FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2023
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Interim report
Q1 2023
Copenhagen, May 16, 2023
Better Collective A/S
www.bettercollective.com
CVR NO.: 27 65 29 13
Image from Better Collective’s Capital Markets Day. Watch the presentation here
• Revenue: 88 mE UR, growth of 30% ,
organic growth of 23%
• Recurring revenue: 41 mEUR, growth of 75% ,
46% of Group revenues versus 35% Q1 last year
• EBITDA before special items: 33 mEUR ,
growth of 44%
• April trading update :
Revenue of 27 mEUR; 40% growth
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Q1 report 2023 Page 1
Revenue
mEUR
Q1 2023
EBITDA*
mEUR
Earnings per share Recurri ng revenue
mEUR
*Before special items
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Q1 report 2023 Page 2
Highlights Q1 3
Financial highlights and key figures 4
CEO letter 5
Business review and financial performance 6
Financial performance first quarter 2023 10
Notes 20
Q1 report 2023 Page 2
Calendar 2023
• August 23, 2023 – Q2 report
• November 15, 2023 – Q3 report
• February 21, 2024 – Q4 report
Table of
contents
A conference call for Better Collective’s stakeholders
will be held on May 17, at 10:00 a.m. CET and can be
joined online
here.
The presentation material for the webcast will be
available after market close on May 16 via:
www.Bettercollective.com
To participate telephonically follow
this link .
Once signed up you will receive an e-mail with a
phone number and a personal dial-in code for the
call.
Q1 webcast
May 17, 2023
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Q1 report 2023 Page 3
Highlights Q1
Q1 Group revenue grew by 30% to 88 mEUR, which is
another record quarter (Q1 2022: 67 mEUR ). Organic
revenue growth was 23%.
Recurring revenue was 41 mEUR, implying 75% growth.
Equal to 46% of Group revenue versus 35% Q1 last year.
Q1 Group EBITDA before special items was 33 mEUR, a
growth of 44% (Q1 2022: 23 mEUR). The Group EBITDA-
margin before special items was 38%.
Cash flow from operations before special items was 33.4
mEUR (Q1 2022: 13.1 mEUR). The cash conversion was
100%. By the end of Q1, capital reserves stood at 91.6
mEUR of which cash of 28.1 mEUR, other current finan-
cial assets of 17.1 mEUR and unused bank credit facilities
of 45.6 mEUR.
New Depositing Customers were 48 8K in the
quarter implying growth of 35%. NDCs sent on revenue
share contracts were 71%.
On November 22, 2022, Better Collective initiated a
share buyback program for up to 5 mEUR, which was
completed on January 20, 2023.
Better Collective acquired a position of >5% in Catena
Media.
In connection with the release of its annual report 2022,
Better Collective announced new long -term financial
targets for the period 2023-2027:
• Revenue CAGR of +20%
• EBITDA-margin before special items of 30-40%
• Net debt to EBITDA below 3
• The targets assume M&A solely financed by own
cash flow and debt
The Group signed its first global media partnership with
the digital soccer platform Goal, while also signing with
the well-established Polish news portal Wirtualna Pol-
ska. Better Collective also established a media partner-
ship with Nigeria’s leading news media, PUNCH, and in
doing so entered a new continent with a growing popu-
lation of sports enthusiasts.
Ohio launched online sports betting, which from a regu-
latory perspective was a perfect state launch. The state
of Massachusetts regulated online sports betting. With
a population of seven million and a strong sports legacy,
the state holds the potential to become one of the big-
gest sports betting markets in the US.
An asset deal for a sports media in an emerging market
for 4.3 mUSD was made.
The Group hosted its firs t ever Capital Markets Day in
March reflecting on the performance since the IPO in
2018 as well as laying out the strategy for the future. The
presentation can be found here.
On February 21, a share buyback program was initiated
for up to 10 mEUR, to be executed during the period
from February 22 to April 24, 2023.
Better Collective’s esport community HLTV hosted the
world’s largest esport award show, watched by more
than 250.000 Counter Strike: Global Offensive fans.
The Board of Directors implemented a new Long Ter m
Incentive Plan for key employees. The total value of the
2023 LTI grant program is 2.9 mEUR (Black -Scholes
value).
Significant events
after closure of the
period
April revenue of 27mEUR implying 40% growth.
The Group acquired Skycon Limited and in doing so ex-
panded its efforts within digital display advertising.
With the acquisition the financial targets for 2023 were
upgraded to: Revenue of 305 -315 mEUR (previously
290-300 mEUR), EBITDA before special items of 95-105
mEUR (previousl y 90 -100 mEUR), and Net debt to
EBITDA before special items <2 (unchanged).
The AGM 2023 was held electronically on April 25, 2023.
On April 27, the UK Government published a “White Pa-
per” as part of a Gambling Act review. Better Collective
welcomes the long-awaited proposed initiatives with a
stronger focus on safer gambling. Given the proactive
compliance measures sportsbooks had already taken,
the Group estimates the proposed measures to have
zero to limited financial impact on the Group.
The share buyback program init iated on February 21,
was complete on April 25.
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Q1 report 2023 Page 4
Financial highlights and key figures
tEUR Q1 2023 Q1 2022 2022
Income statements
Revenue 87,945 67,394 269,297
Recurring revenue 40,882 23,403 123,365
Revenue Growth (%) 30% 74% 52%
Organic Revenue Growth (%) 23% 44% 34%
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 33,275 23,111 85,075
Operating profit before depreciation
and amortization (EBITDA) 32,667 21,430 85,021
Depreciation 713 487 2,321
Operating profit before amortization
and special items (EBITA before special items) 32,561 22,624 82,754
Special items, net - 607 - 1,681 - 54
Operating profit before amortization (EBITA) 31,954 20,943 82,700
Amortization and impairment 3,871 2,289 12,347
Operating profit before special items
(EBIT before special items) 28,691 20,336 70,407
Operating profit (EBIT) 28,083 18,655 70,353
Result of financial items - 735 - 621 - 5,389
Profit before tax 27,348 18,033 64,964
Profit after tax 20,935 13,742 48,075
Earnings per share (in EUR) 0.38 0.25 0.88
Diluted earnings per share (in EUR) 0.36 0.24 0.85
Balance sheet
Balance Sheet Total 802,970 639,734 785,229
Equity 423,449 369,912 412,917
Current assets 107,722 76,707 95,025
Current liabilities 63,033 57,420 65,068
Net interest-bearing debt 219,388 132,298 227,151
tEUR Q1 2023 Q1 2022 2022
Cashflow
Cash flow from operations before special items 33.360 13.145 69.816
Cash flow from operations 32.966 13.045 68.423
Investments in tangible assets 187 - 269 - 1.788
Cash flow from investment activities - 21.278 - 19.147 - 112.632
Cash flow from financing activities - 7.724 9.007 65.737
Financial ratios
Operating profit before depreciation,
amortization (EBITDA) and special items margin (%) 38% 34% 32%
Operating profit before amortization margin (EBITDA) (%) 37% 32% 32%
Operating profit margin (%) 32% 28% 26%
Publishing segment
- EBITDA before special items margin (%) 43% 42% 38%
Paid media segment
- EBITDA before special items margin (%) 27% 15% 16%
Net interest bearing debt / EBITDA before special items 2,30 2,01 2,67
Liquidity ratio 1,71 1,34 1,46
Equity to assets ratio (%) 53% 58% 53%
Cash conversion rate before special items (%) 100% 57% 80%
Average number of full-time employees 926 792 878
NDCs (thousand) 488 350 1.683
For definitions of financial ratios, see definitions section in the end of the report.
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Q1 report 2023 Page 5
CEO Letter
Another record-
breaking quarter and
big strategic
ambitions
Q1 proved to be another record -breaking
quarter. The p erformance was driven by
Latin America and state launches in the US as
well as general strong underlying organic
growth across the Group.
The last couple of years, Better Collective
has been on a transformational journey
developing itself from a performance -based
marketing business into a digital sports
media group. In Q1, the Group hosted its first
Capital Markets Day where the framework
for Better Collective’s vision was presented.
Record breaking quarter
continuously absorbing US
revenue share transition
In Q1 we continued last year’s strong momentum. Reve-
nue grew 30% YOY, while operational leverage proved
its worth as EBITDA grew 44% YOY. In itself, this growth
is impressive, yet even more impressive when consider-
ing th e strong growth, we saw last year. Additionally,
last year’s US revenue was positively impacted by one-
time payments (CPA), while this year we are continuing
the transition towards recurring revenue share.
At our Capital Markets Day (CMD), it was highlighted
that 63% of all NDCs sent during February were on rev-
enue share. I am happy to inform you that this trend has
continued. I am especially proud that we yet again de-
livered a record quarter with the North American market
contributing with 19% growth, while absorbing the rev-
enue share transition. During the Ohio launch in January,
our US business did extremely well, and from a r egula-
tory framework and operational perspective it was a
perfect state launch. The Massachusetts launch in March
also generated good activity, however, due to regula-
tory wavering and the NFL season being over, thi s was
not as strong as Ohio’s. As seen in t he past quarters,
Latin America continued its strong growth trajectory
during Q1, and we have strengthened our presence and
efforts in the region significantly. Furthermore, Media
Partnerships continue to be a strong driver of growth in
Europe & ROW. This combined with a strong underlying
growth in Europe we managed to grow 40 % in this re-
gion during Q1. It is worth mentioning the strong devel-
opment in our Paid Media business as well, which grew
51% YOY on topline and more importantly 17 4% on op-
erational earnings with the margin going from 15% to
27% YOY. Truly a strong sentiment to our operational
development and our investment in transitioning to re-
curring revenue share. Our Group’s momentum contin-
ued into April where revenues grew 40% YOY. It is worth
remembering that our business is reliant on sports ac-
tivity and thereby fairly season al. This means that the
sports activity is expected to slow down during the low
season in the summer period as usual.
