===== SIDA 1 ===== Copenhagen, November 15, 2023 Better Collective A/S www.bettercollective.com CVR NO.: 27 65 29 13 Interim report Q3 2023 Revenue 75 mEUR, growth of 26%; organic growth of 16% Recurring revenue 46 mEUR; growth of 49% EBITDA before special items 20 mEUR; growth of 35% EBITDA-margin 26% North American revenue share transition moving faster than expected Transformational acquisition of Playmaker Capital secures market leadership in South America and strengthens leading North American position October trading update: Revenues of 24 mEUR; impacted by a significantly lower sports win margin than expected The full year financial targets are maintained ===== SIDA 2 ===== Q3 report 2023 Page 1 *Before special items Revenue mEUR EBITDA* mEUR Recurring revenue mEUR ===== SIDA 3 ===== Q3 report 2023 Page 2 Highlights Q3, 2023 3 Financial highlights and key figures 5 CEO letter 6 Business review and financial performance 8 Financial performance first nine months 2023 11 Financial targets 12 Other 13 Notes 23 Q3 report 2023 Page 2 Table of contents A conference call for Better Collective’s stakeholders will be held on November 16, at 10:00 a.m. CET and can be joined online here. The presentation material for the webcast will be avail- able after market close on November 15 via: www.Bettercollective.com To participate telephonically follow this link . Once signed up you will receive an e-mail with a phone num- ber and a personal dial-in code for the call. Q3 webcast November 16, 2023 ===== SIDA 4 ===== Q3 report 2023 Page 3 Highlights Q3, 2023 Group revenue grew by 26% to 7 5 mEUR (Q3 2022: 60 mEUR). Organic revenue growth was 16%. Recurring revenue was 4 6 mEUR, implying 49% growth. Making up 61% of total group revenue. Group EBITDA before special items was 20 mEUR, a growth of 35% (Q3 2022: 15 mEUR). The group EBITDA- margin before special items was 26%. The full-year financial targets remain unchanged. Cash flow from operations before special items was 1 4 mEUR (Q3 2022: 13 mEUR). T he cash conversion was 63%. By the end of Q3, capital reserves stood at 123 mEUR of which cash of 41 mEUR, and other current finan- cial assets of 10 mEUR and unused credit facilities of 72 mEUR. New depositing customers (NDC) numbered more than 445,000 in the quarter implying growth of 27%. 87% of NDCs were sent on revenue share contracts. The North American contractual transition towards reve- nue share has been moving faster than expected. In terms of NDCs, Better Collective grew massively during Q3 and sent approximately 65,000 NDCs, implying growth of 73%. Out of this, 64% were on revenue share agreements im- plying 42,000 NDCs, which equals 159% growth. The content and social media company Playmaker HQ, was acquired in the beginning of Q3. With the acquisition, Bet- ter Collective expanded competitiveness within social me- dia and sports content production, and the total consider- ation of the acquisition was 51 mEUR (54 mUSD) with an upfront payment of 14 mEUR (15 mUSD). Acquiring leading national sports media with a strong brand is an important pillar in Better Collective’s global strategy. During Q3, the group made multiple acquisitions executing on its strategy and vision to become the leading digital sports media group: • In a transaction made with the Everysport Group, Better Collective acquired four of Sweden’s strongest sports media brands for a total purchase price of 3.7 mEUR. The four brands are; SvenskaFans.com, Hock- eysverige.se, FotballDirect, and Innebandy Maga- zinet. • Better Collective strengthened its South American po- sition by acquiring the Brazilian sports media plat- form, Torcedores.com. Adding the first Brazilian sports media brand to the group, Better Collective also acquired an office in Sao Paulo, Brazil. • Tipsbladet.dk was acquired for 6.5 mEUR, further lev- eraging Better Collective’s position as a key partner for advertisers in the Danish market. The club -financing from October 2022, with Nordea, Nykredit and Citibank was extended by three years until October 2026, together with the execution of the accor- dion option. In doing so the available facilities were in- creased by 72 mEUR, leaving Better Collective with a total financing of 319 mEUR where 247 mEUR has been utilized. A share buyback program of up to 10 mEUR was initiated and completed during Q3. Better Collective acquired 187,991 shares at an average price of 237.2 SEK. Follow- ing the purchases, Better Collective held 2.51% of the out- standing share capital. The purpose of the buyback is to cover future payments relating to acquisitions and LTI pro- grams. Secured proof-of-concept for Better Collective’s in -house adtech platform, AdVantage. The platform allows Better Collective to gain stronger knowledge of its audience ena- bling it to better cater to and serve targeted and contextual ads. The first AdVantage campaigns have been run on Bet- ter Collective’s brands and media partnerships across eight markets. For the nationwide day of action against gambling addic- tion 2023, Better Collective’s subsidiary, Mindway AI, en- tered a strategic partnership with the German Sports Betting Association (DSWV). The partnership will see the integration of the innovative Mindway AI solution - Gama- lyze, into DSWV’s homepage. Britt Boeskov and René Rechtman were elected to the Board of Directors at an EGM on 8 August. Following six years of dedicated work for Better Collective, Klaus Holse decided to step down from the Board of Directors. Better Collective opened the doors to its new headquarters in Copenhagen. The leasing agreement runs for five years and has a rent obligation of approximately 12 mEUR during that period. ===== SIDA 5 ===== Q3 report 2023 Page 4 Significant events after the period The October trading update showed revenue of 24.3 mEUR, down 6%. Revenue and earnings were negatively impacted by an estimated +8mEUR due to a significantly lower sports win margin than expected. Better Collective made its second largest acquisition to date, in a transaction to acquire Playmaker Capital for a total price consideration of 176 mEUR. Playmaker Capital is a leading digital sports media group that owns and op- erates several strong sports media brands across the Americas. The acquisition will be transformational for Bet- ter Collective and will strengthen the group’s market lead- ing position in North America, while also taking market leadership in South America. Note that despite having sim- ilar names, Playmaker HQ and Playmaker Capital are not associated. The closing of the transaction is subject to ap- proval by the shareholders of Playmaker Capital, court ap- proval, applicable regulatory approvals, and certain other closing conditions customary in transactions of this nature. The transaction is expected to close before the end of Q1 of 2024, whereafter Playmaker Capital will be consolidated into the Better Collective group Better Collective’s 2023 fi- nancial targets are maintained, while it plans to revisit its long-term financial targets for the period 2023 -2027 fol- lowing the closing of the transaction. In addition to Better Collective’s presence in Sao Paulo, established with the acquisition of Torcedore s the group opened the doors to a new office in Rio de Janeiro. Mindway AI entered another strategic partnership this time with the United States’ National Council on Problem Gam- bling (NCPG). The partnership will see the integration of Gamalyze, into NCPG’s flagship responsible gambling web- site; responsiblePlay.org Better Collective’s Nomination Committee was appointed based on ownership data as per August 31, 2023. In late September, Better Collective announced its inten- tion to carry out a dual listing of the group’s shares on Nasdaq Copenhagen, in addition to the current listing on Nasdaq Stockholm. The first day of trading on Nasdaq Co- penhagen is expected to be November 17, 2023. Upcoming events • February 21, 2024, Q4 release • March 20, 2024, annual report release • May 21, 2024, Q1 release • August 21, 2024, Q2 release Q3 report 2023 Page 4 Q3 report 2023 Page 4 ===== SIDA 6 ===== Q3 report 2023 Page 5 Financial highlights and key figures tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Income statements Revenue 75,431 59,720 241,491 183,157 269,297 Recurring revenue 46,312 31,075 141,864 82,052 123,365 Revenue Growth (%) 26% 32% 32% 47% 52% Organic Revenue Growth (%) 16% 23% 23% 30% 34% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 19,595 14,556 81,566 49,892 85,075 Operating profit before depreciation and amortization (EBITDA) 19,073 13,935 79,218 48,228 85,021 Depreciation 1,200 623 2,611 1,593 2,321 Operating profit before amortization and special items (EBITA before special items) 18,395 13,933 78,954 48,300 82,754 Special items, net - 522 - 621 - 2,347 - 1,664 - 54 Operating profit before amortization (EBITA) 17,873 13,312 76,607 46,635 82,700 Amortization and impairment 6,375 3,682 16,314 8,722 12,347 Operating profit before special items (EBIT before special items) 12,019 10,251 62,640 39,578 70,407 Operating profit (EBIT) 11,498 9,630 60,293 37,913 70,353 Result of financial items - 6,378 - 612 - 15,985 - 1,961 - 5,389 Profit before tax 5,119 9,017 44,308 35,952 64,964 Profit after tax 3,107 6,949 32,344 27,796 48,075 Earnings per share (in EUR) 0.06 0.13 0.59 0.51 0.88 Diluted earnings per share (in EUR) 0.05 0.12 0.56 0.49 0.85 For a definition of financial key figures and ratios, please refer to page 37. tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Balance sheet Balance Sheet Total 930,934 799,892 930,934 799,892 785,229 Equity 437,744 420,887 437,744 420,887 412,917 Current assets 106,674 77,256 106,674 77,256 95,025 Current liabilities 92,666 189,322 92,666 189,322 65,068 Net interest bearing debt 222,991 174,504 222,991 174,504 177,879 tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Cashflow Cash flow from operations before special items 14,245 13,171 81,859 48,819 69,816 Cash flow from operations 13,912 12,550 79,858 47,908 68,423 Investments in tangible assets - 1,958 - 703 - 4,140 - 1,263 - 1,804 Cash flow from investment activities - 30,941 - 3,419 - 81,702 - 109,580 - 112,632 Cash flow from financing activities - 318 - 7,119 29,695 70,770 65,737 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 26% 24% 34% 27% 32% Operating profit before amortization margin (EBITDA) (%) 25% 23% 33% 26% 32% Operating profit margin (%) 15% 16% 25% 21% 26% Publishing segment - EBITDA before special items margin (%) 25% 30% 36% 33% 38% Paid media segment - EBITDA before special items margin (%) 29% 11% 29% 13% 16% Net interest bearing debt / EBITDA before special items 1.91 2.63 1.91 3.38 2.09 Liquidity ratio 1.15 0.41 1.15 0.41 1.46 Equity to assets ratio (%) 47% 53% 47% 53% 53% Cash conversion rate before special items (%) 63% 86% 95% 95% 80% Average number of full-time employees 1,053 977 1,126 842 878 NDCs (thousand) 445 354 1,447 1,102 1,683 ===== SIDA 7 ===== Q3 report 2023 Page 6 CEO Letter Building for the future with fast paced North American revenue share transition and value adding acquisitions Q3 was another eventful quarter where we continued working towards sustainable future growth. Following the exceptional performance during the first half of 2023, Q3 landed in line with expectations. Group revenues grew by 26% to 75 mEUR of which 16% was organic growth. Our EBITDA grew faster than the top