===== SIDA 1 ===== Q3 report 2024 November 13, 2024 Better Collective A/S Sankt Annæ Plads 28-30 1250 Copenhagen (DK) www.bettercollective.com CVR NO.: 27 65 29 13 Interim report Q3, 2024 • Rev enue of 81 mEUR, growth of 8%, organic growth -6% • Recurring revenue of 53 mEUR, growth of 14% • EBITDA before special items of 22 mEUR up 14% • Net debt to EBITDA of 2x • Downgrade of 2024 financial guidance ahead of the report due to lower-than-expected partner activity in the US , and a n accelerated slowdown in Brazil heading into the expected regulation next year • Initiated a 50 mEUR cost reduction program to streamline operations and align investment base with market dynamics and outlook • 2023-2027 targets remain unchanged ===== SIDA 2 ===== Q3 report 2024 Page 1 *Before special items EBITDA* mEUR Revenue mEUR Recurring revenue mEUR ===== SIDA 3 ===== Q3 report 2024 Page 2 Highlights Q3, 2024 3 Financial highlights and key figures 5 CEO letter 6 Business review and financial performance 7 Financial performance for the period 11 Financial targets 13 Other 14 Statement by the Board of Directors and the Executive Management 16 Independent auditor’s report 17 Condensed interim financial statements for the period 18 Notes 23 Parent Company 36 A conference call for Better Collective’s stakeholders will be held on November 14 , at 14:3 0 CET and can be joined online here. The conference call is later than usual as it will be hosted from New York. To participate through phone , follow this link . Once signed up you will receive an e -mail with a phone num- ber and a personal dial-in code for the call. The presentation material for the webcast will be avail- able after market close on November 13th via: www.Bettercollective.com Upcoming events • Q4 release – February 19, 2025 • Annual Report – March 25, 2025 Q3 report 2024 Page 2 Table of contents Q3 webcast November 14th, 2024 ===== SIDA 4 ===== Q3 report 2024 Page 3 Highlights Q3, 2024 Ahead of the release of the Q3 report, Better Collective downgraded its financial guidance as per below: • Revenue of 355-375 mEUR (previously 395-425 mEUR) • EBITDA of 100-110 mEUR (previously 130-140 mEUR) • Net debt to EBITDA below 3x (unchanged) Long term 2023-2027 targets remain unchanged as per below: • Revenue CAGR of +20% • EBITDA before special items margin of 35-40% • Net debt to EBITDA below 3x Group revenue increased 8% to 81 mEUR with organic growth declining -6%. The decline was due to a lower activity than expected by partners in the US as well as an accelerated slowdown in Brazil heading into the ex- pected regulation from next year . The rest of the busi- ness is performing in line with expectations. Recurring revenue grew by 14% to 53 mEUR making up 65% of group revenues. EBITDA before special items was 22 mEUR up 14% com- pared to Q3 last year. Cash flow from operations before special items was 32 mEUR. The cash conversion was 131%. By the end of Q3, capital reserves stood at 107 mEUR of which cash of 44 mEUR and unused credit facilities of 61 mEUR. The group delivered 396.000 New Depositing Custom- ers (NDCs) of which 84% were on revenue share con- tracts. The NDCs were down 11% due to the factors men- tion under revenue development. Better Collective has experienced a changing landscape in the US market, primarily when it comes to the part of business that relies on performance marketing. The US market stands out from most of the rest of the world be- cause it is young, constantly evolving, and dominated by a few key players. In the past quarter, Better Collective has experienced overall partner activity has decreased. We have continued to see increased success in our col- laborations with partners working on revenue share contracts building a sustainable long-term growth, how- ever deferring revenue and earnings. In response to these market changes, Management has initiated a re- structuring of operations to ensure continued sustaina- bility and profitability in North America whilst continu- ing to build value around revenue share. Central to the US strategy is the transition from upfront payments to revenue share income. This shift not only aligns with the changing market dynamics but also pro- vides long-term financial stability. The transition started two years ago, and as of this q uarter, the Group esti- mates this strategic shift has resulted in an accumulated Customer Lifetime Value (CLV) database of more than 155 mEUR, with a portion already recognized as revenue in hybrid deals. This leaves approximately an estimated more than 120 mEUR to be recognized in the future. Bet- ter Collective continues to send new depositing