Strategy shift requires
building new capabilities
Venturing into the digital sports media market means
that we have expanded Better Collec tive’s addressable
market significantly, but it has also required that we as
a group adapt new capabilities. A core strength of Bet-
ter Collective is its ability to employ performance-based
marketing when referring new customers to sports-
books through SEO and CRO expertise to maximize traf-
fic and conversion rates. As such, our focus has been to
provide trustworthy and clear content with moderate
depth. However, with our vision t o become the leading
digital sports media group, focus has expanded to also
include the maximization of viewers, engagement, time
on site, and monthly active users combined with efforts
to provide the best user experiences through innovative
products. Consequently, our content has and will con-
tinue to become deeper, more frequent, newsworthy, as
well as investigative with the objective of engaging as
many sports fans as possible. This shift in focus is not
meant to take precedence but should build on top of
Better Collective’s legacy and expertise - after all it is
thanks to our strong legacy that we find ourselves in a
highly attractive spot in the sports media industry. Bet-
ter Collective excels at maximizing the value of large
readerships because we can utilize our unique skills and
diversified business models, and these capabilities w ill
continue to ensure organic growth.
Risk mitigation; a positive
side effect from growth and
strategic focus
Better Collective has progressed from being ”a busi-
ness” to bein g an “integrated collective of businesses'
with an increased reach and a more diversified offering,
which in recent years has proven its worth. We have de-
creased the dependency on search engine traffic from
around 60% to less than 35% by mainly acquiring strong
brands with heavy direct traffic. Previously, our largest
business partner accounted for 50% of the Group’s rev-
enue. Today, the same and still largest partner accounts
for less than 20%, though we have grown the partner-
ship significantly in absolute terms. Five years ago, 85%
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Q1 report 2023 Page 6
of revenues were generated from Europe. In 2022, 40%
of revenues stemmed from the US alone, and we have
only just recently dipped our toes into the Latin Ameri-
can and Canadian markets. As such, working to mitigate
the risks in our business benefits not only Better Collec-
tive but also our partners and shareholders.
M&A will remain a core part of
our strategy
Combining a focus on organic growth and M&A has
proven beneficial in the digital sports media industry.
Since the IPO in 2018, Better Collective has made 29 ac-
quisitions, which undeniably makes M&A a core part of
the business strategy. However, the overarching shift in
strategy also affects our M&A approach. Until recently,
acquisition targets on ly consisted of “traditional” per-
formance-based marketing companies with a user data-
base on recurring revenue share agreements. The strat-
egy and objective were to roll-up enough assets to gain
critical scale - like we have now. The past y ear and on-
wards, our M&A strategy is to acquire strong local and
global sports media with a large and loyal readership,
preferably with revenue mainly generated from a single
business model in regular advertising. By acquiring such
assets, we establish a u nique chance for the Group to
leverage its legacy expertise in optimization while utiliz-
ing our business models to grow reach and revenue. If
you wish to dive more into our M&A strategy, I urge you
to watch our Capital Markets Day as CFO, Flemming
Pedersen, walked through t he Group’s strategic M&A
objectives.
Our massive reach deserves
an in-house AdTech platform
In the Q4 report, we announced a strategic investment
in a new AdTech platform. An AdTech platform is a tech-
nology platform using advanced data analytics and ma-
chine learning algorithms that analyze user behavior in
order to provide valuable and engaging advertising tar-
geting specific needs. Put simply, by building an in -
house AdTech platform Better Collective will be able to
offer targeted marketing ads directly to the millions of
sport fans that visit the Group’s broad portfolio of sports
brands. Several third-party platforms already exist, and
as Better Collective has been highly acquisitive, we have
managed to accumulate several AdTech platforms.
However, by build ing our own platform we can now
streamline the process and maximize the yield.
So, why now? As also highlighted at the CMD, Better
Collective’s reach has grown significantly from +7m
monthly visits in 2018, to +150m monthly visits in 2022 .
We have truly gained critical scale in our reach and see
an increasing demand from our business partners want-
ing to market their products in the advertising space on
our sports media. These partners range from long -
standing sportsbook partners to global payment provid-
ers, companies in the energy drink market, and many
more.
Revenue diversification
mitigates risk and makes us
more relevant to our partners
By building an AdTech platform, Better Collective will
add to its legacy in performance -based marketing and
venture into brand marketing (cost per mille, cost per
engagement, cost per view). Not only will this move fur-
ther diversify our revenue streams, but it will also make
us more attractive to our business partners. Large syn-
ergies can be achieved across our Group, e.g. , for our
media partnerships we now also have the capabilities to
serve the general sports sections with advertisement in-
stead of just the sports betting sections.
Q1 was the development, testing, and ramp up phase of
our AdTech platform. I have already received initial pos-
itive feedback from various business partners, who
acknowledge that there is a big demand for our offering.
The investment will elevate Better Collective to become
an even stronger AdTech machine which aligns p er-
fectly with our vision of becoming the Leading Digital
Sports Media Group.
Q1 report 2023 Page 6
Co-founder & CEO
Jesper Søgaard
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Q1 report 2023 Page 7
Business review
and financial
performance Q1 2023
Group
Q1 delivered a record -breaking performance with
growth of 30% equaling revenue of 88 mEUR, with an
organic growth of 23%. The growth in revenue came de-
spite a tough comparison quarter in 2022 where with
the opening of online sports betting in the state of New
York was a strong growth driver.
Revenues in the US were mainly CPA last year, until the
revenue share transition started in Q2 -Q3 and has con-
tinued into Q1 2023.
Recurring revenue was 41mEUR, implying 75% growth .
This is 46% of Group revenues versus 35% last year. Of
the recurring revenues 82% came from revenue share in-
come, 11% from subscription and 7% from CPM sales. The
number of NDCs delive red to partnering spo rtsbooks
continued its strong growth trend. Q1 delivered 488K
new depositing customers, of which 71% was on revenue
share.
EBITDA before special items was 33mEUR, implying a
margin of 38% and growing 44% YOY , showing strong
operational leverage in the business.
The sports win margin improved from Q1 2022 and is
back at the average level seen historically as expected.
Better Collective Group
Key figures for the Group:
tEUR Q1 2023 Q1 2022 Growth 2022
Revenue 87,945 67,394 30% 269,297
Cost 54,670 44,283 23% 184,222
Operating profit before
depreciation, amortization, and special
items 33,275 23,111 44% 85,075
EBITDA-Margin
before special items 38% 34% 32%
Operating profit before
depreciation and amortization 32,667 21,430 52% 85,021
EBITDA-Margin 37% 32% 32%
Organic Growth 23% 44% 34%
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Q1 report 2023 Page 8
Publishing
The Publishing business includes revenue from Better
Collective’s proprietary owned and operated sports me-
dia and media partnerships. The traffic to these brands
is mostly direct or through organic search results.
Revenues from this segment came in at 59 mEUR imply-
ing 22% growth of which 26% was organic. Operational
earnings came in at 25 mEUR, implying a margin of 43%,
equaling a 26 % growth YOY. The Publishing segment
accounted for 67% of group revenues and 76% of oper-
ational earnings.
The topline growth in the Publishing business came from
solid growth in all geographies. Better Collective’s me-
dia partnerships continued to deliver strong growth in
revenues and NDCs.
During Q1, Better Collective entered a partnership with
the globally covering, digital soccer platform Goal. This
media part nership is the first f ully digital and global
partnership in the Better Collective’s portfolio. Further,
a partnership with PUNCH in Nigeria was signed, which
marks the Group’s first move into an exciting growth
market and a new continent. Lastly, Better C ollective
signed a par tnership with the well-established Polish
news portal Wirtualna Polska.
Paid Media
The Paid Media business includes revenues from Better
Collective’s efforts in paid advertising on search en-
gines, such as Google and Bing, as well as advertising on
third party sports media. Given the upfront payment to
advertise on third party platforms the gross margin is
lower than the Publishing business.
Paid Media revenue was 2 9 mEUR for Q1, implying
growth of 51%, of which all was organic. Since the acqui-
sition of Atemi in 2020, Better Collective has invested in
moving revenues in the Paid Media business from one -
time payments (CPA) to recurring revenues.
During Q1, 24.7% of revenues came from recurring reve-
nues. Over the past quarters, the transition in revenue
agreements has paid off as margins have improved and
made it possible to further fuel growth. Operational
earnings came in at 8 mEUR, implying a margin of 27%,
which is the highest margin ever recorded for this part
of the Better Collective business during any quarter. The
margin moved from 15% to 27% which is a growth of
174%. These numbers confirm the decision to move rev-
enues to recurring revenues.
The strong growth in the Paid Media segments comes
from a broadly based performance, especially a break-
through in the North American market as well as contin-
ued good performance in Latin America.