line to 20 mEUR equating to 35% growth and an EBITDA margin of 26%. During the quarter we recorded a normalized sports win margin fol- lowing more favorable sports win margins in H1. We man- aged to deliver solid results despite I) it being the low sea- son, and II) our continued investment into future growth in the North American market. The quarterly revenue growth was broadly driven by our media partnerships, which continue to be a solid growth driver globally, and the strong development in our Paid Media business. Paid Media delivered a topline growth of 46% and a remarkable 264% surge in operational earnings with the margin growing from 11% to 29%. This growth is largely the result of our investments in moving revenues to recurring revenue share income during 2020 and 2021. Further, we continued our strong focus on recurring reve- nue in North America, which grew 24% to 22 mEUR and accounted for 30% of group revenue. At Better Collective, sustainable long-term value creation is in our DNA, and I am very pleased to see how our commercial team in North America has been able to fast-forward the recurring reve- nue share transition, providing strong value in the long run, while being short -term dampening on revenue and earnings. Allow me to dive a bit into this mechanism. North American revenue share transition moving faster than expected Since the PASPA repeal in 2018, we have been pushing for revenue share agreements in North America, just like in most of our operations in the rest of the world. Last year, we succeeded in either fully or partly transitioning the first of our partners to this w ay of collaborating. Remind you, we favor revenue share as this model puts us in the same boat as our partnering sportsbooks, allowing us to develop more strategic and long -term partnerships. In short, we succeed when they succeed. Having employed the revenue share model for two dec- ades we have a very strong data foundation proving that our strategic revenue share partnerships yield higher long- term customer values versus an upfront payment (CPA). Our continuous focus on securing recurring revenue streams has provided Better Collective with a strong com- petitive advantage. The current recurring revenue provides us with a strong cash flow to invest in both the near future - which ensures agility once opportunities arise - while also enabling us to invest in the future. The current recurring cash flow primarily stems from cus- tomers sent during 2021 and the years leading up to 2021. Hence our large growth in NDCs during 2022 and 2023 bode well for our future value creation. We will continu- ously push the ‘snowball’ of recurring revenue down hill, accumulating future growth along the way and growing the ‘snowball’ ever larger. With this continuous push we build out our competitive moat and set us further apart from competition. Zooming in on North America, I am very satisfied to see our significant growth in revenue share customers. Across all the North American region we sent more than 65,000 NDCs during Q3, which implies a growth of 73%. Out of this, 64% were on revenue share a greements implying 42,000 NDCs, which equals 159% growth. In the begin- ning of the year, we incorporated this transition into our financial targets, and we are pleased to see that the tran- sition is moving faster than first anticipated. With that in mind we have still managed to grow North American revenues by 24% to 22 mEUR. As you might re- call, last year was “the year of extreme CPAs” due to sev- eral big state launches. Even though the focus during 2023 has been on advancing the revenue share transition, our North American business has already delivered year -to- date growth of 30%, leaving me even more confident in our decision, seeing we can generate short -term growth while investing in Better Collective’s future. Personally, I like to think of our revenue share transition as growth in disguise. I remain highly excited about the transition, as our data tells us that North American cus- tomer lifetime values are very high compared to anywhere else in the world, and to fully capture this potential we need to operate on revenue share agreements. I would like to stress that this transitional phase will con- tinue to have a short -term dampening impact on our fi- nancial performance in the coming quarters, also heading into 2024. However, given the above -mentioned factors, this is something we must see through, as it simply is not an opportunity we want to miss out on. Value adding acquisitions During Q3, we continued our global expansion with no less than four acquisitions. We acquired Playmaker HQ, an ac- quisition which provides our group with social media and content production capabilities needed for long-term suc- cess in the sports media industry. By acquiring Playmaker HQ, we also broadened our user base towards more generalist sports fans which subse- quently increases the value offering to our existing part- ners. Additionally, Playmaker HQ also holds extensive sponsorship sales and know -how that we can deploy to ===== SIDA 8 ===== Q3 report 2023 Page 7 increase our abilities to monetize audiences outside our core sports betting audience. Currently, Playmaker HQ is only active in North America, and we therefore see great potential in being able to scale content and know -how across our global presence, and particularly in South America, where content is consumed via social media. Hence, acquiring leading national sports media with a strong brand is an important pillar in our global strategy. To further solidify our foothold in the Swedish market we acquired four of Sweden’s strongest sports media brands; SvenskaFans.com, Hockeysverige.se, FotballDirect, and Innebandy Magazinet., in a deal made with the Everysport Group. Already focusing on Scandinavia, we also acquired Tipsbladet.dk to leverage Better Collective’s position as a key partner for Danish advertisers. Further, in a strategic move to strengthen our presence in the Brazilian sports media landscape, we completed the acquisition of the sports media, Torcedores.com. An acqui- sition that allows us to deliver more comprehensive and captivating content to Brazilian sports fans. Following the closure of Q3, we announced the trans-for- mational acquisition of Playmaker Capital, our second larg- est acquisition to date. Playmaker is a leading digital sports media group operating a strong portfolio of sports media brands across the Americas. Joining forces means that Better Collective can establish an even more structured en- try and presence in the South American market, while also strengthening our leading position in North America. Over the years, Playmaker has built incredibly strong sports media brands and excited sports fans across the Americas with high -quality sports content, to cultivate a loyal and dedicated following. Combined, its portfolio at- tracts more than 200 million visits a month and commands a social media following of more than 180 million. This means that Better Collective’s global monthly reach now exceeds 380 million, up from seven million in 2018. This impressive development is truly a testament to the high-quality brand portfolio we have built over the past five years. With the acquisition of Playmaker, we also get a highly skilled management team bringing unique media competencies that undoubtedly will boost our organization even more. We plan to apply our core competencies in Playmaker’s audience even further and utilize our toolbox of business models to boost revenues, while our expertise in performance marketing will also be key. The acquisition fits perfectly with our strategy of owning and operating leading national sports media brands, and further strengthens our position as a preferred partner for businesses aiming to activate their brands in a relevant and engaging sports context. As such we have taken a sig- nificant step towards realizing our vision of becoming the leading digital sports media group. Jesper Søgaard Co-founder & CEO Better Collective ===== SIDA 9 ===== Q3 report 2023 Page 8 Business review and financial performance Group Q3 was another solid quarter for the Better Collective group with revenues of 75 mEUR equaling growth of 26%, of which 16% was organic. Operational earnings (EBITDA before special items) were 20 mEUR, implying a margin of 26%. The group increased its operational earnings by 35%. Recurring revenue came in at 4 6 mEUR, implying growth of 49%, and made up 61% of group revenues. Of the recurring revenues 87% came from revenue share income, 9% from subscription, and 4% from advertise- ment sales. The group delivered more than 445,000 new depositing customers to partnering sportsbooks and continued its strong growth path during its transitional phase to revenue share agreements. Q3 NDCs grew by 27%, of which 87% were revenue share contracts. Q3 report 2023 Page 8 Q3 report 2023 Page 8 Key figures for the group tEUR Q3 2023 Q3 2022 Growth YTD 2023 YTD 2022 Growth Revenue 75,431 59,720 26% 241,491 183,157 32% Cost 55,837 45,164 24% 159,925 133,265 20% Operating profit before depreciation, amortization, and special items 19,595 14,556 34% 81,566 49,892 63% EBITDA-Margin before special items 26% 24% 34% 27% Operating profit before depreciation and amortization 19,073 13,935 37% 79,218 48,228 64% EBITDA-Margin 25% 23% 33% 26% Organic growth 16% 23% 23% 30% ===== SIDA 10 ===== Q3 report 2023 Page 9 Publishing The Publishing business includes revenue from Better Col- lective’s proprietary owned and operated sports media a s well as media partnerships. The traffic to these brands is mostly direct or through organic search results. Revenues from this segment came in at 48 mEUR implying growth of 17% of which 14% was organic. Operational earnings came in at 12 mEUR, implying a margin of 25%. The publishing segment accounted for 64% of group rev- enues and 61% of operational earnings. The topline growth came from performance from most brands in all geographies , where media partnerships are worth highlighting as they continue to deliver. The North American contractual transition towards reve- nue share has been moving faster than expected. In terms of NDCs, Better Collective grew massively during Q3 and sent approximately 67,000 NDCs, implying growth of 73%. The transition postpones revenue and earnings, as it has a short-term dampening effect on revenues and earnings. All central costs and costs of new areas of expansion are recorded in the Publishing segment. Paid Media The Paid Media business includes revenue efforts in paid advertising on search platforms like Google and Bing, as well as advertising on third party sports media. Given the upfront payment to advertise on third party platforms the gross margin is lower than in the Publishing business. Paid Media revenue was 2 7 mEUR, implying growth of 46%, of which 19% was organic. Over the past quarters, the transition in revenue share agreements has paid off as margins have improved and made it possible to further fuel growth. Operational earnings came in at 8 mEUR, implying a mar- gin of 29%. This implies growth of 264% versus last year. The strong growth in the top line comes from another broadly based performance with solid growth , especially from the Americas. The high margin growth comes be- cause of earlier transition of revenues to recurring revenue share income. Key figures for the Publishing