===== SIDA 1 ===== Q1 report 2024 May 21, 2024 Better Collective A/S Sankt Annæ Plads 28-30 1250 Copenhagen (DK) www.bettercollective.com CVR NO.: 27 65 29 13 Interim report Q1, 2024 • Strong revenue performance of 95m EUR, growth of 8% • Recurring revenue of 53 mEUR; growth of 14% • Strong EBITDA of 29 mEUR, 31% margin; as expected down 13% due to the extraordinary performance last year • Net debt to EBITDA of 1.7x • Announced the acquisition of leading UK sports betting me- dia AceOdds post Q1 for 42 mEUR • Financial targets were upgraded by 5 mEUR on revenue and EBITDA following the acquisition ===== SIDA 2 ===== Q1 report 2024 Page 1 *Before special items Revenue mEUR EBITDA* mEUR Recurring revenue mEUR ===== SIDA 3 ===== Q1 report 2024 Page 2 Highlights Q1, 2024 3 Financial highlights and key figures 4 CEO letter 5 Business review and financial performance 7 Financial targets 12 Other 13 Condensed interim financial statements for the period 16 Notes 21 Parent company 30 A conference call for Better Collective’s stakeholders will be held on May 22, at 10:00 a.m. CET and can be joined online here. To participate telephonically follow this link. Once signed up you will receive an e -mail with a phone num- ber and a personal dial-in code for the call. The presentation material for the webcast will be avail- able after market close on May 21 via: www.Bettercollective.com Upcoming events • Q2 release - August 21, 2024 • Q3 release – November 13, 2024 • Q4 release – February 19, 2025 • Annual report – March 25, 2025 Table of contents Q1 webcast May 22, 2024 Q1 report 2024 Page 2 ===== SIDA 4 ===== Q1 report 2024 Page 3 Highlights Q1, 2024 Group revenue expectedly increased by 8% to 95 mEUR (Q1 2023: 88 mEUR) with organic growth down 6%. The growth was attained despite to extraordinary perfor- mance last year, which included the launch of online sports betting in two major US states. These state launches operated on a CPA -based model, resulting in significant one-off upfront revenues. The state launch in North Carolina during this quarter entailed a blend of re- curring revenue share and CPA. Recurring revenue was 53 mEUR, posting 14% growth, implying higher quality revenue . Recurring revenue makes up 56% of total group revenue. This was achieved while the sports win margin was lower than last year. Additionally, during Q1, our core revenue share markets (Europe & South America) saw a reduction of over 10% in the number of soccer games in major leagues com- pared to last year. Group EBITDA before special items was 29 mEUR (Q1 2023: 33 mEUR) down 13% as expected due to extraor- dinary performance last year The group EBITDA-margin before special items was 31%. Group EBITDA margin was impacted by the two recent acquisitions in Playmaker Capital and Playmaker HQ being short term margin dilu- tive. Cash flow from operations before special items was 22 mEUR (Q1 2023: 33 mEUR). The cash conversion was 73%. By the end of Q1, capital reserves stood at 16 4 mEUR of which cash of 6 1 mEUR, and other current fi- nancial assets of 6 mEUR and unused credit facilities of 97 mEUR. New depositing customers (NDC) numbered more than 450,000 where 77 % was sent on revenue share con- tracts. Better Collective announced the completion of the Play- maker Capital acquisition, making it the second -largest acquisition to date. The integration has developed as planned. Playmaker Capital and its advertising business sees its lowest season during Q1. Due to th is as well as the business being taken over from February the impact from the two months of Q1 was muted with revenues of 7 mEUR and EBITDA around breakeven . T he perfor- mance is expected to pick up over the course of the year with the strongest quarter in Q4. Q1 was as expected and following the acquisition of AceOdds after Q1 the group’s 2024 financial targets were upgraded as follows: • Revenue of 395-425 mEUR, up from 390-420 mEUR, implying 21-30% growth • EBITDA of 130-140 mEUR, up from 125-135mEUR, implying 17-26% growth. • Net/debt to EBITDA stay below 3x (unchanged) The long -term 2023 -2027 financial targets were up- dated following the acquisition of Playmaker Capital. • Revenue CAGR of +20% (unchanged). • EBITDA margin before special items of 35 -40% (previously 30-40%). • Net debt to EBITDA before special items of <3 (unchanged). Better Collective raised 10% or approximately 145 mEUR in an accelerated book building process to prepare for future M&A. The demand in the placing was substantial. Better Collective announced a new major shareholder as BLS Capital Fondsmæglerselskab A/S now has 11.7% of the voting rights. Better Collective is now included in the Nasdaq Stock- holm and Nasdaq Copenhagen Large Cap Index with companies that have a market cap higher than 1 bnEUR. Better Collective hosted its annual HLTV Award Show gathering important people from the Counter Strike community. The show had more than 100K peak viewers and had more than 1.2 million views in total. In Sweden, Better Collective hosted the popular Swedish sports journalism award show “Guldskölden”. Significant events after close Better Collective acquired UK sports betting media AceOdds for a total consideration of 42 mEUR implying 4x last twelve months EBITDA. AceOdds offers a com- prehensive range of betting tools, odds, reviews, and streaming schedules through its web and app- based platforms. With a robust presence in the UK market, Bet- ter Collective’s global reach through local expertise aligns perfectly with AceOdds’s vision of expanding its influence outside the borders of the UK. Following the acquisition Better Collective upgraded its 2024 full year financial targets as mentioned. On May 5 , Google activated a new policy focusing on third-party content across a variety of commercial cat- egories. This impacted the rankings and thereby traffic to some of Better Collective’s media partnerships. Bet- ter Collective remain proud of its media partnerships and is working closely together with all parties involved to address the changes. Consequently, some of Better Collective’s owned and operated sports media portfolio has seen an increase in traffic and rankings. The Annual General Meeting 2024 was held electroni- cally on April 22, 2024. ===== SIDA 5 ===== Q1 report 2024 Page 4 Financial highlights and key figures tEUR Q1 2024 Q1 2023 2023 Income statements Revenue 95,031 87,945 326,686 Recurring revenue 53,286 46,817 191,118 Revenue Growth (%) 8% 30% 21% Organic Revenue Growth (%) -6% 23% 13% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 29,010 33,275 111,080 Operating profit before depreciation and amortization (EBITDA) 26,468 32,667 109,132 Depreciation 1,472 713 3,958 Operating profit before amortization and special items (EBITA before special items) 27,538 32,561 107,122 Special items, net - 2,542 - 607 - 1,948 Operating profit before amortization (EBITA) 24,996 31,954 105,174 Amortization and impairment 8,234 3,871 24,283 Operating profit before special items (EBIT before special items) 19,304 28,691 82,839 Operating profit (EBIT) 16,762 28,083 80,891 Result of financial items - 6,498 - 735 - 22,881 Profit before tax 10,264 27,348 58,010 Profit after tax 7,553 20,935 39,835 Earnings per share (in EUR) 0.13 0.38 0.74 Diluted earnings per share (in EUR) 0.12 0.36 0.70 For a definition of financial key figures and ratios, please refer to page 34. tEUR Q1 2024 Q1 2023 2023 Balance sheet Balance Sheet Total 1,153,664 802,970 937,862 Equity 668,501 423,449 435,273 Current assets 138,218 107,722 105,812 Current liabilities 124,041 63,033 103,493 Net interest bearing debt 178,009 179,865 221,133 Cashflow Cash flow from operations before special items 21,665 33,360 119,384 Cash flow from operations 10,016 32,966 114,639 Investments in tangible assets - 961 187 - 5,143 Cash flow from investment activities - 73,858 - 21,278 - 106,248 Cash flow from financing activities 90,940 - 7,724 29,334 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 31% 38% 34% Operating profit before amortization margin (EBITDA) (%) 28% 37% 33% Operating profit margin (%) 18% 32% 25% Publishing segment - EBITDA before special items margin (%) 34% 43% 37% Paid media segment - EBITDA before special items margin (%) 23% 27% 29% Net interest bearing debt / EBITDA before special items 1.67 1.27 1.99 Liquidity ratio 1.11 1.71 1.02 Equity to assets ratio (%) 58% 53% 46% Cash conversion rate before special items (%) 73% 100% 103% Average number of full-time employees 1,677 926 1,252 NDCs (thousand) 450 488 1,916 ===== SIDA 6 ===== Q1 report 2024 Page 5 CEO letter Good start to 2024 and continued business diversification to future-proof business We have come a long way since our Capital Markets Day last year thanks to our continued focus on busi- ness diversification and profitable growth . 