Publishing
Key figures for the Publishing segment
tEUR Q1 2023 Q1 2022 Growth 2022
Revenue 59,204 48,380 22% 187,057
Share of Group 67% 72% 69%
Cost 33,795 28,144 20% 115,376
Share of Group 62% 64% 63%
Operating profit before
depreciation, amortization, and special
items 25,409 20,237 26% 71,681
Share of Group 76% 88% 84%
EBITDA-Margin
before special items 43% 42% 38%
Operating profit before
depreciation and amortization
EBITDA-margin
24,802
42%
18,555
38%
34%
71,627
38%
Organic growth 12% 53% 41%
tEUR Q1 2023 Q1 2022 Growth 2022
Revenue 28,741 19,014 51% 82,241
Share of Group 33% 28% 31%
Cost 20,875 16,140 29% 68,846
Share of Group 38% 36% 37%
Operating profit before
depreciation, amortization, and special
items 7,866 2,874 174% 13,394
Share of Group 24% 12% 16%
EBITDA-Margin
before special items 27% 15% 16%
Operating profit before
depreciation and amortization 7,866 2,874 174% 13,394
EBITDA-Margin 27% 15% 16%
Organic Growth 51% 26% 45%
Paid Media
Key figures for the Paid Media segment
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Q1 report 2023 Page 9
Europe & Rest of World (ROW)
The Europe & ROW business includes all markets out-
side of North America. The European markets consist of
more mature markets and are the legacy markets of Bet-
ter Collective. Latin America has been a strong growth
market for Better Collective and makes up an increas-
ingly bigger part of the business. Examples of sports
brands in this business include Soccernews in the Neth-
erlands, Betarades in Greece, Wettbasis in Germany,
goal.pl in Poland, Les Transferts in France, and many
others. The strategy is to own some of the strongest lo-
cal sports media in all relevant regions.
Given the strong legacy in these markets where Better
Collective has be en sending revenue share customers
the past decade, there is a lot of recurring revenue in this
business. It also means that this business is the most im-
pacted by fluctuations in the sports win margin.
During Q1, Europe & ROW saw record revenues of 5 1
mEUR implying growth of 40%, of which 23% was or-
ganic. Operational earnings came in at 19 mEUR, imply-
ing a margin of 37%, growing 87%. Europe & ROW reve-
nue accounted for 58% of Group revenue and 56% of op-
erational earnings. The topline growth in Europe & ROW
came from an all -around solid performance fueled by
strong growth in Latin America and media partnerships’
continuing their momentum. As expected, the sports
win margin has returned to the historical average level
during the past few quarters.
North America
From Q1 2023 and onwards, Better Collective will start
reporting on the North American market instead of US.
In the Group’s reporting, North America is made up by
the US and Canada, the latter previously being part of
Europe & ROW. The reason for the change is that inter-
nally Canadian operations are now reported as US
brands, while the Canadian team also works closely with
the US organization and is managed out of the New York
office. For transparency we provide the following num-
bers: Q1 23 revenue for Canada was 1.3mEUR (0.1mEUR
Q1 22) and EBITDA was 1.3mEUR (0.1mEUR). For the full
year of 2022 revenue was 3.3m EUR and EBITDA was
3.2mEUR.
Both the US and the Canadian markets are somewhat
recently regulated. The US started regulating in 2018
with the PASPA repeal. As both markets are young, rev-
enues have to a large extent been generated from one-
time payments. Last year, Better Collective started to
transition towards recuring revenues in the US. North
American sports brands include, but are not limited to,
Action Network, VegasInsider, Scores&Odds, Ro-
toGrinders, and Canada Sports Betting. The North
American revenue came in at 37 mEUR, implying growth
of 19% during Q1, of which 18% was organic. Operational
earnings came in at 15 mEUR, implying a margin of 33%,
or growth of 11%. North American revenues consisted of
42% of the Group and operational earnings of 44%. Bet-
ter Collective has been pu shing for revenue share
agreements in the North American markets since 2018 .
and successfully initiated the transition during 2022,
which impacted the business short -term by 15 mEUR.
The 19% growth seen in Q1 should be considered in the
light of this transition, as the Group now delivers 60% -
70% of North American NDCs on revenue share con-
tracts. These contracts agree for r ecurring revenue but
have a short -term dampening effect as revenue is not
recognized upfront. Additionally, the growth should also
be held up against Q1 2021, as last year’s quarter was
very strong with the launch of sports betting in New
York. Overall, performance was a mix of good underly-
ing growth in existing states as well as the states of Ohio
and Massachusetts launching sports betting.
Key figures for North America and Europe & RoW segments
Europe & ROW North America
tEUR Q1 2023 Q1 2022 Growth Q1 2023 Q1 2022 Growth
Revenue 50,802 36,286 40% 37,143 31,108 19%
Share of Group 58% 54% 42% 46%
Cost 32,070 26,261 22% 22,600 18,022 25%
Share of Group 59% 59% 41% 41%
Operating profit before depreciation, amortization, and special items 18,732 10,025 87% 14,543 13,086 11%
Share of Group 56% 43% 44% 57%
EBITDA-Margin before special items 37% 28% 39% 42%
Operating profit before depreciation and amortization 18,124 9,924 83% 14,543 11,505 26%
EBITDA-Margin 36% 27% 39% 37%
Europe & ROW and North America
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Q1 report 2023 Page 10
Financial
performance first
quarter 2023
Revenue growth of 30% to 88
mEUR and organic growth of
23%
Revenue YTD sho wed strong growth vs. 2022 of 30 %
and amounted to 87.9 mEUR ( Q1 2022: 67.4 mEUR ).
Revenue share accounted for 38 % of the revenue with
46% coming from CPA, 5% from subscription sales, and
11% from other income.
Cost of 55 mEUR - up from 44
mEUR
Overall, the cost base has increased compared to 2022
due to t he acquisitions in first half of 2022, which has
increased the cost by 0.5 mEUR, and Paid Media in-
creased cost to drive additional traffic and revenue,
whereas media partnerships increased, primarily dire ct
cost. The cost base excluding depreciation and amorti-
zation grew 10.4 mEUR, up to 54.7 mEUR Q1 2023 (Q1
2022: 44.3 mEUR). A significant part of the increase in
cost base relates to the AdTech platform and LATHAM
expansion totaling 4.7 mEUR in Q1 2023.
Total direct cost relating to revenue increased by 4
mEUR to 27.1 mEUR ( Q1 2022: 23.1 mEUR) with the
growth coming from increased cost in Paid Media (driv-
ing additional revenue), and direct costs related to me-
dia partnerships. Beyond the cost of paid traffic, this in-
cludes hosting fees of websites, content generation, and
external development.
Personnel cost Q1 increased 35% from YTD 2022 to 21.2
mEUR Q1 2023 (Q1 2022: 15.7 mEUR). The average num-
ber of employees increased 17 % to 926 (Q1 2022: 792).
Personnel costs include costs related to warrants of 0.2
mEUR (Q1 2022: 0.4 mEUR).
Other external costs increased 0.8 mEUR or 15% to 6.3
mEUR (Q1 2022: 5.5 mEUR). Depreciation and amortiza-
tion amounted to 4.6 mEUR (Q1 2022: 2.8 mEUR). The
increase is primarily due to amortization related to the
acquisition of FUTBIN.
Special items
YTD special items amounted to a cost of 0.6 mEUR (Q1
2022: 1.7 mEUR). The net cost of 0.6 mEUR is
primarily related to M&A expenses of 0.4 mEUR.
Earnings
Operational earnings (EBITDA ) before special items
grew 44% to 33.3 mEUR ( Q1 2022: 23.1 mEUR). The
EBITDA-margin before special items was 38% (Q1 2022:
34%).
Including special items, the reported EBITDA was 32.7
mEUR. (Q1 2022: 21.4 mEUR).
EBIT before special ite ms increased 41% to 28.7 mEUR
(Q1 2022: 20.3 mEUR). Including special items, the re-
ported EBIT was 28 mEUR (Q1 2022: 18.7 mEUR).
Net financial items
Net financial costs amounted to 0.7 mEUR (Q1 2022: 0.6
mEUR) and included net interest, fees relating to bank
credit lines and exchange rate adjustments. Net financial
costs are impacted by an unrealized gain of 2.2 mEUR
on Catena Media shares.
Interest expenses amounted to 2 mEUR and included
non-payable, calcula ted interest expenses on certain
balance sheet items, whereas finan cial fees and net
exchange rate gain amounted to 0.6 mEUR and 0.6
mEUR respectively.
Income tax
Better Collective has a tax presence in the places where
the company is incorporated . These places count Den-
mark (where the parent company is incorporated), Aus-
tria, France, Greece, Malta, Netherlands, Poland, Portu-
gal, Romania, Serbia, Sweden, UK, and US.
Income tax Q1 2023 amounted to 6.4 mEUR (Q1 2022:
4.3 mEUR). The Effective Tax Rate (ETR) was 23.5% (Q1
2022: 23.8%).
Net profit
Net profit after tax was 20 .9 mEUR ( Q1 2022: 13.7
mEUR). Earnings per share (EPS) nearly doubled to 0.38
EUR/share vs. 0.25 EUR/share Q1 2022.
Equity
The equity increased to 4 23.4 mEUR as per March 31,
2023, from 412.9 mEUR on December 31, 2022. Besides
the Q1 profit of 20. 9 mEUR, t he equity has been
impacted by acquisition and disposal of treasury shares
of 5.9 mEUR and share based payments of 0.2 mEUR.
