently, Better Collective have performed an
impairment test based on the reassessment, identifying an i
mpairment of 20
mUSD (18
mEUR) for the CGU North
America, recognized in Q2 2024. The net impact on special items is negative 2.4
mEUR, resulting from the aforemen-
tioned goodwill impairment and the recognition of the remaining earn
-
out as income. Furthermore
,
o
n October 28th, it
was announced that Management has decided to streamline Better Collective’s business to identify and leverage syn-
ergies. Costs related to this amounted to 6 mEUR in Q4 2024, 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 statem
ent 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
acquisition costs, adjustment of earn
-
out payments related to acquisitio
ns, impairments, disputes
,
restructuring costs
and lease contract terminations
.
===== SIDA 146 =====
Annual report
Page
146
Notes
8.
Financ
ial
income
tEUR
2025
2024
Exchange gains
4,719
4,199
Interest Income
274
1,303
Other financial income
444
1,808
Total financ
ial
income
5,437
7,310
9.
Financ
ial
expense
s
tEUR
2025
2024
Exchange losses
11,441
5,580
Interest expenses
11,294
14,536
Interest
-
right of use assets (Leasing)
606
811
Other financial
expenses
1,887
4,965
Total financ
ial
expenses
25,227
25,893
10.
Fees paid to auditors appointed at the annual
general meeting
tEUR
2025
2024
Fee related to statutory audit
499
590
Fees for tax advisory services
0
0
Assurance engagements
208
287
Other assistance
46
30
Total audit fees
7
53
907
Assurance engagements provided by EY amounted to 14
5
tEUR in 2025, relating to ESG assurance
.
Non
-
audit services
provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation.
Accounting
policies
Financial income and expenses
Financial income and expenses are recogni
z
ed 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 lo
sses on the disposal of se-
curities, as well as allowances and surcharges under the advance
-
payment
-
of
-
tax scheme, etc.
===== SIDA 147 =====
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147
Notes
11.
Income tax
Total tax for the year is specified as follows:
tEUR
2025
2024
Tax for the period
7,590
8,850
Tax on other comprehensive income
-
7,571
1,589
Total
19
10,440
Income tax on profit for the year is specified as follows:
tEUR
2025
2024
Deferred tax
-
10,058
1,282
Current tax
21,006
7,181
Adjustment from prior years
-
3,358
387
Total
7,590
8,850
Tax on the profit for the year can be explained as follows:
tEUR
2025
2024
Specification for the period:
Calculated 22% tax of the result before tax
6,860
9,430
Adjustment of the tax rates
in foreign subsidiaries relative to the 22%
2,131
-
3,731
Tax effect of:
Special items
160
1,082
Other non
-
taxable income
-
570
-
670
Other non
-
deductible costs
1,212
1,719
Unrecognized tax losses carried forward
1,155
633
Reassesment of unrecognized tax losses carried forward
-
2,285
0
Adjustment of tax relating to prior periods
-
1,073
387
Total
7,590
8,850
Effective tax rate
24.3%
20.6%
tEUR
2025
2024
Deferred tax liabilities
Deferred tax liabilities January 1
94,100
77,434
Additions from business acquisitions
0
12,693
Adjustments of deferred tax in profit and loss
-
10,058
1,282
Exchange rate adjustment
-
6,602
2,691
Deferred tax liabilities December 31
77,440
94,100
Deferred tax is recognized in the balance sheet as:
Deferred tax asset
4,086
4,573
Deferred tax liability
81,526
98,673
Deferred tax liabilities December 31
77,440
94,100
Deferred tax is related to:
Intangible assets
99,026
116,193
Tangible assets
-
268
-
143
Liabilities
484
-
25
Other
-
5,575
-
6,404
Tax loss carry forward
-
16,227
-
15,521
Deferred tax liabilities December 31
77,440
94,100
===== SIDA 148 =====
Annual report
Page
148
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 Bette
r Collective has a tax presence.
Current and deferred tax
Current tax liabilities and current tax receivables are recognized in the balance sheet as tax computed on the year’s taxable
income adjusted for tax on the previous year’s taxable income and tax paid on account.
Deferred tax is measured using the balance sheet liability method on all temporary differences between the carrying amount an
d the tax value of assets and liabilities. Deferred tax liabilities as well as deferred tax assets are recognized.
However, deferre
d 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 af
fecting 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 liabili
ties in the same legal tax entity and jurisdiction.
Deferred tax is measured according to the tax rules and at the tax rates applicable in the respective countries at the balanc
e sheet date when the deferred tax is expected to crystallize as current tax.
Withholding taxes are recognized as
a
tax receivable when it is anticipated that the group can claim a tax credit against the local taxable income.
Joint taxation of the parent Company and Danish subsidiaries
The Parent Company is subject to the Danish rules on compulsory joint taxation of the Group’s Danish subsidiaries. Subsidiari
es are included in the joint taxation arrangement from the date when they are included in the consolidated
financial statements and
up to the date when they are excluded from the consolidation.
The Parent Company acts as administration company for the joint taxation arrangement and consequently settles all corporate i
ncome tax payments with the tax authorities.
On payment of joint taxation contributions, the Danish corporation tax charge is allocated between the jointly taxed entities
in proportion to their taxable income. Entities with tax losses receive joint taxation contributions from entities
that have been
able to use the tax losses to reduce their own taxable income.
Joint taxation contributions payable and receivable are recognized in the balance sheet as corporation tax receivable or corp
oration tax payable.
===== SIDA 149 =====
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Page
149
Notes
12.