2024 got off to a good start despite comparing with extraordi- nary performance last year , and I look forward to a busy summer with many exciting sports events ahead of us. One year ago, we hosted our first Capital Markets Day (CMD) to reflect on our achievements since listing in 2018. Here we showcased our business advancements, which included the scaling of our audience from 7 mil- lion to 180 million monthly visits, reducing dependency on search engines and single clients, as well as expand- ing our revenue streams. Over this period, we grew rev- enue from 40 mEUR to 269 mEUR, increased opera- tional earnings from 16 mEUR to 85 mEUR, and boosted our market capitalization from 2 bnSEK to 10 bnSEK, all with limited shareholder dilution. At the CMD we also introduced and dove into what our vision of becoming the leading digital sports media group entails. So, what has happened since the CMD ? We have sus- tained revenue and EBITDA growth. We have broad- ened our business portfolio by acquiring several busi- nesses; a social media and podcast production com- pany, a bolt acquisition enhancing our Paid Media capa- bilities, and we have added several leading sports media brands to the group. This expansion has resulted in fur- ther audience growth to more than 400 million monthly visits (including Playmaker Capital) and it has posi- tioned us as the leading sports media group in the rap- idly growing South American market. Simultaneously, we initiated the development of our proprietary AdTech platform, AdVantage, which, if successful, could further expand and diversify our revenue streams. If you wish to learn more into AdVantage, we did a deep dive in our Annual Report 2023. Following a successful five-year listing in Stockholm, we made the strategic decision to expand our capital mar- kets presence by dual listing in Copenhagen, at the end of last year. This move significantly increased interest from investors as well as market analysts, and increased media interest, resulting in a significant lift in employer attractiveness. There has never been as much interest in our company as now. This increased interest enabled us to raise 145 mEUR in new capital during Q1, while also welcoming large new shareholders into the group, all of which I find very encouraging for executing our future strategy and continued focus on M&A. This narrative encapsulates our operational philosophy. We are constantly scouting for new long -term growth opportunities, exemplified by AdVantage - an initiative that will diversify and future -proof our business and align with our vision. At the same time, we remain laser focused on our operations and delivering value to our partners and audience. Since our IPO in 2018, M&A has played a crucial role in our transition from a sports betting affiliate to a leading digital sports media group. We have successfully built a structure, where our group strength acts as an amplifier for the acquired media brands, utiliz ing our core com- petencies to grow audiences, scaling content and opti- mize monetization. Our Greek brand Betarades, which we acquired in 2018, stands as a great example of this. Betarades; a true success story Back in 2018, we acquired the leading sports betting af- filiate in the Greek market, laying the foundation for an impressive journey as the brand and the team behind have consistently surpassed our expectations. Notably, the co-founder of Betarades has been instrumental not only in leading Betarades but also serving as our Man- aging Director for Southeast Europe. As a founder my- self, I am proud to have built a business where other founders thrive and support our long-term journey. Since 2018, Betarades' audience has grown exponen- tially, establishing itself as the leading sports media across social platforms in the market. With more than 180k subscribers on YouTube and a prominent presence on TikTok , the brand's multi -channel approach has proven highly effective. Media monetization efforts cou- pled with an increase in recurring revenue share income have resulted in a remarkable five-fold revenue surge. What has made this possible? Since the acquisition, Bet- ter Collective has assumed the bulk of administrative re- sponsibilities, allowing the team to focus on their core strengths: brand building, quality content production, and commercialization. Moreover, our global reach, best-in-class partnership contracts, and performance marketing expertise have unlocked new opportunities that were previously inaccessible to Betarades. This strategic support has propelled Betarades to new heights. Witnessing Betarades evolve from a dominant player in Greek sports media affiliation to a versatile multi -chan- nel sports media has been nothing short of inspiring. Be- tarades now works with some of the most well -known brand ambassadors in the region including soccer icons from the winning 2004 European Championship team. The journey of Betarades mirrors the journey Better Col- lective is currently on as a group, reinforcing our com- mitment to innovation and growth in the dynamic world of sports media. ===== SIDA 7 ===== Q1 report 2024 Page 6 2024 got off to a good start In Q1 last year, online sports betting was launched in Ohio and Massachusetts, resulting in significant revenue generation through CPA -based contracts. This had a substantial positive one -time impact, contributing to a 44% increase in EBITDA from Q1 2022 t o Q1 2023. In Q1 of this year, we saw the launch of sports betting in North Carolina with revenue structured on a combination of revenue share and CPA -based contracts. This structure delays a portion of revenue but is strategic for future growth. Furthermore, the sports win margin during Q1 was lower than last year and lower than forecasted. Lastly, we saw a reduction of more than 10% fewer soc- cer matches in the major leagues in Europe and South America. Despite these circumstances, Q1 marked another strong quarter for Better Collective with revenue increasing by 8% to 95 mEUR. It is worth noting that our recurring rev- enue grew 14 % to 53 mEUR, now including significant audience-driven revenue from Playmaker Capital, hence signaling another quarter of higher quality. EBITDA for the quarter was 29 mEUR, reflecting a n expected 13% decrease due to the extraordinary performance last year mentioned above and ongoing revenue transition in the US. Positive market trends In Q1, we saw good performance across all markets. Eu- rope & ROW showed outstanding performance with an impressive 20% growth of which 5 % was organic . This achievement was fueled by a widespread impact across markets, facilitated by our owned and operated chan- nels alongside strategic media partnerships. In anticipa- tion of the European Championships and Copa America, preparations are already in action, including concept de- velopments and brand strategies tailored to maximize our impact. Playmaker Capital integration is progressing as planned Last year, we mad e public our intention to acquire the sports media group, Playmaker Capital, and successfully closed the acquisition early this year. Having only taken over the company in February, we are already observing positive trends. The cultural fit between our organiza- tions is excellent and we see great opportunities to share knowledge across the teams. Overall, the integra- tion of Playmaker Capital has progressed as planned and we have already observed encouraging early perfor- mance marketing result s during the quarter stemming from affiliation revenue. With the acquisition of Play- maker Capital, we raised the 2027 financial targets for EBITDA from 30-40% to 35-40%, underscoring our con- fidence in achieving synergies over time. This adjust- ment indicates that the buildup and synergy realization will be more pronounced in the latter part of our fore- casted period. North American product diversification Turning attention to the North American market, we are delighted with the progress made in Q1. Our commercial position has never been stronger with active partner- ships established across all major players in the region. We achieved notable successes during the North Caro- lina state launch and the Super Bowl events. North American NDCs were up versus last year, but revenue was down 8% and organic down 22%, due to the already mentioned comparison and the ongoing revenue share transition. We increased our investment in revenue share, which will set us up well for sustained revenue in years to come. The mix of NDCs on revenue share versus upfront CPA was similar as in previous quarters. Additionally, our expansion into high- level media has proven successful following last year’s acquisition of Playmaker HQ. At one point three out of the top five sports podcasts in the US on Spotify belonged to Better Collective – led by Shaquille O’Neal’s “Big Podcast” show, as well as “Roommates” featuring New York Knicks stars Jalen Brunson and Josh Hart - and our shows have been consistently frequented by renowned celebrities and including many star athletes. This strate- gic move has enriched our product offerings and amplified our reach within the North American audience cementing our leading position. A busy summer ahead We are looking into a busy summer, with the European Championships and Copa America, along with the Olym- pics. We anticipate that the European Championship will be a significant sporting event for our group, positively contributing to growth. Due to our limited experience with Copa America, we take a more cautious approach here, although we acknowledge the tournament’s inter- est and relevance. We are now the leading digital sports media in South America, making the tournament even more interesting. Lastly, as we develop AdVantage, the Olympics are be- coming increasingly relevant, as we observe strong gen- eral advertising interest surrounding the event. I would like to round off by thanking all my colleagues at Better Collective, now also including the full Play- maker Capital group. As a co -founder it is a true pleas- ure being surrounded by so many ambitious colleagues that have taken ownership of our strategy and vision and continue to deliver strong results. Jesper Søgaar d Co-founder & CEO ===== SIDA 8 ===== Q1 report 2024 Page 7 Business review and financial performance Group Q1 was another solid quarter for the Better Collective group, as revenues grew 8% of which -6% was organic. The Group saw tough comparisons due to extraordinary performance last year where Q1 included two state launches in the US mainly on upfront CPA based con- tracts. During this year there was one state launch which was on a mix of CPA and revenue share. Further Q1, saw a lower sports win margin versus Q1 last year as well as more than 10% fewer European and South American soccer matches. Playmaker Capital was included from February and contributed with revenue of 7 mEUR and a breakeven EBITDA. The performance is expected to pick up over the course of the year with the strongest quarter in Q4. Operational earnings (EBITDA before special items) were 29 mEUR, implying a margin of 31%. The group ’s operational profit decreased by 13% due to the afore- mentioned factors. Recurring revenue came in at 53 mEUR, implying growth of 14%, and made up 