The decrease in USD vs. EUR has impacted the equity by
5.1 mEUR.
Balance sheet
Total assets amounted to 803 .0 mEUR (202 2: 785.2
mEUR), with an equity of 423.4 mEUR (202 2: 412.9
mEUR). This corresponds to an equity to assets ratio of
53% (2022: 53%). The liquidity ratio was 0. 59 resulting
from current assets of 107.7 mEUR and current liabilities
of 63.2 mEUR. The ratio of net interest-bearing debt to
EBITDA before special items was 2 .3 at the end of the
quarter.
===== SIDA 12 =====
Q1 report 2023 Page 11
Investments
During the quarter investments in accounts and other
intangibles amounted to 13.9 mEUR.
Cash flow and financing
Cash flow from operations before special items Q1 2023
was 33.4 mEUR (Q1 2022: 13.1 mEUR) with a cash con-
version of 100%.
Better Collective has bank credit facilities of a total 247
mEUR. By the end of March 2023, capital reserves stood
at 91.6 mEUR consisting of cash of 28.8 mEUR, other cur-
rent financial assets of 17.1 mEUR in form of listed shares
and unused bank credit facilities of 45.6 mEUR.
The parent company
Better Collective A/S, Denmark, is the parent company
of the Group.
Revenue grew by 95% to 23 .7 mEUR ( Q1 2022: 12.1
mEUR).
Total costs including depreciation and amortization was
19.7 mEUR (Q1 2022: 13.0 mEUR).
Profit after tax was 2.8 mEUR (Q1 2022: 5.5 mEUR). The
change in profit after tax is primarily due to YOY differ-
ences in dividend payments from subsidiaries,
exchange rate adjustments, and corporate tax.
Total equity ended at 4 10.7 mEUR by March 31 , 202 3
(2022: 411 mEUR). The equity in the parent company was
impacted by treasury share transactions ( 5.9 mEUR),
cost of warrants of 0.2 mEUR and merger with HLTV (3.2
mEUR).
Disclaimer
This report contains forward -looking statements which
are based on the current expectatio ns of the manage-
ment of Better Collective. All statements regarding the
future are subject to inherent risks and uncertainties,
and many factors can lead to actual pr ofits and devel-
opments deviating substantially from what has been ex-
pressed or implied in such statements.
Financial targets 2023
The board of directors have decided on targets for the
financial year 2023 as announced in the 2022 full year
report. Following the acquisition of Skycon Limited, the
financial targets were upgraded:
• Revenue of 305-315 mEUR (previously 290-300
mEUR)
• EBITDA before special items of 95-105 mEUR
(previously 90-100 mEUR)
• Net debt to EBITDA before special items <2.0 (un-
changed)
Financial targets
2023-2027
The board of directors has decided on new financial tar-
gets for the Better Collective Group for 2023 -2027 (in-
clude M&A):
• Revenue CAGR of +20%
• EBITDA margin before special items of 30-40%
• Net debt to EBITDA before
special items of <3
The long-term target assumes that M&A are solely fi-
nanced by own cash flow and debt.
Financial targets 2023
Updated Target 2023 Target 2023 Actual 2022
Organic growth (%) - 34%
Revenue 305-315 mEUR 290-300 mEUR 269.3 mEUR
EBITDA (before special items) 95-105 mEUR 90-100 mEUR 85.1 mEUR
Net interest bearing debt/EBITDA <2.0 <2.0 2.67
===== SIDA 13 =====
Q1 report 2023 Page 12
Other
Shares and share capital
Better Collective A/S is listed on Nasdaq Stockholm
main market. The shares are traded under the ticker
“BETCO”. As per March 31, 2 023, the share capital
amounted to 55 1,546.69 EUR, and the total num ber of
issued shares was 55,154,669. The company has one (1)
class of shares. Each share entitles the holder to one
vote at the general meetings. On March 20, 2023, the
board of directors resolved to issue 5,000 new ordinary
shares in Better Collective A/S , related to the exercise
of warrants.
Shareholder structure
As of March 31, 2023, the total number of shareholders
was 3,8 63. A list of top 10 shareholders in Better
Collective A/S can be found on the company’s website.
Annual General Meeting 2023
The Annual General Meeting 2023 was held on April 25,
2023. All items on the agenda were carried including the
CXO incentive program. Please refer to the notice to
convene AGM for details.
Incentive programs
To attract and retain key competences, the company
has established warrant programs for certain key
employees. All warrants with the right to subscribe for
one ordinary share. If all outstanding warrants are sub-
scribed, then the maximum shareholders dilution will be
approximately 3.2%.
On January 3, 2023, the board of directors implemented
a Long Term Incentive Plan (LTI) for key employees in
the Better Collective group. In total the grants under the
LTI in 2023 cover 13 4.953 performance share units and
239,350 share options to 63 key employees in total,
vesting over a 3-year period. The total value of the 2023
LTI grant program is 2.9 mEUR (calculated @Black -
Scholes value) measured at the target level, which is to
say 100% achievement of the financial goals.
Risk management
Through an Enterprise Risk Management process, vari-
ous gross risks in Better Collective are identified. Each
risk is described, including current risk mitigation in
place, or planned mitigating actions. The subsequent
analysis of the identified risks includes an inherent risk
evaluation based on two main parameters: probability
of occurrence and impact on future earnings and cash
flow. Better Collective’s management continuously
monitors risk development in the Better C ollective
Group. The risk evaluation is presented to the Board of
Directors annually, for discussion and any further miti-
gating actions required.
The Board evaluates risk dynamically to account for this
variation in risk impact. The policies and guideline s in
place stipulate how management must work with risk
management. Better Collective’s compliance with these
policies and guidelines is also monitored by the man-
agement on an ongoing basis. Better Collective seeks to
identify and understand risks and mitigate them accord-
ingly. Also, the Group’s close and longstanding relation-
ships with customers allow Better Collective to antici-
pate and respond to market movements and new regu-
lations including compliance requirements from author-
ities and sportsbooks. With the US division, the overall
risk profile of Better Collective has changed, and regu-
latory/compliance as well as financial risk has increased.
Better Collective has mitigated the additional risks in US
in several ways, regulatory and compliance risk through
involvement of regulatory bodies in our licensing pro-
cess for newly established entities, financial risk through
a performance-based valuation of the acquired entities),
and organizational risk through establishment of local
governance/management, and fi nance, HR, and Legal
organization dedicated to the US operations. During
2022 the macroeconomic environment has impacted
the global economy with rising interest rates. Better Col-
lective has mitigated and addressed the cre dit and in-
terest rate risk by entering a new long-term committed
facility with three banking partners, securing attractive
terms and a long -term 2+1 commitment. Other key risk
factors are described in the Annual report 2022.
===== SIDA 14 =====
Q1 report 2023 Page 13
Contacts
Senior Director of Group Strategy, IR and Corporate
Communications;
Mikkel Munch-Jacobsgaard
investor@bettercollective.com
This information is such information as Better Collective
A/S is obliged to make public pursuant to the EU Market
Abuse Regulation. The information was submitted for
publication, through the agency of the contact person
set out above on May 16, 2023, after market close (CET).
About
With a vision to become the Leading Digital Sports Me-
dia Group, Better Collective owns and operates interna-
tional and local sports communities and media that aim
to make sports entertainment more engaging and fun.
Via its online media, the Group provides prime quality
content, data insights, betting tips and educational tools
for enthusiastic sports fans. Better Collective's portfolio
includes Action Network, VegasInsider.com, HLTV.org,
FUTBIN.com, and bettingexpert.com.
To learn more about Better Collective please visit
www.Bettercollective.com
Q1 report 2023 Page 13
===== SIDA 15 =====
Q1 report 2023 Page 14
Statement by the BoD
and the executive
management
Statement by the Board of Directors and the
executive management on the condensed
consolidated inte rim financial statements
and the parent company condensed interim
financial statements for the period January 1
– March 31, 2023.
Today, the Board of Directors and the e xecutive
management have discussed and approved the
condensed consolidated interim fi nancial statements
and the parent company condensed interim financial
statements of Better Collective A/S for the period
January 1 – March 31, 2023.
The condensed consolidated interim financial state-
ments for the period January 1 – March 31, 2023, are pre-
pared in accordance with IAS 34 Interim Financial Re-
porting as adopted by the EU, and additional require-
ments of the Danish Financial Statements Act. The Par-
ent Company condensed interim financial statements
have been included according to the Danish Exec utive
Order on the Preparation of Interim Financial Reports.
In our opinion, the condensed consolidated interim
financial statements and the parent company con-
densed interim financial statements give a true and fair
view of the Group’s and Parent Company ’s a ssets,
liabilities and financial position on March 31, 2023, and
of the results of the Group’s and Parent Company’s op-
erations and the Group’s cash flows for the period
January 1 – March 31, 2023.
Further, in our opinion, the management’s review gives
a fair review of the development in the Group’s and the
Parent Company’s operations and financial matters and
the results of the Group’s and the Parent Company’s op-
erations and financial position, as well as a description
of the major risks and uncertai nties, the Group and the
Parent Company are facing. The Interim Report has not
been audited nor reviewed by the Company’s
auditor.