Intangible assets
tEUR
Goodwill
Domains
and
websites
Accounts
and other
intangible
assets*
Total
Cost or valuation
As of January 1, 2025
380,138
553,886
211,066
1,145,0
90
Additions
0
0
22,750
22,750
Acquisitions through business combinations
0
0
0
0
Transfer
0
0
0
0
Disposals
0
0
-
24,304
-
24,304
Currency Translation
-
29,644
-
33,402
-
4,194
-
67,240
At December 31, 2025
350,494
520,484
205,318
1,076,29
6
Amortization and impairment
As of January 1, 2025
19,150
0
93,438
112,588
Amortization for the period
0
0
32,880
32,880
Impairment for the period
0
0
0
0
Amortization on disposed assets
0
0
-
19,194
-
19,194
Currency translation
-
2,139
0
-
1
3
-
2,15
2
At December 31, 2025
17,011
0
107,1
11
124,12
2
Net book value at December 31, 2025
333,483
520,484
98,20
7
952,174
*Accounts and other intangible assets consist of accounts (
47
,
484
tEUR), Partnerships (
44,493
tEUR), Development projects (
5,
443
tEUR) and software and others (
788
tEUR)
.
tEUR
Goodwill
Domains and
websites
Accounts
and other
intangible
assets*
Total
Cost or valuation
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), Partnerships (49,461 tEUR), Development projects (2,
088
tEUR) and software and others (554 tEUR).
**Disclosed under special items
===== SIDA 150 =====
Annual report
Page
150
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 even
ts 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 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 qu
alifies 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
p
rofit and
l
oss 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
Partnership
s
1
-
10
years
Software
3 years
Development projects
3 years
Notes
12.
Intangible assets (continued)
===== SIDA 151 =====
Annual report
Page
151
Notes
13.
Goodwill and intangible assets with indefinite life
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 impairmen
t 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 tha
t are largely independent of the cash inflows from other assets.
During 2025, Better Collective implemented a new global organisational structure, transitioning from a geographically
and market
anchored setup to a structure built around three global business units: Publishing, Paid Media, and Esports
.
The new structure enhances internal steering, operational alignment, and transparency. As a consequence, the Group
has reassessed the identification of its cash
-
generating units in accordance with IAS 36
–
hence the Group now identifies
three CGUs: Publishing, Paid Media, a
nd Esports
.
Goodwill arising from prior acquisitions has been reallocated to the new CGUs based on management’s direct knowledge
of how each acquired business integrates into and generates value within the revised organisational structure. This ap-
proach reflects the m
anner in which synergies and future economic benefits are expected to be realised following the
transition to the three global business units
Carrying amount of goodwill and Domains and Websites for the CGUs
2025
tEUR
Paid
Publishing
Esports
Total
Goodwill
83,575
232,134
17,774
333,483
Domains and Websites
1,562
394,664
124,258
520,484
2024
tEUR
Paid
Publishing
*
Esports
*
Total
Goodwill
88,264
254,938
17,785
360,987
Domains and Websites
1,562
427,822
124,502
553,886
* 2024 figures have been adjusted due to the new segmentation, where Esports has been carved out from Publishing as a distinc
t seg-
ment.
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 t
he level of the cash
-
generating units, as explained above.
Impairment test
For all CGUs
; Publishing, Paid Media and Esports
, the Group has performed an impairment test on goodwill and domains
and websites as of 31 December, 202
5
, 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
three
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 202
6
-
202
8
. The forecast indicates an average annual revenue growth up to 1
4
% in 2028 and a normalized average
margin of 3
5
%. Beyond the forecast, EBITDA growth, cash conversion and tax
-
rates have been projected with a time
horizon of 7 years until 203
5
. From 202
9
onward, the average gross profit growth rate is estimated to decline. In 202
9
,
the average growth rate is projected to be
8
% a
nd the decline continues, reaching 3% by 203
5
, stabilizing thereafter at
a theoretical steady state level in the terminal period.
Based on expected 203
5
EBITDA and cash flow, management has applied a terminal value
growth
rate of 2.5%. The cash
flows assume a discount factor of
10
.
4
% for
Publishing
,
10.7% for
Paid Media
and
9.5% for Esports
on the Group’s
weighted average cost of capital (WACC) in all years 202
6
-
203
5
. To account for the different tax rates in the markets
where the three CGUs
operate, we have used the local tax rate
(22%
-
25%)
.
===== SIDA 152 =====
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152
Notes
13. Goodwill and intangible assets
with indefinite life
(continued)
As at December 31, 202
5
and December 31, 202
4
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
. Based
on management’s assessment, no reasonably possib
le changes in key assumptions would cause the carrying amounts
of the CGUs to exceed their recoverable amounts.
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 resu
lt in any impairment loss.
===== SIDA 153 =====
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Page
153
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
i
ncurred.
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 (includi
ng any previously held equity interests and any non
-
controlling interests in the acquired business) over the fair value of the identifiable net assets acquired is recorded as go
odwill.
If uncertainties regarding identification or measurement of acquired assets, liabilities or contingent liabilities or determi
nation of the consideration transferred exist at the acquisition date, initial recognition will be based on provisional value
s.
Any
adjustments in the provisional values, including goodwill, are adjusted retrospectively, until 12 months after the acquisitio
n 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
-
generatin
g units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire
d 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 o
r loss on disposal of the operation. Goodwill disposed in these circumstances is measured based on the relative fair values o
f the disposed operation and the portion of the cash generating unit retained.
Impairment
The carrying amounts of goodwill, intangible assets, plant and investments in subsidiaries is assessed for impairment on an a
nnual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment.
Furthermore, goodwi
ll 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 sect
ion “Impairment test” for actual assumptions.
The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of
assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the
useful life.
Impairment losses are
recognized
in the income statement under depreciation and
amortization
. Previously
recognized
impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not
reversed.
