===== SIDA 1 ===== Q2 report 2024 + August 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 Q2, 2024 • R evenue of 99 mEUR, growth of 27% • Recurring revenue of 62 mEUR; growth of 26% • EBITDA flat at 29 mEUR with a 29% margin, mirroring exceptional performance last year and as expected near-term limited margin contribution from recent acquisitions • Net debt to EBITDA of 2.0 • Media partnership changes have been fully mitigated and had a net zero impact for the group • Secured proof of concept and first operational success for AdVantage • Full year financial targets were upgraded following the acquisition of AceOdds – and remain unchanged ===== SIDA 2 ===== Q2 report 2024 Page 1 *Before special items EBITDA* mEUR Revenue mEUR Recurring revenue mEUR ===== SIDA 3 ===== Q2 report 2024 Page 2 Highlights Q2, 2024 3 Financial highlights and key figures 5 CEO letter 6 Business review and financial performance 9 Financial performance H1 2024 13 Financial targets 15 Other 16 Condensed interim financial statements for the period 19 Notes 24 Parent Company 36 A conference call for Better Collective’s stakeholders will be held on August 22, at 10:00 a.m. CET and can be joined online here. To participate through phone , 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 August 21 via: www.Bettercollective.com Upcoming events • Q3 release – November 13, 2024 • Q4 release – February 19, 2025 • Annual Report – March 25, 2025 Q2 report 2024 Page 2 Table of contents Q2 webcast August 22, 2024 ===== SIDA 4 ===== Q2 report 2024 Page 3 Highlights Q2, 2024 Following the acquisition of AceOdds during Q2, the fi- nancial targets for the Better Collective group for the year 2024 were upgraded: • Revenue of 395-425 mEUR, implying 21-30% growth (previously 390-420 mEUR) • EBITDA of 130-140 mEUR implying 17-26% growth (previously 125-135 mEUR) • Net/debt to EBITDA stay below 3x (unchanged) Group revenue increased 27% to 99 mEUR of which 5% was organic growth. The growth comes on top of ex- traordinary performance last year with 37% growth of which 29% was organic growth during Q2. Recurring revenue was 62 mEUR, up 26% implying higher quality revenue. Recurring revenue makes up 62% of total group revenue. The recurring revenue growth comes from a good development in revenue share income, an above expected sports win margin, as well as acquisitions adding recurring advertising reve- nue. During the quarter, there was a boost in June due to the European Championship . However, with clubs taking an earlier break ahead of the tournament and the 2022 World Cup shifting games into early 2023, more than 20% fewer matches were played in major European leagues during Q2 2024. Group EBITDA before special items was 29 mEUR, with a margin of 29%. This is as expected given the recent acquisitions of Playmaker Capital and Playmaker HQ with limited near-term contribution. Furthermore, there has been an increase in investments into building out adtech competencies and sales competencies for Ad- Vantage as well as other AI investments. This compares to EBITDA growth of 135% and a margin of 37% last year, aided by the extraordinary performance from North America including heavy upfront pay ments both for CPA and hybrid contracts. The sports win margin was above expectations for Q2 this year, just like last year. The increase in costs in North America stems from the acquisitions of Playmaker Capital and Playmaker HQ. Playmaker Capital is known for its backend loaded sea- sonality, hence the EBITDA contribution during the first half has expectedly been low. The margin contribution will increase during the second half of the year. Further, the acquisition came with overhead costs in Canada, all of which has been incorporated in the North American cost base. Additionally, the Playmaker HQ acquisition came with additional costs as well as underperformance. Excluding the two acquisitions, costs are down versus last year for North America. Cash flow from operations before special items was 27 mEUR. The cash conversion was 93%. By the end of Q2, capital reserves stood at 127 mEUR of which cash of 49 mEUR, and other current financial assets of 1 mEUR and unused credit facilities of 78 mEUR. New depositing customers (NDC) numbered 501,000 where 8 2% was sent on revenue share contracts. The Men’s European Championship in soccer was, as ex- pected, a good contributor during the quarter. A new content strategy on Better Collective’s European sports media proved effective and delivered strong growth in audience. The group sent more than 100.000 NDCs at- tributed to the tournament. The technical development of AdVantage has pro- gressed successfully, and it is now gradually being rolled out across the Better Collective network. A dedicated commercial team has been established, and we have de- livered the first proof of concept on a small brand, mak- ing the group confident to continue to roll out on larger brands in the coming quarters. The platform performed as planned and we have seen incremental revenue growth - although small - on a brand that historically only did performance marketing . As previously men- tioned, financial impact for 2024 will be insignificant. Better Collective closed the acquisition of Playmaker Capital in early February. The integration has proceeded according to schedule, while the implementation of per- formance marketing in South America on Futbol Sites is – despite being early days - moving ahead of plans with performance marketing revenue more than 100% ahead of the schedule , although on small numbers . Further- more, the overall Futbol Sites audience is up by approx- imately 20% since closing. Q2 remains a low season for the North American brands. Better Collective acquired UK sports betting media AceOdds for a total consideration of 43 mEUR implying 4x last twelve months EBITDA. Following the acquisition Better Collective upgraded its 2024 full -year financial targets. In connection with the acquisi tion, Better Col- lective announced a share buyback of up to 2.4 mEUR which was finalized during Q2. The integration of AceOdds has been seamless and swift and the brand is outperforming expectations, as it has benefitted from better rankings following the change in the search land- scape. 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 audi- ence to some of Better Collective’s media partnerships. However, the media partnership business has continued to deliver good performance for the Group. The North American business has been impacted negatively by one specific media partnership which was affected by the changes, while the Europe & ROW media partner- ship portfolio overall has seen a positive impact. Conse- quently, some of Better Collective’s owned and oper- ated sports media portfolio has seen an increase in traf- fic and rankings. Lastly, as sportsbook partners are ===== SIDA 5 ===== Q2 report 2024 Page 4 looking for new customer acquisition channels, Better Collective has received increased budgets from partners within its Paid Media business. This proves the value of a diversified business strategy. Since the changes were announced, Better Collective has delivered group reve- nues, EBITDA and NDCs as expected prior to these changes, and the impact has been fully mitigated on a Group basis resulting in a net zero financial impact. Bet- ter Collective continues to believe that media partner- ships will deliver good growth to the group. Due to underperformance from the acquisition of Play- maker HQ, Better Collective, Playmaker HQ’s founders, and former owners have agreed to renegotiate and set- tle the earn out. The initial acquisition price of Playmaker HQ was 54 mUSD of which 15 mUSD was upfront cash. The final price agreed is 2 3 mUSD; 31 mUSD lower than initially agreed. The net impact on special items is neg- ative 2 .4 mEUR, resulting from a goodwill write-down and the recognition of the remaining earn- out as in- come. Better Collective remain very optimistic about the future of the brand with the commercial team being re- placed resulting in a ramp up in performance. Based upon the current commercial pipeline the performance is expected to be lifted during the second half of 2024. All future expectations for the brand are intact, however postponed by approximately one year. On June 24, Better Collective announced a share buy- back program for up to 20 mEUR to be executed during the period 24 June 2024 to 5 September 2024. The pur- pose of the buy-back program is to cover future obliga- tions relating to acquisitions and LTI programs. Significant events after close Google has decided to retract its plan to phase out third- party cookies. This extension presents several ad- vantages for Better Collective. Primarily, the core per- formance marketing operations will maintain the use of established tracking methods, thereby mitigating asso- ciated risks keeping business as usual. Furthermore, the rollout of Advantage will be more seamless and poten- tially faster, as Better Collective can integrate zero, first, second, and now also third-party data to construct and segment its audiences more effectively. On July 5 Better Collective reestablished its three -year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a new 100 mEUR accordion option. Q2 report 2024 Page 4 ===== SIDA 6 ===== Q2 report 2024 Page 5 Financial highlights and key figures tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Income statements Revenue 