Copenhagen, May 16, 2023
Executive management
Jesper Søgaard
CEO & Co-founder
Flemming Pedersen
CFO
Executive Vice President
Christian Kirk Rasmussen
COO & Co-founder
Executive Vice President
Board of Directors
Jens Bager
Chair
Therese Hillman
Vice Chair
Todd Dunlap
Klaus Holse
Leif Nørgaard Petra von Rohr
===== SIDA 16 =====
Q1 report 2023 Page 15
Financial statements for the
period January 1 – March 31
Condensed interim
consolidated income statement
Note tEUR Q1 2023 Q1 2022 2022
3 Revenue 87,945 67,394 269,297
Direct costs related to revenue 27,149 23,077 92,227
4 Staff costs 21,226 15,711 68,639
Other external expenses 6,295 5,495 23,356
Operating profit before depreciation and amortization (EBITDA) and
special items 33,275 23,111 85,075
Depreciation 713 487 2,321
Operating profit
before amortization (EBITA) and special items 32,561 22,624 82,754
7 Amortization and impairment 3,871 2,289 12,347
Operating profit (EBIT) before special items 28,691 20,336 70,407
5 Special items, net - 607 - 1,681 - 54
Operating profit 28,083 18,655 70,353
Financial income 2,672 2,317 4,198
Financial expenses 3,407 2,938 9,587
Profit before tax 27,348 18,033 64,964
6 Tax on profit for the period 6,414 4,292 16,888
Profit for the period 20,935 13,742 48,075
Earnings per share
attributable to equity holders of the company
Average number of shares 55,154,113 54,266,062 54,363,312
Average number of warrants
- converted to number of shares 2,419,909 2,324,645 2,495,614
Earnings per share (in EUR) 0.38 0.25 0.88
Diluted earnings per share (in EUR) 0.36 0.24 0.85
Condensed interim
consolidated statement of other comprehensive income
Note tEUR Q1 2023 Q1 2022 2022
Profit for the period 20,935 13,742 48,075
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in sub-
sequent periods:
Currency translation to presentation currency - 678 - 174 - 905
Currency translation of non-current intercompany loans - 5,107 5,458 17,030
Income tax 1,123 - 1,201 - 3,747
Net other comprehensive income/loss - 4,661 4,083 12,379
Total other comprehensive income/(loss) for the period, net of tax 16,274 17,825 60,454
Attributable to:
Shareholders of the parent 16,274 17,825 60,454
===== SIDA 17 =====
Q1 report 2023 Page 16
Condensed interim
consolidated balance sheet
Note tEUR Q1 2023 Q1 2022 2022
Assets
Non-current assets
7 Intangible assets
Goodwill 182,108 180,112 183,942
Domains and websites 459,833 347,666 460,513
Accounts and other intangible assets 33,046 22,746 27,016
Total intangible assets 674,987 550,525 671,471
Property, plant and equipment
Land and buildings
Right of use assets 5,634 2,493 6,269
Leasehold improvements, Fixtures and fittings, other
plant and equipment 2,758 1,798 2,574
Total property, plant and equipment 8,393 4,291 8,843
Other non-current assets
Deposits 1,623 601 726
8 Deferred tax asset 10,245 7,609 9,165
Total other non-current assets 11,868 8,211 9,891
Total non-current assets 695,248 563,027 690,204
Current assets
Trade and other receivables 51,059 42,393 53,179
Corporation tax receivable 7,196 822 6,423
Prepayments 3,499 2,813 3,926
Other current financial assets 17,121 0 0
Cash 28,847 30,680 31,497
Total current assets 107,722 76,707 95,025
Total assets 802,970 639,734 785,229
Note tEUR Q1 2023 Q1 2022 2022
Equity and liabilities
Equity
Share Capital 552 548 551
Share Premium 272,594 271,937 272,550
Currency Translation Reserve 18,516 14,881 23,177
Treasury Shares - 13,577 - 7,385 - 7,669
Retained Earnings 145,366 89,929 124,307
Proposed Dividends 0 0 0
Total equity 423,449 369,912 412,917
Non-current Liabilities
8 Debt to credit institutions 201,383 136,968 201,708
8 Lease liabilities 4,931 1,297 4,962
8 Deferred tax liabilities 81,013 70,556 78,167
8 Other long-term financial liabilities 29,161 3,582 22,407
8 Contingent Consideration 0 0 0
Total non-current liabilities 316,488 212,403 307,244
Current Liabilities
Prepayments received from customers and deferred reve-
nue 8,136 4,111 8,023
Trade and other payables 19,674 20,023 22,252
Corporation tax payable 5,343 3,947 5,221
8 Other financial liabilities 27,482 19,765 26,865
8 Contingent Consideration 0 8,208 0
Debt to credit institutions 1,292 0 1,055
Debt to mortgage credit institutions 0 0 0
8 Lease liabilities 1,106 1,365 1,653
Total current liabilities 63,033 57,420 65,068
Total liabilities 379,521 269,822 372,312
Total Equity and liabilities 802,970 639,734 785,229
===== SIDA 18 =====
Q1 report 2023 Page 17
Condensed interim
consolidated statement of changes in equity
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2023 551 272,550 23,177 - 7,669 124,307 0 412,917
Result for the period 0 0 0 0 20,935 0 20,935
Other comprehensive income
Currency translation 0 0 - 5,784 0 0 0 - 678
Tax on other
comprehensive income 0 0 1,123 0 0 0 1,123
Total other
comprehensive income 0 0 - 4,661 0 0 0 - 4,661
Total comprehensive income
for the year 0 0 - 4,661 0 20,935 0 16,274
Transactions with owners
Capital Increase 0 43 0 0 0 0 44
Acquisition of treasury shares 0 0 0 - 5,903 0 0 - 5,903
Disposal of treasury shares 0 0 0 0 0 0 0
Share based payments 0 0 0 0 126 0 126
Transaction cost 0 0 0 - 6 - 2 0 - 8
Total transactions with owners 0 43 0 - 5,909 124 0 - 5,741
At March 31, 2023 552 272,594 18,516 - 13,577 145,366 0 423,449
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848
Result for the period 0 0 0 0 13,742 0 13,742
0
Other comprehensive income 0
Currency translation 0 0 5,284 0 0 0 5,284
Tax on other
comprehensive income 0 0 - 1,201 0 0 0 - 1,201
Total other
comprehensive income 0 0 4,083 0 0 0 4,083
Total comprehensive income
for the year 0 0 4,083 0 13,742 0 17,825
Transactions with owners
Capital Increase 2 4,064 0 0 0 0 4,066
Acquisition of treasury shares 0 0 0 - 6,595 0 0 - 6,595
Disposal of treasury shares 0 0 0 7,284 484 0 7,769
Share based payments 0 0 0 0 2,013 0 2,013
Transaction cost 0 0 0 0 - 15 0 - 15
Total transactions with owners 2 4,064 0 689 2,482 0 7,238
At March 31, 2022 548 271,937 14,881 - 7,385 89,929 0 369,912
During the period no dividend was paid.
===== SIDA 19 =====
Q1 report 2023 Page 18
Condensed interim
consolidated statement of changes in equity – continued
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848
Result for the period 0 0 0 0 48,075 0 48,075
Other comprehensive income
Currency translation 0 0 16,125 0 0 0 16,125
Tax on other
comprehensive income 0 0 - 3,747 0 0 0 - 3,747
Total other
comprehensive income 0 0 12,379 0 0 0 12,379
Total comprehensive income
for the year 0 0 12,379 0 48,075 0 60,454
Transactions with owners
Capital Increase 5 4,677 0 0 0 0 4,683
Acquisition of treasury shares 0 0 0 - 14,250 0 0 - 14,250
Disposal of treasury shares 0 0 0 14,656 842 0 15,498
Share based payments 0 0 0 0 1,713 0 1,713
Transaction cost 0 0 0 0 - 28 0 - 28
Total transactions with owners 5 4,677 0 406 2,526 0 7,615
At December 31, 2022 551 272,550 23,177 - 7,669 124,307 0 412,917
During the period no dividend was paid.
===== SIDA 20 =====
Q1 report 2023 Page 19
Condensed interim
consolidated statement of cash flows
Note tEUR Q1 2023 Q1 2022 2022
Profit before tax 27.348 18.033 64.964
Adjustment for finance items 735 621 5.389
Adjustment for special items 607 1.681 54
Operating Profit for the period before special items 28.691 20.336 70.407
Depreciation and amortization 4.584 2.775 14.668
Other adjustments of non-cash operating items 100 396 1.690
Cash flow from operations
before changes in working capital and special items 33.375 23.507 86.765
Change in working capital - 15 - 10.362 - 16.949
Cash flow from operations before special items 33.360 13.145 69.816
Special items, cash flow - 395 - 101 - 1.393
Cash flow from operations 32.966 13.045 68.423
Financial income, received 463 646 1.682
Financial expenses, paid - 3.168 - 1.619 - 5.666
Cash flow from activities before tax 30.261 12.071 64.439
Income tax paid - 3.799 - 1.450 - 16.239
Cash flow from operating activities 26.462 10.621 48.200
9, 10 Acquisition of businesses 0 - 2.577 - 14.337
7, 10 Acquisition of intangible assets - 3.204 - 16.363 - 96.452
Acquisition of property, plant and equipment 187 - 269 - 1.804
Sale of property, plant and equipment - 238 - 0 16
Acquisition of other financial assets - 14.930 0 0
Change in other non-current assets - 3.093 62 - 55
Cash flow from investing activities - 21.278 - 19.147 - 112.632
Note tEUR Q1 2023 Q1 2022 2022
Repayment of borrowings - 1.486 - 5.040 - 215.993
Proceeds from borrowings 0 20.999 296.665
Lease liabilities - 373 - 343 - 1.274
Other non-current liabilities 0 0 0
Capital increase 44 0 618
Treasury shares - 5.903 - 6.595 - 14.250
Transaction cost - 6 - 15 - 28
Cash flow from financing activities - 7.724 9.007 65.737
Cash flows for the period - 2.540 482 1.306
Cash and cash equivalents at beginning 31.497 30.093 30.093
Foreign currency translation of cash and cash equivalents - 111 106 99
Cash and cash equivalents period end* 28.847 30.680 31.497
Cash and cash equivalents period end
Restricted cash 0 0 0
Cash 28.847 30.680 31.497
Cash and cash equivalents period end 28.847 30.680 31.497
===== SIDA 21 =====
Q1 report 2023 Page 20
Notes
1. General information
Better Collective A/S is a limited liability company and is incorporated in Denmark. The parent company and its
subsidiaries (referred to as the “Group” or “Better Collective”) engage in online affiliate marketing. Better Collective’s
vision is to empower iGamers by leading the way in transparency and technology.