===== SIDA 154 =====
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154
Notes
14.
Tangible assets
tEUR
Right of use
assets
Fixtures and
fittings,
other plant
and equip-
ment
Total
Cost
At January 1, 2025
24,239
13,177
37,416
Additions
2,077
347
2,424
Acquisitions through business combinations
0
0
0
Transfer
0
0
0
Disposals
-
3,651
-
751
-
4,40
2
Currency Translation
-
1,173
-
723
-
1,896
At December 31, 2025
21,492
12,050
33,542
Depreciation and impairment
At January 1, 2025
8,310
6,473
14,78
3
Depreciation for the period
4,190
2,809
6,99
9
Depreciation on disposed assets
489
-
933
-
444
Currency translation
-
2,53
5
-
477
-
3,011
At December 31, 2025
10,45
4
7,872
18,326
Net book value at December 31, 2025
11,038
4,178
15,216
tEUR
Right of use
assets
Fixtures and
fittings,
other plant
and equip-
ment
Total
Cost
As of 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
As of 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
===== SIDA 155 =====
Annual report
Page
155
Notes
14.
Tangible assets
(continued)
15.
Trade and other receivables
tEUR
2025
2024
Trade receivables
36,776
35,522
Accrued revenue
26,037
21,036
Other receivables
10,783
7,205
Total receivables
73,596
63,763
Accounting
policies
Receivables
Receivables are measured at
amortized
cost, which usually corresponds to nominal value.
Write
-
downs on trade receivables are based on the simplified expected credit loss model. Credit loss allowances
on individual receivables are provided for when objective indications of credit losses occur such as customer
bankruptcy and uncertainty about t
he customers’ ability and/or willingness to pay, etc. In addition to this, al-
lowances for expected credit losses are made on the remaining trade receivables based on a simplified ap-
proach. Reference is made to note
19
of the consolidated financial statemen
ts 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
1
-
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 depreciatio
n 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
.
Impairment
The carrying amounts of equipment is assessed for impairment on an annual basis. Impairment tests are con-
ducted on assets or groups of assets when there is evidence of impairment.
===== SIDA 156 =====
Annual report
Page
156
Notes
16.
Issued capital and reserves
tEUR
2025
2024
2023
2022
2021
Share capital:
Opening balance
631
554
551
546
469
Capital increase
0
77
2
5
77
Capital decrease
-
11
0
0
0
0
Total
620
631
554
551
546
The share capital consists of
6
1
,
958
,
870
shares of nominal EUR 0.01 each.
Better Collective’s Board of Directors approved a cancellation of treasury shares on an Extraordinary General Meeting,
on the 9 January 2026, with a reduction of the share capital by 5.17% and a nominal amount of 32
tEUR.
Share buy
-
back
-
2025
Throughout 2025 the company purchased
3
,
276
,
934
Better Collective A/S shares at an average price of
11.15
EUR.
1,117,757 treasury shares were cancelled
on 22 April 2025
, each with a nominal value of EUR 0.01
. The cancelled shares
represent a total nominal amount of 11,177.57
EUR
.
By the end of 2025 Better Collective A/S had
3,276,934
treasury shares.
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.
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
recognize
d 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 separ
ate line item under “Equity”.
Proposed dividends on ordinary shares are subject to approval at the Annual General Meeting.
===== SIDA 157 =====
Annual report
Page
157
Notes
17.
Trade and other payables
tEUR
2025
2024
Trade payables
10,577
10,173
Other payables
15,630
16,721
Total payables
26,207
26,894
18.
Leas
es
Right
-
of
-
use assets
tEUR
Buildings
Total
Balance at January 1, 2025
15,929
15,929
Additions
2,077
2,077
Disposals
-
3,651
-
3,651
Modifications
0
0
Exchange rate adjustment
1,361
1,361
Depreciation
-
4,190
-
4,190
Depreciation on disposed assets
-
489
-
489
Balance at December 31, 2025
11,038
11,038
Balance at January 1, 2024
15,575
15,575
Additions
3,508
3,508
Disposals
-
1,240
-
1,240
Modifications
0
0
Exchange rate adjustment
1,985
1,985
Depreciation
-
4,680
-
4,680
Depreciation on disposed assets
782
782
Balance at December 31, 2024
15,929
15,929
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
measured
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 158 =====
Annual report
Page
158
Notes
1
8
. Leas
es
(continued)
Lease liabilities
tEUR
2025
2024
Maturity analysis
-
contractual undiscounted cash flows
Less than one year
3,683
4,376
One to five years
9,072
13,830
More than five years
534
935
Total undiscounted cash flows
13,289
19,141
Total lease liabilities
11,976
16,936
Current
3,667
4,376
Non
-
current
8,309
12,560
The total cash outflow for leases during 202
5
was
4
,
560
tEUR
(202
4
:
4,
384
tEUR
).
Amounts
recognized
in the consolidated income statement
tEUR
2025
2024
Interest on lease liabilities
606
811
Expenses relating to short
-
term lease
68
98
Expenses relating to lease of low value assets
0
0
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 th
e 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 i
ncentives 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 p
ayments (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 a
ssets 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 159 =====
Annual report
Page
159
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 t
o
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 in
ternational 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 202
5
impact of the fluctuating USD
on the USD loan in the parent company was
a
negative
impact on
35
.
0
mEUR
compared to a positive impact on
17
,
3
mEUR
in 202
4
. The exchange rate adjustments
and corresponding tax impact on these loans are included in Other Comprehensive Income for the
G
roup
.
The Board of Directors has
in general
decided not to hedge currency exchange risk
given the underlying inherent risk
and the capital structure
.
T
he 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
September 2025
was
extended by 3 years to
September
202
9
. With
2
59
.