56% of group revenues. The group delivered more than 450,000 new depositing customers to partnering sportsbooks and continued its strong growth path during its transitional phase to rev- enue share agreements in the US. Out of the total NDCs 77% were revenue share contracts. Q1 report 2024 Page 7 Key figures for the group tEUR Q1 2024 Q1 2023 Growth 2023 Revenue 95,031 87,945 8% 326,686 Cost 66,020 54,670 21% 215,605 Operating profit before depreciation and amortization and special items 29,011 33,275 -13% 111,080 EBITDA-Margin before special items 31% 38% 34% Operating profit before depreciation and amortization 26,468 32,667 -19% 109,132 EBITDA-Margin 28% 37% 33% Organic Growth -6% 23% 13% ===== SIDA 9 ===== Q1 report 2024 Page 8 Publishing The Publishing business includes revenue from Better Collective’s proprietary owned and operated sports me- dia as well as media partnerships. The audiences for these brands are mostly generated through direct traffic or organic search results. Revenues from this segment came in at 66 mEUR imply- ing a growth of 12%. O rganic growth was flat. Opera- tional profit came in at 23 mEUR, implying a margin of 34%. The publishing segment accounted for 70% of group revenue and 78% of operational earnings. The growth in the P ublishing segment came despite very tough comparisons in the US where Q1 2023 in- cluded two states launches with upfront revenues through CPA -based contracts and thereby delivered extraordinary performance. This year the state launch of North Carolina was based on a mix of revenue share and CPA, hence delaying the upfront element, to gain long- term profitable growth. Furthermore, the Publishing segment’s revenue share income was impacted by a lower-than-expected sports win margin, as well as more than 10% fewer soccer matches in major leagues being played across Europe and South America as compared to last year. The performance was broadly based on owned and op- erated sports brands as well as media partnerships. The North American contractual transition toward reve- nue share has continued with a similar mix of NDCs sent on revenue share versus CPA as previous quarters. The transition postpones revenue and earnings, as it has a short-term dampening effect on revenues and earnings. Paid Media The Paid Media business includes revenue efforts in paid advertising on search engines, 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 in the Publishing business. Paid Media revenue was 29 mEUR, implying a flat devel- opment driven by the Skycon acquisition with organic growth down 18% , which is to be compared with last year’s organic growth of 51%. Operational profit came in at 7 mEUR, down 17% with a margin of 23% . The Paid Media segment accounted for 30% of group revenue and 22% of operational profit. The Paid Media performance had similar high compari- sons to the Publishing segment from last year. This can be seen in Paid Media CPA revenue decreasing 32% dur- ing the quarter, while recurring revenue share increased by 80%. During Q1, more NDCs were sent on revenue share-based contracts, like the Publishing segment. Key figures for the Publishing segment tEUR Q1 2024 Q1 2023 Growth 2023 Revenue 66,310 59,204 12% 220,328 Share of Group 70% 67% 67% Cost 43,804 33,795 30% 139,685 Share of Group 66% 62% 65% Operating profit before depreciation and amortization and special items 22,506 25,409 -11% 80,642 Share of Group 78% 76% 73% EBITDA-Margin before special items 34% 43% 37% Operating profit before depreciation and amortization 19,980 24,802 -19% 78,695 EBITDA-Margin 30% 42% 36% Organic Growth 0% 12% 15% Key figures for the Paid Media segment tEUR Q1 2024 Q1 2023 Growth 2023 Revenue 28,721 28,741 0% 106,358 Share of Group 30% 33% 33% Cost 22,217 20,875 6% 75,920 Share of Group 34% 38% 35% Operating profit before depreciation and amortization and special items 6,505 7,866 -17% 30,438 Share of Group 22% 24% 27% EBITDA-Margin before special items 23% 27% 29% Operating profit before depreciation and amortization 6,488 7,866 -18% 30,438 EBITDA-Margin 23% 27% 29% Organic Growth -18% 51% 13% ===== SIDA 10 ===== Q1 report 2024 Page 9 Europe & Rest of World The Europe & Rest of the world (ROW) business includes all markets outside of North America. The European markets consist of more mature markets and are the leg- acy markets of Better Collective . South America is a strong growth market and makes up an increasingly big- ger part of the business. Examples of sports brands in- clude Soccernews in the Netherlands, Betarades in Greece, Tipsbladet in Denmark, Wettbasis in Germany, Goal.pl in Poland, and Les Transferts in Franc e, as well as Bolavip in all South America, SomosFanaticos in Bra- zil, and Redgol in Chile. The portfolio further includes the esport communities HLTV and FUTBIN. Europe & ROW are heavily exposed to recurring revenue share income. During Q1, the sports win margin was lower than expected and lower than last year. Further, Q1 saw more than 10% fewer soccer matches in Europe and South America, impacting the quarterly result. Despite this, Europe & ROW posted revenue of 61 mEUR, implying growth of 20%, of which 5% was organic. Operational profits came in at 20 mEUR, giving a margin of 33%, which is an increase of 6%. Europe & ROW reve- nue accounted for 64 % and operational profit ac- counted for 69% of the group. North America Both the US and the Canadian markets are recently reg- ulated. As both markets are young, revenues have largely been generated from one-time payments (CPA) but have started gradually to transition into revenue share. Key North American sports brands include but are not limited to Action Network, Yardbarker, The Nation Network, Playmaker HQ VegasInsider, RotoGrinders, Sportshandle, and Canada Sports Betting. The North American revenue came in at 34 mEUR, im- plying a decline of 8%, and a decline of 22% organic growth. The net decline was impacted by the ongoing revenue share transition and the comparison from the two state launches last year, which were both upfront CPA-based revenues. Operational profit came in at 9 mEUR, equaling a margin of 27%, impacted by the same measures as well as hav- ing acquired Playmaker HQ and Playmaker Capital which are both margins dilutive. The group continues its transition towards recurring revenue share in the North American market and saw a similar mix of NDCs as pre- vious quarters. Revenue share income from North Amer- ica grew around 25% quarter over quarter. Key figures for North America segment tEUR Q1 2024 Q1 2023 Growth 2023 Revenue 34,010 37,143 -8% 108,600 Share of Group 36% 42% 33% Cost 24,902 22,600 10% 77,703 Share of Group 38% 41% 36% Operating profit before depreciation and amortization and special items 9,108 14,543 -37% 30,897 Share of Group 31% 44% 28% EBITDA-Margin before special items 27% 39% 28% Operating profit before depreciation and amortization 7,313 14,543 -50% 30,009 EBITDA-Margin 22% 39% 28% Organic Growth -22% 15% 5% Key figures for Europe & RoW segment tEUR Q1 2024 Q1 2023 Growth 2023 Revenue 61,021 50,802 20% 218,085 Share of Group 64% 58% 67% Cost 41,119 32,070 28% 137,902 Share of Group 62% 59% 64% Operating profit before depreciation and amortization and special items 19,903 18,732 6% 80,183 Share of Group 69% 56% 72% EBITDA-Margin before special items 33% 37% 37% Operating profit before depreciation and amortization 19,156 18,124 6% 79,123 EBITDA-Margin 31% 36% 36% Organic Growth 5% 29% 17% ===== SIDA 11 ===== Q1 report 2024 Page 10 Financial performance first quarter 2024 Revenue growth of 8% to 95 mEUR and organic growth of -6% Revenue showed strong growth v ersus 2023 of 8% and amounted to 95 mEUR (2023: 88 mEUR). Revenue share accounted for 45% of the revenue with 31% coming from CPA, 4% from subscription sales, and 20% from other in- come. The acquisition of Playmaker Capital has contributed with revenue of 7 mEUR during Q1, 2024. Cost of 66 mEUR - up from 55 mEUR The increase in costs compared to Q1, 2023 is primarily driven by personnel costs increasing 8 mEUR corre- sponding to an inc rease of 35 %. The increase is driven by an increase in average number of employees increas- ing from average 926 in Q1 2023 to 1,677 in Q1 2024, where 370 employees joined Better Collective as part of the acquisition of Playmaker Capital completed Febru- ary 6, 2024. Direct costs related to media partnerships and Paid Me- dia increased slightly, 0.8m EUR , however less than overall growth in revenue . The cost base excluding de- preciation and amortization grew 11 mEUR, up to 66 mEUR (Q1 2023: 55 mEUR). Total direct cost relating to revenue increased by 0.8 mEUR to 28 mEUR (Q1 2023: 27 mEUR) with the growth coming from increased cost primarily related to media partnerships. Beyond the cost of paid traffic, this in- cludes hosting fees of websites, content generation, and external development. Personnel cost increased 35% from March 2023 to 29 mEUR 2024 (Q1 2023: 21 mEUR). The average number of employees increased 81 % to 1,677 (Q1 2023: 926). Per- sonnel costs include costs related to warrants of 1 mEUR (Q1 2023: 0,1 mEUR). Other external costs increased 3 mEUR or 49 % to 9 mEUR (Q1 2023: 6 mEUR). Depreciation and amortiza- tion amounted to 10 mEUR (Q1 2023: 5 mEUR). The in- crease is primarily due to amortization related to the ac- quisitions in 2023 of Skycon, Playmaker HQ, Digital Sportmedia I Norden AB (the four brands are Sven- skaFans.com, Hockeysverige.se, Fotbolldirekt.se and Innebandymagazinet.se), Goalmedia Technologia E Marketing Digital (the brand is Torcedores.) and Tipsbladet as well as new media partnerships. Addition- ally, Better Collective completed the acquisition of Playmaker Capital in February 2024, which also contrib- utes to the increase in amortizations and depreciations. Special items Special items amounted to a n expense of 3 mEUR (Q1 2023: -1 mEUR). The net expense of 3 mEUR is primarily related to M&A expenses of 2 mEUR and restructuring of 1 mEUR. Earnings Operational earnings (EBITDA) before special items de- creased 13% to 29 mEUR ( Q1 2023: 33 mEUR). The EBITDA-margin before special items was 31% (Q1 2023: 38%). Including special items, the reported EBITDA was 27 mEUR. (Q1 2023: 33 mEUR). EBIT before special items de creased 34% to 19 mEUR (Q1 2023: 29 mEUR). Including special items, the re- ported EBIT was 17 mEUR (Q1 2023: 28 mEUR). Net financial items Net financial costs amounted to 7 mEUR (Q1 2023: 1 mEUR) and included net interest, fees relating to bank credit lines , unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 4 mEUR and included non-payable, calculated interest ex- penses on certain balance sheet items, 5 mEUR had cash flow effect. Net financial costs are impacted by an unrealized loss of 1 mEUR on Catena Media shares and net exchange rate loss amounted to 1 mEUR. 