custom- ers to its partners daily , constantly adding more and more value to the revenue share databases. In 2025, Better Collective expects to recognize around 10 -15 mEUR in pure revenue share income in the US market and expects this to increase in the future. Management has decided to aim for the North American business to deliver a minimum 20% reported EBITDA - margin, and more than 35% margin when incorporating the continued revenue -share build up. As the business navigates this transition, the commitment to adapting to the US market's shifting landscape remains steadfast. The Brazilian market has within a few years grown to be- come a significant part of Better Collective’s operations accounting for approximately 20 % of Group revenues. These revenues are predominantly generated through revenue share income as well as advertising revenues. At the outset of 2024, Better Collective anticipated a highly active year leading up to the expected regulation that has been awaited for years. Better Collective notes that several international sportsbooks have reduced ac- tivity in anticipation of the official regulation early 2025. This dynamic has affected Better Collective in two ways; Firstly, revenue share income has declined and sec- ondly, there has been a decrease in new depositing cus- tomers as partners have limited marketing activity in the period leading up to the regulation. This was mentioned earlier in the year and has accelerated in Q3. While regulation is anticipated by early 2025, final deci- sions have not been made, leaving some uncertainties. Brazil remains a new and immature market, and Better Collective does expect the period after a potential launch to include changes and adjustment s from a reg- ulatory point of view, like other markets post launch. Once the market regulations take effect, Better Collec- tive's revenue share income in Brazil will be subject to a still unknown tax rate. It is anticipated that approxi- mately 100 sportsbooks will be granted licenses, creat- ing a highly competitive market dynamic that offers a favorable business environment for Better Collective . Better Collective remains confident in the long -term growth trajectory of the Brazilian market and is greatly positioned to grasp growth opportunities ahead. Following recent large acquisitions as well as a changing market outlook, Better Collective has announced a cost reduction program of more than 50 mEUR. At the end ===== SIDA 5 ===== Q3 report 2024 Page 4 of October, Better Collective made the difficult decision to lay off more than 300 employees, representing more than 15% of the workforce, and certain other operating costs will be reduced to lower levels. With most measures already having been executed, Better Collec- tive is well on track for the cost reductions and tactical adjustments to have full effect from the beginning of 2025. On May 5, Google activated a new policy focusing on third-party content across a variety of commercial cat- egories. This impacted the rankings and thereby audi- ence to some of Better Collective’s media partnerships. The owned and operated sports media portfolio has made up for the decreased performance. Since Q2, Bet- ter Collective has not experienced more changes. Better Collective has acquired Playmaker HQ, Playmaker Capital and AceOdds within the past year. The acquisi- tions have developed in line with integration plans – ex- cept for Playmaker HQ where there was an earn-out set- tlement in Q2 . Following the settlement the brand has been performing as expected. In Q3, Better Collective has acquired a smaller social me- dia asset in North America for a consideration of 7 mUSD. Better Collective is still working on implementing the ad serving platform, Advantage, on larger brand s, and remains committed to the development of the platform and the long -term opportunities it entails within its sports media network. On 6th of September, Better Collective’s Board of Direc- tors resolved to extend the buy -back program so that execution of the buy-back program will take place until and including 27th of November 2024. With the exten- sion the intention remains to acquire up to 20mEUR. Significant events after close On October 10, Better Collective appointed its nomina- tion committee as per Regulatory Release no. 50. On October 24, Better Collective adjusted its financial guidance for 2024 following an assessment of prelimi- nary Q3 performance, including the first six weeks of high season in the US market. After recent large acqui- sitions and the market outlook, Better Collective also an- nounced the implementation of a streamlining