7
mEUR
drawn on the facility as of December 202
5
.
Better Collective has entered two hedging contracts regarding the interest rate risk for the period October 202
5
to
October 202
8
, nominal amount of 550 mDKK each securing
the interest
rate at
2
.
29
% and 2.3
1
% respectively.
M
anagement expects to re
duce
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 sensitiv
ity
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, 202
5
,
the Group’s impairment for expected loss is included in the trade receivables (ref note 15).
Covenants
The Group facility
with 2
59
.
7
mEUR drawn at December 202
5
is subject to a covenant requiring that debt leverage,
defined as net debt divided by 12 months rolling adjusted EBIT
D
A
before special items
, must not exceed 3.
2
5x
.
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 160 =====
Annual report
Page
160
Notes
19
. Financial risk management objectives
and policies (continued)
Expected credit loss on receivables from trade receivables as of December 31, 202
5
:
tEUR
Expected
Loss Rate
Gross
Receivable
Expected
loss
Net
receivable
2025
Not Due
0.
0
%
23,412
0
23,
412
Less than 30 days
0.2%
5,697
14
5,683
Between 31 and 60 days
0.5%
2,701
13
2,689
Between 61 and 90 days
1.4%
1,769
24
1,744
More than 91 days
2
5
.5%
4,360
1,
112
3,
248
Total
3.1%
37,939
1,163
36,776
Limited losses were recognized during 202
5
,
and the weighted credit loss has slightly increased compared to 202
4
.
Expected credit loss on receivables from trade
receivables
as of December 31, 202
4
:
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
89
5
35,522
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
G
roup ensures adequate liquidity through the management of cash flow forecasts and close monitoring of cash
inflows and outflows.
===== SIDA 161 =====
Annual report
Page
161
Notes
19
. Financial risk management objectives
and policies (c
on
t
inued
)
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
2025
Non
-
derivative financial instruments:
Financial liabilities measured at fair value
Earn
-
out consideration
85
85
85
0
85
0
Financial liabilities measured at amortized
costs
Lease liabilities
11,976
11,976
13,289
3,683
9,072
534
Trade and other payables
26,207
26,207
26,207
26,207
0
0
Deferred payment on acquisitions
79
79
79
16
63
0
Debt to credit institutions
259,946
259,946
306,005
10,551
295,454
0
Other financial liabilities
47,
66
5
47,
66
5
47,
66
5
1
7
,
000
30,665
0
Derivative financial instruments:
Financial liabilities measured at fair value
Derivates used as hedging instrument
120
120
120
0
120
0
Total financial instruments
34
6
,
078
34
6
,
078
393,4
5
1
57,4
5
7
335,460
534
Assets:
Trade and other receivables
73,596
73,596
73,596
73,596
0
0
Other current financial assets
0
0
0
0
0
0
Cash
13,494
13,494
13,494
13,494
0
0
Total financial assets
87,09
0
87,09
0
87,09
0
87,09
0
0
0
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
===== SIDA 162 =====
Annual report
Page
162
Notes
19
. Financial risk management objectives
and policies (cont
inued
)
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 withi
n
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
f
air
va
lue of Earn
-
Out consideration, and
o
ther financial liabilities is measured based on weighted probabilities of
assessed possible payments discounted to present value
(level 3)
.
Derivates
are measured at fair value based on gener-
ally accepted valuation methods using available observable market data
(level 2)
.
Fair value
of short term liabilities and
financial assets
In all material aspects the financial liabilities are current/short termed. Non
-
current loans and overdraft facility are sub-
ject to a variable interest rate. Thus, the fair value of the liabilities is considered equal to the booked value.
Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet
date. (Fair Value Level 1)
.
Capital Management
For the purpose of the Group’s capital management, capital includes issued capital, share premium, and all other equity
reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to
maximize
shareholder value and to maintain an optimal capital structure. The Group manages its capital structure and
makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Group
may adjust the dividend paymen
t to sh
areholders, issue new shares or return capital to shareholders.
Credit facilities
As per December 31, 202
5
, Better Collective has drawn 2
59
.
7
mEUR (202
4
:
261
mEUR
) out of the total committed club
facility of 319 mEUR established with Nordea
and
Nykredit.
On
September 30
, 202
5
Better Collective reestablished its 3
year financing agreement with Nordea
and
Nykredit with a total committed facility of 319 mEUR and a
80
mEUR higher
accordion option with expiry at the end of October 202
8, with an option to extend for one additional year
.
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
2023
Cash flows
Net
Non cash
flow
changes
2024
Cash flows
Net
Non cash
flow
changes
2025
Non
-
current financing liabilities
248,657
10,858
177
259,691
0
255
259,946
Leasing and other non
-
current
liabilities
13,326
-
434
-
332
12,560
0
-
4,251
8,309
Current financing liabilities
0
0
0
0
0
0
0
Leasing current liabilities
2,702
-
4,384
6,058
4,376
-
4,560
3,851
3,667
Total liabilities from financing
activities
264,685
6,040
5,903
276,627
-
4,560
-
145
271,922
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
-
curre
nt 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 partnerships.
===== SIDA 163 =====
Annual report
Page
163
Notes
20.
Change in working capital
tEUR
2025
2024
Change in receivables
-
9,833
-
5,016
Prepaid expenses
-
1,602
-
1,692
Prepayment from customers
3,231
5,566
Change in trades payable, other debt
-
2,090
-
12,497
Change in working capital, total
-
10,294
-
13,638
21.
Business combinations
Acquisitions 2024
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.
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 st
rong 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 tr
ansaction 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.
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 2
mEUR 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 Bette
r 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 164 =====
Annual report
Page
164
Notes
2
1
. 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 platf
orm 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 be
en 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.