99,121 78,115 194,152 166,060 326,686 Recurring revenue 61,550 48,735 114,836 95,552 191,118 Revenue growth (%) 27% 39% 17% 35% 21% Organic revenue growth (%) 5% 29% -1% 27% 13% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 28,537 28,696 57,548 61,971 111,080 Operating profit before depreciation and amortization (EBITDA) 28,078 27,478 54,546 60,146 109,132 Depreciation 1,631 698 3,103 1,412 3,958 Operating profit before amortization and special items (EBITA before special items) 26,907 27,998 54,445 60,560 107,122 Special items, net - 459 - 1,218 - 3,002 - 1,826 - 1,948 Operating profit before amortization (EBITA) 26,447 26,780 51,444 58,734 105,174 Amortization and impairment 7,884 6,068 16,118 9,939 24,283 Operating profit before special items (EBIT before special items) 19,023 21,930 38,327 50,621 82,839 Operating profit (EBIT) 18,564 20,712 35,326 48,795 80,891 Result of financial items, net - 5,915 - 8,872 - 12,413 - 9,607 - 22,881 Profit before tax 12,649 11,840 22,913 39,188 58,010 Profit after tax 10,294 8,302 17,847 29,237 39,835 Earnings per share (in EUR) 0.16 0.15 0.30 0.53 0.74 Diluted earnings per share (in EUR) 0.16 0.14 0.28 0.51 0.70 For a definition of financial key figures and ratios, please refer to page 40. tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Balance sheet Balance Sheet Total 1,174,540 875,320 1,174,540 875,320 937,862 Equity 680,850 430,220 680,850 430,220 435,273 Current assets 121,456 126,100 121,456 126,100 105,812 Current liabilities 80,557 78,329 80,557 78,329 103,493 Net interest bearing debt 216,704 189,647 216,704 189,647 221,133 Cashflow Cash flow from operations before special items 27,184 34,253 48,850 67,613 119,384 Cash flow from operations 26,310 32,980 36,327 65,946 114,639 Investments in tangible assets - 609 - 2,369 - 1,570 - 2,182 - 5,143 Cash flow from investment activities - 51,900 - 29,483 - 125,759 - 50,761 - 106,248 Cash flow from financing activities 20,710 37,736 111,650 30,006 29,334 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 29% 37% 30% 37% 34% Operating profit before amortization margin (EBITDA) (%) 28% 35% 28% 36% 33% Operating profit margin (%) 19% 27% 18% 29% 25% Publishing segment - EBITDA before special items margin (%) 28% 40% 31% 41% 37% Paid media segment - EBITDA before special items margin (%) 30% 31% 26% 29% 29% Net interest bearing debt / EBITDA before special items 2.03 1.70 2.03 1.70 1.99 Liquidity ratio 1.51 1.61 1.51 1.61 1.02 Equity to assets ratio (%) 58% 49% 58% 49% 46% Cash conversion rate before special items (%) 93% 112% 83% 106% 103% Average number of full-time employees 1,777 966 1,727 942 1,252 NDCs (thousand) 501 500 951 988 1,916 ===== SIDA 7 ===== Q2 report 2024 Page 6 CEO letter Great team effort delivers strong Q2 fueled by strategic acquisitions I want to start out by expressing my gratitude to the en- tire Better Collective group. Your relentless efforts and dedication play a vital role in our growth and the suc- cesses we have celebrated are testaments to your hard work. I admire our group’s ability to cope with our busy M&A agenda including many integrations and new col- leagues. Let us continue to be ambitious and work to- gether to accomplish even more. When reflecting on the first half of 2024, I remain proud of our good performance. Our existing business is back to organic growth despite the exceptionally good per- formance during the first half of 2023 . On the back of that, we have delivered a considerable increase in recur- ring revenue stemming from both organic and acquired growth - while continuing our North American transition to revenue share. The t hree major acquisitions of Playmaker Capital , AceOdds, and Playmaker HQ have substantially enriched our group and provide d us with a much stronger foundation for the future. Despite the delay in performance from Playmaker HQ – something I will come back to - we have negotiated a much better deal, generated a fast turnaround, and have yet to harvest all the synergies. A deal that makes me very pleased as a large shareholder myself. We have navigated major shifts in the search landscape while maintaining a robust financial position with a significant level of prepared- ness compared to the start of the year. Furthermore, we have made significant investments in establishing our in-house adtech platform, AdVantage, along with AI technology, while also creating a commer- cial organization focusing on non -endemic sales. We continue our projected path and will now delve into these developments in greater detail. I am pleased to share the overview of our Q2 perfor- mance - a period that saw good growth and progress across different fronts as well as a smaller hiccup. Our group revenue increased by 27%, fueled by 5% organic growth. This organic growth comes on top of outstand- ing growth last year. Balanced M&A strategy fuels growth In terms of M&A we are very comfortable with our posi- tion in the market. As buyers, we are not forced to act but can rather strategically evaluate potential targets to identify the most promising opportunities aligning with our strategy. Additionally, we are one of the preferred buyers within the sports media industry, which is a great position to be in. We have a strong financial position with a growing recurring cash flow and high profitabil- ity. In this position, we must continue to carefully evalu- ate targets and be diligent on when to deploy our capital – and more importantly, when not to. I want to highlight that not all our acquisitions require the same efforts. For instance, an acquisition like AceOdds is familiar territory, seamlessly blending into our business structure without much integration work needed. Others, like Playmaker Capita l, count multiple sports media brands across two continents as well as several hundred employees, making it more complex in nature and requiring more work. We acquired Playmaker Capital in February this year and the integration process is going according to plan – with some developments being ahead of schedule. We already now see strong synergies between the busi- nesses, and in South America NDCs are ramping u p faster than expected leading the performance market- ing revenues to perform well and are more than 100% ahead – although on small numbers. The key revenue synergy for this acquisition is the performance market- ing development, hence it is very comforting t o be ahead of our schedule. Q2 falls into the low season for North American brands, why we expect to see an uplift in performance through- out the rest of the year. We have also seen good exam- ples of knowledge and content sharing across teams and brands. As exemplified by the collabora tion be- tween our Canadian and Swedish hockey brands lever- aging each other's knowledge and content to deliver even more exciting entertainment to their audiences. The integration of AceOdds has been seamless and swift with performance exceeding expectations. Here we have been sending more NDCs than forecasted, which was aided by a good uplift in rankings because of the recent changes to the search landscape. For Playmaker HQ our commercial development fell short of our expectations and impacted our North Amer- ican performance this year. Consequently, we have reached a mutual earn -out settlement agreement with Playmaker HQ’s founders and former owners. The initial large earn-out blueprint aimed to align with the sellers’ high anticipations for the future, ensuring we would only compensate for tangible achievements and not mere projections. It goes without saying that we expected more. However, given the circumsta nces, settling on a reduced acquisition price below half of the initial agree- ment is a positive note given the future potential. The setback comes with a silver lining. After replacing the commercial team, Better Collective has been ===== SIDA 8 ===== Q2 report 2024 Page 7 through a steep learning curve, gaining knowledge in managing a social media content hub as well as podcast series. Our optimism for Playmaker HQ remains high and we still expect the original investment case to material- ize, however with a one-year delay. We have noted syn- ergistic interest in Playmaker HQ’s media products from our endemic partners and are now geared to nurture the non-endemic aspects. Further, we have experienced product success, as several podcasts have been ranking in the top of Spotify’s general sports podcasts. Lastly, I am pleased to see that the commercial pipeline for the second half of the year already looks promising. Men’s European Championship shows what sports can do We cannot talk about this year’s Q2 without comment- ing on the biggest highlight, the Men’s European Cham- pionship. The competition between nations and the unity of fans rallying behind their teams encapsulated the essence of why we at Better Collective are so capti- vated by sports, and proudly take part in contributing to this excitement. The live action and the ability of sports to bring people together makes it a unique form of en- tertainment. The pleasure of witnessing most of the matches, both in person an d on screen, was a personal highlight of mine. Besides uniting millions of people across borders, the tournament was also a good driver for our business. We developed and executed a distinct content strategy across our European sports media during the Championship, which proved effective by driving a surge in our audience numbers. Our key