segment tEUR Q3 2023 Q3 2022 Growth YTD 2023 YTD 2022 Growth Revenue 48,463 41,300 17% 161,214 127,806 26% Share of Group 64% 69% 67% 70% Cost 36,574 28,858 27% 102,761 85,118 21% Share of Group 66% 64% 64% 64% Operating profit before depreciation, amortization, and spe- cial items 11,888 12,442 -4% 58,452 42,688 37% Share of Group 61% 85% 72% 86% EBITDA-Margin before special items 25% 30% 36% 33% Operating profit before depreciation and amortization EBITDA-margin 11,366 23% 11,821 29% -4% 56,105 35% 41,024 32% 37% Organic growth 14% 20% 24% 30% Key figures for the Paid Media segment tEUR Q3 2023 Q3 2022 Growth YTD 2023 YTD 2022 Growth Revenue 26,969 18,420 46% 80,277 55,351 45% Share of Group 36% 31% 33% 30% Cost 19,262 16,306 18% 57,164 48,147 19% Share of Group 34% 36% 36% 36% Operating profit before depreciation, amortization, and spe- cial items 7,707 2,114 264% 23,113 7,204 221% Share of Group 40% 15% 28% 14% EBITDA-Margin before special items 29% 11% 29% 13% Operating profit before depreciation and amortization EBITDA-margin 7,707 29% 2,114 11% 264% 23,113 29% 7,204 13% 221% Organic growth 19% 31% 27% 29% ===== SIDA 11 ===== Q3 report 2023 Page 10 Europe & Rest of World The Europe & Rest of the world (ROW) business includes all markets outside of North America. The European mar- kets consist of more mature markets and are the legacy markets of Better Collective . South America is a strong growth market for Better Collective and makes up an in- creasingly bigger part of the business. Examples of sports brands include Soccernews in the Netherlands, Betarades in Greece, Wettbasis in Germany, Goal.pl in Poland, Les Transferts in France, and many others. Further it includes our esport communities HLTV and Futbin. The strategy is to own the strongest local sports media in all relevant re- gions. Given the strong legacy in the European markets where Better Collective has been sending revenue share custom- ers the past decade, there is a lot of recurring revenue in this business. Europe & ROW posted revenues of 53 mEUR, implying growth of 27%. Operational earnings came in at 17 mEUR, giving a margin of 31% and growing 32%. Europe & ROW revenue accounted for 70% and operational earnings ac- counted for 85%. As mentioned, these markets are heavily exposed towards recurring revenue share income, mean- ing fluctuations in the sports win margin has a bigger im- pact here. During Q3 the sports win margin was lowered to more normalized levels as compared to previous quar- ters with overperforming sports win margins. North America Both the US and the Canadian markets are somewhat re- cently regulated. The first states in the US started regulat- ing in 2018. As both markets are young, revenues largely have been generated from one-time payments (CPA). Last year, Better Collective started to seek a transition towards recuring revenues in the US. North American sports brands include amongst other Action Network, Playmaker HQ Ve- gasInsider, RotoGrinders, Sportshandler, and Canada Sports Betting. The North American revenue came in at 22 mEUR, imply- ing growth of 24%. Operational earnings came in at 3 mEUR equaling a margin of 13% up from 11%. The group continues its transition towards recurring revenue share which has been moving faster than expected. In terms of NDCs, Better Collective sent approx. 65,000 NDCs, imply- ing growth of 7 3%. Out of this, 64% were on revenue share agreements implying 42,000 NDCs, which equals 159% growth. . Key figures for Europe & RoW and North America segments Europe & ROW North America tEUR Q3 2023 Q3 2022 Growth YTD 2023 YTD 2022 Growth Q3 2023 Q3 2022 Growth YTD 2023 YTD 2022 Growth Revenue 52,941 41,595 27% 158,932 119,600 33% 22,490 18,125 24% 82,559 63,558 30% Share of Group 70% 70% 66% 65% 30% 30% 34% 35% Cost 36,305 28,955 25% 102,434 84,022 22% 19,532 16,209 21% 57,491 49,243 17% Share of Group 65% 64% 64% 63% 35% 36% 36% 37% Operating profit before depreciation, amortization, and special items 16,637 12,640 32% 56,498 35,578 59% 2,958 1,915 54% 25,068 14,314 75% Share of Group 85% 87% 69% 71% 15% 13% 31% 29% EBITDA-Margin before special items 31% 30% 36% 30% 13% 11% 30% 23% Operating profit before depreciation and amortization 16,519 12,055 37% 55,055 34,703 59% 2,554 1,330 113% 23,405 13,440 76% EBITDA-Margin 31% 29% 35% 29% 11% 7% 28% 21% 3 ===== SIDA 12 ===== Q3 report 2023 Page 11 Financial performance first nine months 2023 Revenue growth of 32% to 241 mEUR and organic growth of 23% Revenue showed strong growth vs. 2022 of 32% and amounted to 241.5 mEUR (YTD 2022: 183.2 mEUR). Rev- enue share accounted for 50% of the revenue with 30% coming from CPA, 5% from subscription sales, and 12% from other income. Cost of 160 mEUR - up from 133 mEUR The increased costs are driven by Paid Media, whereas cost to return media partnerships increased as well. The cost base excluding depreciation and amortization grew 16 mEUR, up to 159.9 mEUR (YTD 2022: 133.3 mEUR). Total direct cost relating to revenue increased by 9.5 mEUR to 74.9 mEUR (YTD 2022: 65.4 mEUR) with the growth coming from increased cost in Paid Media, and di- rect costs related to media partnerships. Beyond the cost of paid traffic, this includes hosting fees of websites, con- tent generation, and external development. Personnel cost increased 30% from September 2022 to 66 mEUR 2023 (YTD 2022: 50.7 mEUR). The average number of employees increased 25% to 1,053 (YTD 2022: 842). Personnel costs include costs related to warrants of 2,4 mEUR (YTD 2022: 1.3 mEUR). Other external costs increased 2 mEUR or 12% to 19 mEUR (YTD 2022: 17.1 mEUR). Depreciation and amorti- zation amounted to 16.3 mEUR (YTD 2022: 10.7 mEUR). The increase is primarily due to amortization related to the acquisition of FUTBIN and Skycon as well as new media partnerships. Special items Special items amounted to a cost of 2.3 mEUR (YTD 2022: 1.7 mEUR). The net cost of 2.3 mEUR is primarily related to M&A expenses of 1.7 mEUR and restructuring of 0.5 mEUR. Earnings Operational earnings (EBITDA) before special items grew 63% to 81.6 mEUR (YTD 2022: 49.9 mEUR). The EBITDA- margin before special items was 34% (YTD 2022: 27%). Including special items, the reported EBITDA was 79.2 mEUR. (YTD 2022: 48.2 mEUR). EBIT before special items increased 73% to 62.6 mEUR (YTD 2022: 39.6 mEUR). Including special items, the re- ported EBIT was 60.3 mEUR (YTD 2022: 37.9 mEUR). Net financial items Net financial costs amounted to 16 mEUR (YTD 2022: 2 mEUR) and included net interest, fees relating to bank credit lines, unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 8.3 mEUR and included non-payable, calculated interest expenses on certain balance sheet items . Out of the net interest 7.1 mEUR are paid. Net financial costs are impacted by an unrealized loss of 5.2 mEUR on Catena Media shares and financing fees of 0.8 mEUR whereas net exchange rate loss amounted to 1.0 mEUR. Income tax Better Collective has a tax presence in the places where the company is incorporated. These places count Denmark (where the parent company is incorporated), Austria, France, Greece, Malta, Netherlands, Poland, Portugal, Ro- mania, Serbia, Sweden, UK, Canada, Brazil, and the US. Income tax YTD 2023 amounted to 11.9 mEUR (YTD 2022: 8.2 mEUR). The Effective Tax Rate (ETR) was 27% (YTD 2022: 22.7%). Net profit Net profit after tax was 32.3 mEUR ( YTD 2022: 27.8 mEUR). Earnings per share (EPS) increased by nearly 14% to 0.58 EUR/share vs. 0.51 EUR/share YTD 2022. Equity The equity increased to 437.7 mEUR as per September 30, 2023, from 412.9 mEUR on December 31, 202 2. Besides the YTD profit of 32.3 mEUR, the equity has been impacted by the acquisition of treasury shares of 13.4 mEUR and share-based payments of 2.4 mEUR. The increase in USD vs. EUR has impacted the equity by 2.4 mEUR. Balance sheet Total assets amounted to 930.9 mEUR (202 2: 785.2 mEUR), with an equity of 437.7 mEUR (202 2: 412.9 mEUR). This corresponds to an equity to assets ratio of 47% (2022: 53%). The liquidity ratio was 1.15 resulting from current assets of 106.6 mEUR and current liabilities of 92.6 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 1.9 at the end of Sep- tember. ===== SIDA 13 ===== Q3 report 2023 Page 12 Investments On 14 April, Better Collective acquired Skycon for a pur- chase price of up to 51 mEUR (45 mGBP) on a cash and debt free basis. The net cash flow impact of the transaction was 30 mEUR considering deferred payments and acquired net assets. On July 3, 2023 Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 51 mEUR (54 mUSD) with an initial consideration of 14.1 mEUR (15 mUSD) on a cash and debt-free basis. On August 15, 2023 Better Collective announced the ac- quisition of four brands SvenskaFans.com, Hockeysve- rige.se, Fotbolldirekt.se and Innebandymagazinet.se from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt-free basis. On September 4, 2023 Better Collective announced the ac- quisition of Torcedores.com, by acquiring Goalmedia Tech- nologia E Marketing Digital S.A. During the period investments in accounts and other in- tangible assets amounted to 8.1 mEUR. Cash flow and financing Cash flow from operations before special items was 61 mEUR (YTD 2022: 40.5 mEUR) with a cash conversion of 95%. At 30 September, Better Collective has bank credit facilities of a total 319 mEUR. In August Better Collective extended the club-financing by three years to October 2026 as well as executing the accordion option and thereby increasing the available facilities with 72 mEUR, leaving the group with a total financing of 319 mEUR where 247 mEUR has been utilized. By the end of September 2023, capital re- serves stood at 122.5 mEUR consisting of cash of 40.7 mEUR, other current financial assets of 9.8 mEUR in form of listed shares and unused credit facilities of 72 mEUR. The parent company Better Collective A/S, Denmark, is the parent company of the group. Revenue grew by 60% to 71.3 mEUR (YTD 2022: 44.6 mEUR). Total costs including depreciation and amortization was 67.8 mEUR (YTD 2022: 43.1 mEUR). Profit after tax was 36.4 mEUR (YTD 2022: 57.5 mEUR). The change in profit after tax is primarily due to differences in dividend pay- ments from subsidiaries, exchange rate adjustments, fi- nancial expenses, and corporate tax. Total equity ended at 439 mEUR by September 30, 2023 (2022: 411.1 mEUR). The equity in the parent company was impacted by treasury share transactions (13.4 mEUR), cost of warrants of 2.4 mEUR and merger with HLTV (3.2 mEUR) Disclaimer This report contains certain forward -looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events. Such state- ments or opinions pertaining to the future, for example include wording like; “believes”, “deems”, “estimates”, “anticipates”, “aims’, and “forecasts” or similar expres- sions, and are intended to identify a statement as forward- looking. This applies to statements and opinions concern- ing the future financial returns, plans and expectations with respect to the business and management of the group, future growth and profitability and general eco- nomic and regulatory environment and other matters af- fecting Better Collective. Forward-looking statements are based on current estimates and assumptions made accord- ing to the best of the group’s knowledge. These state- ments are inherently associated with both known and un- known risks, uncertainties, and other factors that could