22.
Related party disclosures
The Group has registered the following shareholders with 5% or more equity interest:
J Søgaard Holding ApS,
17
.22
%,
Sankt Annæ plads 26
-
28
, 125
0
Copenhagen, Denmark
Chr. Dam Holding ApS,
17.22
%,
Sankt Annæ plads 26
-
28
, 125
0
Copenhagen, Denmark
BLS Capital Fonds
mæglerselskab A/S,
14.80
%,
Strandvejen 724, 2930 Klampenborg
Jesper Søgaard
and Christian Kirk Rasmussen each hold
17.22
% of the shares in Better Collective A/S through
their
respective holding companies
and
BLS Capital Fondsmæglerselskab A/S held
14.80
% by the
end of 202
5. The
remain-
ing 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
117
k EUR
. The transactions have all been on arm length.
Management remuneration and
long
-
term incentive
programs are disclosed in note 5 and 6
.
===== SIDA 165 =====
Annual report
Page
165
Notes
23.
Group information
–
subsidiar
y information
The consolidated financial statements of the Group as of December 31, 202
5
include the following subsidiaries:
Name
Note
Ownership
Country
Better Collective D.o.o.
100%
Serbia
Better Collective SAS
100%
France
Bola Webinformation GmbH
100%
Austria
Better Collective Greece P.C.
100%
Greece
Kapa Media Services Ltd.
100%
Malta
Better Collective Malta Ltd.
100%
Malta
Better Collective Sweden AB
100%
Sweden
Digital Sportmedia i Norden AB
C
100%
Sweden
Better Collective Poland SP Z o o
100%
Poland
Moar Performance Ltd
100%
United Kingdom
Better Collective Romania SRL
100%
Romania
Better Collective USA Inc.
100%
USA
Atemi Ltd.
100%
Malta
Better Collective UK Services Ltd (Former: Your Media Ltd)
100%
United Kingdom
Solid Software Ltd (AceOdds)
A
100%
United Kingdom
Mindway AI ApS
E
90%
Denmark
Better Collective Netherlands B.V.
100%
Netherlands
Better Collective Portugal, Unipessoal Lda
100%
Portugal
Better Collective Canada Inc.
D
100%
Canada
Austin Holding Co
100%
Canada
Better Collective Brasil Ltda
100%
Brazil
Goalmedia Tecnologia E Marketing Digital S.A.
100%
Brazil
Better Collective Colombia SAS
99%
Colombia
Tipsbladet ApS
100%
Denmark
Better Collective Operational Services India Private Limited
100%
India
Playmaker Capital Inc.
100%
Canada
La Poche Bleue Inc.
B
100%
Canada
The Nation Network Inc.
B
100%
Canada
PMKR US Inc.
B
100%
USA
Futbol Sites LLC
B
100%
USA
Futbol Sites MX S.A. De C.V.
B
100%
Mexico
AERIS S.A.
B
100%
Uruguay
YB Media, LLC
B
100%
USA
Odenton Company S.A.
B
100%
Uruguay
===== SIDA 166 =====
Annual report
Page
166
23.
Group information
–
subsidiary information (continued)
24.
Other contingent liabilities
The Group is party to a few lawsuits and disputes that are common within the Group's specific industry. Management
believes that these lawsuits and disputes will not significantly affect the financial position of the Group.
25.
Events after the reporting date
On January 9, 2026, Better Collective convened an Extraordinary General Meeting to resolve on the cancellation of
3,204,020 treasury shares, equal to 5.17%, held by the company following the surpassing of the 5% ownership threshold.
In 2026, Better Collective
granted
stock options to key employees from the 2026 long term incentive program
which
was established in 2025
.
Name
Note
Ownership
Country
Wedge Traffic Limited
B
100%
United Kingdom
Wedge Traffic, Inc.
B
100%
USA
Flop Midias Ltda.
B
100%
Brazil
SPRK Midias E Eventos Ltda.
B
100%
Brazil
Futbol Sites Colombia S.A.S.
B
100%
Colombia
FSN SRL
B
99%
Argentina
Sociedad Commercial Futbol Sites Network Chile Limitada
B
99%
Chile
Sociedad Commercial Futbol Dale Ideas Limitada
B
100%
Chile
A Subsidiaries are 100% owned by Moar Performance Ltd
B Subsidiaries are 100% owned by Playmaker Capital Inc.
C Subsidiaries are 100% owned by Better Collective Sweden AB
D Subsidiaries are 100% owned by US Inc.
E As per December 31, 2025, the value of non
-
controlling interests is 0 EUR.