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, Canada, Brazil, Co- lombia, Argentina, Uruguay and the US. Income tax amounted to 3 mEUR (Q1 2023: 6 mEUR). The Effective Tax Rate (ETR) was 26.4% (Q1 2023: 23.5%) increasing primarily due to non-deductible costs. Net profit Net profit after tax was 8 mEUR (Q1 2023: 21 mEUR). Earnings per share (EPS) was EUR/share 0.13 versus 0.38 EUR/share Q1 2023. Equity The equity increased to 66 9 mEUR as per March 31, 2024, from 435 mEUR on December 31, 202 3. Besides the net profit of 8 mEUR, the equity has been impacted by the share exchange in connection with the acquisi- tion of Playmaker Capital of 46 mEUR, disposal of treas- ury shares of 30 mEUR , the capital increase in March with 145 mEUR, and share-based payments of 1 mEUR. ===== SIDA 12 ===== Q1 report 2024 Page 11 The decrease in USD versus EUR has impacted the eq- uity by 6 mEUR. Balance sheet Total assets amounted to 1,15 4 mEUR ( Q1 2023: 803 mEUR), with an equity of 669 mEUR (2023: 435 mEUR). This corresponds to an equity to assets ratio of 58 % (2023: 5 3%). The liquidity ratio was 1.11 resulting from current assets of 138 mEUR and current liabilities of 124 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 1.67 at the end of March. Investments In Q4 of 2023 Better Collective announced the acquisi- tion of Playmaker Capital, which closed on 6 February 2024. This strategic move, with a total purchase price of 111 million EUR, cements our position as a market leader in South America while reinforcing our North American market presence. Playmaker Capital aligns seamlessly with our strategy, offering significant synergies that will bring the upfront 11,7x EV/EBITDA below 5x by 2026, expecting margins in line with Better Collective's pub- lishing business. Cash flow and financing Cash flow from operations before special items was 22 mEUR (2023: 33 mEUR) with a cash conversion of 73%. Better Collective has bank credit facilities of a total of 319 mEUR. By the end of March 202 4, capital reserves stood at 164 mEUR consisting of cash of 61 mEUR, other current financial assets of 6 mEUR in form of listed shares and unused bank credit facilities of 97 mEUR. The parent company Better Collective A/S, is the parent company of the group. Revenue grew by 26% to 30 mEUR (Q1 2023: 24 mEUR). Total costs including depreciation and amorti- zation was 28 mEUR (Q1 2023: 20 mEUR). Profit after tax was 13 mEUR (Q1 2023: 3 mEUR). The change in profit after tax is primarily due to differences in dividend payments from subsidiaries, exchange rate adjustments, financial expenses, amortizations and corporate tax. To- tal equity ended at 673 mEUR by March 31, 2024 (2023: 443 mEUR). The equity in the parent has been impacted by the share exchange in connection with the acquisi- tion of Playmaker Capital of 46 mEUR, the capital in- crease in March with 145 mEUR and share -based pay- ments of 1 mEUR. ===== SIDA 13 ===== Q1 report 2024 Page 12 Financial targets 2024 Following the acquisition of AceOdds post Q1, the finan- cial targets for the Better Collective group for the year 2024 has been upgraded: • Revenue of 395-425 mEUR, implying 21-30% growth (previously 390-420 mEUR) • EBITDA of 125-135 mEUR implying 17-26% growth (previously 120-130 mEUR) • Net/debt to EBITDA stay below 3x (unchanged) 2024 implications The targets factor in an eleven -month impact from the Playmaker Capital acquisition with the deal closing on February 6. The acquisition is expected to ramp up over time with expected flat revenue and earnings for 2024. More factors are continued investmen t in developing the AdTech platform, several AI -projects and scaling commercial development. Further the continued North American recurring revenue share transition to invest in future sustainable growth coupled with high expecta- tions for the men’s Europea n Championship this sum- mer. 2023- 2027 The long -term 2023 -2027 financial targets have been updated following the acquisition of Playmaker Capital. • Revenue CAGR of +20% (unchanged). • EBITDA margin before special items of 35-40% (previously 30-40%). • Net debt to EBITDA before special items of <3 (unchanged). 2023-2027 implications The long-term targets include M&A funded by own cash flow and debt, and not capital increases. With Play- maker Capital, Better Collective utilized cash, debt, treasury shares and a small capital increase, resulting in a minimal dilution of 3%. Hence, a large part of the ac- quisition was already included in the guidance, making the group more comfortable in its ability to reach these. Given the opportunity to move revenue from advertis- ing to performance marketing and the increased profit- ability therein the margin target is upgraded, narrowing it toward the high end. Given the nature of performance marketing and the change in cash flow, the margin up- tick will happen after 12-24 months. Disclaimer This report contains certain forward-looking statements and opinions. Forward -looking statements are state- ments that do not relate to historical facts and events. Such statements or opinions pertaining to the future, for example wording like; “believes”, “deems”, “estimates”, “anticipates”, “aims’, and “forecasts” or similar expres- sions are intended to identify a statement as forward - looking. This applies to statements and opinions con- cerning the future financial returns, plans and expecta- tions with respect to the business and management of the group, future growth , profitability, general eco- nomic and regulatory environment , and other matters affecting Better Collective. Forward-looking statements are based on current esti- mates and assumptions made according to the best of the group’s knowledge. These statements are inherently associated with both known and unknown risks, uncer- tainties, and other factors that could cause t he results, including the group’s cash flow, financial condition, and operations, to differ materially from the results, or fail to meet expectations expressly or implicitly, assumed or described in those statements or to turn out to be less favorable than the results expressly or implicitly as- sumed or described in those statements. Better Collective can give no assurance regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments and/or targets. Considering the risks, uncertainties and assumptions associated with forward -looking state- ments, it is possible that certain future events may not occur. Moreover, forward -looking estimates derived from third-party studies may prove to be inaccurate. Ac- tual results, performance or events may differ materially from those in such st atements e.g. due to changes in general economic conditions, in particular economic conditions in the markets in which the group operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regulations, and occurrence of ac- cidents or environmental damages and systematic de- livery failures. We undertake no obligation to update or revise any forward -looking statements, whether be- cause of new information, future events or otherwi se, except to the extent required by law. ===== SIDA 14 ===== Q1 report 2024 Page 13 Other Shares and share capital Better Collective A/S is listed on Nasdaq Stockholm main market and Nasdaq Copenhagen main market. The shares are traded under the ticker “BETCO”. As per March 31, 202 4, the share capital amounted to 628,995.05 EUR, and the total number of issued shares was 62,899,505. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. Shareholder structure As of March 31, 2024, the total number of shareholders was 5,569. A list of top ten shareholders in Better Col- lective A/S can be found on the group’s website. Annual General Meeting 2024 The annual general meeting 2024 w as held on April 22, 2024. Shareholders who wish to have a specific matter brought before the general meeting must submit a writ- ten request to the company’s Board of Directors no later than six weeks prior to the general meeting. If the request is received less than six weeks before the date of the general meeting, the Board of Directors must de- cide whether the request has been made with enough time for the issue to be included on the agenda. Incentive programs To attract and retain key competences, the company has established warrant programs for certain key em- ployees. 