European sports media brands saw an increase in pageviews of more than 20%, while social engagements were up more than 100% with social media views up more than 100%. The group managed to send 501,000 new depositing customers (NDCs) during the quarter of which more than 100,000 were attributed to the European Champi- onship. We also noted positive trends during Copa America as Futbol Sites (part of Playmaker Capital) saw a spike in advertising revenues and NDCs, despite it being early days. Our diversified strategy mitigates risks associated with market changes Our overall performance this year is in line with our ini- tial expectations, although with a different revenue mix. As many of you are aware, Google's policy revisions in early Q2 affected some of our media partnerships' con- tent rankings and consequently th e scale of audience and NDCs. Despite an initial impact on our business, I am pleased to report that our diversified strategy has per- formed as envisioned. Following this policy change, our global media partner- ship business has delivered good results, being driven by Europe & ROW, where our North American business saw one specific partnership decrease in performance. Our owned and operated global sports media network has recorded an uplifting trend in search rankings and audience growth. Further, our partners are actively seeking alternative customer acquisition channels, re- sulting in increased budgets and new partner inquiries for our Paid Media business. This course of events rein- forces and proves the value of operating a diversified business portfolio. As such, when we encounter chal- lenges in one area, we thrive in others. As it stands now, the net financial group impact has been fully mitigated. We managed to deliver on our forecasts for revenue, EBITDA, and NDCs, even before these changes took place. Hence, we remain on track to deliver on our financial targets, and our ro bust diversi- fied strategy equips us to navigate through changing in- dustry landscapes while remaining focused on sustaina- ble profitable growth. Lastly, we continue to believe our media partnerships will play a strategic role going for- ward. Better Collective celebrated its 20th anniversary this year, marking two decades of navigating significant market changes, particularly in search trends. Another notable recent development is Google's decision to call off the phase-out of third-party cookies. Since 2020, the digital advertising industry has been bracing for this change, but likely due to the lack of a viable alternative, third-party cookies seem to be here to stay. This delay is advantageous for Better Collective in several ways. Firstly, our core performance marketing operations can continue using the familiar tracking methods, signifi- cantly reducing associated risks. Additionally, this an- nouncement will benefit the rollout of our Ad Vantage platform as we can effectively combine zero, first, sec- ond, and third-party data to build and segment our au- diences more efficiently. On the topic of Advantage, I am pleased to report that its technical development has been progressing suc- cessfully and is now being gradually rolled out across the Better Collective network. We have established a dedicated commercial team to support this i nitiative. Further we have delivered the first proof of concept on a small brand , making the group confident to continue to roll out on larger brands in the coming quarters. We started this project in the beginning of 2023 , and I am extremely proud to see that we have been able to make this happen in such a short period. We have proven that it works, and we have seen incremental rev- enue growth - although small - on a brand that histori- cally only did performance marketing. ===== SIDA 9 ===== Q2 report 2024 Page 8 Full steam ahead We now look forward to the usual busy second half of the year with most majo r sport leagues being active. Throughout our six years as a public company, we have consistently delivered on our promises. This is a proud tradition we intend to honor as we continue to seize sus- tainable growth opportunities. Thank you for making this journey possible and for letting us push boundaries and excite sports fans worldwide in our pursuit of be- coming the leading digital sports media group. Jesper Søgaard Co-founder & CEO Q2 report 2024 Page 8 “Thanks to a great team effort, we managed to deliver a strong Q2 in a time of changing market conditions. Our existing business is back to organic growth, and I am pleased to see that our diver- sified strategy has performed as envisioned”. Jesper Søgaard, Co -founder & CEO Better Collective ===== SIDA 10 ===== Q2 report 2024 Page 9 Business review and financial performance Group The full year financial targets are maintained for the group. Q2 was a good quarter for the Better Collective group as revenues grew 27% of which 5% was organic growth. The growth comes on top of extraordinary performance last year with 37% growth of which 29% was organic growth during Q2. Recurring revenues grew 26% to 62 mEUR highlighting the high quality and made up 62% of group revenues. Costs were up 43% mainly due to the acquisitions of Playmaker Capital and Playmaker HQ. EBITDA before special items was flat versus last year at 29 mEUR, mainly due to the extraordinary performance last year, as well as the recent acquisitions with a limit ed margin contribution as expected. The sports win margin during the quarter was higher than expected, like last year. The group delivered more than 501,000 new depositing customers to partnering sportsbooks. Out of the total NDCs 82% were on revenue share contracts and more than 100,000 NDCs were attributable to the European Championship. Q2 report 2024 Page 9 Key figures for the group tEUR Q2 2024 Q2 2023 Growth YTD 2024 YTD 2023 Growth Revenue 99,121 78,115 27% 194,152 166,060 17% Cost 70,584 49,418 43% 136,604 104,089 31% Operating profit before depreciation and amortization and special items 28,537 28,696 -1% 57,548 61,971 -7% EBITDA-margin before special items 29% 37% 30% 37% Operating profit before depreciation and amortization 28,078 27,478 2% 54,546 60,145 -9% EBITDA-margin 28% 35% 28% 36% Organic growth 5% 29% -1% 27% ===== SIDA 11 ===== Q2 report 2024 Page 10 Publishing The Publishing business includes revenue from Better Collective’s owned and operated sports media network, as well as its Media Partnerships. The audience are mainly generated through direct traffic or organic search results. Revenue from this segment was 71 mEUR, implying growth of 33%, of which 3% was organic. Operational profit was 20 mEUR, down 5% , implying a margin of 28%. The segment accounted for 72% of group revenues and 70% of group operational earnings. The growth in Publishing was mainly attributable to the acquisitions made over the past year. The comparable versus last year for the North American part of the Publishing business was high due to a state launch in the latter part of Q1 impacting Q2 positively. Both recurring revenue and CPAs increased during the quarter, as well as a significant uplift in “Other” revenues attributable to the advertising revenues from recent acquisitions. Costs were significantly up mainly due to the two acquisitions of Playmaker Capital and Playmaker HQ. During Q2, the performance shifted slightly from media partnerships into the owned and operated network. Paid Media The Paid Media business is paid advertising on search engines, as well as advertising on third party sports me- dia. Given the upfront payment to advertise on third party platforms the gross margin is normally lower than in the Publishing business due to significant direct costs. Paid Media revenue was 28 mEUR, implying 14% growth, of which 8% was organic. The growth in Paid Media was mainly driven by the recurring revenue share income growing 26%. Operational profit was 8 mEUR, implying a margin of 30%. Key figures for the Publishing segment Key figures for the Paid Media segment tEUR Q2 2024 Q2 2023 Growth YTD 2024 YTD 2023 Growth Revenue 27,947 24,567 14% 56,668 53,309 6% Share of group 28% 31% 29% 32% Cost 19,503 17,026 15% 41,720 37,902 10% Share of group 28% 34% 31% 36% - Operating profit before depreciation and amortization and special items 8,444 7,541 12% 14,948 15,407 -3% Share of group 30% 26% 26% 25% EBITDA-margin before special items 30% 31% 26% 29% Operating profit before depreciation and amortization 8,444 7,541 12% 14,932 15,407 -3% EBITDA-margin 30% 31% 26% 29% Organic growth 8% 15% -7% 22% tEUR Q2 2024 Q2 2023 Growth YTD 2024 YTD 2023 Growth Revenue 71,175 53,547 33% 137,484 112,751 22% Share of group 72% 69% 71% 68% Cost 51,081 32,392 58% 94,885 66,187 43% Share of group 72% 66% 69% 64% Operating profit before depreciation and amortization and special items 20,094 21,155 -5% 42,600 46,564 -9% Share of group 70% 74% 74% 75% EBITDA-margin before special items 28% 40% 31% 41% Operating profit before depreciation and amortization 19,634 19,937 -2% 39,614 44,739 -11% EBITDA-margin 28% 37% 29% 40% Organic growth 3% 35% 1% 37% ===== SIDA 12 ===== Q2 report 2024 Page 11 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. Due to the long history of revenue share in Europe & ROW, this segment has a lot of recurring revenue. Revenue came in at 73 mEUR up 33%, of which 16% was organic. The revenue share income growth was 28% , and CPA growth was 42%. Furthermore, “Other” reve- nues grew 42% due to the contribution