===== SIDA 167 =====
Annual report
Page
167
Statement of profit and loss
168
Statement of comprehensive income
168
Balance sheet
169
Statement of changes in equity
170
Cash flow statement
171
Parent Company
Financial
Statements
===== SIDA 168 =====
Annual report
Page
168
Statement of profit and loss
Note
tEUR
2025
2024
2
Revenue
106,732
129,221
Other operating income
21,381
21,435
Direct costs related to revenue
19,179
21,306
3, 4
Staff costs
48,124
52,240
14
Depreciation
3,153
2,978
5
Other external expenses
22,922
26,487
Operating profit before amortization (EBITA) and special items
34,734
47,645
12
Amortization
11,641
13,420
Operating profit (EBIT) before special items
23,093
34,225
6
Special items, net
-
2,856
960
Operating profit
20,238
35,186
9
Financial income
33,308
80,222
10
Financial expenses
65,189
34,749
Profit before tax
-
11,644
80,658
11
Tax on profit for the period
-
6,437
9,549
Profit for the period
-
5,207
71,109
Statement of comprehensive income
Note
tEUR
2025
2024
Profit for the period
-
5,207
71,109
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
542
-
180
Currency translation to presentation
currency
-
699
-
2,688
11
Income tax
-
119
146
Net other comprehensive income/loss
-
276
-
2,722
Total comprehensive income/(loss) for the period, net of tax
-
5,483
68,387
===== SIDA 169 =====
Annual report
Page
169
B
alance sheet
Note
tEUR
2025
2024
Assets
Non
-
current assets
12.13
Intangible assets
Goodwill
17,774
17,795
Domains and websites
168,023
169,227
Accounts and other intangible assets
31,248
46,543
Total intangible assets
217,045
233,565
14
Tangible assets
Right of use assets
5,755
7,750
Fixtures and fittings, other plant and equipment
1,740
2,891
Total tangible assets
7,495
10,641
Financial assets
7
Investments in subsidiaries
370,894
377,085
8
Receivables from subsidiaries
346,618
372,121
Deposits
1,013
1,000
Total financial assets
718,526
750,206
Total non
-
current assets
943,066
994,413
Current assets
16
Trade and other receivables
19,604
22,089
19
Receivables from subsidiaries
49,245
39,698
Tax receivable
1,782
0
Prepayments
2,386
3,220
Other current financial assets
0
0
19
Cash
242
12,667
Total current assets
73,259
77,675
Total assets
1,016,325
1,072,088
Note
tEUR
2025
2024
Equity and liabilities
Equity
Share Capital
620
631
Share Premium
469,444
469,460
Reserves
-
39,295
-
23,876
Retained Earnings
238,127
260,171
Total equity
668,896
706,387
Non
-
current Liabilities
19
Debt to credit institutions
259,946
259,691
18
Lease liabilities
4,034
6,043
11
Deferred tax liabilities
9,925
18,375
19
Other non
-
current financial liabilities
23,355
34,887
Total non
-
current liabilities
297,261
318,996
Current Liabilities
Prepayments received from customers and deferred revenue
9,170
4,612
17
Trade and other payables
5,369
6,302
19
Payables to subsidiaries
26,556
17,579
11
Tax payable
0
2,433
19
Other current financial liabilities
7,071
13,856
18
Lease liabilities
2,002
1,924
Total current liabilities
50,168
46,705
Total liabilities
347,429
365,701
Total equity and liabilities
1,016,325
1,072,088
===== SIDA 170 =====
Annual report
Page
170
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, 2025
631
469,460
-
3,024
-
517
-
20,336
260,171
706,387
Result for the period
0
0
0
0
0
-
5,207
-
5,207
Fair value adjustment of
hedges
0
0
0
542
0
0
542
Foreign currency translation
0
0
-
699
0
0
0
-
699
Tax on other
comprehensive income
0
0
0
-
119
0
0
-
119
Total other
comprehensive income
0
0
-
699
423
0
0
-
276
Total comprehensive income for
the year
0
0
-
699
423
0
-
5,207
-
5,483
Transactions with owners
Capital Decrease
-
11
-
16
0
0
20,336
-
20,309
0
Acquisition of treasury shares
0
0
0
0
-
35,590
0
-
35,590
Disposal of treasury shares
0
0
0
0
112
0
112
Share based payments
0
0
0
0
0
3,508
3,508
Transaction cost
0
0
0
0
0
-
36
-
36
Total transactions with owners
-
11
-
16
0
0
-
15,142
-
16,837
-
32,006
At December 31, 2025
620
469,444
-
3,723
-
94
-
35,478
238,127
668,896
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, 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.
===== SIDA 171 =====
Annual report
Page
171
Statement of cash flows parent
Note
tEUR
2025
2024
Profit before tax
-
11,644
80,658
Adjustment for finance items
31,881
-
45,473
Adjustment for special items
2,856
-
960
Operating Profit for the period before special items
23,093
34,225
Depreciation and amortization
14,794
16,397
Other adjustments of non
-
cash operating items
1,625
659
Cash flow from operations before changes in working capital and special items
39,512
51,281
20
Change in working capital
16,374
-
25,073
Cash flow from operations before special items
55,886
26,208
Special items, cash flow
-
1,924
-
7,637
Cash flow from operations
53,962
18,571
Dividend received
7,569
33,886
Other Financial income, received
2,780
3,365
Financial expenses, paid
-
16,155
-
12,484
Cash flow from ordinary activities before tax
48,156
43,338
Income tax paid
-
6,072
-
708
Cash flow from operating activities
42,084
42,630
10
Acquisition of businesses
-
925
-
59,331
12
Acquisition of intangible asset
-
12,673
-
20,538
Acquisition of tangible assets
-
17
-
1,447
Sale of tangible assets
0
0
Non
-
current loans to subsidiaries
-
5,257
-
94,005
Acquisition of other financial assets
0
0
Sale of other financial assets
0
3,232
Change in other non
-
current assets
0
0
Cash flow from investing activities
-
18,873
-
172,090
Note
tEUR
2025
2024
19
Repayment of borrowings
-
257,373
-
113,271
19
Proceeds from borrowings
260,054
124,129
Lease liabilities
-
2,191
-
2,092
Other non
-
current liabilities
-
546
Capital increase
146,362
Treasury Shares
-
35,590
-
20,336
Transaction cost
-
36
-
3,018
Warrant settlement, sale of warrants
-
371
-
6,911
Cash flow from financing activities
-
35,507
124,317
Cash flows for the period
-
12,296
-
5,142
Cash and cash equivalents at beginning
12,667
17,826
Foreign currency translation of cash and cash equivalents
-
129
-
17
Cash and cash equivalents period end
242
12,667
Cash and cash equivalents period end
Cash
242
12,667
Cash and cash equivalents period end
242
12,667
===== SIDA 172 =====
Annual report
Page
172
1. Accounting policies
173
2. Revenue specification
173
3. Staff costs
174
4. Share
-
based payments
174
5. Fees paid to auditors appointed at the annual general meeting
174
6. Special items
175
7. Finance income
175
8. Finance expenses
175
9. Income tax
176
10. Intangible assets
177
11. Intangible assets with indefinite life
178
12. Tangible assets
179
13. Investments in subsidiaries
180
14. Non
-
current financial assets
180
15. Issued capital and reserves
181
16. Trade and other receivables
181
17. Trade and other payables
181
18. Leases
181
19. Financial risk management objectives and policies
182
20. Change in working capital
186
21. Other contingent liabilities
186
22. Related party disclosures
186
Notes to the parent
financial statement
===== SIDA 173 =====
Annual report
Page
173
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
2025
2024
Revenue category
Recurring revenue (Revenue share, Subscription, CPM)
55,463
98,933
CPA, Sponsorships
50,545
29,618
Other
724
670
Total revenue
106,732
129,221
%
-
split
Recurring revenue
52
76
CPA, Sponsorships
47
23
Other
1
1
Total
100
100
The parent company has earned
2
6
mEUR (202
4
: 46 mEUR) in revenues from one major customer, which represents
24
% of the parent company’s revenue (202
4
:
36
%). The revenue is related to all operating segments.