cause the results, including the group’s cash flow, financial condition and operations, to differ materially from the re- sults, 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 assumed or described in those statements. Better ===== SIDA 14 ===== Q3 report 2023 Page 13 Collective can give no assurance regarding the future ac- curacy 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 asso- ciated with forward-looking statements, it is possible that certain future events may not occur. Moreover, forward - looking estimates derived from third -party studies may prove to be inaccurate. Actual results, performance or events may differ materially from those in such statements due to, without limitation: changes in general economic conditions, in particular economic conditions in the mar- kets in which the group operates, changes affecting inter- est rate levels, changes affecting currency exchange rates, changes in competition levels, changes in laws and regu- lations, and occurrence of accidents or environmental damages and systematic delivery failures. We undertake no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. Financial targets 2023 The board of directors ha s decided on targets for the fi- nancial year 2023 as announced in the 2022 full year re- port. Following the acquisition of Skycon Limited and the record breaking Q1, the financial targets were upgraded: • Revenue of 315-325 mEUR (previously 305-315 mEUR) • EBITDA before special items of 105-115 mEUR (pre- viously 95-105 mEUR) • Net debt to EBITDA before special items <2.0 (un- changed) Financial targets 2023- 2027 The new financial targets for the Better Collective group for 2023-2027 (include M&A): • Revenue CAGR of +20% • EBITDA margin before special items of 30-40% • Net debt to EBITDA before special items of <3 The long-term target assumes that M&A are solely fi- nanced by own cash flow and debt. Other Shares and share capital Better Collective A/S is listed on Nasdaq Stockholm main market. The shares are traded under the ticker “BETCO”. As per September 30, 2023, the share capital amounted to 552,238.47 EUR, and the total number of issued shares was 55,223,847. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. On July 7, 2023 Better Collective A/S initiated a share buy- back program for up to 10 mEUR, to be executed during the period from July 7, 2023 to August 21, 2023. The pur- pose of the program is to cover future payments relating to acquisitions and LTI programs. The share buyback pro- gram was completed on August 21, 2023 and the accumu- lated no. of shares under the program was 187,991. Fol- lowing the purchases, Better C ollective A/S holds 1,387,580 treasury shares corresponding to 2.51% of the outstanding share capital of the Company. In relation to the release of Better Collective’s Q2 report, an exercise window opened on August 23, 2023 and closed on September 6, 2023. 12 employees wished to exercise 47,011 warrants under the 2019 warrant program. On September 18, 2023 the Board of Directors resolved to is- sue 47,011 new ordinary shares in Better Collective A/S. Shareholder structure As of September 30, 2023, the total number of sharehold- ers was 4,485. A list of top ten shareholders in Better Col- lective A/S can be found on the group’s website. Nomination Committee Better Collective’s Nomination Committee has been ap- pointed and must consist of four members, representing the three largest shareholders as per the end of August 2023, together with the Chair of the Board of Directors. On August 31, 2023, the two largest shareholders were Chr. Dam Holding and J. Søgaard Holding which due to their interlinked ownership are grouped. In accordance with the Financial targets 2023 Updated targets 2023 Targets 2023 Actual 2022 Revenue 315-325 mEUR 290-300 mEUR 269.3 mEUR EBITDA (before special items) 105-115 mEUR 90-100 mEUR 85.1 mEUR Net interest bearing debt/EBITDA <2.0 <2.0 2.67 ===== SIDA 15 ===== Q3 report 2023 Page 14 shareholders’ decision, the appointees of the Nomination Committee are: • Søren Jørgensen, Chair, appointed by Chr. Dam Holding and J. Søgaard Holding • Martin Jonasson, appointed by Andra AP-Fonden, also representing Tredje AP-Fonden • Michael Knutsson, appointed by Knutsson Holdings AB • Jens Bager, Chair of the Board of Directors, Better Collective Extraordinary General Meeting 2023 On August 8, 2023 Better Collective hosted an electronic extraordinary general meeting (EGM), where the share- holders approved the proposals from the Nomination Com- mittee regarding the election of Britt Boeskov and René Rechtman as new members of the Board of Directors. Fol- lowing years of dedicated work on the Better Collective Board of Directors, Board member Klaus Holse, wished to resign with effect as of the EGM. Klaus Holse and his con- tributions to the Better Collective group are greatly appre- ciated. Dual listing In late September, Better Collective announced its inten- tion to carry out a dual listing of the group’s shares on Nasdaq Copenhagen, in addition to the current listing on Nasdaq Stockholm. The first day of trading on Nasdaq Co- penhagen is expected to be November 17, 2023. Incentive programs To attract and retain key competences, the company has established warrant programs for certain key employees. All warrants with the right to subscribe for one ordinary share. If all outstanding warrants are subscribed, then the maximum shareholders diluti on will be approximately 4.9%. On January 3, 2023, the board of directors imple- mented a Long-Term Incentive Plan (LTI) for key employ- ees in the Better Collective group. In total the grants under the LTI in 2023 cover 134 ,953 performance share units and 239,350 share options to 63 key employees in total, vesting over a 3 -year period. The total value of the 2023 LTI grant program is 2.9 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the financial goals. On April 25, 2023, a new LTI program was approved for executive management. The total grant of 300,000 share options will vest over a 3 -year period given certain vesting conditions set by the Board of Directors. The total value of the 2023 LTI grant program is 2.6 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the financial goals. Risk management Through an Enterprise Risk Management process, various gross risks in Better Collective are identified. Each risk is described, including current risk mitigation in place, or planned mitigating actions. The subsequent analysis of the identified risks includes an inherent risk evaluation based on two main parameters: probability of occurrence and im- pact on future earnings and cash flow. Better Collective’s management continuously monitors risk development in the Better Collective group. The risk evaluation i s pre- sented to the Board of Directors annually, for discussion and any further mitigating actions required. The board evaluates risk dynamically to account for this variation in risk impact. The policies and guidelines in place stipulate how management must work with risk management. Better Collective’s compliance with these policies and guidelines is also monitored by the management on an on- going basis. Better Collective seeks to identify and under- stand risks and mitigate them accordingly. Also, the group’s close and longstanding relationships with custom- ers allow Better Collective to anticipate and respond to market movements and new regulations including compli- ance requirements from authorities and sportsbooks. Warrant programs Program Warrants out- standing September 30, 2023 Vesting Period Exercise Period Exercise Price DKK Exercise Price EUR (rounded) 2019* 922,086 2020-2023 2022-2024 64.78 8.70 2020** 25,000 2021-2023 2023-2025 61.49 8.26 2020* 246,666 2021-2023 2023-2025 106.35 14.28 2021* 381,614 2022-2024 2024-2026 150.41 20.20 2021 US MIP Options 117,198 2021-2024 2024-2026 138.90 18.65 2021 US MIP PSU 132,786 2021-2024 2024-2026 2022 US MIP Options 14,610 2022-2023 2023-2026 107.25 14.40 2022 US MIP PSU 26,177 2022-2023 2023-2026 2022 Options 22,138 2022-2024 2025-2027 130.98 17.59 2022 PSU 67,276 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.08 2023 Options 239,338 2023-2025 2026-2028 77.50 10.41 2023 PSU 131,311 2023-2025 2026-2028 ===== SIDA 16 ===== Q3 report 2023 Page 15 With the US division, the overall risk profile of Better Col- lective has changed, and compliance as well as financial risk have increased. Better Collective has mitigated the additional risks in US in several ways, compliance risk through involvement of reg- ulatory bodies in our licensing process for newly estab- lished entities, financial risk through a performance-based valuation of the acquir ed entities, and organizational risk through establishment of local governance, and finance, HR, and legal organization dedicated to the US operations. During 2022 and 2023 the macroeconomic environment has impacted the global economy with rising interest rates. Better Collective has mitigated and addressed the credit and interest rate risk by entering a new long-term commit- ted facility with three banking partners in August, securing attractive terms and a long -term 3-year commitment. Other key risk factors are described in the Annual report 2022. Contacts Senior Director Group Strategy, IR and Corp. Comms. 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 pub- lication, through the agency of the contact person set out above on November 15, 2023, after market close (CET). About With a vision to become the leading digital sports media group, Better Collective owns global and national sport media. We are on a mission to excite sports fans through engaging content and foster passionate communities worldwide. Headquartered in Copenhagen, Denmark, and listed on Nasdaq Stockholm (BETCO), Better Collective's portfolio includes; Action Network , VegasInsider.com, HLTV.org, FUTBIN.com, and Playmaker HQ. To learn more about Better Collective please visit www.Bettercollective.com Q3 report 2023 Page 15 Q3 report 2023 Page 15 ===== SIDA 17 ===== Q3 report 2023 Page 16 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 interim financial statements and the parent com- pany condensed interim financial statements for the period January 1 – September 30, 2023. Today, the board of directors and the executive management have discussed and approved the condensed consolidated interim financial statements and the parent company condensed interim financial state- ments of Better Collective A/S for the period January 1 – September 30, 2023. The condensed consolidated interim financial statements for the period January 1 – September 30, 2023, are pre- pared in accordance with IAS 34 Interim Financial Report- ing as adopted by the EU, and additional requirements of the Danish Financial Statements Act. The parent company condensed interim financial statements have been in- cluded 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 condensed interim financial statements give a true and fair view of the group’s and parent company’s assets, liabilities and financial position on September 30, 2023, and of the results of the group’s and parent company’s operations and the group’s cash flows for the period January 1 – September 30, 2023. Further, in our opinion, the management’s review gives a fair review of the development in the group’s and the par- ent company’s operations and financial matters and the