Basis of preparation
The Interim Report (condensed consolidated interim financial statements) for the period January 1 - March 31, 2023, has
been prepared in accordance with IAS 34 “Interim financial statements” as adopted by the EU and additional require-
ments in the Danish Financial Statements Act. The parent company condensed interim financial statements has been
included according to the Danish Executive Order on the Preparation of Interim Financial Reports.
These condensed consolidated interim financial statements incorporate the results of Better Collective A/S and its sub-
sidiaries.
The condensed consolidated interim financial statements refer to certain key performance indicators, which Better Col-
lective and others use when evaluating the performance of Better Collective. These are referred to as alternative per-
formance measures (APMs) and are not defined under IFRS. The figures and related subtotals give management and
investors important information to enable them to fully analyze the Better Collective business and trends. The APMs are
not meant to replace but to complement the performance measures defined under IFRS.
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 January 1, 2023, have been adopted. The implementation of these new or amended
standards and interpretations had no material impact on the condensed consolidated interim financial statements.
Accounting policies
The condensed consolidated interim financial statements have been prepared using the same accounting policies as set
out in note 1 of the 2022 annual report which contains a full description of the accounting policies for the Group and the
parent company, except for the scope of operating segments.
The scope of operating segments has been modified following changes in management responsibilities as from January
1, 2023. US has been renamed to North America (NA) and will now cover both USA and Canada. Canada was previously
included in the operating segment “Europe and RoW”. 2022 comparative information has been restated.
The annual report for 2022 including full description of the accounting policies can be found on Better Collective’s web-
site: https://storage.mfn.se/0e9df7fa-f018-42b8-9189-6ee99458c094/bc-2022-annual-report-final.pdf
Significant accounting judgements, estimates and assumptions
The preparation of condensed consolidated interim financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenue, expenses, assets, and liabilities.
Beyond the risks mentioned above, the significant accounting judgements, estimates and assumptions applied in these
consolidated interim financial statements are the same as disclosed in note 2 in the annu al report for 202 2 which
contains a full description of significant accounting judgements, estimates and assumptions.
===== SIDA 22 =====
Q1 report 2023 Page 21
2. Segments
Publishing and Paid Media
Better Collective operates two different business models regarding customer acquisition with d ifferent earnings -
profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Cost and
Earnings. The Publishing business includes revenue from Better Collective’s proprietary online platforms and media
partnerships where the online traffic is coming either directly or through organic search results, whereas Paid Media
generates revenue through paid ad-traffic to our websites, thereby running on a significantly lower earnings margin.
The performance for each segment is presented in the below tables:
Publishing Paid Media Total
tEUR Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Revenue 59,204 48,380 28,741 19,014 87,945 67,394
Cost 33,795 28,144 20,875 16,140 54,670 44,283
Operating profit before depreciation,
amortization and special items 25,409 20,237 7,866 2,874 33,275 23,111
EBITDA-Margin before special items 43% 42% 27% 15% 38% 34%
Special items, net - 607 - 1,681 0 0 - 607 - 1,681
Operating profit
before depreciation and amortization 24,802 18,555 7,866 2,874 32,667 21,430
EBITDA-Margin 42% 38% 27% 15% 37% 32%
Depreciation 713 481 0 5 713 487
Operating profit before amortization 24,088 18,074 7,866 2,869 31,954 20,943
EBITA-Margin 41% 37% 27% 15% 36% 31%
2022
tEUR Publishing Paid Media Total
Revenue 187,057 82,241 269,297
Cost 115,376 68,846 184,222
Operating profit before depreciation, amortization, and special items 71,681 13,394 85,075
EBITDA-Margin before special items 38% 16% 32%
Special items, net - 54 0 - 54
Operating profit before depreciation and amortization 71,627 13,394 85,021
EBITDA-Margin 38% 16% 32%
Depreciation 2,306 15 2,321
Operating profit before amortization 69,321 13,379 82,700
EBITA-Margin 37% 16% 31%
===== SIDA 23 =====
Q1 report 2023 Page 22
2. Segments, continued
Europe & Rest of World and North America
Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international
brands with a global reach as well as regional brands with a local reach. Better Collective’s regional brands are tailored
according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and
languages. From Q2 2021 and following the acquisition of Action Network (included in Group accounts from time of
closing on May 28, 2021) the US market constitutes >20% of G roup Revenue and >30% of revenue in Publishing on an
annualized basis. Hence, Better Collective reports on the geographical segments US and Europe & RoW (Rest of World),
measuring and disclosing separately for Revenue, Cost and Earnings. Historical financi al figures are reported accord-
ingly.
The performance for each segment is presented in the below tables:
Europe & ROW North America Total
tEUR Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Revenue 50,802 36,286 37,143 31,108 87,945 67,394
Cost 32,070 26,261 22,600 18,022 54,670 44,283
Operating profit be-
fore depreciation,
amortization and spe-
cial items 18,732 10,025 14,543 13,086 33,275 23,111
EBITDA-Margin be-
fore special items 37% 28% 39% 42% 38% 34%
Special items, net - 607 - 101 0 - 1,581 - 607 - 1,681
Operating profit
before depreciation
and amortization 18,124 9,924 14,543 11,505 32,667 21,430
EBITDA-Margin 36% 27% 39% 37% 37% 32%
Depreciation 713 392 0 95 713 487
Operating profit be-
fore amortization 17,411 9,532 14,543 11,411 31,954 20,943
EBITA-Margin 34% 26% 39% 37% 36% 31%
* 2022 figures have been restated because of the transfer of Canada and renaming USA to North America (NA), which
now covers both USA and Canada from January 1, 2023.
2022
tEUR Europe & ROW North America Total
Revenue 170,756 98,541 269,297
Cost 117,392 66,830 184,222
Operating profit before depreciation,
amortization and special items 53,364 31,711 85,075
EBITDA-Margin before special items 31% 32% 32%
Special items, net - 1,360 1,306 - 54
Operating profit
before depreciation and amortization 52,004 33,017 85,021
EBITDA-Margin 30% 34% 32%
Depreciation 1,671 650 2,321
Operating profit before amortization 50,333 32,367 82,700
EBITA-Margin 29% 33% 31%
===== SIDA 24 =====
Q1 report 2023 Page 23
3. Revenue specification
In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition
(CPA), Subscription, and Other as follows:
tEUR Q1 2023 Q1 2022 2022
Revenue category
Recurring revenue (Revenue share, Subscription, CPM) 40,882 23,403 123,365
CPA, Fixed Fees 47,063 43,831 145,605
Other 0 160 327
Total revenue 87,945 67,394 269,297
%-split
Recurring revenue 46 35 46
CPA, Fixed Fees 54 65 54
Other 0 0 0
Total 100 100 100
tEUR Q1 2023 Q1 2022 2022
Revenue type
Revenue Share 33,617 19,559 96,449
CPA 40,246 39,900 124,324
Subscription 4,483 3,777 18,003
Other 9,598 4,158 30,521
Total revenue 87,945 67,394 269,297
%-split
Revenue Share 38 29 36
CPA 46 59 46
Subscription 5 6 7
Other 11 6 11
Total 100 100 100
4. Share-based payment plans
2019 Warrant programs:
During the first quarter of 2023 the company did not grant any warrants and 5,000 warrants were exercised under this
program.
2022 Incentive Program:
During the quarter no performance share units or share options were granted under this program. A new Lon g-term
Incentive (LTI) program was established for key employees in Q1 2022, and 73,894 performance share units and 24,564
share options were granted to a total of 36 employees.
2023 Incentive Program:
During the quarter a new Long -term Incentive (LTI) pro gram was established for key employees. Under the program
134,953 performance share units and 239,350 share options were granted to a total of 63 employees.
The total share-based compensation expense for the above programs recognized for Q1 2023 is 134 tEUR (Q1 2022:
432 tEUR).
Management Incentive Program - Action Network:
During the quarter no performance share units or share options were granted under this program.
The cost related to the MIP program is recognized as special items and amounts to 52 tEUR in Q1 2023 (Q1 2022: 1,581
tEUR).