from recent ac- quisitions with advertising revenue. Media Partnerships in this region continued to perform well following the search landscape changes. The operational profits came in strong at 27 mEUR, im- plying a margin of 36% growing 26% versus last year. Revenue accounted for 74% of group revenues and op- erational earnings of 93% of group earnings. Q2 report 2024 Page 11 Key figures for Europe & RoW segment tEUR Q2 2024 Q2 2023 Growth YTD 2024 YTD 2023 Growth Revenue 73,330 55,188 33% 134,352 105,990 27% Share of group 74% 71% 69% 64% Cost 46,717 34,060 37% 87,836 66,130 33% Share of group 66% 69% 64% 64% Operating profit before depreciation and amortization and special items 26,613 21,128 26% 46,516 39,860 17% Share of group 93% 74% 81% 64% EBITDA-margin before special items 36% 38% 35% 38% Operating profit before depreciation and amortization 27,990 20,247 38% 47,145 38,535 22% EBITDA-margin 38% 37% 35% 36% Organic growth 16% 19% 10% 25% ===== SIDA 13 ===== Q2 report 2024 Page 12 North America North America, comprising the United States and Can- ada, has recently begun regulating sports betting and iGaming in specific states and provinces. Since both markets are relatively new from a regulatory standpoint, the bulk of the revenues thus far have been derived from one-time payments (CPA). However, there is a gradual transition towards revenue sharing. Our North American sports brands include Action Network, Yardbarker, The Nation Network, Playmaker HQ, VegasInsider, Ro- toGrinders, Sports Handle, and C anada Sports Betting, among others. North American revenue was 26 mEUR, growing by 12%, driven by acquisitions as organic growth decreased by 18%. The decline in organic growth was due to a hard comparison to last year's superior performance, a specific media partnership being im- pacted by the Google Policy Change, as well as a differ- ent commercial mix with more players referred into rev- enue share contracts versus Q2 2023. Our North American operations saw an increase in the overall number of New Depositing Customers (NDCs) compared to the second quarter last year even when ex- cluding M&A. However, our NDC mix this quarter priori- tized partners with more lucrative and longer-term rev- enue share contracts, rather than those with higher ini- tial upfront revenue share payments. Compared to last year, revenue share income was lower, similarly as in Q1, though the numbers are still relatively small. This decline is attributed to the shift in the type of partnerships and contracts. Last year, Better Collective predominantly sent NDCs on hybrid contracts and CPA. Hybrid deals combine revenue share with an upfront payment, and as a result, the upfront payment was logged as revenue share income during the specific quarter. This means future revenues are only to be rec- ognized once the player's earnings have matched the in- itial payment. This combination of investing in more revenue share partners, plus tilting our new NDCs more toward the partners that have the largest long-term upside for Bet- ter Collective, led to a decrease in revenue share earn- ings vs. Q2 ‘23. However, it lays a solid foundation for future growth via long-term recurring revenue share in- come. Better Collective has been working with revenue share for decades in Europe & RoW and remains confi- dent in this strategy to maximize revenue per NDC and continue to win in North America for the long haul. Revenue from the "Other" category significantly in- creased due to the continued momentum from adver- tising revenues from recent acquisitions. The hike in costs was driven by the acquisitions of Playmaker Capi- tal and Playmaker HQ. If excluding these recent acqui- sitions from the equation, costs would be lower com- pared to the previous year. Operational earnings hit 2 mEUR, reflecting a margin of 7%. Key figures North America segment tEUR Q2 2024 Q2 2023 Growth YTD 2024 YTD 2023 Growth Revenue 25,791 22,926 12% 59,801 60,070 0% Share of Group 26% 29% 31% 36% Cost 23,866 15,358 55% 48,768 37,958 28% Share of Group 34% 31% 36% 36% Operating profit before depreciation and amortization and special items 1,925 7,568 -75% 11,032 22,111 -50% Share of Group 7% 26% 19% 36% EBITDA-Margin before special items 7% 33% 18% 37% Operating profit before depreciation and amortization 88 7,231 -99% 7,401 21,610 -66% EBITDA-Margin 0% 32% 12% 36% Organic Growth -18% 61% -20% 28% ===== SIDA 14 ===== Q2 report 2024 Page 13 Financial performance H1 2024 Revenue growth of 17% to 194 mEUR Revenue showed strong growth versus 2023 of 17% and amounted to 194 mEUR (YTD 2023: 166 mEUR). Reve- nue share accounted for 4 7% of the revenue with 28 % coming from CPA, 4 % from subscription sales, and 2 1% from other income. Cost of 137 mEUR - up from 104 mEUR The increase in costs compared to H1, 2023 is primarily driven by acquisitions contributing with 29 mEUR in in- creased cost base. The increase in personnel cost is mainly driven by an in- crease in average number of employees increasing from average 926 in H1 2023 to 1,777 in H1 2024, where 370 employees joined Better Collective as part of the acqui- sition of Playmaker Capital. Total direct cost relating to revenue increased by 8 mEUR to 57 mEUR (YTD 2023: 49 mEUR) corresponding to an increase of 16%. The growth is primarily coming from increased cost related to media partnerships and partly by increased spend in Paid Media . Beyond the cost of paid traffic, this includes hosting fees of web- sites, content generation, and external development. Personnel cost increased 40 % to 60 mEUR 2024 (YTD 2023: 43 mEUR). The average number of employees in- creased 79% to 1,726 (YTD 2023: 966). Personnel costs include costs related to warrants of 2 mEUR (YTD 2023: 1.6 mEUR). Other external costs increased 7 mEUR or 61% to 20 mEUR (YTD 2023: 12 mEUR). Depreciation and amortization amounted to 19 mEUR (YTD 2023: 11 mEUR), an increase of 8 mEUR compared to YTD 2023. The increase is mainly due to amortization related to depreciable intangible assets accounted for as part of the acquisitions of Skycon in Q2, 2023 and the acquisitions in H2, 2023 of 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 the acquisition of Playmaker Capi- tal completed February 6, 2024 and new media partner- ships entered during 2023 and 2024. Special items Special items amounted to an expense of 3 mEUR (YTD 2023: 1 mEUR). The net expense of 3 mEUR is primarily related to M&A expenses of 2 mEUR, restructuring of 1 mEUR, the early settlement of the Playmaker HQ earnout and related impairment of goodwill, with a net financial impact of 2.4 mEUR and positive impact of 2.5 mEUR related to earnout adjustments. Earnings Operational earnings (EBITDA) before special items de- creased 8% to 58 mEUR ( YTD 2023: 62 mEUR). The EBITDA-margin before special items was 30% ( YTD 2023: 38%). Including special items, the reported EBITDA was 54 mEUR. (YTD 2023: 60 mEUR). EBIT before special items de creased 25% to 3 8 mEUR (YTD 2023: 51 mEUR). Including special items, the re- ported EBIT was 35 mEUR (YTD 2023: 49 mEUR). Net financial items Net financial costs amounted to 12 mEUR (YTD 2023: 10 mEUR) and included net interest, fees relating to bank credit lines, unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 15 mEUR and included non-payable, calculated interest ex- penses on certain balance sheet items , 12 mEUR had cash flow effect. Net financial costs are impacted by a realized loss of 4 mEUR on Catena Media shares and unrealized net ex- change rate loss amounted to 3 mEUR. Income tax Better Collective has a tax presence in the places where the Group is incorporated. Income tax amounted to 5 mEUR (YTD 2023: 10 mEUR). The Effective Tax Rate was 22.1% (Q2 2023: 29.9%) decreasing primarily due to ad- justments to prior year. Net profit Net profit after tax was 18 mEUR (YTD 2023: 29 mEUR). Earnings per share (EPS) was EUR/share 0.30 versus 0.53 EUR/share YTD 2023. Equity The equity increased to 681 mEUR as per June 30, 2024, from 435 mEUR on December 31, 2023. Besides the net profit of 17 mEUR, the equity has been impacted by the share exchange in connection with the acquisition of Playmaker Capital of 46 mEUR, the acquisition and dis- posal of treasury shares of 30 mEUR, the capital increase in March with 145 mEUR as well as costs of 3 mEUR, and share-based payments of 2 mEUR. The decrease in USD versus EUR has impacted the equity by 9 mEUR. ===== SIDA 15 ===== Q2 report 2024 Page 14 Balance sheet Total assets amounted to 1,1 75 mEUR ( YTD 2023: 875 mEUR), with an equity of 681 mEUR (2023: 435 mEUR). This corresponds to an equity to assets ratio of 58 % (2023: 46%). The liquidity ratio was 1.51 resulting from current assets of 121 mEUR and current liabilities of 80 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 2.03 at the end of June. Investments Better Collective announced the acquisition of AceOdds on May 16, 2024 , for a total consideration of 43 mEUR on a net cash -/debt free basis. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's pres- ence across the UK, significantly. Cash flow and financing Cash flow from operations before special items was 49 mEUR (2023: 33 mEUR) with a cash conversion of 83%. Better Collective A/S completed its offering of new shares through an accelerated bookbuilding process with a subscription price at market of DKK 189.4 imply- ing 0% discount on February 28 . Total proceeds from the accelerated bookbuilding process amounted to DKK 1,081.9 million (app. 145 mEUR). The proceeds prepare the Company for future M&A opportunities as the sports media landscape remains highly fragmented. On July 5, 2024 , Better Collective reestablished its 3 - year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100 mEUR higher accordion option. By the end of June 2024, capital reserves stood at 127 mEUR consist- ing of cash of 49 mEUR, other current financial assets of 0.5 mEUR in form of listed shares and unused bank credit facilities of 77.5 mEUR. The parent company Better Collective A/S is the parent company of the group. Revenue grew by 44% to 37 mEUR (Q2 2023: 25 mEUR). Total costs including depreciation and amorti- zation was 30 mEUR (Q3 2023: 22 mEUR). Profit after tax was 28 mEUR (Q2 2023: 8 mEUR). The change in profit after tax is primarily due to differences in dividend payments from subsidiaries, exchange rate adjustments, financial expenses and corporate tax. Total equity ended at 701 mEUR by June 30 , 202 4 (2023: 443 mEUR). ===== SIDA 16 ===== Q2 report 2024 Page 15 Financial targets 2024 Following the acquisition of AceOdds during Q2, the fi- nancial targets for the Better Collective group for the year 2024 were upgraded: • Revenue of 395-425 mEUR, implying 21-30% growth (previously 390-420 mEUR) • EBITDA of 130-140 mEUR implying 17-26% growth (previously 125-135 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. I t implies full effect from AceOdds in H2 as well as a lift in performance in the North American business in the high season. The men’s European Championship played during Q2 performed as expected. 2023- 2027 The long-term 2023-2027 financial targets remain un- changed: • Revenue CAGR of +20% • EBITDA margin before special items of 35-40%. • Net debt to EBITDA before special items of <3. 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 th e 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 the 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 17 ===== Q2 report 2024 Page 16 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” and “BETCO DKK”. As per June 30, 2024, the share capital amounted to 629,537.92 EUR, and the total number of issued shares was 62,953,792. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. Shareholder structure As of June 30, 2024, the total number of shareholders was 5,879. A list of top ten shareholders in Better Col- lective A/S can be found on the group’s website. 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 long -term incentive programs are subscribed, then the maximum shareholders dilution will be approximately 3.89%. 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. 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 i s 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 ha ve 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 ent ities, and organizational risk through establishment of local gov- ernance, and finance, HR, and legal organization dedi- cated to the North and South American operations. Other key risk factors are described in the Annual report 2023. Program Long-term incentive programs outstanding June, 2024 Vesting period Exercise period Exercise price DKK Exercise price EUR (rounded) 2019* 565,521 2020-2023 2022-2024 64.78 8.70 2020** 25,000 2021-2023 2023-2025 61.49 8.26 2020* 190,999 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 20,973 2022-2024 2025-2027 130.98 17.59 2022 PSU 62,810 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.08 2023 Options 238,543 2023-2025 2026-2028 85.76 11.52 2023 PSU 128,069 2023-2025 2026-2028 2024 Options 426,870 2024-2026 2027-2029 76.67 10.28 2024 PSU 56,736 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 18 ===== Q2 report 2024 Page 17 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 August 21, 202 4, 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 Q2 report 2024 Page 17 ===== SIDA 19 ===== Q2 report 2024 Page 18 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 – June 30, 2024. Today, the Board of Directors 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 – June 30, 2024. The condensed consolidated interim financial state- ments for the period January 1 – June 30, 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 June 30, 2024, and of the results of the group’s and parent company’s operations and the g roup’s cash flows for the period January 1 – June 30, 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 g roup and the parent company are facing. The Interim Report has not been audited nor reviewed by the Company’s auditor. Copenhagen, August 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 20 ===== Q2 report 2024 Page 19 Condensed interim financial statements for the period Consolidated income statement Note tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 3 Revenue 99,121 78,115 194,152 166,060 326,686 Direct costs related to revenue 29,208 22,045 57,138 49,194 99,296 4 Staff costs 30,994 21,383 59,712 42,610 88,921 Other external expenses 10,381 5,990 19,755 12,285 27,389 Operating profit before depreciation and amortization (EBITDA) and special items 28,537 28,696 57,548 61,971 111,080 Depreciation 1,631 698 3,103 1,412 3,958 Operating profit before amortization (EBITA) and special items 26,907 27,998 54,445 60,560 107,122 7 Amortization and impairment 7,884 6,068 16,118 9,939 24,283 Operating profit (EBIT) before special items 19,023 21,930 38,327 50,621 82,839 5 Special items, net - 459 - 1,218 - 3,002 - 1,826 - 1,948 Operating profit 18,564 20,712 35,326 48,795 80,891 Financial income 1,583 707 3,190 3,379 5,987 Financial expenses 7,498 9,579 15,603 12,986 28,868 Profit before tax 12,649 11,840 22,913 39,188 58,010 6 Tax on profit for the period 2,355 3,538 5,066 9,952 18,175 Profit for the period 10,294 8,302 17,847 29,237 39,835 Earnings per share attributable to equity holders of the com- pany Average number of shares 62,909,647 55,159,297 60,740,297 55,154,814 55,186,772 Average number of warrants - converted to number of shares 2,628,911 2,609,804 2,556,922 2,527,978 2,658,571 Earnings per share (in EUR) 0.16 0.15 0.30 0.54 0.74 Diluted earnings per share (in EUR) 0.16 0.15 0.28 0.52 0.70 Consolidated statement of other comprehensive income Note tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Profit for the period 10,294 8,302 17,847 29,237 39,835 Other comprehensive income Other comprehensive income that may be reclassi- fied to profit or loss in subsequent periods: Fair value adjustment of hedges for the year 0 0 483 0 - 483 Currency translation to presentation currency - 172 393 - 342 - 284 1,318 Currency translation of non-current intercompany loans 2,906 100 9,184 - 5,007 - 9,440 Income tax - 2,021 - 22 - 2,021 1,101 0 Net other comprehensive income/loss 714 471 7,304 - 4,190 - 8,605 Total comprehensive income/(loss) for the period, net of tax 11,007 8,774 25,151 25,047 31,230 Attributable to: Shareholders of the parent 11,007 8,774 25,151 25,047 31,230 ===== SIDA 21 ===== Q2 report 2024 Page 20 Consolidated statement of financial position Note tEUR Q2 2024 Q2 2023 2023 Assets Non-current assets 7 Intangible assets Goodwill 352,213 214,946 255,074 Domains and websites 549,051 460,114 466,615 Accounts and other intangible assets 120,675 51,726 79,740 Total intangible assets 1,021,940 726,786 801,429 Tangible assets Right of use assets 17,899 6,878 15,575 Leasehold improvements, Fixtures and fittings, other plant and equipment 6,746 3,920 6,006 Total tangible assets 24,645 10,797 21,582 Other non-current assets Deposits 1,898 1,649 1,803 Deferred tax asset 4,601 9,989 7,236 Total other non-current assets 6,499 11,637 9,039 Total non-current assets 1,053,084 749,221 832,050 Current assets Trade and other receivables 60,630 38,433 48,954 Corporation tax receivable 5,757 6,781 2,252 Prepayments 5,859 3,842 4,250 Other current financial assets 454 12,508 6,804 Cash 48,756 64,536 43,552 Total current assets 121,456 126,100 105,812 Total assets 1,174,540 875,320 937,862 Note tEUR Q2 2024 Q2 2023 2023 Equity and liabilities Equity Share Capital 630 552 554 Share Premium 466,380 272,786 274,580 Currency Translation Reserve 21,878 18,987 15,055 Hedging reserves 0 0 - 483 Treasury Shares 0 - 17,249 - 21,057 Retained Earnings 191,962 155,144 166,624 Total equity 680,850 430,220 435,273 Non-current Liabilities 8 Debt to credit institutions 246,739 246,932 248,657 8 Lease liabilities 14,889 5,980 13,326 8 Deferred tax liabilities 106,801 86,159 84,670 8 Other long-term financial liabilities 44,704 27,700 52,443 Total non-current liabilities 413,134 366,771 399,096 Current Liabilities Prepayments received from customers and deferred reve- nue 6,380 4,282 4,262 Trade and other payables 27,143 16,360 27,838 Corporation tax payable 6,238 3,864 6,754 8 Other financial liabilities 36,964 52,553 61,938 8 Lease liabilities 3,832 1,270 2,702 Total current liabilities 80,558 78,329 103,493 Total liabilities 493,690 445,100 502,589 Total Equity and liabilities 1,174,540 875,320 937,862 ===== SIDA 22 ===== Q2 report 2024 Page 21 Consolidated statement of changes in equity tEUR Share capital Share premium Currency transla- tion re- serve 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 17,847 17,847 Fair value adjustment of hedges 0 0 0 483 0 0 483 Currency translation to presentation currency 0 0 8,844 0 0 0 8,844 Tax on other comprehensive income 0 0 - 2,021 0 0 0 - 2,021 Total other comprehensive income 0 0 6,823 483 0 0 7,305 Total comprehensive