results of the group’s and the parent company’s operations and financial position, as well as a description of the major risks and uncertainties, the group and the parent company are facing. Copenhagen, November 15, 2023 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 18 ===== Q3 report 2023 Page 17 Independent auditor's report To the shareholders of Better Collective A/S We have reviewed the condensed consolidated interim fi- nancial statements of Better Collective A/S for the period January 1 – September 30, 2023, which comprise a con- solidated income statement, consolidated statement of other comprehensive income, consolidated balance sheet, consolidated statement of changes in equity, consolidated cash flow statement and notes as presented on page 18 - 33. The condensed consolidated interim financial state- ments are prepared in accordance with IAS 34 Interim Fi- nancial Reporting, as adopted by the EU, and additional requirements of the Danish Financial Statements Act. Management's responsibilities for the condensed consolidated interim financial statements Management is responsible for the preparation of con- densed consolidated interim financial statements in ac- cordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and additional requirements of the Danish Financial Statements Act and for such internal con- trol as Management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities Our responsibility is to express a conclusion on the con- densed consolidated interim financial statements. We con- ducted our review in accordance with the International Standard on Review of Interim Financial Information Per- formed by the Independent Auditor of the Entity and ad- ditional requirements applicable in Denmark. This requires us to conclude whether anything has come to our attention that causes us to believe that the con- densed consolidated interim financial statements, taken as a whole, are not prepared, in all material respects, in ac- cordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and additional requirements of the Danish Financial Statements Act. This standard also re- quires us to comply with relevant ethical requirements. A review of the condensed consolidated interim financial statements in accordance with the International Standard on Review of Interim Financial Information Performed by the Independent Auditor of the Entity is a limited assur- ance engagement. The auditor p erforms procedures pri- marily consisting of making enquiries of Management and others within the company, as appropriate, applying ana- lytical procedures and evaluate the evidence obtained. The procedures performed in a review are substantially less that those performed in an audit conducted in accord- ance with the International Standards on Auditing. Accordingly, we do not express an audit opinion on the condensed consolidated interim financial statements. Conclusion Based on our review, nothing has come to our attention that causes us to believe that these condensed consoli- dated interim financial statements are not prepared, in all material respects, in accordance with IAS 34 Interim Fi- nancial Reporting, as adopted by the EU, and additional requirements of the Danish Financial Statements Act. Other matters The condensed consolidated interim financial statements contain actual figures for the period July 1 – September 30, 2023 (Q3 2023), together with comparative figures for the period July 1 – September 30, 2022 (Q3 2022). The actual figures for Q3 2023 and the comparative figures for Q3 2022 have not been subject to review. Accordingly, we do not express an opinion or any other form of assurance on the actual Q3 2023 figures or on the comparative fig- ures for Q3 2022. Copenhagen, November 15, 2023 EY Godkendt Revisionspartnerselskab CVR no. 30 70 02 28 Jan C. Olsen State Authorised Public Accountant mne33717 Peter Andersen State Authorised Public Accountant mne34313 ===== SIDA 19 ===== Q3 report 2023 Page 18 Financial statements for the period January 1 – September 30 Condensed interim consolidated income statement Not e tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 3 Revenue 75,431 59,720 241,491 183,157 269,297 Direct costs related to revenue 25,669 21,691 74,862 65,447 92,227 4 Staff costs 23,408 17,326 66,018 50,727 68,639 Other external expenses 6,760 6,148 19,045 17,091 23,356 Operating profit before depreciation and amortization (EBITDA) and special items 19,595 14,556 81,566 49,892 85,075 Depreciation 1,200 623 2,611 1,593 2,321 Operating profit before amortization (EBITA) and special items 18,395 13,933 78,954 48,300 82,754 7 Amortization and impairment 6,375 3,682 16,314 8,722 12,347 Operating profit (EBIT) before special items 12,019 10,251 62,640 39,578 70,407 5 Special items, net - 522 - 621 - 2,347 - 1,664 - 54 Operating profit 11,498 9,630 60,293 37,913 70,353 Financial income 799 833 4,179 4,178 4,198 Financial expenses 7,178 1,445 20,164 6,140 9,587 Profit before tax 5,119 9,017 44,308 35,952 64,964 6 Tax on profit for the period 2,012 2,068 11,964 8,156 16,888 Profit for the period 3,107 6,949 32,344 27,796 48,075 Earnings per share attributable to equity holders of the company Average number of shares 55,183,479 55,002,192 55,164,474 54,584,822 54,363,312 Average number of warrants - converted to number of shares 2,635,780 2,449,465 2,679,260 2,504,339 2,495,614 Earnings per share (in EUR) 0.06 0.13 0.59 0.51 0.88 Diluted earnings per share (in EUR) 0.05 0.12 0.56 0.49 0.85 Condensed interim consolidated statement of other comprehensive income Note tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Profit for the period 3,107 6,949 32,344 27,796 48,075 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation to presentation currency 805 342 521 - 153 - 905 Currency translation of non-current intercompany loans 8,055 18,703 3,048 43,343 17,030 Income tax - 1,772 - 4,115 - 671 - 9,535 - 3,747 Net other comprehensive income/loss 7,087 14,930 2,898 33,655 12,379 Total comprehensive income/(loss) for the period, net of tax 10,194 21,879 35,242 61,451 60,454 Attributable to: Shareholders of the parent 10,194 21,879 35,242 61,451 60,454 ===== SIDA 20 ===== Q3 report 2023 Page 19 Condensed interim consolidated balance sheet Note tEUR Q3 2023 Q3 2022 2022 Assets Non-current assets 7 Intangible assets Goodwill 262,980 193,142 183,942 Domains and websites 473,436 481,366 460,513 Accounts and other intangible assets 54,978 27,916 27,016 Total intangible assets 791,395 702,424 671,471 Property, plant and equipment Land and buildings Right of use assets 14,906 5,955 6,269 Leasehold improvements, Fixtures and fittings, other plant and equipment 5,510 2,446 2,574 Total property, plant and equipment 20,416 8,401 8,843 Other non-current assets Deposits 1,716 734 726 Deferred tax asset 10,732 11,077 9,165 Total other non-current assets 12,448 11,811 9,891 Total non-current assets 824,259 722,636 690,204 Current assets Trade and other receivables 45,097 38,693 53,179 Corporation tax receivable 6,854 2,025 6,423 Prepayments 4,306 3,974 3,926 Other current financial assets 9,742 0 0 Cash 40,676 32,564 31,497 Total current assets 106,674 77,256 95,025 Total assets 930,934 799,892 785,229 Note tEUR Q3 2023 Q3 2022 2022 Equity and liabilities Equity Share Capital 552 551 551 Share Premium 273,184 272,535 272,550 Currency Translation Reserve 26,074 44,453 23,177 Treasury Shares - 21,050 - 2,102 - 7,669 Retained Earnings 158,983 105,450 124,307 Total equity 437,744 420,887 412,917 Non-current Liabilities 8 Debt to credit institutions 248,359 85,725 201,708 8 Lease liabilities 12,577 4,705 4,962 8 Deferred tax liabilities 90,173 78,891 78,167 8 Other long-term financial liabilities 49,415 20,361 22,407 Total non-current liabilities 400,524 189,683 307,244 Current Liabilities Prepayments received from customers and deferred revenue 4,066 6,681 8,023 Trade and other payables 26,486 22,951 22,252 Corporation tax payable 4,516 14,341 5,221 8 Other financial liabilities 54,866 28,711 26,865 Debt to credit institutions 23 115,171 1,055 8 Lease liabilities 2,708 1,467 1,653 Total current liabilities 92,666 189,322 65,068 Total liabilities 493,189 379,005 372,312 Total Equity and liabilities 930,934 799,892 785,229 ===== SIDA 21 ===== Q3 report 2023 Page 20 Condensed interim consolidated statement of changes in equity tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Pro- posed dividend Total equity As of January 1, 2023 551 272,550 23,177 - 7,669 124,307 0 412,917 Result for the period 0 0 0 0 32,344 0 32,344 Other comprehensive income Currency translation to presentation currency 0 0 3,568 0 0 0 3,568 Tax on other comprehensive income 0 0 - 671 0 0 0 - 671 Total other comprehensive income 0 0 2,898 0 0 0 2,898 Total comprehensive income for the year 0 0 2,898 0 32,344 0 35,242 Transactions with owners Capital Increase 1 634 0 0 0 0 635 Acquisition of treasury shares 0 0 0 - 13,368 0 0 - 13,368 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 2,359 0 2,359 Transaction cost 0 0 0 - 13 - 27 0 - 40 Total transactions with owners 1 634 0 - 13,381 2,332 0 - 10,414 At September 30, 2023 552 273,184 26,074 - 21,050 158,983 0 437,744 During the period no dividend was paid. tEUR Share capital Share pre- mium Currency translation reserve Treasury shares Retained earnings Pro- posed divi- dend Total equity As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848 Result for the period 0 0 0 0 27,796 0 27,796 Other comprehensive income Currency translation to presentation currency 0 0 43,190 0 0 0 43,190 Tax on other comprehensive income 0 0 - 9,535 0 0 0 - 9,535 Total other comprehensive income 0 0 33,655 0 0 0 33,655 Total comprehensive income for the year 0 0 33,655 0 27,796 0 61,451 Transactions with owners Capital Increase 5 4,662 0 0 0 0 4,667 Acquisition of treasury shares 0 0 0 - 8,684 0 0 - 8,684 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 3,127 0 3,127 Transaction cost 0 0 0 0 - 20 0 - 20 Total transactions with owners 5 4,662 0 5,972 3,949 0 14,588 At September 30, 2022 551 272,535 44,453 - 2,102 105,450 0 420,887 During the period no dividend was paid. ===== SIDA 22 ===== Q3 report 2023 Page 21 Condensed interim consolidated statement of changes in equity – continued tEUR Share capital Share premium Currency translation re- serve Treasury shares Retained earnings Proposed divi- dend Total equity As of January 1, 2022 546 267,873 10,798 - 8,074 73,705 0 344,848 Result for the period 0 0 0 0 48,075 0 48,075 Other comprehensive income Currency translation to presentation currency 0 0 16,125 0 0 0 16,125 Tax on other comprehensive income 0 0 - 3,747 0 0 0 - 3,747 Total other comprehensive income 0 0 12,379 0 0 0 12,379 Total comprehensive income for the year 0 0 12,379 0 48,075 0 60,454 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 - 14,250 0 0 - 14,250 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 1,713 0 1,713 Transaction cost 0 0 0 0 - 28 0 - 28 Total transactions with owners 5 4,677 0 406 2,526 0 7,615 At December 31, 2022 551 272,550 23,177 - 7,669 124,307 0 412,917 During the period no dividend was paid. ===== SIDA 23 ===== Q3 report 2023 Page 22 Condensed interim consolidated statement of cash flows Note tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Profit before tax 5,119 9,017 44,308 35,952 64,964 Adjustment for finance items 6,378 612 15,985 1,961 5,389 Adjustment for special items 522 621 