tEUR
2025
2024
Revenue type
Revenue Share
45,289
89,030
CPA
33,203
11,951
Subscription
604
1,155
Sponsorships
17,322
17,667
CPM
9,570
8,748
Other
744
670
Total revenue
106,732
129,221
%
-
split
Revenue Share
42
69
CPA
31
9
Subscription
1
1
Sponsorships
16
13
CPM
9
7
Other
1
1
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 174 =====
Annual report
Page
174
Notes
3.
Staff costs
tEUR
2025
2024
Wages and salaries
16,803
17,601
Pensions, defined contribution
1,753
1,745
Other social security costs
376
278
Share
-
based payments
1,625
659
Other staff costs
-
119
-
210
Intercompany personnel costs
27,687
32,167
Total staff cost
48,124
52,240
Average number of full
-
time employees
159
181
*
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 assump
tions used for the valuation of the share options granted in 202
5
. Total costs
recognized
in
202
5
amounted
1,625
tEUR (202
4
:
659
tEUR)
.
5.
Fees paid to auditors appointed at the annual general meeting
tEUR
2025
2024
Fee related to statutory audit
142
504
Fees for tax advisory services
0
0
Assurance engagements
14
5
287
Other assistance
0
30
Total audit fees
287
821
Assurance engagements
provided by EY amounted to 14
5
tEUR in 2025, relating to
ESG
assurance.
Non
-
audit services
provided by EY did not exceed 70% of the audit fees in accordance with EU audit legislation.
===== SIDA 175 =====
Annual report
Page
175
Notes
6.
Special items
Significant income and expenses, which Better Collective consider no
t 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
2025
2024
Operating profit
20,238
35,186
Special Items related to:
M&A
-
74
-
247
Variable payments regarding acquisitions
-
income
-
142
2,549
Redundancies, restructuring and other non
-
recurring expenses
0
1,342
Special items related to Restructuring
-
2,640
-
Special items, total
-
2,856
960
Operating profit (EBIT) before special items
23,093
34,225
Amortization and impairment
11,641
13,420
Operating profit before amortization
and special items (EBITA before special items)
34,734
47,644
Depreciation
3,153
2,978
Operating profit before depreciation, amortization,
and special items (EBITDA before special items)
37,887
50,622
7.
Finance income
tEUR
2025
2024
Exchange gains
2,962
34,197
Interest Income
171
1,068
Interest income, group entities
12,900
10,759
Dividend income
17,275
34,186
Other financial income
0
11
Total finance income
33,308
80,222
8.
Finance
expenses
tEUR
2025
2024
Exchange losses
45,665
15,566
Interest expenses
11,128
14,387
Interest
-
right of use assets (Leasing)
268
319
Interest expenses, group entities
324
296
Other financial costs
1,192
4,181
Write down of receivables from subsidiaries
871
0
Impairment of investments in subsidiaries
5,741
0
Total finance expenses
65,189
34,749
===== SIDA 176 =====
Annual report
Page
176
Notes
9.
Income tax
Total tax for the year is specified as follows:
tEUR
2025
2024
Tax for the period
-
6,437
9,549
Tax on other comprehensive income
-
119
146
Total
-
6,556
9,695
Income tax of profit from the year is specified as follows:
tEUR
2025
2024
Deferred tax
-
7,717
4,529
Current tax
3,624
5,393
Adjustment from prior years
-
2,343
-
373
Total
-
6,437
9,549
Tax on the profit for the year can be explained as follows:
tEUR
2025
2024
Specification for the period:
Calculated 22% tax of the result before tax
-
2,562
17,745
Tax effect of:
Special items
163
0
Non
-
taxable income
-
4,239
-
7,850
Non
-
deductible costs
1,861
217
Other tax adjustments
683
-
189
Reassesment of unrecognized tax losses carried forward
-
2,285
0
Adjustment from prior years
-
58
-
373
Total
-
6,437
9,549
Effective tax rate
55.3%
11.8%
tEUR
2025
2024
Deferred tax liabilities
Deferred tax liabilities January 1
18,375
13,832
Adjustments of deferred tax in profit and loss
-
7,717
4,529
Exchange rate adjustment
-
733
14
Deferred tax liabilities December 31
9,925
18,375
Deferred tax is recognized in the balance sheet as:
Deferred tax asset
0
0
Deferred tax liability
9,925
18,375
Deferred tax liabilities December 31
9,925
18,375
Deferred tax is related to:
Intangible assets
9,925
18,432
Tangible assets
0
-
57
Liabilities
0
0
Tax loss carry forward
0
0
Deferred tax liabilities December 31
9,925
18,375
===== SIDA 177 =====
Annual report
Page
177
Notes
10.