income for the year 0 0 6,823 483 0 17,847 25,151 Transactions with owners Capital Increase 76 191,800 0 0 0 0 191,876 Acquisition of treasury shares 0 0 0 0 - 2,197 0 - 2,197 Disposal of treasury shares 0 0 0 0 23,254 9,017 32,271 Share based payments 0 0 0 0 0 1,443 1,443 Transaction cost 0 0 0 0 0 - 2,969 - 2,969 Total transactions with owners 76 191,800 0 0 21,057 7,491 220,424 At June 30, 2024 630 466,380 21,878 0 0 191,962 680,850 During the period no dividend was paid. tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As 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 29,237 29,237 Fair value adjustment of hedges 0 0 0 0 0 0 0 Currency translation to presentation currency 0 0 - 5,291 0 0 0 - 5,291 Tax on other comprehensive income 0 0 1,101 0 0 0 1,101 Total other comprehensive income 0 0 - 4,190 0 0 0 - 4,190 Total comprehensive income for the year 0 0 - 4,190 0 0 29,237 25,047 Transactions with owners Capital Increase 1 236 0 0 0 0 236 Acquisition of treasury shares 0 0 0 0 - 9,571 0 - 9,571 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 1,604 1,604 Transaction cost 0 0 0 0 - 10 - 4 - 14 Total transactions with owners 1 236 0 0 - 9,580 1,600 - 7,744 At June 30, 2023 552 272,786 18,987 0 - 17,249 155,144 430,220 During the period no dividend was paid. ===== SIDA 23 ===== Q2 report 2024 Page 22 Consolidated statement of changes in equity - continued tEUR Share capital Share premium Currency transla- tion re- serve 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 24 ===== Q2 report 2024 Page 23 Consolidated statement of cash flows Note tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Profit before tax 12,649 11,840 22,913 39,188 58,010 Adjustment for finance items 5,915 8,872 12,413 9,607 22,882 Adjustment for special items 460 1,218 3,002 1,826 1,947 Operating Profit for the period before special items 19,023 21,930 38,327 50,621 82,839 Depreciation and amortization 9,514 6,766 19,221 11,350 28,241 Other adjustments of non-cash operating items 748 1,509 1,860 1,609 2,581 Cash flow from operations before changes in working capital and special items 29,286 30,205 59,408 63,581 113,661 Change in working capital - 2,101 4,048 - 10,558 4,033 5,722 Cash flow from operations before special items 27,184 34,253 48,850 67,613 119,384 Special items, cash flow - 874 - 1,273 - 12,523 - 1,668 - 4,744 Cash flow from operations 26,310 32,980 36,327 65,946 114,640 Financial income, received 284 178 1,008 642 493 Financial expenses, paid - 6,155 - 883 - 12,063 - 4,051 - 10,712 Cash flow from activities before tax 20,439 32,275 25,271 62,536 104,420 Income tax paid - 1,925 - 5,169 - 5,815 - 8,967 - 15,411 Cash flow from operating activities 18,514 27,107 19,457 53,569 89,010 9 Acquisition of businesses - 46,221 - 29,767 - 116,499 - 29,767 - 57,282 7 Acquisition of intangible assets - 5,043 - 420 - 8,032 -3,624 - 27,469 Acquisition of property, plant and equipment - 609 - 2,369 - 1,570 - 2,182 - 5,143 Sale of property, plant and equipment 0 241 438 3 3 Acquisition of other financial assets 0 - 0 0 - 14,930 - 14,930 Change in other non-current assets - 28 2,833 - 94 - 261 - 1,427 Cash flow from investing activities - 51,900 - 29,483 - 125,759 - 50,761 - 106,248 Note tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Repayment of borrowings - 14,234 0 - 136,321 - 1,486 - 1,486 Proceeds from borrowings 38,901 45,490 110,761 45,490 45,490 Lease liabilities - 1,002 - 145 - 1,879 - 518 - 2,814 Other non-current liabilities - 1,739 - 4,124 - 2,582 - 4,124 - 483 Capital increase 0 193 145,144 236 2,033 Treasury shares 0 - 3,674 0 - 9,583 - 13,381 Transaction cost - 112 - 4 - 2,969 - 10 - 26 Warrant settlement, sale of warrants - 1,105 0 - 503 0 0 Cash flow from financing activities 20,710 37,736 111,650 30,006 29,334 Cash flows for the period - 12,676 35,360 5,349 32,814 12,096 Cash and cash equivalents at beginning 61,494 28,847 43,552 31,497 31,497 Foreign currency translation of cash and cash equivalents - 62 329 - 144 224 - 41 Cash and cash equivalents period end 48,756 64,536 48,756 64,536 43,552 Cash and cash equivalents period end 0 Cash 48,756 64,536 48,756 64,536 43,552 Cash and cash equivalents period end 48,756 64,536 48,756 64,536 43,552 ===== SIDA 25 ===== Q2 report 2024 Page 24 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 - June, 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 (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, 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 lifetime of accounts and other intangible assets has been reassessed in connection with acquisi- tions. The lifetime for accounts is 3-5 years and for other intangible assets 2-3 years. 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 202 3 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 26 ===== Q2 report 2024 Page 25 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 Media Group tEUR Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Revenue Share 34,541 30,874 14,015 11,124 48,556 41,998 CPA 12,427 9,615 13,059 13,085 25,486 22,700 Subscription 3,969 4,080 0 0 3,969 4,080 Other 20,237 8,979 873 359 21,110 9,338 Revenue 71,175 53,547 27,947 24,567 99,121 78,115 Cost 51,081 32,392 19,503 17,026 70,854 49,418 Operating profit before depreciation, amortization and special items 20,094 21,155 8,444 7,541 28,537 28,696 EBITDA-Margin before special items 28% 40% 30% 31% 29% 37% Special items, net - 460 - 1.218 0 0 - 459 - 1,218 Operating profit before depreciation and amortization 19,634 19,937 8,444 7,541 28,078 27,478 EBITDA-Margin 28% 37% 30% 31% 28% 35% Depreciation 1,586 695 45 3 1,631 698 Operating profit before amortization 18,048 19,242 8,399 7,538 26,447 26,780 EBITA-Margin 25% 36% 30% 31% 27% 34% Publishing Paid Media Group tEUR YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 Revenue Share 64,305 63,298 26,888 18,251 91,194 81,549 CPA 27,332 22,981 27,394 34,030 54,727 57,011 Subscription 8,217 8,563 0 0 8,217 8,563 Other 37,630 17,909 2,385 1,027 40,015 18,936 Revenue 137,484 112,751 56,668 53,309 194,152 166,060 Cost 94,885 66,187 41,720 37,902 136,604 104,089 Operating profit before depreciation, amortization and special items 42,600 46,564 14,948 15,407 57,548 61,971 EBITDA-Margin before special items 31% 41% 26% 29% 30% 37% Special items, net - 2,985 - 1,826 - 16 0 - 3,002 -1,826 Operating profit before depreciation and amortization 39,614 44,739 14,932 15,407 54,546 60,145 EBITDA-Margin 29% 40% 26% 29% 28% 36% Depreciation 3,006 1,405 97 6 3,103 1.412 Operating profit before amortization 36,608 43,333 14,835 15,400 51,444 58,734 EBITA-Margin 27% 38% 26% 29% 26% 35% ===== SIDA 27 ===== Q2 report 2024 Page 26 2. Segments, continued Publishing Paid Media Group tEUR 2023 2023 2023 Revenue Share 120,776 41,049 161,825 CPA 40,589 63,371 103,960 Subscription 17,959 0 17,959 Other 41,003 1,938 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 28 ===== Q2 report 2024 Page 27 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 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Revenue Share 44,612 34,927 3,944 7,070 48,556 41,997 CPA 15,404 10,862 10,082 11,838 25,486 22,700 Subscription 614 489 3,355 3,591 3,969 4,080 Other 12,700 8,910 8,410 427 21,110 9,338 Revenue 73,330 55,188 25,791 22,926 99,121 78,115 Cost 46,717 34,060 23,866 15,358 70,584 49,418 Operating profit before depreciation, amortization and special items 26,613 21,128 1,925 7,568 28,537 28,696 EBITDA-Margin before special items 36% 38% 7% 33% 29% 37% Special items, net 1,377 - 881 - 1,836 - 338 - 459 - 1,218 Operating profit before depreciation and amortization 27,990 20,247 88 7,231 28,078 27,478 EBITDA-Margin 38% 37% 0% 32% 28% 35% Depreciation 1,329 480 302 219 1,631 698 Operating profit before amortization 26,661 19,768 - 214 7,012 26,447 26,780 EBITA-Margin 36% 36% -1% 31% 27% 34% Europe & RoW North America Group tEUR YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 Revenue Share 81,179 66,846 10,015 14,703 91,194 81,550 CPA 28,740 22,054 25,987 34,957 54,727 57,011 Subscription 1,232 1,054 6,985 7,509 8,217 8,563 Other 23,200 16,035 16,814 2,901 40,015 18,936 Revenue 134,352 105,990 59,801 60,070 194,152 166,060 Cost 87,836 66,130 48,768 37,958 136,604 104,089 Operating profit before depreciation, amortization and special items 46,516 39,860 11,032 22,111 57,548 61,971 EBITDA-Margin before special items 35% 38% 18% 37% 30% 37% Special items, net 630 - 1,325 - 3,631 - 501 - 3,002 - 1,826 Operating profit before depreciation and amortization 47,145 38,535 7,401 21,610 54,546 60,145 EBITDA-Margin 35% 36% 12% 36% 28% 36% Depreciation 2,539 941 564 470 3,103 1,412 Operating profit before amortization 44,606 37,594 6,837 21,140 51,444 58,734 EBITA-Margin 33% 35% 11% 35% 26% 35% ===== SIDA 29 ===== Q2 report 2024 Page 28 2. Segments, continued Europe & Row North America Group tEUR 2023 2023 2023 Revenue Share 136,211 25,614 161,825 CPA 49,173 54,787 103,960 Subscription 2,461 15,499 17,960 Other 30,241 12,700 42,941 Revenue 218,086 108,600 326,686 Cost 137,903 77,702 215,605 Operating profit before depreciation, amortization and special items 80,182 30,898 111,080 EBITDA-Margin before special items 37% 28% 34% Special items, net - 1,060 - 888 - 1,948 Operating profit before depreciation and amortization 79,123 30,010 109,132 EBITDA-Margin 37% 27% 33% Depreciation 3,199 759 3,958 Operating profit before amortization 75,924 29,250 105,174 EBITA-Margin 35% 27% 32% ===== SIDA 30 ===== Q2 report 2024 Page 29 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 Q2 2024 Q2 2023* YTD 2024 YTD 2023* 2023 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 61,550 48,735 114,836 95,552 191,118 CPA, Fixed Fees 37,307 29,536 78,807 70,484 135,385 Other 264 24 509 24 183 Total revenue 99,121 78,115 194,152 166,060 326,686 %-split Recurring revenue 62 62 59 58 59 CPA, Fixed Fees 38 38 41 42 41 Other 0 0 0 0 0 Total 100 100 100 100 100 * Q2 2023 figures have been restated for Revenue Share and CPA because of the reclassification of upfront payments related to hy- brid revenue share contracts which were reclassified for the first time in Q3 2023. 