2,347 1,664 54 Operating Profit for the period before special items 12,019 10,251 62,640 39,578 70,407 Depreciation and amortization 7,575 4,305 18,926 10,314 14,668 Other adjustments of non-cash operating items 807 731 2,417 1,177 1,690 Cash flow from operations before changes in working capital and special items 20,402 15,287 83,983 51,070 86,765 Change in working capital - 6,157 - 2,116 - 2,124 - 2,251 - 16,949 Cash flow from operations before special items 14,245 13,171 81,859 48,819 69,816 Special items, cash flow - 333 - 621 - 2,000 - 911 - 1,393 Cash flow from operations 13,912 12,550 79,858 47,908 68,423 Financial income, received - 475 268 166 1,567 1,682 Financial expenses, paid - 3,027 - 1,016 - 7,078 - 4,088 - 5,666 Cash flow from activities before tax 10,410 11,802 72,946 45,388 64,439 Income tax paid - 3,005 - 1,831 - 11,972 - 4,811 - 16,239 Cash flow from operating activities 7,406 9,971 60,974 40,577 48,200 9 Acquisition of businesses - 19,636 - 639 - 49,403 - 13,819 - 14,337 7 Acquisition of intangible assets -8,094 -2,028 -11,718 -94,458 - 96,452 Acquisition of property, plant and equipment - 1,958 - 703 - 4,140 - 1,263 - 1,804 Sale of property, plant and equipment 0 0 3 0 16 Acquisition of other financial assets 0 0 - 14,930 0 0 Change in other non-current assets - 1,253 - 50 - 1,514 - 40 - 55 Cash flow from investing activities - 30,941 - 3,419 - 81,702 - 109,580 - 112,632 Note tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Repayment of borrowings 0 - 5,041 - 1,486 - 15,150 - 215,993 Proceeds from borrowings 0 28 45,490 95,010 296,665 Lease liabilities - 1,475 - 297 - 1,993 - 987 - 1,274 Other non-current liabilities 4,569 0 444 0 0 Capital increase 397 285 634 601 618 Treasury shares -3,804 - 2,089 - 13,381 - 8,684 - 14,250 Transaction cost -4 - 5 - 13 - 20 - 28 Cash flow from financing activities - 317 - 7,119 29,694 70,770 65,737 Cash flows for the period - 23,853 - 567 8,967 1,767 1,306 Cash and cash equivalents at beginning 64,536 32,971 31,497 30,093 30,093 Foreign currency translation of cash and cash equivalents - 7 160 211 704 99 Cash and cash equivalents period end* 40,676 32,564 40,676 32,564 31,497 Cash and cash equivalents period end Cash 40,676 32,564 40,676 32,564 31,497 Cash and cash equivalents period end 40,676 32,564 40,676 32,564 31,497 ===== SIDA 24 ===== Q3 report 2023 Page 23 Notes 1. General information Better Collective A/S is a limited liability company and is incorporated in Denmark. The parent company and its subsidiaries (referred to as the “Group” or “Better Collective”) engage in online affiliate marketing. Better Collective’s vision is to empower iGamers by leading the way in transparency and technology. Basis of preparation The Interim Report (condensed consolidated interim financial statements) for the period January 1 - September 30, 2023, has been prepared in accordance with IAS 34 “Interim financial statements” 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 subsidiaries. The condensed consolidated interim financial statements refer to certain key performance indicators, which Better Collective and others use when evaluating the performance of Better Collective. These are referred to as alternative performance measures (APMs) and are not defined under IFRS. The figures and related subtotals give management and investors im- portant information to enable them to fully analyze the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. New financial reporting standards All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on January 1, 2023, have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the condensed consolidated interim financial statements. Accounting policies The condensed consolidated interim financial statements have been prepared using the same accounting policies as set out in note 1 of the 2022 annual report which contains a full description of the accounting policies for the Group and the parent company, except for the scope of operating segments and “Other current assets”. The scope of operating segments has been modified following changes in management responsibilities as from January 1, 2023. US has been renamed to North America (NA) and will now cover both USA and Canada. Canada was previously included in the operating segment “Europe and RoW”. 2022 comparative information has been restated. Revenue recognised under the hybrid revenue model consists of upfront revenue share (one-time upfront fee for each new referred player) and revenue share for the amount that aggregate revenue share exceeds the aggregate upfront revenue share. Upfront revenue share is recognized at a point in time equal to the month in which the player referral is made. Revenue share is recognised once the aggregate revenue share exceeds the upfront revenue share and is recognised at a point in time equal to the month that it is earned by the respective gaming operator. Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet date. (Fair Value Level 1) Fair Value Level 1: Value based on the fair value of corresponding assets/liabilities in a well-functioning market. The annual report for 2022 including full description of the accounting policies can be found on Better Collective’s website: https://storage.mfn.se/0e9df7fa-f018-42b8-9189-6ee99458c094/bc-2022-annual-report-final.pdf Significant accounting judgements, estimates and assumptions The preparation of condensed consolidated interim financial statements requires management to make judgements, esti- mates 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 con- solidated interim financial statements are the same as disclosed in note 2 in the annual report for 202 2 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 25 ===== Q3 report 2023 Page 24 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 part- nerships where the online traffic is coming either directly or through organic search results, whereas Paid Media generates revenue through paid ad-traffic to our websites, thereby running on a lower earnings margin. The performance for each segment is presented in the below tables: Publishing Paid Media Group tEUR Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Revenue 48,463 41,300 26,969 18,420 75,431 59,720 Cost 36,574 28,858 19,262 16,306 55,837 45,164 Operating profit before depreciation, amortization and special items 11,888 12,442 7,707 2,114 19,595 14,556 EBITDA-Margin before special items 25% 30% 29% 11% 26% 24% Special items, net - 522 - 621 0 0 - 522 - 621 Operating profit before depreciation and amortization 11,366 11,821 7,707 2,114 19,073 13,935 EBITDA-Margin 23% 29% 29% 11% 25% 23% Depreciation 1,196 620 4 3 1,200 623 Operating profit before amortization 10,170 11,201 7,703 2,111 17,873 13,312 EBITA-Margin 21% 27% 29% 11% 24% 22% Publishing Paid Media Group tEUR YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 Revenue 161,214 127,806 80,277 55,351 241,491 183,157 Cost 102,761 85,118 57,164 48,147 159,925 133,265 Operating profit before depreciation, amortization and special items 58,452 42,688 23,113 7,204 81,566 49,892 EBITDA-Margin before special items 36% 33% 29% 13% 34% 27% Special items, net - 2,347 - 1,664 0 0 - 2,347 - 1,664 Operating profit before depreciation and amortization 56,105 41,024 23,113 7,204 79,218 48,228 EBITDA-Margin 35% 32% 29% 13% 33% 26% Depreciation 2,601 1,581 10 12 2,611 1,593 Operating profit before amortization 53,504 39,443 23,103 7,192 76,607 46,635 EBITA-Margin 33% 31% 29% 13% 32% 25% Publishing Paid Media Group tEUR 2022 2022 2022 Revenue 187,057 82,241 269,297 Cost 115,376 68,846 184,222 Operating profit before depreciation, amortization and special items 71,681 13,394 85,075 EBITDA-Margin before special items 38% 16% 32% Special items, net - 54 0 - 54 Operating profit before depreciation and amortization 71,627 13,394 85,021 EBITDA-Margin 38% 16% 32% Depreciation 2,306 15 2,321 Operating profit before amortization 69,321 13,379 82,700 EBITA-Margin 37% 16% 31% ===== SIDA 26 ===== Q3 report 2023 Page 25 2. Segments, continued Europe & Rest of World and North America Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a local reach. Better Collective’s regional brands are tailored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. From Q2 2021 and following the acquisition of Action Network (included in Group accounts from time of closing on May 28, 2021) the US market constitutes >20% of Group Revenue and >30% of revenue in Publishing on an annualized basis. Hence, 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 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Revenue 52,941 41,595 22,490 18,125 75,431 59,720 Cost 36,305 28,955 19,532 16,209 55,837 45,164 Operating profit before depreciation, amortization and special items 16,637 12,640 2,958 1,915 19,595 14,556 EBITDA-Margin before special items 31% 30% 13% 11% 26% 24% Special items, net - 118 - 585 - 403 - 36 - 522 - 621 Operating profit before depreciation and amortization 16,519 12,055 2,554 1,880 19,073 13,935 EBITDA-Margin 31% 29% 11% 10% 25% 23% Depreciation 912 462 288 161 1,200 623 Operating profit before amortization 15,607 11,593 2,266 1,719 17,873 13,312 EBITA-Margin 29% 28% 10% 9% 24% 22% * 2022 figures have been restated because of the transfer of Canada and renaming USA to North America (NA), which now covers both USA and Canada from January 1, 2023. Europe & RoW North America Group tEUR YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 Revenue 158,932 119,600 82,559 63,558 241,491 183,157 Cost 102,434 84,022 57,491 49,243 159,925 133,265 Operating profit before depreciation, amortization and special items 56,498 35,578 25,068 14,314 81,566 49,892 EBITDA-Margin before special items 36% 30% 30% 23% 34% 27% Special items, net - 1,443 - 875 - 904 - 790 - 2,347 - 1,664 Operating profit before depreciation and amortization 55,055 34,703 24,164 13,525 79,218 48,228 EBITDA-Margin 35% 29% 29% 21% 33% 26% Depreciation 1,853 1,235 759 358 2,611 1,593 Operating profit before amortization 53,202 33,468 23,405 13,167 76,607 46,635 EBITA-Margin 33% 28% 28% 21% 32% 25% Europe & Row North America Group tEUR 2022 2022 2022 Revenue 173,664 95,633 269,297 Cost 115,620 68,602 184,222 Operating profit before depreciation, amortization and special items 58,044 27,031 85,075 EBITDA-Margin before special items 33% 28% 32% Special items, net - 1,360 1,306 - 54 Operating profit before depreciation and amortization 56,684 28,336 85,021 EBITDA-Margin 33% 30% 32% Depreciation 1,671 650 2,321 Operating profit before amortization 55,013 27,687 82,700 EBITA-Margin 32% 29% 31% ===== SIDA 27 ===== Q3 report 2023 Page 26 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 Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 46,312 31,075 141,864 82,052 129,274 CPA, Fixed Fees 29,055 28,290 99,539 100,113 139,696 Other 64 355 88 992 327 Total revenue 75,431 59,720 241,491 183,157 269,297 %-split Recurring revenue 61 52 59 45 48 CPA, Fixed Fees 39 47 41 55 52 Other 0 1 0 0 0 Total 100 100 100 100 100 tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Revenue type Revenue Share 39,955 24,993 121,504 66,210 102,358 CPA 20,837 23,350 77,848 87,673 118,415 Subscription 4,106 3,975 12,669 11,623 18,003 Other 10,533 7,402 29,469 17,651 30,521 Total revenue 75,431 59,720 241,491 183,157 269,297 %-split Revenue Share 53 42 50 36 38 CPA 28 39 32 48 44 Subscription 5 7 5 6 7 Other 14 12 12 10 11 Total 100 100 100 100 100 * 2022 figures have been restated for Revenue Share and CPA because of the reclassification of upfront payments related to hybrid revenue share contracts as well as 2023 numbers, impacting Q3, 2023 with 3.8 mEUR and YTD 12.7 mEUR, respectively (2022: 5.9 mEUR). 