Intangible assets
tEUR
Goodwill
Domains and
websites
Accounts and other
intangible assets*
Total
Cost or valuation
As of January 1, 2025
17,795
169,227
82,914
269,936
Additions
0
0
1,223
1,223
Disposals
0
0
-
4,769
-
4,769
Currency Translation
-
21
-
1,204
-
3
7
-
1,26
2
At December 31, 2025
17,774
168,023
7
9
,
331
26
5
,
128
Amortization and impairment
As of January 1, 2025
0
0
36,371
36,371
Amortization for the period
0
0
12,341
12,341
Amortization on disposed assets
0
0
-
629
-
629
Currency translation
0
0
0
0
At December 31, 2025
0
0
48,083
48,083
Net book value at December 31, 2025
17,774
168,023
3
1
,
248
21
7
,
045
*
Accounts and other intangible assets consist of accounts
(
1,
700
tE
UR
)
, Partnerships (
28,781
tEUR
)
and software and others
(
767
tE
UR
)
.
tEUR
Goodwill
Domains and
websites
Accounts and other
intangible assets*
Total
Cost or valuation
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
1,3
09
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), Partnerships (44,332 tEUR) and software and others (2
32
tEUR).
===== SIDA 178 =====
Annual report
Page
178
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,
d
omains 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.
M
anagement has determined that
, the parent company
will
continue to have two CGU’s;
Esports
and
P
ublishing (previously; 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:
2025
tEUR
Esports
Publishing
Total
Goodwill
17,774
0
17,774
Domains and Websites
124,273
43,750
168,023
2024
tEUR
Esports
Publishing
Total
Goodwill
17,795
0
17,795
Domains and Websites
124,450
44,777
169,227
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 determin
ed on the level of the cash
-
generating units, as explained above.
Impairment test:
For all CGUs,
Esports
and
Publishing
, the
Management
has performed an impairment test on goodwill and doma
ins
and
websites as of December 31, 202
5
, 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 de-
velopment in the CGUs and on historical data, includ
ing expected long
-
term market growth. 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 2026
-
2028. The forecast indicates an average annual revenue growth up to 14% in 2028 and a normalized average
margin of 35%. Beyond th
e forecast, EBITDA growth, cash conversion and tax
-
rates have been projected with a time
horizon of 7 years until 2035. From 2029 onward, the average gross profit growth rate is estimated to decline. In 2029,
the average growth rate is projected to be 8% a
nd the decline continues, reaching 3% by 2035, stabilizing thereafter at
a theoretical steady state level in the terminal period.
Based on expected
2035
EBITDA and cash flow, management has applied a terminal value
growth
rate of 2.5%. The cash
flows assume a discount factor of
10.4
% for
Publishing
and
9.5% for Esports
on the Group’s weighted average cost of
capital (WACC) in all years
2026
-
2035. To account for the different
tax rates
in the markets where the three CGUs
operate, we have used the local tax rate. In practice, we have applied a revenue split by
country
for the CGUs and
multiplied it by the respective country’s tax rate.
As at December 31,
2025
and December 31,
2024
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 179 =====
Annual report
Page
179
Notes
12.
Tangible assets
tEUR
Right of use
assets
Fixtures and
fittings,
other plant
and equip-
ment
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
fittings,
other plant
and equip-
ment
Total
Cost or valuation
As of January 1, 2025
10,637
5,177
15,814
Additions
0
17
1
7
Disposals
0
0
0
Currency Translation
-
1
4
-
6
-
20
At December 31, 2025
10,62
3
5,188
15,81
1
Depreciation and impairment
As of January 1, 2025
2,887
2,286
5,17
3
Depreciation for the period
1,985
1,165
3,15
0
Depreciation on disposed assets
0
0
0
Currency translation
-
4
-
3
-
7
At December 31, 2025
4,86
8
3,448
8,316
Net book value at December 31, 2025
5,755
1,740
7,49
5
===== SIDA 180 =====
Annual report
Page
180
Notes
13
. Investments in subsidiaries
Reference is made to note 2
3
of the consolidated financial statements for
a list
of
companies in the Better Collective
Group
.
An investment in a subsidiary has
been
impaired due to change in the internal setup in certain markets within the
Group. The
impairment
of investments in subsidiaries amounts to 5,741 kEUR
and
has no impact in the Group financial
statements.
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, 2025
372,121
1,000
373,121
Additions
15,568
13
15,581
Disposals
-
5,090
0
-
5,090
Exchange rate adjustment
-
35,110
0
-
35,110
Cost at December 31, 2025
347,489
1,013
348,502
Value adjustment at January 1, 2025
0
0
0
Impairment
-
871
0
-
871
Value adjustment at December 31, 2025
-
871
0
-
871
Carrying amount at December 31, 2025
346,618
1,013
347,631
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 1 January, 2024
0
0
0
Impairment
0
0
0
Value adjustment at 31 December, 2024
0
0
0
Carrying amount at 31 December, 2024
372,121
1,000
373,121
tEUR
2025
2024
Subsidiaries
Cost at January 1
377,085
234,330
Additions
63
142,912
Exchange rate to reporting currency
-
513
-
157
Cost at December 31
376,635
377,085
Value adjustment at January 1
0
0
Impairment
-
5,741
0
Reversal of impairment
0
0
Value adjustment at December 31
-
5,741
0
Carrying amount at December 31
370,894
377,085
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 181 =====