process to optimize the organization accordingly. ===== SIDA 6 ===== Q3 report 2024 Page 5 Financial highlights and key figures tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Income statements Revenue 81,152 75,431 275,305 241,491 326,686 Recurring revenue 52,825 46,312 167,661 141,864 191,118 Revenue Growth (%) 8% 26% 14% 32% 21% Organic Revenue Growth (%) -6% 16% 0% 23% 13% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 22,333 19,595 79,881 81,566 111,080 Operating profit before depreciation and amortization (EBITDA) 21,905 19,073 76,451 79,218 109,132 Depreciation 2,281 1,200 5,383 2,611 3,958 Operating profit before amortization and special items (EBITA before special items) 20,052 18,395 74,497 78,954 107,122 Special items, net - 428 - 522 - 3,429 - 2,347 - 1,948 Operating profit before amortization (EBITA) 19,624 17,873 71,068 76,607 105,174 Amortization and impairment 10,712 6,375 26,830 16,314 24,283 Operating profit before special items (EBIT before special items) 9,340 12,019 47,667 62,640 82,839 Operating profit (EBIT) 8,913 11,498 44,238 60,293 80,891 Result of financial items - 5,346 - 6,378 - 17,759 - 15,985 - 22,881 Profit before tax 3,566 5,119 26,479 44,308 58,010 Profit after tax 1,119 3,107 18,966 32,344 39,835 Earnings per share (in EUR) 0.01 0.06 0.31 0.59 0.74 Diluted earnings per share (in EUR) 0.01 0.05 0.29 0.56 0.70 For a definition of financial key figures and ratios, please refer to page 40. tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Balance sheet Balance Sheet Total 1,141,598 930,934 1,141,598 930,934 937,862 Equity 650,319 437,744 650,319 437,744 435,273 Current assets 104,977 106,674 104,977 106,674 105,812 Current liabilities 76,810 92,666 76,810 92,666 103,493 Net interest bearing debt 236,185 222,991 236,185 222,991 221,133 Cashflow Cash flow from operations before special items 32,421 14,245 81,271 81,859 119,384 Cash flow from operations 31,879 13,912 68,205 79,858 114,639 Investments in tangible assets - 3,296 - 1,958 - 4,866 - 4,140 - 5,143 Cash flow from investment activities - 24,112 - 30,941 - 147,098 - 81,702 - 106,248 Cash flow from financing activities - 5,348 - 318 106,303 29,695 29,334 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 28% 26% 29% 34% 34% Operating profit before amortization margin (EBITDA) (%) 27% 25% 28% 33% 33% Operating profit margin (%) 11% 15% 16% 25% 25% Publishing segment - EBITDA before special items margin (%) 29% 25% 30% 36% 37% Paid media segment - EBITDA before special items margin (%) 24% 29% 26% 29% 29% Net interest bearing debt / EBITDA before special items 2.16 1.91 2.16 1.91 1.99 Liquidity ratio 1.37 1.15 1.37 1.15 1.02 Equity to assets ratio (%) 57% 47% 57% 47% 46% Cash conversion rate before special items (%) 131% 63% 96% 95% 103% Average number of full-time employees 1,874 1,053 1,776 1,126 1,252 NDCs (thousand) 396 445 1,347 1,447 1,916 ===== SIDA 7 ===== Q3 report 2024 Page 6 CEO letter Positioning Better Collective for the next chapter of growth Better Collective has been on a strong path of growth for over two decades both financially as well as organi- zationally, expanding the team significantly across many geographies. Our audience across our sports me- dia network has surged from 7 million to over 400 mil- lion visits since 2018, a testament to the impact we've made in the digital sports media arena in the pursuit of becoming the leading digital sports media group . How- ever, sometimes, in the pursuit of growth, it's necessary to pause, reassess, and adapt, to prepare for the next chapter of growth. During Q3 we have experienced changing dynamics in the US market, which has changed the outlook. Further, Brazil has seen an increasing slowdown all year heading into the expected regulation. The impact on Q3 and the outlook led us to lower our financial targets for the year, marking the first downgrade since becoming a listed company in 2018. Although the first state in the US has been operational for six years, it is effectively only three years mature for most states. Meanwhile, the Brazilian market is expectedly on the brink of regulation. Young markets bring challenges and opportunities, and we are committed to navigating this , like done historically in more mature regulations. In the fast-evolving digital sports media landscape, adaptability is key. We have initiated a review of our Group’s operational cost. The decision to streamline our operations comes against the backdrop of 35 acquisi- tions, as the complexity introduced by such rapid ex- pansion has made it essential to find efficiencies and op- timize our structure . Furthermore, the changed market