===== SIDA 25 =====
Q1 report 2023 Page 24
5. Special items
Significant income and expenses, which Better Collective consider non-recurring are presented in the Income state-
ment in a separate line item labelled ‘Special items’. The impact of special items is specified as follows:
tEUR Q1 2023 Q1 2022 2022
Operating profit 28,083 18,655 70,353
Special Items related to:
Special items related to M&A - 350 - 100 - 1,263
Variable payments regarding acquisitions - cost - 93 0 - 192
Variable payments regarding acquisitions - income 0 0 2,467
Special items related to Restructuring - 164 - 0 - 130
Special items related to Divestiture of Assets 0 0 0
Special items related to Management Incentive Program 0 - 1,581 - 936
Special items, total - 607 - 1,681 - 54
Operating profit (EBIT) before special items 28,691 20,336 70,407
Amortization and impairment 3,871 2,289 12,347
Operating profit before amortization
and special items (EBITA before special items) 32,561 22,624 82,754
Depreciation 713 487 2,321
Operating profit before depreciation, amortization,
and special items (EBITDA before special items) 33,275 23,111 85,075
6. Income tax
Total tax for the period is specified as follows:
tEUR Q1 2023 Q1 2022 2022
Tax for the period 6,414 4,292 16,888
Tax on other comprehensive income - 1,123 1,201 3,747
Total 5,290 5,493 20,635
Income tax on profit for the period is specified as follows:
tEUR Q1 2023 Q1 2022 2022
Deferred tax 2,563 2,149 6,785
Current tax 3,851 2,143 10,153
Adjustment from prior years 0 - 0 - 49
Total 6,414 4,292 16,888
Tax on the profit for the period can be explained as follows:
tEUR Q1 2023 Q1 2022 2022
Specification for the period:
Calculated 22% tax of the result before tax 6,017 3,967 14,292
Adjustment of the tax rates
in foreign subsidiaries relative to the 22% 501 291 1,563
Tax effect of:
Special items 0 402 - 83
Special items - taxable items 0 - 379 - 243
Other non-taxable income - 146 - 100 - 150
Other non-deductible costs 42 112 1,558
Adjustment of tax relating to prior periods* 0 - 0 - 49
Total 6,414 4,292 16,888
Effective tax rate 23.5% 23.8% 26.0%
===== SIDA 26 =====
Q1 report 2023 Page 25
7. Intangible assets
tEUR Goodwill
Domains
and
websites
Accounts
and other
intangible
assets Total
Cost or valuation
As of January 1, 2023 183,942 460,513 63,705 708,159
Additions 0 3,759 10,142 13,901
Acquisitions through business combinations 0 0 0 0
Transfer 0 0 0 0
Disposals 0 0 0 0
Currency Translation - 1,833 - 4,438 - 459 - 6,731
At March 31, 2023 182,108 459,833 73,388 715,330
Amortization and impairment
As of January 1, 2023 0 0 36,688 36,688
Amortization for the period 0 0 3,843 3,843
Currency translation 0 0 - 189 - 189
At March 31, 2023 0 0 40,342 40,342
Net book value at March 31, 2023 182,108 459,833 33,046 674,987
tEUR Goodwill
Domains
and
websites
Accounts
and other
intangible
assets Total
Cost or valuation
As of January 1, 2022 178,182 329,276 36,827 544,285
Additions 0 118,185 26,337 144,522
Acquisitions through business combinations 0 0 0 0
Currency Translation 5,760 13,051 540 19,351
At December 31, 2022 183,942 460,513 63,705 708,159
Amortization and impairment
As of January 1, 2022 0 0 24,374 24,374
Amortization for the period 0 0 12,348 12,348
Impairment for the period* 0 0 0 0
Currency translation 0 0 - 33 - 33
At December 31, 2022 0 0 36,688 36,688
Net book value at December 31, 2022 183,942 460,513 27,016 671,471
===== SIDA 27 =====
Q1 report 2023 Page 26
7. Intangible assets, continued
tEUR Goodwill
Domains
and
websites
Accounts
and other
intangible
assets Total
Cost or valuation
As of January 1, 2022 178,182 329,276 36,827 544,285
Additions 0 14,020 12,454 26,474
Acquisitions through business combinations 0 0 0 0
Transfer 0 0 0 0
Disposals 0 0 0 0
Currency Translation 1,930 4,370 179 6,479
At March 31, 2022 180,112 347,666 49,460 577,238
Amortization and impairment
As of January 1, 2022 0 0 24,374 24,374
Amortization for the period 0 0 2,302 2,302
Impairment for the period* 0 0 0 0
Amortisation on disposed assets 0 0 0 0
Currency translation 0 0 38 38
At March 31, 2022 0 0 26,714 26,714
Net book value at March 31, 2022 180,112 347,666 22,746 550,525
8. Non-current liabilities and other current financial liabilities
Debt to credit institutions:
As per March 31, 2023, Better Collective has drawn 201.4 mEUR (2022: 201.7) out of the total committed club facility of
247 mEUR established with Nordea, Nykredit, and Citibank.
Lease liabilities:
Non-current and current lease liabilities, of 4.9 mEUR (2022: 5.0 mEUR) and 1.3 mEUR (2022: 1.7 mEUR) respectively.
Deferred Tax liability:
Deferred tax liability as of March 31, 2023, amounted to 76.5 mEUR (2022: 78.2 mEUR). The change from January 1, 2023,
originates from amortization of accounts from acquisitions, and deferr ed tax changes in Parent Company and Better
Collective US, Inc.
Deferred Tax asset:
Deferred tax asset as of March 31, 2023, amounted to 10.1 mEUR (2022: 9.1 mEUR), increased from January 1, 2023, due
to change in Better Collective US, Inc. and exchange rate change for USD.
Contingent Consideration:
As per March 31, 2023, there was no contingent consideration after final adjustment and settlement of outstanding pur-
chase price related to the acquisition of RiCal LLC. Better Collective paid the final part of the contingent liabilities in Q2
2022.
Other financial liabilities:
As per March 31, 2023, other financial liabilities amounted to 56.6 mEUR (2022: 49.3 mEUR) due to deferred and variable
payments related to acquisitions. The increase from January 1, 2023, is related to the capitalization of media agreements.
Fair Value 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.
9. Business combinations
On April 14, after the end of Q1, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for up to
45 mGBP with an initial consideration of 25 mGBP on a cash and debt-free basis. Skycon is a global display advertising
company and perfectly complements Better Collective’s Paid Media division. The acquisition is a strateg ic move for
Better Collective with significant synergistic opportunities. As per the date of publication of the interim financial state-
ments it has not be en possible to obtain sufficient financial data to fulfill reporting requirements according to IFRS3.
Therefore, the opening balance, the acquired net assets at the time of the acquisition, goodwill and pro -forma impact
on the revenue and profit after tax is not included in these interim financial statements.