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 4.3%. On January 2 , 2024, 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 202 4 cover 61,523 performance share units and 426, 870 share options to 79 key employees in total, vesting over a 3-year period. The total value of the 2023 LTI grant program is 3.6 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the fi- nancial goals. Program Warrants outstanding March 31, 2024 Vesting period Exercise period Exercise price DKK Exercise price EUR (rounded) 2019* 756,308 2020-2023 2022-2024 64.78 8.70 2020** 25,000 2021-2023 2023-2025 61.49 8.26 2020* 204,499 2021-2023 2023-2025 106.35 14.28 2021* 377,372 2022-2024 2024-2026 150.41 20.20 2021 US MIP Options 43,358 2021-2024 2024-2026 138.90 18.65 2022 US MIP Options 15,238 2022-2023 2023-2026 107.25 14.40 2022 Options 22,138 2022-2024 2025-2027 130.98 17.59 2022 PSU 67,276 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.08 2023 Options 239,336 2023-2025 2026-2028 85.76 11.52 2023 PSU 131,311 2023-2025 2026-2028 2024 Options 426,870 2024-2026 2027-2029 76.67 10.28 2024 PSU 61,523 2024-2026 2027-2029 * Key employees and members of executive management ** Following the AGM on April 22, 2020, 25,000 warrants were issued to the new board member, Todd Dunlap. ===== SIDA 15 ===== Q1 report 2024 Page 14 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 inclu des 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 Collective 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 dy- namically to account for this variation in risk impact. The policies and guidelines in place stipulate how manage- ment must work with risk management. Better Collective’s compliance with these policies and guidelines is also monitored by the management on an ongoing basis. Better Collective seeks to identify and understand risks and mitigate them accordingly. Also, the group’s close and longstanding relationships with customers allow Better Collective to anticipate and re- spond to market movements and new regulations in- cluding compliance requirements from authorities and sportsbooks. With the continued expansion in North and South Amer- ica, the overall r isk profile of Better Collective has changed, and compliance as well as financial risk have increased. Better Collective has mitigated the additional risks in several ways, compliance risk through involve- ment of regulatory bodies in our licensing process for newly established entities, financial risk through a per- formance-based valuation of the acquired entities, and organizational risk through establishment of local gov- ernance, and finance, HR, and l egal organization dedi- cated to the North and South American operations. Other key risk factors are described in the Annual report 2023. Contacts VP of Group Strategy, Investor Relations 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 21, 2024, after market close (CET). About Better Collective owns global and national sport media, with a vision to become the leading digital sports media group. We are on a mission to excite sports fans through engaging content and foster passionate communities worldwide. Better Collective's portfolio of digital sports media brands includes; HLTV , FUTBIN, Betarades, Soc- cernews, Tipsbladet, Action Network , Playmaker HQ , VegasInsider, Bolavip and Redgol. Headquartered in Co- penhagen, Denmark, and dual listed on Nasdaq Stock- holm (BETCO) and Nasdaq Copenhagen (BETCO DKK). To learn more about Better Collective please visit www.Bettercollective.com ===== SIDA 16 ===== Q1 report 2024 Page 15 Statement by the Board of Directors and the Executive Management Statement by the Board of Directors and the Execu- tive Management on the condensed consolidated in- terim financial statements and the parent company condensed interim financial statements for the period January 1 – March 31, 2024. Today, the B oard of D irectors and the E xecutive Management have discussed and approved the condensed consolidated interim financial statements and the parent company condensed interim financial statements of Better Collective A/S for the period Jan- uary 1 – March 31, 2024. The condensed consolidated interim financial state- ments for the period January 1 – March 31, 2024, 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 Executive 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 assets, liabil- ities, and financial position on March 31, 2024, and of the results of the group’s and parent company’s operations and the group’s cash flows for the period January 1 – March 31, 2024. 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 uncertainties, the group and the parent company are facing. The Interim Report has not been audited nor reviewed by the Company’s auditor. Copenhagen, May 21, 2024 Executive Management Jesper Søgaard Co-founder & CEO Christian Kirk Rasmussen Co-founder & COO Executive Vice President Flemming Pedersen CFO Executive Vice President Board of Directors Jens Bager Chair Therese Hillman Vice Chair Britt Boeskov Todd Dunlap Leif Nørgaard René Rechtman Petra von Rohr ===== SIDA 17 ===== Q1 report 2024 Page 16 Condensed interim financial statements for the period Consolidated income statement Note tEUR Q1 2024 Q1 2023 2023 3 Revenue 95,031 87,945 326,686 Direct costs related to revenue 27,929 27,149 99,296 4 Staff costs 28,718 21,226 88,921 Other external expenses 9,374 6,295 27,389 Operating profit before depreciation and amortization (EBITDA) and special items 29,010 33,275 111,080 Depreciation 1,472 713 3,958 Operating profit before amortization (EBITA) and special items 27,538 32,561 107,122 7 Amortization and impairment 8,234 3,871 24,283 Operating profit (EBIT) before special items 19,304 28,691 82,839 5 Special items, net - 2,542 - 607 - 1,948 Operating profit 16,762 28,083 80,891 Financial income 1,607 2,672 5,987 Financial expenses 8,105 3,407 28,868 Profit before tax 10,264 27,348 58,010 6 Tax on profit for the period 2,711 6,414 18,175 Profit for the period 7,553 20,935 39,835 Earnings per share attributable to equity holders of the company Average number of shares 58,511,905 55,154,113 55,186,772 Average number of warrants - converted to number of shares 2,481,064 2,419,909 2,658,571 Earnings per share (in EUR) 0.13 0.38 0.74 Diluted earnings per share (in EUR) 0.12 0.36 0.70 Consolidated statement of other comprehensive income tEUR Q1 2024 Q1 2023 2023 Profit for the period 7,553 20,935 39,835 Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent peri- ods: Fair value adjustment of hedges for the year 483 0 - 483 Currency translation to presentation currency - 170 - 678 1,318 Currency translation of non-current intercompany loans 6,278 - 5,107 - 9,440 Tax on other comprehensive income/loss 0 1,123 0 Net other comprehensive income/loss 6,591 - 4,661 - 8,605 Total comprehensive income/(loss) for the period, net of tax 14,144 16,274 31,230 Attributable to: Shareholders of the parent 14,144 16,274 31,230 ===== SIDA 18 ===== Q1 report 2024 Page 17 Consolidated statement of financial position Note tEUR Q1 2024 Q1 2023 2023 Assets Non-current assets 7 Intangible assets Goodwill 351,240 182,108 255,074 Domains and websites 548,228 459,833 466,615 Accounts and other intangible assets 86,989 33,046 79,740 Total intangible assets 986,457 674,987 801,429 Tangible assets Right of use assets 17,056 5,634 15,575 Leasehold improvements, Fixtures and fittings, other plant and equipment 6,791 2,758 6,006 Total tangible assets 23,847 8,393 21,582 Other non-current assets Deposits 1,869 1,623 1,803 Deferred tax asset 3,273 10,245 7,236 Total other non-current assets 5,142 11,868 9,039 Total non-current assets 1,015,446 695,248 832,050 Current assets Trade and other receivables 61,670 51,059 48,954 Corporation tax receivable 4,177 7,196 2,252 Prepayments 5,238 3,499 4,250 Other current financial assets 5,639 17,121 6,804 Cash 61,494 28,847 43,552 Total current assets 138,218 107,722 105,812 Total assets 1,153,664 802,970 937,862 Note tEUR Q1 2024 Q1 2023 2023 Equity and liabilities Equity Share Capital 629 552 554 Share Premium 465,834 272,594 274,580 Currency Translation Reserve 21,162 18,516 15,055 Hedging reserves 0 0 - 483 Treasury Shares 0 - 13,577 - 21,057 Retained Earnings 180,875 145,366 166,624 Total equity 668,500 423,449 435,273 Non-current Liabilities 8 Debt to credit institutions 221,820 201,383 248,657 8 Lease liabilities 14,356 4,931 13,326 8 Deferred tax liabilities 96,640 81,013 84,670 8 Other long-term financial liabilities 28,307 29,161 52,443 Total non-current liabilities 361,123 316,488 399,096 Current Liabilities Prepayments received from customers and deferred revenue 5,416 8,136 4,262 Trade and other payables 24,211 19,674 27,838 Corporation tax payable 7,976 5,343 6,754 8 Other financial liabilities 83,111 27,482 61,938 Debt to credit institutions 0 1,292 0 8 Lease liabilities 3,327 1,106 2,702 Total current liabilities 124,041 63,033 103,493 Total liabilities 485,164 379,521 502,589 Total Equity and liabilities 1,153,664 802,970 937,862 ===== SIDA 19 ===== Q1 report 2024 Page 18 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, 2024 554 274,580 15,055 - 483 - 21,057 166,624 435,273 Result for the period 0 0 0 0 0 7,553 7,553 Fair value adjustment of hedges 0 0 0 483 0 0 483 Currency translation to presentation currency 0 0 6,108 0 0 0 6,108 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 6,108 483 0 0 6,591 Total comprehensive income for the year 0 0 6,108 483 0 7,553 14,144 Transactions with owners Capital Increase 75 191,254 0 0 0 0 191,329 Acquisition of treasury shares 0 0 0 0 0 0 0 Disposal of treasury shares 0 0 0 0 21,057 8,885 29,942 Share based payments 0 0 0 0 0 670 670 Transaction cost 0 0 0 0 0 - 2,857 - 2,857 Total transactions with owners 75 191,254 0 0 21,057 6,698 219,084 At March 31, 2024 629 465,834 21,162 0 0 180,875 668,500 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, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917 Result for the period 0 0 0 0 0 20,935 20,935 Fair value adjustment of hedges 0 0 0 0 0 0 0 Currency translation to presentation currency 0 0 - 5,784 0 0 0 - 5,784 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 0 20,935 16,274 Transactions with owners Capital Increase 0 43 0 0 0 0 44 Acquisition of treasury shares 0 0 0 0 - 5,903 0 - 5,903 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 126 126 Transaction cost 0 0 0 0 - 6 - 2 - 8 Total transactions with owners 0 43 0 0 - 5,909 124 - 5,741 At March 31, 2023 552 272,594 18,516 0 - 13,577 145,366 423,449 During the period no dividend was paid. ===== SIDA 20 ===== Q1 report 2024 Page 19 Consolidated statement of changes in equity - continued tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As at January 1, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917 Result for the period 0 0 0 0 0 39,835 39,835 Fair value adjustment of hedges 0 0 0 - 483 0 0 - 483 Currency translation to presentation currency 0 0 - 8,122 