outlook makes it important to readjust. Regrettably, as part of this process, more than 300 valued colleagues have left our team post Q3, representing around 15% of our workforce. I want to take a moment to acknowledge the contributions of these colleagues. Their hard work and dedication have been instrumental in building this company, and w e remain grateful for their efforts in helping us reach where we are today. Our tactical adjustments have concentrated on reducing operational expenses, specifically targeting non -reve- nue driving costs and pausing certain investments. This approach has been crucial in minimizing effects on our commercial organization, impacting only those areas with changing growth outlooks. We have strategically safeguarded direct costs associated with our Paid Media and Media Partnerships businesses to preserve their growth roles in our operations . Lastly, we remain firm believers in our strategy to own the strongest sports media brands and foresee great growth ahead, hence the portfolio of brands remains unaffected of the initia- tives taken. I have been asked whether the changes we have en- countered represents a structural shift to our business model. I want to assure you that it does not. We operate in the sports media and sports betting industries which are sectors with bright futures and significant growth potential. In an expanding, growing and competitive in- dustry, sportsbooks and other partners will continue to seek growth in new and existing markets through cus- tomer acquisition and brand awareness. I remain certain that our unique product s and offerings will remain a central part of our partners pursuit for growth in the fu- ture, just as it has been the case over the past 20 years. This is how I have always considered our business: given the nature of our high-margin operating model, we have operated in full investment mode, supported by a strong database of contractually secured revenue share that promises steady inflow of revenues well into the future. This stability has allowed us to remain ambitious and pursue numerous investment projects that drive innova- tion and expansion. When we encounter changed mar- ket dynamics and/or shifts in the market outlook, it has always been our option to pull the breaks and readjust. The recent changes leave Better Collective a leaner or- ganization, poised to attack future opportunities and challenges head-on. By ensuring our operations reflect current demand, we retain the flexibility to scale up as opportunities arise. I am optimistic that this strategic re- calibration will lead to a stronger foundation for future growth, allowing us to cont inue delivering exceptional value to our partners and stakeholders. Related to re- turning to growth, our long -term financial guidance re- mains intact , i mplying strong growth ahead , including M&A when the timing is right. Lastly, I want to extend a big thank you to my incredible colleagues, investors, partners, and other stakeholders for your unwavering support. Despite current times pre- senting headwinds, we are adapting and building a re- silient future together . Thank you for your trust and partnership. Jesper Søgaard Co-founder & CEO “I have been asked whether the changes we have encountered represent a structu ral shift to our business model. I wa nt to assure you that it does not”. ===== SIDA 8 ===== Q3 report 2024 Page 7 Business review and financial performance Group Q3 revenues came in at 81 mEUR gr owing 8% driven by M&A, as organic growth declined by 6%. The decline was due to a lower activity by partners in the US as well as a continued slowdown in Brazil heading into the expected regulation next year. Recurring revenue grew by 14% to 53 mEUR making up 65% of group revenues. Costs were up by 5% while EBITDA before special items was up 14%. Q3 is typically characterized as a relatively low -season quarter until the commencement of the US season to- wards its end. The group delivered 396.000 New Depositing Custom- ers (NDCs) of which 84% were on revenue share con- tracts. The NDCs were down 11% due to the factors men- tion under revenue development. Q3 report 2024 Page 7 Key figures for the group tEUR Q3 2024 Q3 2023 Growth YTD 2024 YTD 2023 Growth Revenue 81,152 75,431 8% 275,305 241,491 14% Cost 58,820 55,837 5% 195,424 159,925 22% Operating profit before depreciation and amortization and special items 22,333 19,595 14% 79,881 81,566 -2% EBITDA-Margin before special items 28% 26% 29% 34% Operating profit before depreciation and amortization 21,905 19,073 15% 76,451 79,218 -3% EBITDA-Margin 27% 25% 28% 33% Organic Growth -6% 16% -3% 