4. Share-based payment plans 2019 Warrant programs: During the third quarter of 2023 the company did not grant any new warrants and 47,011 warrants were exercised under this program. 2022 Incentive Program: During the third quarter of 2023 no performance share units or share options were granted under this program. A new Long- term Incentive (LTI) program was established for key employees in Q1 2022, and 73,894 performance share units and 24,564 share options were granted to a total of 36 employees. 2023 Incentive Program: During the first quarter of 2023 a new Long-term Incentive (LTI) program was established for key employees. Under the program 134,953 performance share units and 239,350 share options were granted to a total of 63 employees. 2023 CXO Options Program: During the second quarter of 2023 a new options program was established for the executive management. Under the program 300,000 share options were granted to a total of 3 employees. The total share-based compensation expense for the above programs recognized for Q3 2023 is 1,407 tEUR (Q3 2022: 501 tEUR) and the cost YTD 2023 is 2.4 mEUR (YTD 2022: 1,314 tEUR). ===== SIDA 28 ===== Q3 report 2023 Page 27 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, adjustment of earn-out payments related to acquisitions, and restructur- ing costs are presented in the Income statement in a separate line item labelled ‘Special items’. The impact of special items is specified as follows: tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Operating profit 11,498 9,630 60,293 37,913 70,353 Special Items related to: Special items related to M&A - 760 - 621 - 1,716 - 910 - 1,263 Variable payments regarding acquisitions - cost 98 0 - 44 2,408 2,275 Variable payments regarding acquisitions - income Special items related to Restructuring 158 0 - 509 - 0 - 130 Special items related to Divestiture of Assets 0 0 0 0 0 Special items related to Management Incentive Program - 18 0 - 78 - 3,162 - 936 Special items, total - 522 - 621 - 2,347 - 1,664 - 54 Operating profit (EBIT) before special items 12,019 10,251 62,640 39,578 70,407 Amortization and impairment 6,375 3,682 16,314 8,722 12,347 Operating profit before amortization and special items (EBITA before special items) 18,395 13,933 78,954 48,300 82,754 Depreciation 1,200 623 2,611 1,593 2,321 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 19,595 14,556 81,566 49,892 85,075 6. Income tax Total tax for the period is specified as follows: tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Tax for the period 2,012 2,068 11,964 8,156 16,888 Tax on other comprehensive income 1,772 4,115 671 9,535 3,747 Total 3,784 6,183 12,635 17,691 20,635 Income tax on profit for the period is specified as follows: tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Deferred tax - 283 - 130 1,608 2,017 6,785 Current tax 1,829 2,171 9,906 6,091 10,153 Adjustment from prior years 467 26 450 48 - 49 Total 2,012 2,068 11,964 8,156 16,888 Tax on the profit for the period can be explained as follows: tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Specification for the period: Calculated 22% tax of the result before tax 1,126 1,984 9,748 7,909 14,292 Adjustment of the tax rates in foreign subsidiaries relative to the 22% 470 - 235 1,467 231 1,563 Tax effect of: 0 0 Special items 186 138 573 398 - 83 Special items - taxable items - 541 - 0 - 541 - 822 - 243 Other non-taxable income - 312 - 50 - 1,027 - 150 - 150 Other non-deductible costs 752 205 1,431 541 1,558 Tax deductable - 136 - 136 Adjustment of tax relating to prior periods* 467 26 450 48 -49 Total 2,012 2,068 11,964 8,156 16,888 Effective tax rate 39.3% 22.9% 27.0% 22.7% 26.0% ===== SIDA 29 ===== Q3 report 2023 Page 28 7. Intangible assets tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,832 16,231 20,063 Acquisitions through business combinations 78,350 7,758 29,579 115,688 Transfer 0 0 0 Disposals 0 0 - 2,324 - 2,324 Currency Translation 688 1,333 74 2,096 At September 30, 2023 262,980 473,436 107,265 843,681 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 16,345 16,345 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 747 - 747 At September 30, 2023 0 0 52,286 52,286 Net book value at September 30, 2023 262,980 473,436 54,978 791,395 tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2022 178,182 329,276 36,827 544,285 Additions 0 118,185 26,337 144,522 Acquisitions through business combinations 0 0 0 0 Transfer 0 0 0 0 Disposals 0 0 0 0 Currency Translation 5,760 13,051 540 19,351 At December 31, 2022 183,942 460,513 63,705 708,159 Amortization and impairment As of January 1, 2022 0 0 24,374 24,374 Amortization for the period 0 0 12,348 12,348 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 33 - 33 At December 31, 2022 0 0 36,688 36,688 Net book value at December 31, 2022 183,942 460,513 27,016 671,471 ===== SIDA 30 ===== Q3 report 2023 Page 29 7. Intangible assets, continued tEUR Goodwill Domains and websites Accounts and other intangi- ble assets Total Cost or valuation As of January 1, 2022 178,182 329,276 36,827 544,285 Additions 499 118,185 23,482 142,166 Acquisitions through business combinations 0 0 0 0 Transfer 0 0 0 0 Disposals 0 0 0 0 Currency Translation 14,461 33,905 1,404 49,770 At September 30, 2022 193,142 481,366 61,713 736,221 Amortization and impairment As of January 1, 2022 0 0 24,374 24,374 Amortization for the period 0 0 9,118 9,118 Impairment for the period* 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 306 306 At September 30, 2022 0 0 33,797 33,797 Net book value at September 30, 2022 193,142 481,366 27,916 702,424 8. Non-current liabilities and other current financial liabilities Debt to credit institutions: As per September 30, 2023, Better Collective has drawn 248.3 mEUR (2022: 201.7) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. In August Better Collective extended the club-financing from October 2022 with Nordea, Nykredit and Citibank by 3 years to October 2026 as well as executing the accordion option increasing available facilities with 72 mEUR , leaving the group with a total financing of 319 mEUR where aforementioned 246.9 mEUR has been utilized. Lease liabilities: Non-current and current lease liabilities, of 15.3 mEUR (Q3 2022: 4.7 mEUR) and 1.3 mEUR (Q3 2022: 1.5 mEUR) respec- tively. Deferred Tax liability: Deferred tax liability as of September 30, 2023, amounted to 90.1 mEUR (Q3 2022: 78.9 mEUR). The change from January 1, 2023, 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 September 30, 2023, amounted to 10.7 mEUR (Q3 2022: 11.1 mEUR). Other financial liabilities: As per September 30, 2023, other financial liabilities amounted to 104.3 mEUR (Q3 2022: 49.1 mEUR) due to deferred and variable payments related to acquisitions. The increase from January 1, 2023, is related to the capitalization of media agree- ments, acquisition of Skycon, Playmaker HQ and Digital Sportmedia i Norden. Fair Value is measured based on level 3 - Valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value. 9. Business combinations Acquisition of Skycon Limited On April 14, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for a total consideration up to 51 mEUR (45 mGBP) with an initial consideration of 28.3 mEUR (25 mGBP) on a cash and debt-free basis. Skycon is a global display advertising company and perfectly complements Better Collective’s Paid Media division. The acquisition is a strategic move for Better Collective with significant synergistic opportunities. ===== SIDA 31 ===== Q3 report 2023 Page 30 tEUR Purchase amount 56,029 Cash and cash equivalents 3,647 Deferred payment 22,614 Cash outflow 29,767 The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 24,227 Accrued Income 2,372 Other receivables 45 Cash 3,647 Deferred Tax Liability -6,502 Identified net assets 23,790 Goodwill 32,239 Total consideration 56,029 A goodwill of 32,239 tEUR emerged from the acquisition of Skycon as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The earn outs are based on certain financial performance targets in the 12 months post-closing period. The goodwill is not tax deductible. Transaction costs related to the acquisition of Skycon amounts to 381 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on April 14, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 171 mEUR and result after tax would have amounted to 33 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Acquisition of Playmaker HQ On July 3, after the end of Q2, 2023 Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 51 mEUR (54 mUSD) with an initial consideration of 14.1 mEUR (15 mUSD) on a cash and debt-free basis. Playmaker HQ is a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group specializes in providing original entertainment and sports content with exclusive athlete collaborations and creator talent mainly targeting the US market. tEUR Purchase amount 44,174 Cash and cash equivalents 0 Deferred payment 29,818 Cash outflow 14,897 The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 5,352 Accounts receivable 320 Trade payables -94 Total net assets 5,578 Goodwill 39,136 Total consideration 44,174 A goodwill of 39,136 tEUR emerged from the acquisition of Playmaker HQ 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. In order to reach the full earn-out payment, Playmaker HQ will ===== SIDA 32 ===== Q3 report 2023 Page 31 have to generate >75 mUSD in accumulating revenues and >25 mUSD in accumulating operational earnings (EBITDA) during the first three years post acquisition. The goodwill is tax deductible. Transaction costs related to the acquisition of Playmaker HQ amounts to 347 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on July 3, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 244 mEUR and result after tax would have amounted to 32 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Other acquisitions in Q3 On August 15, 2023 Better Collective announced the acquisition of four brands SvenskaFans.com, Hockeysverige.se, Fotbolldirekt.se and Innebandymagazinet.se by acquiring Digital Sportmedia i Norden AB from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt - free basis. On September 4, 2023 Better Collective announced the acquisition of the platform Torcedores.com, by acquiring Goalmedia Technologia E Marketing Digital S.A. The acquisition strengthens Better Collectives position in the South American region through the acquisition of leading national Brazilian sports media platform Torcedores.com. Adding the first Brazilian sports media brand to the group, Better Collective will leverage its best-in-class digital expertise in one of the world’s fastest growing markets. Acquired net assets during acquisitions Domains 7,954 Contingent liabilities -1,728 Deferred tax liabilities -2,282 Net assets (other) - 1,348 Total net assets 2,597 Goodwill 6,459 Total consideration 9,056 A goodwill of 6,459 tEUR emerged from the acquisitions as an effect of the difference between the transferred consideration and the fair value of acquired net assets. The goodwill is not tax deductible. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Acquisition of Tipsbladet.dk On September 18, 2023 Better Collective announced the acquisition of Tipsbladet.dk ApS to further expand its position in Denmark for a total consideration of 6.5 mEUR on a cash and debt-free basis with closing 2 October 2023. As per the date of publication of the interim financial statements it has not been possible to obtain sufficient financial da ta to fulfill reporting requirements according to IFRS3. Therefore, the opening balance, the acquired net assets at the time of the acquisition, goodwill and pro-forma impact on the revenue and profit after tax is not included in these interim financial statements. Acquisition of Playmaker Capital On November 6, 2023 Better Collective announced the acquisition of Playmaker Capital for a total price consideration of 176 mEUR. Playmaker Capital is a leading digital sports media group that owns and operates several strong sports media brands across the Americas. The closing of the transaction is subject to approval by the shareholders of Playmaker Capital, court approval, applicable regulatory approvals and certain other closing conditions customary in transactions of this nature. The transaction is ex- pected to close before the end of Q1 of 2024, whereafter Playmaker Capital will be consolidated into the Better Collective group. ===== SIDA 33 ===== Q3 report 2023 Page 32 10. Note to cash flow statement tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition - 19,636 0 - 49,403 0 0 Business Combinations deferred payments from current period 0 0 0 0 0 Deferred payments - business combinations from prior periods 0 - 639 0 - 13,819 - 14,337 Total cash flow from business combinations - 19,636 - 639 - 49,403 - 13,819 - 14,337 Acquisition of intangible assets: Acquisitions through asset transactions - 4,120 - 7,909 - 20,063 - 141,668 - 144,522 Deferred payments related to acquisition value 0 0 0 29,408 29,408 Deferred payments - acquisitions from prior periods - 9,250 0 - 9,738 - 121 - 121 Intangible assets with no cash flow effect 5,276 6,975 18,287 20,430 24,325 Other investments - 1,093 - 203 - 2,507 - 5,541 Total cash flow from intangible assets - 8,094 - 2,028 - 11,718 - 94,458 - 96,452 ===== SIDA 34 ===== Q3 report 2023 Page 33 Financial statements for the period January 1 – September 30 Condensed interim income statement – Parent company tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Revenue 23,101 16,855 71,306 44,617 65,282 Other operating income 3,284 4,128 12,177 9,433 14,797 Direct costs related to revenue 6,928 3,665 18,006 9,767 14,292 Staff costs 11,418 7,219 30,034 16,396 25,061 Depreciation 510 137 822 404 540 Other external expenses 4,648 4,358 12,891 13,809 17,248 Operating profit before amortization (EBITA) and special items 2,881 5,605 21,730 13,673 22,939 Amortization 2,281 1,144 6,117 2,723 3,875 Operating profit (EBIT) before special items 600 4,461 15,613 10,950 19,064 Special items, net - 276 - 585 - 1,443 - 875 - 1,168 Operating profit 324 3,876 14,170 10,075 17,896 Financial income 36,361 23,562 48,951 64,664 72,388 Financial expenses 7,096 1,353 24,459 4,457 35,057 Profit before tax 29,589 26,085 38,663 70,282 55,227 Tax on profit for the period 1,490 5,574 2,197 12,756 8,279 Profit for the period 28,099 20,511 36,465 57,526 46,949 Condensed interim statement of other comprehensive income tEUR Q3 2023 Q3 2022 YTD 2023 YTD 2022 2022 Profit for the period 28,099 20,511 36,465 57,526 46,949 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Currency translation to presentation currency 441 84 - 1,162 22 22 Currency translation of non-current intercom- pany loans Income tax 0 0 0 0 0 Net other comprehensive income/loss 441 84 - 1,162 22 22 Total comprehensive income/(loss) for the pe- riod, net of tax 28,540 20,595 35,303 57,548 46,970 ===== SIDA 35 ===== Q3 report 2023 Page 34 Condensed interim balance sheet – Parent company tEUR Q3 2023 Q3 2022 2022 Assets Non-current assets Intangible assets Goodwill 17,802 0 0 Domains and websites 168,387 144,374 144,374 Accounts and other intangible assets 22,184 10,420 13,287 Total intangible assets 208,373 154,795 157,662 Property, plant and equipment Land and building Right of use assets 7,889 413 334 Fixtures and fittings, other plant and equipment 2,228 468 410 Total property, plant and equipment 10,117 881 744 Financial assets Investments in subsidiaries 226,799 192,481 190,448 Receivables from subsidiaries 293,908 299,250 273,515 Deposits 1,094 174 174 Total financial assets 521,801 491,905 464,137 Total non-current assets 740,291 647,581 622,542 Current assets Trade and other receivables 12,584 11,467 17,163 Receivables from subsidiaries 15,151 26,871 30,229 Tax receivable 6,153 0 5,913 Prepayments 2,251 2,119 2,519 Other current financial assets 9,751 0 0 Cash 17,978 14,062 8,705 Total current assets 63,867 54,519 64,529 Total assets 804,158 702,100 687,072 tEUR Q3 2023 Q3 2022 2022 Equity and liabilities Equity Share Capital 552 551 551 Share Premium 273,184 272,535 272,550 Currency Translation Reserve - 588 574 574 Treasury shares - 21,050 - 2,102 - 7,669 Retained Earnings 186,997 157,047 145,047 Proposed Dividends 0 0 0 Total equity 439,095 428,605 411,054 Non-current Liabilities Debt to credit institutions 248,359 85,725 201,708 Lease liabilities 6,392 107 16 Deferred tax liabilities 12,400 4,959 6,141 Other non-current financial liabilities 15,362 15,628 19,543 Total non-current liabilities 282,513 106,419 227,408 Current Liabilities Prepayments received from customers and deferred revenue - 382 0 1,583 Trade and other payables 7,851 4,416 5,719 Payables to subsidiaries 23,223 17,272 20,822 Tax payable 309 10,436 30 Other current financial liabilities 50,068 19,431 19,045 Contingent Consideration Debt to credit institutions 0 115,171 1,055 Lease liabilities 1,482 350 356 Total current liabilities 82,550 167,076 48,609 Total liabilities 365,063 273,495 276,017 Total equity and liabilities 804,158 702,100 687,072 ===== SIDA 36 ===== Q3 report 2023 Page 35 Condensed interim statement of changes in equity – Parent company tEUR Share capi- tal Share pre- mium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2023 551 272,550 574 - 7,669 145,047 0 411,054 Result for the period 0 0 0 0 36,465 0 36,465 Other comprehensive income Currency translation to presentation currency 0 0 - 1,162 0 0 0 - 1,162 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 1,162 0 0 0 - 1,162 Total comprehensive income for the year 0 0 - 1,162 0 36,465 0 35,303 Transactions with owners Capital Increase 1 634 0 0 3,152 0 3,787 Acquisition of treasury shares 0 0 0 - 13,368 0 0 - 13,368 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 2,359 0 2,359 Transaction cost 0 0 0 - 13 - 27 0 - 40 Total transactions with owners 1 634 0 - 13,381 5,485 0 - 7,262 At September 30, 2023 552 273,184 - 588 - 21,050 186,997 0 439,095 tEUR Share capital Share premium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total eq- uity As of January 1, 2022 546 267,873 552 - 8,074 94,223 0 355,121 Result for the period 0 0 0 0 46,949 0 46,949 Other comprehensive income Currency translation to presentation currency 0 0 22 0 0 0 22 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 22 0 0 0 22 Total comprehensive income for the year 0 0 22 0 46,949 0 46,970 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 - 14,250 0 0 - 14,250 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 3,061 0 3,061 Transaction cost 0 0 0 0 - 28 0 - 28 Total transactions with owners 5 4,677 0 406 3,875 0 8,963 At December 31, 2022 551 272,550 574 - 7,669 145,047 0 411,054 ===== SIDA 37 ===== Q3 report 2023 Page 36 tEUR Share capi- tal Share pre- mium Currency translation reserve Treasury shares Retained earnings Proposed dividend Total equity As of January 1, 2022 546 267,873 552 - 8,074 94,223 0 355,121 Result for the period 0 0 0 0 57,526 0 57,526 Other comprehensive income Currency translation to presentation currency 0 0 22 0 0 0 22 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 22 0 0 0 22 Total comprehensive income for the year 0 0 22 0 57,526 0 57,548 Transactions with owners Capital Increase 5 4,662 0 0 0 0 4,667 Acquisition of treasury shares 0 0 0 - 8,684 0 0 - 8,684 Disposal of treasury shares 0 0 0 14,656 842 0 15,498 Share based payments 0 0 0 0 4,475 0 4,475 Transaction cost 0 0 0 0 - 20 0 - 20 Total transactions with owners 5 4,662 0 5,972 5,298 0 15,936 At September 30, 2022 551 272,535 574 - 2,102 157,047 0 428,605 ===== SIDA 38 ===== Q3 report 2023 Page 37 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 believes however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s future op- erating performance, and its ability to service its debt. Accordingly, the APMs are disclosed to permit a more complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business performance is evaluated by the Management. The group believes that the presentation of these APMs enhances an investor’s understand- ing 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 accord- ance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in iso- lation 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 devel- opment in the net profit per share. Diluted earnings per share Net profit for the period / (Average number of shares + Average number of outstanding war- rants - Average number of treasury shares held by the company) The group reports this APM for users to monitor devel- opment in the net profit per share, assuming full dilu- tion from active warrant programs. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitoring and evaluation of the Group’s operational profitability. Operating profit before amortizations margin (%) Operating profit before amortizations / revenue This APM supports the assessment and monitoring of the Group’s performance and profitability Alternative Performance Measure Description SCOPE 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 exclud- ing special items that do no stem from ongoing oper- ations, providing a more comparable measure over time. Operating profit before amortizations and special items margin (%) Operating profit before amortizations and spe- cial items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability exclud- ing special items that do no stem from ongoing oper- ations, providing a more comparable measure 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 lever- age of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current li- abilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the com- pany 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 his- torical baseline performance. Reported to measure the ability to generate growth from existing business Alternative Performance Measures and Definitions ===== SIDA 39 ===== Q3 report 2023 Page 38 Alternative Performance Measure Description SCOPE Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring as management con- siders that the sources of these revenue streams will continuously generate revenue over a varia- ble period of time and size e.g. if players con- tinue to bet with g aming operators with which BC has revenue share agreements, customers continue current subscriptions or if BC on a cur- rent basis receive revenues from customers hav- ing current marketing 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-recur- ring 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 40 ===== Q3 report 2023 Page 39 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