0 0 0 - 8,122 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 8,122 - 483 0 0 - 8,605 Total comprehensive income for the year 0 0 - 8,122 - 483 0 39,835 31,230 Transactions with owners Capital Increase 3 2,030 0 0 0 0 2,033 Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,495 2,495 Transaction cost 0 0 0 0 - 13 - 12 - 26 Total transactions with owners 3 2,030 0 0 - 13,389 2,482 - 8,874 At December 31, 2023 554 274,580 15,055 - 483 - 21,057 166,624 435,273 During the period no dividend was paid. ===== SIDA 21 ===== Q1 report 2024 Page 20 Consolidated statement of cash flows Note tEUR Q1 2024 Q1 2023 2023 Profit before tax 10,264 27,348 58,010 Adjustment for finance items 6,498 735 22,882 Adjustment for special items 2,542 607 1,947 Operating Profit for the period before special items 19,304 28,691 82,839 Depreciation and amortization 9,706 4,584 28,241 Other adjustments of non-cash operating items 1,112 100 2,581 Cash flow from operations before changes in working capital and special items 30,122 33,375 113,661 Change in working capital - 8,457 - 15 5,722 Cash flow from operations before special items 21,665 33,360 119,384 Special items, cash flow - 11,649 - 395 - 4,744 Cash flow from operations 10,016 32,966 114,639 Financial income, received 724 463 493 Financial expenses, paid - 5,908 - 3,168 - 10,712 Cash flow from activities before tax 4,832 30,261 104,420 Income tax paid - 3,890 - 3,799 - 15,411 Cash flow from operating activities 942 26,462 89,009 10 Acquisition of businesses - 70,279 0 - 57,282 10 Acquisition of intangible assets - 2,990 - 3,204 - 27,469 Acquisition of property, plant and equipment - 961 187 - 5,143 Sale of property, plant and equipment 438 - 238 3 Acquisition of other financial assets 0 - 14,930 - 14,930 Change in other non-current assets - 66 - 3,093 - 1,427 Cash flow from investing activities - 73,858 - 21,278 - 106,248 Note tEUR Q1 2024 Q1 2023 2023 Repayment of borrowings - 122,087 - 1,486 - 1,486 Proceeds from borrowings 71,859 0 45,490 Lease liabilities - 878 - 373 - 2,814 Other non-current liabilities - 843 0 - 483 Capital increase 145,144 44 2,033 Treasury shares 0 - 5,903 - 13,381 Transaction cost - 2,857 - 6 - 26 Warrant settlement, sale of warrants 602 0 0 Cash flow from financing activities 90,940 - 7,724 29,334 Cash flows for the period 18,024 - 2,540 12,095 Cash and cash equivalents at beginning 43,552 31,497 31,497 Foreign currency translation of cash and cash equivalents - 82 - 111 - 41 Cash and cash equivalents period end 61,494 28,847 43,552 Cash and cash equivalents period end Cash 61,494 28,847 43,552 Cash and cash equivalents period end 61,494 28,847 43,552 ===== SIDA 22 ===== Q1 report 2024 Page 21 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 performance marketing. Better Collec- tive’s vision is to become the leading digital sports media group. Basis of preparation The Interim Report (condensed consolidated interim financial statements) for the period January 1 - March 31, 2024, has been prepared in accordance with IAS 34 “Interim financial reporting” as adopted by the EU and additional requirements 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 (APM s) 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, 2024, 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 2023 annual report which contains a full description of the accounting policies for the Group and the parent company. The annual report for 2023 including full description of the accounting policies can be found on Better Collective’s web- site: https://storage.mfn.se/9896a1ee-39d1-49c3-a0fd-7447b83bcb8e/annual-report-2023.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 annual report for 2023 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 23 ===== Q1 report 2024 Page 22 2. Segments Publishing and Paid Media Better Collective operates two different business models regarding customer acquisition with different earnings - profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Cost and Earnings. The Publishing business includes revenue from Better Collective’s proprietary online sports media and media partnerships where the audience is coming either directly or through organic search results, whereas Paid Media gener- ates revenue through paid ad-traffic to our brands, thereby running on a lower earnings margin. The performance for each segment is presented in the below tables: Publishing Paid Group tEUR Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Revenue Share 29,764 32,424 12,874 7,127 42,638 39,552 CPA 14,905 13,366 14,335 20,945 29,241 34,311 Subscription 4,248 4,483 0 0 4,248 4,483 Other 17,392 8,930 1,512 668 18,905 9,598 Revenue 66,310 59,204 28,721 28,741 95,031 87,945 Cost 43,804 33,795 22,217 20,875 66,020 54,670 Operating profit before depreciation, amortization and special items 22,506 25,409 6,505 7,866 29,011 33,275 EBITDA-Margin before special items 34% 43% 23% 27% 31% 38% Special items, net - 2,526 - 607 - 16 0 - 2,542 - 607 Operating profit before depreciation and amortization 19,980 24,802 6,488 7,866 24,468 32,667 EBITDA-Margin 30% 42% 23% 27% 28% 37% Depreciation 1,420 713 52 0 1,472 713 Operating profit before amortization 18,560 24,088 6,437 7,866 24,996 31,954 EBITA-Margin 28% 41% 22% 27% 26% 36% Publishing Paid Group tEUR 2023 2023 2023 Revenue Share 120,776 41,049 161,825 CPA 40,590 63,371 103,960 Subscription 17,959 0 17,959 Other 41,004 1,937 42,941 Revenue 220,328 106,358 326,686 Cost 139,685 75,920 215,605 Operating profit before depreciation, amortization and special items 80,642 30,438 111,080 EBITDA-Margin before special items 37% 29% 34% Special items, net - 1,948 0 - 1,948 Operating profit before depreciation and amortization 78,695 30,438 109,132 EBITDA-Margin 36% 29% 33% Depreciation 3,909 49 3,958 Operating profit before amortization 74,785 30,389 105,174 EBITA-Margin 34% 29% 32% ===== SIDA 24 ===== Q1 report 2024 Page 23 2. Segments, continued Europe & Rest of World and North A merica Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a national reach. Better Collective’s regional brands are tai- lored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. Better Collective reports on the geographical segments North America and Europe & ROW (Rest of World), measuring and disclosing separately for Revenue, Cost and Earnings. Historical financial figures are reported accordingly. The performance for each segment is presented in the below tables: Europe & RoW North America Group tEUR Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Revenue Share 36,567 31,919 6,071 7,633 42,638 39,552 CPA 13,336 11,192 15,905 23,119 29,241 34,311 Subscription 619 566 3,630 3,918 4,248 4,483 Other 10,500 7,125 8,404 2,473 18,905 9,599 Revenue 61,021 50,802 34,010 37,143 95,031 87,945 Cost 41,119 32,070 24,902 22,600 66,020 54,670 Operating profit before depreciation, amortization and special items 19,903 18,732 9,108 14,543 29,011 33,275 EBITDA-Margin before special items 33% 37% 27% 39% 31% 38% Special items, net - 747 - 607 -1,795 0 - 2,542 - 607 Operating profit before depreciation and amortization 19,156 18,124 7,313 14,543 26,468 32,667 EBITDA-Margin 31% 36% 22% 39% 28% 37% Depreciation 1,210 713 262 0 1,472 713 Operating profit before amortization 17,946 17,411 7,051 14,543 24,996 31,954 EBITA-Margin 29% 34% 21% 39% 26% 36% Europe & Row North America Group tEUR 2023 2023 2023 Revenue Share 136,211 25,614 161,825 CPA 49,173 54,788 103,960 Subscription 2,461 15,499 17,959 Other 30,241 12,700 42,941 Revenue 218,085 108,600 326,686 Cost 137,902 77,703 215,605 Operating profit before depreciation, amortization and special items 80,183 30,897 111,080 EBITDA-Margin before special items 37% 28% 34% Special items, net - 1,060 - 888 - 1,948 Operating profit before depreciation and amortization 79,123 30,009 109,132 EBITDA-Margin 36% 28% 33% Depreciation 2,947 1,011 3,958 Operating profit before amortization 76,176 28,998 105,174 EBITA-Margin 35% 27% 32% ===== SIDA 25 ===== Q1 report 2024 Page 24 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 2024 Q1 2023* 2023 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 53,286 46,817 191,118 CPA, Fixed Fees 41,500 41,128 135,385 Other 245 0 183 Total revenue 95,031 87,945 326,686 %-split Recurring revenue 56 53 58 CPA, Fixed Fees 44 47 42 Other 0 0 0 Total 100 100 100 tEUR Q1 2024 Q1 2023* 2023 Revenue type Revenue Share 42,638 39,552 161,825 CPA 29,241 34,311 103,960 Subscription 4,248 4,483 17,959 Other 18,905 9,599 42,941 Total revenue 95,031 87,945 326,686 %-split Revenue Share 45 45 50 CPA 31 39 32 Subscription 4 5 5 Other 20 11 13 Total 100 100 100 * Q1 2023 figures have been restated for Revenue Share and CPA because of the reclassification of upfront payments related to hybrid revenue share contracts which were reclassified for the first time in Q3 2023. 4. Share-based payment plans 2019 Warrant programs: During the first quarter of 2024 the company did not grant any new warrants and 48,875 warrants were exercised under this program. 2020 Warrant programs: During the first quarter of 2024 the company did not grant any new warrants and 15,499 warrants were exercised under this program. 2022 Incentive Program: During the first quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2023 Incentive Program: During the first quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2023 CXO Options Program: During the first quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2024 Incentive Program: On January 2, 2024, a new LTI program consisting of Performance Stock Units and stock options was announced. Un- der the program 426,870 options and 61,523 PSUs were granted to certain key employees. Whereas the options have the right to subscribe for one ordinary share, the PSUs have a performance-based element that can increase to two shares for one PSU – both are classified as equity-settled share-based payment transactions*. The vesting period runs from 2024-2026 and the exercise period runs from 2027 to 2029. * The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled. ===== SIDA 26 ===== Q1 report 2024 Page 25 4. Share-based payment plans, continued Management Incentive Program - Action Network: During the first quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. Total share-based compensation: The total share-based compensation expense for the above programs recognized for Q1 2024 is 1,112 tEUR (Q1 2023: 134 tEUR). 