===== SIDA 28 =====
Q1 report 2023 Page 27
10. Note to cash flow statement
Note tEUR Q1 2023 Q1 2022 2022
Acquisition of business combinations:
9
Net Cash outflow
from business combinations at acquisition 0 0 0
Business Combinations
deferred payments from current period 0 0 0
Deferred payments
- business combinations from prior periods 0 - 2.577 - 14.337
Total cash flow from business combinations 0 - 2.577 - 14.337
Acquisition of intangible assets:
7 Acquisitions through asset transactions - 13.901 - 26.474 - 144.522
Deferred payments related to acquisition value 0 5.359 29.408
Deferred payments
- acquisitions from prior periods - 425 - 121 - 121
Intangible assets with no cash flow effect 11.122 5.317 24.325
Other investments - 444 - 5.541
Total cash flow from intangible assets - 3.204 - 16.363 - 96.452
Equity movements with and without cashflow impact
Cashflow from Equity movements: Q1 2023 Q1 2022 2022
Equity movements with cashflow impact
- from cash flow statement:
Capital increase 44 0 618
Treasury shares - 5,903 - 6,595 - 14,250
Transaction cost - 6 - 15 - 28
Total equity movements with cash flow impact - 5,865 - 6,610 - 13,661
Non-cash flow movements on equity:
New shares for M&A payments 4,066 4,065
Treasury Shares used for payments 7,769 15,498
Share based payments
- warrant expenses with no cash flow effect 2,013 1,713
Total equity movements with no cash flow impact 0 13,848 21,276
Total Transactions with owners
- Consolidated statement of changes in equity - 5,865 7,238 7,615
===== SIDA 29 =====
Q1 report 2023 Page 28
Financial statements for the period January 1 – June 30
Condensed interim
income statement – Parent company
tEUR Q1 2023 Q1 2022 2022
Revenue 23,699 12,147 65,282
Other operating income 4,015 1,855 14,797
Direct costs related to revenue 4,693 2,625 14,292
Staff costs 8,859 4,094 25,061
Depreciation 178 131 540
Other external expenses 4,417 5,649 17,248
Operating profit before amortization (EBITA) and special items 9,567 1,502 22,939
Amortization 1,594 593 3,875
Operating profit (EBIT) before special items 7,973 909 19,064
Special items, net - 395 - 101 - 1,168
Operating profit 7,578 808 17,896
Financial income 4,003 7,826 72,388
Financial expenses 7,996 1,539 35,057
Profit before tax 3,585 7,095 55,227
Tax on profit for the period 762 1,629 8,279
Profit for the period 2,823 5,467 46,949
Condensed interim
statement of other comprehensive income
tEUR Q1 2023 Q1 2022 2022
Profit for the period 2,823 5,467 46,949
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent
periods:
Currency translation to presentation currency - 641 - 62 22
Income tax 0 0 0
Net other comprehensive income/loss - 641 - 62 22
Total other comprehensive income/(loss) for the period, net of tax 2,182 5,405 46,970
===== SIDA 30 =====
Q1 report 2023 Page 29
Condensed interim
balance sheet – Parent company
tEUR Q1 2023 Q1 2022 2022
Assets
Non-current assets
Intangible assets
Domains and websites 168,504 40,205 144,374
Accounts and other intangible assets 21,813 9,800 13,287
Total intangible assets 208,140 50,004 157,662
Property, plant and equipment
Right of use assets 283 571 334
Fixtures and fittings, other plant and equipment 488 398 410
Total property, plant and equipment 770 969 744
Financial assets
Investments in subsidiaries 156,502 190,863 190,448
Receivables from subsidiaries 268,261 262,603 273,515
Deposits 1,096 174 174
Total financial assets 425,859 453,640 464,137
Total non-current assets 634,769 504,614 622,542
Current assets
Trade and other receivables 15,193 8,633 17,163
Receivables from subsidiaries 24,264 24,252 30,229
Tax receivable 6,360 0 5,913
Prepayments 2,580 1,489 2,519
Restricted Cash 0 0 0
Cash 26,592 5,205 8,705
Total current assets 74,989 39,579 64,529
Total assets 709,757 544,193 687,071
tEUR Q1 2023 Q1 2022 2022
Equity and liabilities
Equity
Share Capital 552 548 551
Share Premium 272,594 271,937 272,550
Currency Translation Reserve - 67 490 574
Treasury shares - 13,577 - 7,385 - 7,669
Retained Earnings 151,161 102,172 145,047
Proposed Dividends 0 0 0
Total equity 410,662 367,763 411,054
Non-current Liabilities
Debt to credit institutions 201,383 136,968 201,708
Lease liabilities 0 267 16
Deferred tax liabilities 11,534 2,290 6,141
Other non-current financial liabilities 27,331 1,386 19,543
Total non-current liabilities 240,248 140,911 227,408
Current Liabilities
Prepayments received from customers and deferred revenue 1,749 0 1,583
Trade and other payables 3,985 2,830 5,719
Payables to subsidiaries 30,930 16,603 20,822
Corporation tax payable 50 2,287 30
Other current financial liabilities 20,528 13,443 19,045
Debt to credit institutions 1,292 0 1,055
Lease liabilities 314 357 356
Total current liabilities 58,848 35,519 48,609
Total liabilities 299,096 176,430 276,017
Total equity and liabilities 709,757 544,193 687,071
===== SIDA 31 =====
Q1 report 2023 Page 30
Condensed interim
statement of changes in equity – Parent company
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2023 551.49669 272,550 574 - 7,669 145,047 0 411,054
Result for the period 0 0 0 0 2,823 0 2,823
Other comprehensive in-
come
Currency translation
to presentation currency 0 0 - 641 0 0 0 - 641
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 - 641 0 0 0 - 641
Total comprehensive income
for the year 0 0 - 641 0 2,823 0 2,182
Transactions with owners
Capital Increase 0 43 0 0 3,158 0 3,202
Acquisition of treasury
shares 0 0 0 - 5,903 0 0 - 5,903
Disposal of treasury shares 0 0 0 0 0 0 0
Share based payments 0 0 0 0 134 0 134
Transaction cost 0 0 0 - 6 - 2 0 - 8
Total transactions with own-
ers 0 43 0 - 5,909 3,291 0 - 2,575
At March 31, 2023 552 272,594 - 67 - 13,577 151,161 0 410,662
During the period no dividend was paid.
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2021 546 267,873 552 - 8,074 94,223 0 355,121
Result for the period 0 0 0 0 5,467 0 5,467
Other comprehensive in-
come
Currency translation
to presentation currency 0 0 - 62 0 0 0 - 62
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 - 62 0 0 0 - 62
Total comprehensive income
for the year 0 0 - 62 0 5,467 0 5,405
Transactions with owners
Capital Increase 2 4,064 0 0 0 0 4,066
Acquisition of treasury
shares 0 0 0 - 6,595 0 0 - 6,595
Disposal of treasury shares 0 0 0 7,284 484 0 7,769
Share based payments 0 0 0 0 2,013 0 2,013
Transaction cost 0 0 0 0 - 15 0 - 15
Total transactions with own-
ers 2 4,064 0 689 2,482 0 7,238
At March 31, 2022 548 271,937 490 - 7,385 102,172 0 367,763
During the period no dividend was paid.
===== SIDA 32 =====
Q1 report 2023 Page 31
tEUR
Share
capital
Share
premium
Currency
translation
reserve
Treasury
shares
Retained
earnings
Proposed
dividend Total equity
As of January 1, 2022 546 267,873 552 - 8,074 94,223 0 355,121
Result for the period 0 0 0 0 46,949 0 46,949
Other comprehensive in-
come
Currency translation
to presentation currency 0 0 22 0 0 0 22
Tax on other
comprehensive income 0 0 0 0 0 0 0
Total other
comprehensive income 0 0 22 0 0 0 22
Total comprehensive income
for the year 0 0 22 0 46,949 0 46,970
Transactions with owners
Capital Increase 5 4,677 0 0 0 0 4,683
Acquisition of treasury
shares 0 0 0 - 14,250 0 0 - 14,250
Disposal of treasury shares 0 0 0 14,656 842 0 15,498
Share based payments 0 0 0 0 3,061 0 3,061
Transaction cost 0 0 0 0 - 28 0 - 28
Total transactions with own-
ers 5 4,677 0 406 3,875 0 8,963
At December 31, 2022 551 272,550 574 - 7,669 145,047 0 411,054
During the period no dividend was paid.
===== SIDA 33 =====
Q1 report 2023 Page 32
The group uses Alternative Performance Measures not defined under IFRS to give management and investors
important information to enable them to fully analyse the Better Collective business and trends. The APMs are not
meant to replace but to complement the performance measures defined under IFRS. Note 5 contains a bridge from
the APMs to performance measures defined by IFRS.
Alternative Performance Measures
Alternative
Performance Measure Description SCOPE
Earnings per share
(EPS)
Net Profit for the period / (Average number
of shares - Average number of treasury
shares held by the company)
The group reports this APM for users to monitor de-
velopment in the net profit per share.
Diluted earnings
per share
Net profit for the period / (Average number
of shares + Average number o
f outstanding warrants - Average number of
treasury shares held by the company)
The group reports this APM for users to monitor de-
velopment in the net profit per share, assuming full
dilution from active warrant programs.
Operating profit
before amortization
(EBITA)
Operating profit plus amortizations Better Collective reports this APM to allow monitor-
ing and evaluation of the Group’s operational profit-
ability.
Operating profit
before amortizations
margin (%)
Operating profit before amortizations / reve-
nue
This APM supports the assessment and monitoring
of the Group’s performance and profitability
EBITDA before
special items
EBITDA adjusted for special items This APM supports the assessment and monitoring
of the Group’s performance as well as profitability
excluding special items that do no stem from ongo-
ing operations, providing a more comparable meas-
ure over time.
Operating profit
before amortizations
and special items
margin (%)
Operating profit before amortizations and
special items / revenue
This APM supports the assessment and monitoring
of the Group’s performance as well as profitability
excluding special items that do no stem fro m ongo-
ing operations, providing a more comparable meas-
ure over time.
Special items Items that are considered not part of ongoing
business
Items that are not part of ongoing business, e.g. cost
related to M&A and restructuring, adjustments of
earn-out payments.
Alternative
Performance Measure Description SCOPE
Net Debt / EBITDA
before special items
(Interest bearing debt, including earn -outs
from acquisitions, excl. contingent considera-
tion, minus cash and cash equivalents) /
-EBITDA before special items on rolling twelve
months basis
This ratio is used to describe the horizon for pay
back of the interest-bearing debt and measures the
leverage of the funding.
Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current
liabilities using current assets.
Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the
company is funded by equity
Cash conversion rate
before special items
(Cash flow from operations before special
items + Cash from CAPEX) / EBITDA before
special items
This APM is reported to illustrate the Group’s ability
to convert profits to cash
NDC New depositing customers A key figure to reflect the Group’s ability to fuel
long-term revenue and organic growth
Organic Growth Revenue growth as compared to the same pe-
riod previous year. Organic growth from ac-
quired companies or assets are calculat ed
from the date of acquisition measured against
the historical baseline performance.
Reported to measure the ability to generate growth
from existing business
Definitions
Term Description
PPC Pay-Per-Click
SEO Search Engine Optimization
Sports win margin Sports net player winnings (operators) / sports wagering
Sports wagering The value of bets placed by the players
Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue
share income, CPM/Advertising and subscription revenues
Board The Board of Directors of the company
Executive management Executives that are registered with the Danish Company register
Company Better Collective A/S, a company registered under the laws of Denmark
Alternative Performance Measures
and Definitions
===== SIDA 34 =====
Q1 report 2023 Page 33
Better Collective A/S
Toldbodgade 12
1253 Copenhagen K
Denmark
CVR no 27 65 29 13
+45 29 91 99 65
info@bettercollective.com
bettercollective.com