4. Share-based payment plans 2019 Warrant programs: During the second quarter of 2024 the company did not grant any new warrants and 239,662 warrants were exercised under this program. 2020 Warrant programs: During the second quarter of 2024 the company did not grant any new warrants and 28 ,999 warrants were exercised under this program. 2022 Incentive Program: During the second quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2023 Incentive Program: During the second 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 second 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. tEUR Q2 2024 Q2 2023* YTD 2024 YTD 2023* 2023 Revenue type Revenue Share 48,556 41,997 91,194 81,549 161,825 CPA 25,486 22,700 54,727 57,011 103,960 Subscription 3,969 4,080 8,217 8,563 17,959 Other 21,110 9,338 40,015 18,936 42,941 Total revenue 99,121 78,115 194,152 166,059 326,686 %-split Revenue Share 49 54 47 49 50 CPA 26 29 28 34 32 Subscription 4 5 4 5 5 Other 21 12 21 11 13 Total 100 100 100 100 100 ===== SIDA 31 ===== Q2 report 2024 Page 30 4. Share-based payment plans, continued Management Incentive Program - Action Network: During the second 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 Q2 2024 is 748 tEUR (Q2 2023: 134 tEUR) and the cost YTD 2024 is 1,860 tEUR (YTD 2023: 1,467 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, impairments and restructuring costs are presented in the Income statement in a separate line item la- belled ‘Special items’. The impact of special items is specified as follows: Due to underperformance from acquisition of SOME content producer and podcast maker Playmaker HQ (not to be confused with Pla y- maker Capital), Better Collective and the founders and former owners of Playmaker HQ have agreed to renegotiate and settle the ear n out. The initial acquisition price of Playmaker HQ was 54mUSD of which 15mUSD was upfront cash. The final price agreed is 25mUSD (23m EUR). Consequently, Better Collective have performed an impairment test based on the reassessment, identifying an impairment of 20mUSD (18m EUR). recognized in Q2. The net impact on special items is negative 2.4mEUR, resulting from the aforementioned goodwill impairment and the recognition of the remaining earn-out as income. tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Operating profit 18,564 20,712 35,326 48,795 80,891 Special Items related to: Special items related to dual listing 0 0 0 0 - 1,129 Special items related to M&A - 307 - 605 - 2,086 - 956 - 10,224 Variable payments regarding acquisitions - cost 0 0 0 - 142 0 Variable payments regarding acquisitions - income 18,999 - 49 18,999 0 9,924 Special items related to Restructuring - 567 - 504 - 1,331 - 668 - 519 Special items related to impairment - 18,584 0 - 18,584 0 0 Special items, total - 459 - 1,218 - 3,002 - 1,826 - 1,948 Operating profit (EBIT) before special items 19,023 21,930 38,327 50,621 82,839 Amortization and impairment 7,498 6,068 16,118 9,939 24,283 Operating profit before amortization and special items (EBITA before special items) 26,904 27,998 54,445 60,560 107,122 Depreciation 1,631 698 3,103 1,412 3,958 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 28,537 28,696 57,548 61,971 111,080 ===== SIDA 32 ===== Q2 report 2024 Page 31 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 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 15,138 15,138 Acquisitions through business combinations 111,155 76,523 41,510 229,188 Transfer 0 0 - 295 - 295 Disposals 0 0 - 2,562 - 2,562 Currency Translation 4,666 5,913 2,413 12,992 At June 30, 2024 370,896 549,051 196,268 1,116,216 Amortization and impairment As of January 1, 2024 0 0 60,325 60,325 Amortization for the period 0 0 15,915 15,915 Impairment for the period 18,683 0 0 18,683 Amortization on disposed assets 0 0 - 715 - 715 Currency translation 0 0 68 68 At June 30, 2024 18,683 0 75,593 94,276 Net book value at June 30, 2024 352,213 549,051 120,675 1,021,940 *Accounts and other intangible assets consist of accounts ( 62,805 tEUR), Media Partnerships (54,718 tEUR) and software and others (3,152 tEUR) tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Tax for the period 2,355 3,538 5,066 9,952 18,175 Tax on other comprehensive income 2,021 22 2,021 - 1,101 0 Total 4,376 3,560 7,087 8,850 18,175 tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Deferred tax 1,674 - 671 1,238 1,891 3,641 Current tax 1,453 4,226 4,596 8,077 16,400 Adjustment from prior years - 772 - 16 - 768 - 16 - 1,867 Total 2,355 3,538 5,066 9,952 18,175 tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Specification for the period: Calculated 22% tax of the result before tax 2,783 2,605 5,041 8,621 12,762 Adjustment of the tax rates in foreign subsidiaries relative to the 22% 188 495 528 997 1,955 Tax effect of: Special items 0 387 0 387 868 Special items - taxable items 0 0 0 0 - 233 Other non-taxable income - 152 - 1,634 - 304 - 1,780 - 410 Other non-deductible costs 308 1,701 569 1,743 3,461 Unrecognized tax losses carried forward 0 0 0 0 2,010 Tax deductible 0 0 0 0 - 371 Adjustment of tax relating to prior periods -772 -16 - 768 - 16 -1,867 Total 2,355 3,538 5,066 9,952 18,175 Effective tax rate 18.6% 29.9% 22.1% 25.4% 31.3% ===== SIDA 33 ===== Q2 report 2024 Page 32 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 - 17,822 3,840 12,104 - 1,879 Acquisitions through business combinations 32,755 0 24,227 56,982 Transfer 0 0 0 0 Disposals 0 0 - 2,266 - 2,266 Currency Translation 16,072 - 4,238 - 438 11,396 At June 30, 2023 214,946 460,114 97,332 772,392 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 9,853 9,853 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 936 - 936 At June 30, 2023 0 0 45,605 45,605 Net book value at June 30, 2023 214,946 460,114 51,726 726,786 *Accounts and other intangible assets consist of accounts ( 29,818 tEUR), Media Partnerships (21,406 tEUR) and software and others (503 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 24,707 24,707 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 1,070 - 1,070 At December 31, 2023 0 0 60,325 60,325 Net book value at December 31, 2023 255,074 466,615 79,740 801,429 *Accounts and other intangible assets consist of accounts (30,474 tEUR), Media Partnerships (48,769 tEUR) and software and ot hers (497 tEUR) ===== SIDA 34 ===== Q2 report 2024 Page 33 8. Non-current liabilities and other current financial liabilities Debt to credit institutions: As per June 30, 2024, Better Collective has drawn 246.7 mEUR (2023: 248.7) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its 3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100 mEUR higher accordion option. Lease liabilities: Non-current and current lease liabilities, of 14.9 mEUR (2023: 13.3 mEUR) and 3.8 mEUR (2023: 2.7 mEUR) respectively. Deferred Tax liability: Deferred tax liability as of June 30, 2024, amounted to 106. 8 mEUR (2023: 86.2 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 June 30, 2024, amounted to 4.6 mEUR (2023: 7.2 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 Better Collective US, Inc and Playmaker Capital. The Group had a unrecognised tax asset of 2,010t EUR which was recognized in Q2 2024, as the Group expects this to be utilized in the 2024 tax year. Other financial liabilities: As per June 30, 2024, other non-current and current financial liabilities amounted to 81.7 mEUR (2023: 114.4 mEUR) due to deferred and variable payments related to acquisitions and media partnerships. The decrease from January 1, 2024, is mainly related to changes in earn outs and media partnerships. 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 is measured based on level 2. The fair value is measured according to generally accepted valuation techniques. Market-based input is used to measure the fair value. 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 - 69,382 Identified net assets 16,617 Goodwill 94,145 Total consideration 110,762 ===== SIDA 35 ===== Q2 report 2024 Page 34 9. Business combinations, continued A goodwill of 94,145 tEUR emerged from the acquisition of Playmaker Capital as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expecta- tions given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of Playmaker Capital amounts to 6 ,420 tEUR. Transaction costs are ac- counted for in the income statements under “special items” since the announcement. The acquisition was completed on February 6, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 198 mEUR and result after tax would have amounted to 20 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Acquisition of AceOdds On May 16, 2024 Better Collective announced the acquisition of AceOdds for a total price consideration of 43 mEUR. The consideration consist of 38 mEUR in cash and 2mEUR as shares in Better Collective A/S. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's presence across the UK, significantly. The acquisition is a strategic move for Better Collective with significant synergistic oppor- tunities. The acquisition has been closed on 16 May 2024, and AceOdds are consolidated into Better Collective Group from the closing date. The transferred consideration was in cash and shares in Better Collective A/S. Acquired net assets at the time of acquisition tEUR Accounts 31,927 Other receivables and assets 680 Cash 2,919 Corporate Tax - 1,420 Deferred Tax Liability - 7,982 Identified net assets 26,124 Goodwill 16,845 Total consideration 42,969 A goodwill of 16,845 tEUR emerged from the acquisition of AceOdds as an effect of the difference between the trans- ferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of AceOdds amounts to 283 tEUR. Transaction costs are accounted for in the income statements under “special items” since the announcement. The acquisition was completed on May 16, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 199 mEUR and result after tax would have amounted to 21 mEUR. The purchase price allocation is provisional due to uncertainties re- garding measurement of acquired intangible assets. tEUR Purchase amount 42,969 Cash and cash equivalents 2,919 Shares 2,340 Cash outflow 37,710 ===== SIDA 36 ===== Q2 report 2024 Page 35 10. Note to cash flow statement tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition - 37,710 - 29,767 - 70,318 - 29,767 - 57,282 Business Combinations deferred payments from current period 0 0 0 0 0 Deferred payments - business combinations from prior periods - 8,511 0 - 46,181 0 0 Total cash flow from business combinations - 46,221 - 29,767 - 116,499 - 29,767 - 57,282 Acquisition of intangible assets: Acquisitions through asset transactions 0 - 2,042 0 - 15,944 - 50,639 Deferred payments related to acquisition value 0 0 0 0 - 494 Deferred payments - acquisitions from prior periods 0 - 63 0 - 488 - 9,745 Intangible assets with no cash flow effect 0 1,889 0 13,011 33,613 Other investments - 5,043 - 203 - 8,032 - 203 - 203 Total cash flow from intangible assets - 5,043 - 419 - 8,032 - 3,624 - 27,468 ===== SIDA 37 ===== Q2 report 2024 Page 36 Financial statements for the period Income statement – Parent company Statement of other comprehensive income tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Profit for the period 28,021 5,543 40,986 8,366 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 0 0 483 - 483 - 483 Currency translation to presentation currency 99 - 962 - 2,510 - 1,603 - 910 Currency translation of non-current intercompany loans Income tax 0 0 0 0 0 Net other comprehensive income/loss 99 - 962 - 2,510 - 1,603 - 1,393 Total comprehensive income/(loss) for the period, net of tax 28,120 4,581 38,959 6,280 37,877 tEUR Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023 Revenue 36,860 24,506 66,765 48,204 98,513 Other operating income 3,122 4,879 6,244 8,894 12,516 Direct costs related to revenue 6,442 6,385 11,620 11,078 23,071 Staff costs 13,078 9,757 25,573 18,616 40,796 Depreciation 511 134 1,199 312 1,438 Other external expenses 6,847 3,826 12,884 8,243 18,632 Operating profit before amortization (EBITA) and special items 13,104 9,282 21,734 18,849 27,091 Amortization 2,644 2,242 5,978 3,836 9,908 Operating profit (EBIT) before special items 10,460 7,040 15,755 15,013 17,182 Special items, net 2,533 - 772 1,945 - 1,167 312 Operating profit 12,993 6,268 17,701 13,846 17,494 Financial income 25,437 8,587 41,135 12,591 70,010 Financial expenses 6,840 9,367 13,945 17,363 45,054 Profit before tax 31,590 5,488 44,891 9,074 42,450 Tax on profit for the period 3,569 - 54 3,905 708 3,181 Profit for the period 28,021 5,543 40,986 8,366 39,269 ===== SIDA 38 ===== Q2 report 2024 Page 37 Statement of financial position – Parent company tEUR Q2 2024 Q2 2023 2023 Assets Non-current assets Intangible assets Goodwill 17,801 17,825 17,812 Domains and websites 168,864 168,606 167,831 Accounts and other intangible assets 54,589 21,533 50,418 Total intangible assets 241,254 207,964 236,061 Tangible assets Right of use assets 7,948 189 7,469 Fixtures and fittings, other plant and equipment 2,893 1,032 2,494 Total tangible assets 10,841 1,221 9,962 Financial assets Investments in subsidiaries 377,022 220,151 234,330 Receivables from subsidiaries 347,968 268,778 282,016 Deposits 998 1,096 940 Total financial assets 725,988 490,024 517,285 Total non-current assets 978,083 699,209 763,308 Current assets Trade and other receivables 24,045 10,599 15,735 Receivables from subsidiaries 19,269 31,761 13,153 Tax receivable 2,579 6,202 1,479 Prepayments 2,976 2,469 2,453 Other current financial assets 454 12,395 6,804 Cash 30,840 22,737 17,825 Total current assets 80,164 86,163 57,450 Total assets 1,058,247 785,372 820,758 tEUR Q2 2024 Q2 2023 2023 Equity and liabilities Equity Share Capital 630 552 554 Share Premium 466,380 272,786 274,580 Currency Translation Reserve - 2,846 - 1,029 - 336 Hedging reserves 0 0 - 483 Treasury shares 0 - 17,249 - 21,057 Retained Earnings 237,196 158,170 189,953 Total equity 701,360 413,230 443,211 Non-current Liabilities Debt to credit institutions 246,739 246,932 248,657 Lease liabilities 6,696 0 6,024 Deferred tax liabilities 17,022 11,275 13,832 Other non-current financial liabilities 199 26,842 25,261 Total non-current liabilities 270,656 285,050 293,774 Current Liabilities Prepayments received from customers and deferred revenue 2,543 - 1,172 312 Trade and other payables 6,386 5,529 11,495 Payables to subsidiaries 12,657 34,882 11,993 Tax payable 736 44 196 Other current financial liabilities 62,588 47,599 58,295 Lease liabilities 1,320 210 1,483 Total current liabilities 86,231 87,092 83,773 Total liabilities 356,887 372,142 377,547 Total equity and liabilities 1,058,247 785,372 820,758 ===== SIDA 39 ===== Q2 report 2024 Page 38 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2024 554 274,580 - 336 - 483 - 21,057 189,953 443,211 Result for the period 0 0 0 0 0 40,986 40,986 Fair value adjustment of hedges 0 0 0 483 0 0 483 Currency translation to presentation currency 0 0 - 2,510 0 0 0 - 2,510 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 2,510 483 0 0 - 2,027 Total comprehensive income for the year 0 0 - 2,510 483 0 40,986 38,959 Transactions with owners Capital Increase 76 191,800 0 0 0 0 191,876 Acquisition of treasury shares 0 0 0 0 - 2,197 0 - 2,197 Disposal of treasury shares 0 0 0 0 23,254 9,017 32,271 Share based payments 0 0 0 0 0 209 209 Transaction cost 0 0 0 0 0 - 2,969 - 2,969 Total transactions with owners 76 191,800 0 0 21,057 6,257 219,190 At June 30, 2024 630 466,380 - 2,846 0 0 237,196 701,360 During the period no dividend was paid. tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054 Result for the period 0 0 0 0 0 8,366 8,366 Other comprehensive income 0 0 0 0 0 0 0 Currency translation to presentation currency 0 0 - 1,603 0 0 0 - 1,603 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 1,603 0 0 0 - 1,603 Total comprehensive income for the year 0 0 - 1,603 0 0 8,366 6,763 Transactions with owners Capital Increase 0 236 0 0 0 3,156 3,393 Acquisition of treasury shares 0 0 0 0 - 9,571 0 - 9,571 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 1,604 1,604 Transaction cost 0 0 0 0 - 10 - 4 - 14 Total transactions with owners 0 236 0 0 - 9,580 4,757 - 4,587 At June 30, 2023 552 272,786 - 1,029 0 - 17,249 158,170 413,230 During the period no dividend was paid. ===== SIDA 40 ===== Q2 report 2024 Page 39 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054 Result for the period 0 0 0 0 0 39,269 39,269 Fair value adjustment of hedges 0 0 0 - 483 0 0 - 483 Currency translation to presentation currency 0 0 - 910 0 0 0 - 910 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 910 - 483 0 0 - 1,393 Total comprehensive income for the year 0 0 - 910 - 483 0 39,269 37,877 Transactions with owners Capital Increase 3 2,030 0 0 0 3,154 5,187 Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,495 2,495 Transaction cost 0 0 0 0 - 13 - 12 - 26 Total transactions with owners 3 2,030 0 0 - 13,389 5,636 - 5,720 At December 31, 2023 554 274,580 - 336 - 483 - 21,057 189,953 443,211 During the period no dividend was paid. ===== SIDA 41 ===== Q2 report 2024 Page 40 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 of the group’s future results. The group be- lieves however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s future operating performance, and its ability to service its debt. Accordingly, the APMs are disclosed to permit a more complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business performance is evaluated by the Management. The group believes th at 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 measurements of financial performance under IFRS and should not be considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other measures of performance derived in accordance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as reported under IFRS. Our currently applied APM’s are summarized and described below. Alternative Performance Measures Alternative Performance Measure Description SCOPE 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 42 ===== Q2 report 2024 Page 41 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. Accord ingly, 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 43 ===== Q2 report 2024 Page 42 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