5. Special items Special items consist of recurring and non-recurring items that management does not consider to be part of the group’s ordinary operating activities, i.e. acquisition costs, dual listing, adjustment of earn-out payments related to acquisitions, and restructuring costs are presented in the Income statement in a separate line item labelled ‘Special items’. The impact of special items is specified as follows: tEUR Q1 2024 Q1 2023 2023 Operating profit 16,762 28,083 80,891 Special Items related to: Special items related to dual listing 0 0 - 1,129 Special items related to M&A - 1,779 - 350 - 10,224 Variable payments regarding acquisitions - cost 0 - 93 0 Variable payments regarding acquisitions - income 0 0 9,924 Special items related to Restructuring - 763 - 164 - 519 Special items, total - 2,542 - 607 - 1,948 Operating profit (EBIT) before special items 19,304 28,691 82,839 Amortization and impairment 8,234 3,871 24,283 Operating profit before amortization and special items (EBITA before special items) 27,538 32,561 107,122 Depreciation 1,472 713 3,958 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 29,010 33,275 111,080 ===== SIDA 27 ===== Q1 report 2024 Page 26 6. Income tax Total tax for the period is specified as follows: Income tax on profit for the period is specified as follows: Tax on the profit for the period can be explained as follows: 7. Intangible assets *Accounts and other intangible assets consist of accounts (33,299 tEUR), Media Partnerships (51,054 tEUR) and software and others (2,637 tEUR) tEUR Q1 2024 Q1 2023 2023 Tax for the period 2,711 6,414 18,175 Tax on other comprehensive income 0 -1,223 0 Total 2,711 5,290 18,175 tEUR Q1 2024 Q1 2023 2023 Deferred tax - 436 2,563 3,641 Current tax 3,143 3,851 16,400 Adjustment from prior years 4 0 - 1,867 Total 2,711 6,414 18,175 tEUR Q1 2024 Q1 2023 2023 Specification for the period: Calculated 22% tax of the result before tax 2,258 6,017 12,762 Adjustment of the tax rates in foreign subsidiaries relative to the 22% 340 501 1,955 Tax effect of: Special items 0 0 868 Special items - taxable items 0 0 - 233 Other non-taxable income - 152 - 146 - 410 Other non-deductible costs 261 42 3,461 Unrecognized tax losses carried forward 0 0 2,010 Tax deductable 0 0 - 371 Adjustment of tax relating to prior periods 4 0 -1,867 Total 2,711 6,414 18,175 Effective tax rate 26.4% 23.5% 31.3% 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 7,388 7,388 Acquisitions through business combinations 93,005 76,523 9,583 179,111 Transfer 0 0 - 295 - 295 Disposals 0 0 - 1,694 - 1.694 Currency Translation 3,161 5,089 522 8,772 At March 31, 2024 351,240 548,228 155,570 1,055,038 Amortization and impairment As of January 1, 2024 0 0 60,325 60,325 Amortization for the period 0 0 8,357 8,357 Amortization on disposed assets 0 0 - 169 - 169 Currency translation 0 0 68 68 At March 31, 2024 0 0 68,581 68,581 Net book value at March 31, 2024 351,240 548,228 86,989 986,457 ===== SIDA 28 ===== Q1 report 2024 Page 27 7. Intangible assets, continued 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 Amortization on disposed assets 0 0 0 0 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 *Accounts and other intangible assets consist of accounts (23,529 tEUR), Media Partnerships (9,023 tEUR) and software and others (494 tEUR) *Accounts and other intangible assets consist of accounts (30,474 tEUR), Media Partnerships (48,769 tEUR) and software and others (497 tEUR) tEUR Goodwill Domains and websites Accounts and other intangible assets* Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,412 53,914 57,326 Acquisitions through business combinations 75,335 10,842 29,579 115,756 Transfer 0 0 0 0 Disposals 0 0 - 6,531 - 6,531 Currency Translation - 4,203 - 8,151 - 602 - 12,956 At December 31, 2023 255,074 466,615 140,065 861,754 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 24,283 24,283 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 646 - 646 At December 31, 2023 0 0 60,325 60,325 Net book value at December 31, 2023 255,074 466,615 79,740 801,429 ===== SIDA 29 ===== Q1 report 2024 Page 28 8. Non-current liabilities and other current financial liabilities Debt to credit institutions: As per March 31, 2024, Better Collective has drawn 221.8 mEUR (2023: 248.7) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. Lease liabilities: Non-current and current lease liabilities, of 14.4 mEUR (2023: 13.3 mEUR) and 3.3 mEUR (2023: 2.7 mEUR) respectively. Deferred Tax liability: Deferred tax liability as of March 31, 2024, amounted to 96.6 mEUR (2023: 84.7 mEUR). The change from January 1, 2024, originates from changes in deferred tax related to acquisitions, amortization of accounts from acquisitions, and deferred tax changes in Parent Company and Better Collective US, Inc. Deferred Tax asset: Deferred tax asset as of March 31, 2024, amounted to 3.3 mEUR (2023: 7.2 mEUR). The group has total tax asset of 2,010t EUR related to tax losses carried forward, which are not recognized in the financial statement due to the uncertainty of utilizing the tax asset. Of not recognized tax losses carry forwards 2,010t EUR, may be carried forward for up to 3 years. Other financial liabilities: As per March 31, 2024, other financial liabilities amounted to 83.1 mEUR (2023: 61.9 mEUR) due to deferred and variable payments related to acquisitions. The increase from January 1, 2024, is related to the capitalization of media agreements. 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. The fair value of financial instruments are 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. 9. Business combinations Acquisition of Playmaker Capital On November 6, 2023 Better Collective announced the acquisition of Playmaker Capital for a total price consideration of 176 mEUR. The consideration comprises 35 % cash and a cap of 65 % shares in Better Collective A/S. The considera- tion is financed partly by own cash and utilization of available facilities of 72 mEUR as well as a share consideration. The share consideration payable to Playmaker Capital shareholders, a total of 3,143,009 Better Collective shares, has been provided by Better Collective delivering 1,387,580 existing shares held as treasury shares and by issuing 1,755,429 new shares. Playmaker Capital is a leading digital sports media group that owns and operates several strong sports media brands across the Americas. The acquisition has been closed on 6 February 2024, and Playmaker Capital are consolidated into Better Collective Group from the closing date. The transferred consideration was in cash and shares in Better Collective A/S. tEUR Purchase amount 110,762 Cash and cash equivalents 4,840 Shares 73,314 Cash outflow 32,608 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 - 18,141 Other liabilities - 68,242 Identified net assets 17,757 Goodwill 93,005 Total consideration 110,762 ===== SIDA 30 ===== Q1 report 2024 Page 29 9. Business combinations, continued A goodwill of 93,005 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 ex- pectations given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of Playmaker Capital amounts to 6,420 tEUR. Transaction costs are ac- counted for in the income statements under “special items” since the announcement. The acquisition was completed on February 6, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 99 mEUR and result after tax would have amounted to 10 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. 10. Note to cash flow statement tEUR Q1 2024 Q1 2023 2023 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition - 32,608 0 - 57,282 Business Combinations deferred payments from current period 0 0 0 Deferred payments - business combinations from prior periods - 37,761 0 0 Total cash flow from business combinations - 70,279 0 - 57,282 Acquisition of intangible assets: Acquisitions through asset transactions 0 - 13,901 - 50,639 Deferred payments related to acquisition value 0 0 - 494 Deferred payments - acquisitions from prior periods 0 - 425 - 9,745 Intangible assets with no cash flow effect 0 11,122 33,613 Other investments - 2,990 0 - 203 Total cash flow from intangible assets - 2,990 - 3,204 - 27,468 ===== SIDA 31 ===== Q1 report 2024 Page 30 Financial statements for the period Income statement – Parent company tEUR Q1 2024 Q1 2023 2023 Revenue 29,905 23,699 98,513 Other operating income 3,122 4,015 12,516 Direct costs related to revenue 5,178 4,693 23,071 Staff costs 12,495 8,859 40,796 Depreciation 688 178 1,438 Other external expenses 6,036 4,417 18,632 Operating profit before amortization (EBITA) and special items 8,629 9,567 27,091 Amortization 3,334 1,594 9,908 Operating profit (EBIT) before special items 5,295 7,973 17,182 Special items, net - 588 - 395 312 Operating profit 4,707 7,578 17,494 Financial income 15,698 4,003 70,010 Financial expenses 7,104 7,996 45,054 Profit before tax 13,301 3,585 42,450 Tax on profit for the period 336 762 3,181 Profit for the period 12,965 2,823 39,269 Statement of other comprehensive income tEUR Q1 2024 Q1 2023 2023 Profit for the period 12,965 2,823 39,269 Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Fair value adjustment of hedges for the year 483 0 - 483 Currency translation to presentation currency - 2,609 - 641 - 910 Currency translation of non-current intercompany loans 0 0 0 Income tax 0 0 0 Net other comprehensive income/loss - 2,126 - 641 - 1,393 Total comprehensive income/(loss) for the period, net of tax 10,839 2,182 37,877 ===== SIDA 32 ===== Q1 report 2024 Page 31 Statement of financial position – Parent company tEUR Q1 2024 Q1 2023 2023 Assets Non-current assets Intangible assets Goodwill 17,797 17,822 17,812 Domains and websites 167,694 168,504 167,831 Accounts and other intangible assets 50,608 21,813 50,418 Total intangible assets 236,099 208,140 236,061 Tangible assets Right of use assets 8,243 283 7,469 Fixtures and fittings, other plant and equipment 2,959 488 2,494 Total tangible assets 11,202 770 9,962 Financial assets Investments in subsidiaries 375,971 156,502 234,330 Receivables from subsidiaries 303,093 268,261 282,016 Deposits 977 1,096 940 Total financial assets 680,041 425,859 517,285 Total non-current assets 927,342 634,769 763,308 Current assets Trade and other receivables 21,364 15,193 15,735 Receivables from subsidiaries 11,426 24,264 13,153 Tax receivable 2,579 6,360 1,479 Prepayments 2,819 2,580 2,453 Other current financial assets 5,639 0 6,804 Cash 36,559 26,592 17,825 Total current assets 80,387 74,989 57,450 Total assets 1,007,730 709,757 820,758 tEUR Q1 2024 Q1 2023 2023 Equity and liabilities Equity Share Capital 629 552 554 Share Premium 465,834 272,594 274,580 Currency Translation Reserve - 2,945 - 67 - 336 Hedging reserves 0 0 - 483 Treasury shares 0 - 13,577 - 21,057 Retained Earnings 209,616 151,161 189,953 Total equity 673,134 410,662 443,211 Non-current Liabilities Debt to credit institutions 221,820 201,383 248,657 Lease liabilities 6,450 0 6,024 Deferred tax liabilities 14,058 11,534 13,832 Other non-current financial liabilities 199 27,331 25,261 Total non-current liabilities 242,526 240,248 293,774 Current Liabilities Prepayments received from customers and deferred revenue 634 1,749 312 Trade and other payables 6,879 3,985 11,495 Payables to subsidiaries 20,931 30,930 11,993 Tax payable 185 50 196 Other current financial liabilities 61,675 20,528 58,295 Debt to credit institutions 0 1,292 0 Lease liabilities 1,767 314 1,483 Total current liabilities 92,069 58,848 83,773 Total liabilities 334,595 299,096 377,547 Total equity and liabilities 1,007,730 709,757 820,758 ===== SIDA 33 ===== Q1 report 2024 Page 32 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 0 411,054 Result for the period 0 0 0 0 0 39,269 0 39,269 Other comprehensive income 0 0 0 - 483 0 0 0 - 483 Currency translation to presentation currency 0 0 - 910 0 0 0 0 - 910 Tax on other comprehensive income 0 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 910 - 483 0 0 0 - 1,393 Total comprehensive income for the year 0 0 - 910 - 483 0 39,269 0 37,877 Transactions with owners Capital Increase 3 2,030 0 0 0 3,154 0 5,187 Acquisition of treasury shares 0 0 0 0 - 13,375 0 0 - 13,375 Disposal of treasury shares 0 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,495 0 2,495 Transaction cost 0 0 0 0 - 13 - 12 0 - 26 Total transactions with own- ers 3 2,030 0 0 - 13,389 5,636 0 - 5,720 At December 31, 2023 554 274,580 - 336 - 483 - 21,057 189,953 0 443,211 During the period no dividend was paid. tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2024 554 274,580 - 336 - 483 - 21,057 189,953 0 443,211 Result for the period 0 0 0 0 0 12,965 0 12,965 Fair value adjustment of hedges 0 0 0 483 0 0 0 483 Currency translation to presentation currency 0 0 - 2,609 0 0 0 0 - 2,609 Tax on other comprehensive income 0 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 2,609 483 0 0 0 - 2,126 Total comprehensive income for the year 0 0 - 2,609 483 0 12,965 0 10,839 Transactions with owners Capital Increase 75 191,254 0 0 0 0 0 191,329 Acquisition of treasury shares 0 0 0 0 0 0 0 0 Disposal of treasury shares 0 0 0 0 21,057 8,885 0 29,942 Share based payments 0 0 0 0 0 670 0 670 Transaction cost 0 0 0 0 0 - 2,857 0 - 2,857 Total transactions with own- ers 75 191,254 0 0 21,057 6,698 0 219,084 At March 31, 2024 629 465,834 - 2,945 0 0 209,616 0 673,134 During the period no dividend was paid. ===== SIDA 34 ===== Q1 report 2024 Page 33 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 0 411,054 Result for the period 0 0 0 0 0 2,823 0 2,823 Other comprehensive income 0 0 Currency translation to presentation currency 0 0 - 641 0 0 0 0 - 641 Tax on other comprehensive income 0 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 641 0 0 0 0 - 641 Total comprehensive income for the year 0 0 - 641 0 0 2,823 0 2,182 Transactions with owners Capital Increase 1 43 0 0 0 3,158 0 3,202 Acquisition of treasury shares 0 0 0 0 - 5,903 0 0 - 5,903 Disposal of treasury shares 0 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 134 0 134 Transaction cost 0 0 0 0 - 6 - 2 0 - 8 Total transactions with own- ers 0 43 0 0 - 5,909 3,291 0 - 2,575 At March 31, 2023 552 272,594 - 67 0 - 13,577 151,161 0 410,662 During the period no dividend was paid. ===== SIDA 35 ===== Q1 report 2024 Page 34 The group uses and communicate certain Alternative Performance Measures (“APM”), which are not defined under IFRS. Such are not to replace performance measures defined and under IFRS. The APM’s may not be indicative of the group’s historical operating results, nor are such measures meant to be predictive o f the group’s future results. The group be- lieves however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s future operating performance, and its ability to service its debt. Accordingly, the APMs are disc losed to permit a more complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business performance is evaluated by the Management. The group believes that the presentation of these APMs enhances an investor’s understanding of the group’s operating performance and the group’s ability to service its debt. Accordingly, the group discloses the APM’s to permit a more complete and comprehensive analysis of its operating performance relative to other companies and across periods, and of the group’s ability to service its debt. However, these APM’s may be calculated differently by other companies and may not be comparable with APM’s with similarly titled measures used by other companies. The group’s APMs are not m easurements of financial performance under IFRS and should not be considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other measures of performance derived in accordance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as reported under IFRS. Our currently applied APM’s are summarized and described below. Alternative Performance Measures Alternative Performance Measure Description SCOPE Earnings per share (EPS) Net Profit for the period / (Average number of shares - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share. Diluted earnings per share Net profit for the period / (Average number of shares + Average number of outstanding warrants - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share, assuming full dilution from active warrant programs. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitor- ing and evaluation of the Group’s operational profit- ability. Alternative Performance Measure Description SCOPE Operating profit before amortizations margin (%) Operating profit before amortizations / reve- nue This APM supports the assessment and monitoring of the Group’s performance and profitability EBITDA before special items EBITDA adjusted for special items This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Operating profit before amortizations and special items margin (%) Operating profit before amortizations and special items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Special items Items that are considered not part of ongoing business Items that are not part of ongoing business, e.g. cost related to M&A and restructuring, adjustments of earn-out payments. Net Debt / EBITDA before special items* (Interest bearing debt, minus cash and cash equivalents) / EBITDA before special items on rolling twelve months basis This ratio is used to describe the horizon for pay back of the interest-bearing debt and measures the leverage of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current liabilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the company is funded by equity Cash conversion rate before special items (Cash flow from operations before special items + Cash from CAPEX) / EBITDA before special items This APM is reported to illustrate the Group’s ability to convert profits to cash NDC New depositing customers A key figure to reflect the Group’s ability to fuel long-term revenue and organic growth Organic Growth Revenue growth as compared to the same pe- riod previous year. Organic growth from ac- quired companies or assets are calculated from the date of acquisition measured against the historical baseline performance. Reported to measure the ability to generate growth from existing business Alternative Performance Measures and Definitions ===== SIDA 36 ===== Q1 report 2024 Page 35 Alternative Performance Measure Description SCOPE Recurring revenue Recurring revenue is a combined set of reve- nues that is defined as recurring as manage- ment considers that the sources of these rev- enue streams will continuously generate reve- nue over a variable period of time and size e.g. if players continue to bet with gaming opera- tors with which BC has revenue share agree- ments, customers continue current subscrip- tions or if BC on a current basis receive reve- nues from customers having current market- ing agreements in respect of banners, etc. on the group’s websites. Accordingly, it includes Revenue share income, CPM /Advertising and subscription revenues. The group reports this APM to distinguish between what management consider as recurring revenue streams and what management consider as non-re- curring revenue streams, e.g. revenues reflecting one-time settlements with gaming operators. *Net debt definition has been changed from Q3, 2023 so it is excluding earn-outs. Comparatives have been changed accordingly. Definitions Term Description PPC Pay-Per-Click SEO Search Engine Optimization Sports win margin Sports net player winnings (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 ===== SIDA 37 ===== Q1 report 2024 Page 36 Better Collective A/S Sankt Annæ Plads 26-28 1250 Copenhagen K Denmark CVR no 27 65 29 13 +45 29 91 99 65 info@bettercollective.com bettercollective.com