23% ===== SIDA 9 ===== Q3 report 2024 Page 8 Publishing The Publishing business generates revenue from Better Collective’s owned and operated sports media network and its Media Partnerships. The audience mainly comes from direct traffic and organic search results. The Publishing revenue reached 56 mEUR, reflecting a 16% growth, though organic growth declined by 5%. The operational profit was 16 mEUR, an increase of 38%, re- sulting in a margin of 29%. This business contributed to 69% of the group's revenues and 73% of its operating profit. The growth in Publishing was due to M&A activity, as the business experienced an organic decline. This decline stemmed from reduced activity by partners in the US and a continued slowdown in the Brazilian market, an- ticipating regulation next year. Revenue share income remained flat compared to last year, with decreased ac- tivity in Brazil impacting the revenue share databases. Similarly, CPA saw no growth due to the changed mar- ket dynamics in the US and Brazil. Other revenues grew by 8 mEUR or 80% to 18 mEUR, driven by recent acqui- sitions of Playmaker Capital and Playmaker HQ. The media partnership business was affected in May by a Google Policy change. Since Q2, the group has not seen further changes. Paid Media The Paid Media business involves purchasing advertis- ing on search engines and third-party sports media plat- forms. Because this requires upfront payments for ad- vertising on external platforms, the gross margin is typ- ically lower than that of the Publishing business, due to substantial direct costs. The Paid Media revenue was 25 mEUR, reflecting an 8% decline and a 9% decrease in organic growth. This lack of growth was largely due to lower -than-expected CPA revenue from the US and secondly reduced revenue share in Brazil, attributed to decreased activity ahead of anticipated regulation next year. While revenue share income grew by 10% to 12 mEUR, CPA revenues fell by 18% due to this. The operating profit stood at 6 mEUR, a 23% decrease compared to last year, resulting in a margin of 24%. Paid Media con- tributed to 31% of group revenues and 27% of group op- erational profits. Key figures for the Publishing segment tEUR Q3 2024 Q3 2023 Growth YTD 2024 YTD 2023 Growth Revenue 56,361 48,463 16% 193,845 161,214 20% Share of Group 69% 64% 70% 67% Cost 39,997 36,574 9% 134,882 102,761 31% Share of Group 68% 66% 69% 64% Operating profit before depreciation and amortization and special items 16,364 11,888 38% 58,963 58,452 1% Share of Group 73% 61% 74% 72% EBITDA-Margin before special items 29% 25% 30% 36% Operating profit before depreciation and amortization 15,936 11,366 40% 55,550 56,105 -1% EBITDA-Margin 28% 23% 29% 35% Organic Growth -5% 14% 0% 21% Key figures for the Paid Media segment tEUR Q3 2024 Q3 2023 Growth YTD 2024 YTD 2023 Growth Revenue 24,792 26,969 -8% 81,459 80,277 1% Share of Group 31% 36% 30% 33% Cost 18,822 19,262 -2% 60,542 57,164 6% Share of Group 32% 34% 31% 36% Operating profit before depreciation and amortization and special items 5,969 7,707 -23% 20,917 23,113 -9% Share of Group 27% 40% 26% 28% EBITDA-Margin before special items 24% 29% 26% 29% Operating profit before depreciation and amortization 5,969 7,707 -23% 20,901 23,113 -10% EBITDA-Margin 24% 29% 26% 29% Organic Growth -9% 19% -7% 27% ===== SIDA 10 ===== Q3 report 2024 Page 9 Europe & Rest of World The Europe & Rest of the World (ROW) division encom- passes all markets outside of North America. Within this division, the European markets are characterized as ma- ture and represent Better Collective's legacy markets. South America is experiencing strong growth and is be- coming an increasingly significant part of the business. Key sports brands in the Europe portfolio include s Soc- cernews in the Netherlands, Betarades in Greece, AceOdds in the UK, Tipsbladet in Denmark, Wettbasis in Germany, Goal.pl in Poland , and Svenska Fans in Swe- den. In South America, notable brands are Bolavip, So- mosFanaticos in Brazil, and Redgol in Chile. The portfo- lio also features prominent esport communities such as HLTV and FUTBIN. Due to the long history of revenue share in Europe & ROW, this business has a significant part of recurring revenue. Revenue for this business reached 62 mEUR, marking a growth of 15%, with 1% from organic growth. Revenue share income increased by 10% to 37 mEUR, while CPA dropped by 13% to 13 mEUR. Both revenue streams were affected by the ongoing slowdown in Brazil, in anticipa- tion of expected regulation next year. Other revenues rose by 32%, driven by M&A, including advertising reve- nue. Operational profits were 23 mEUR, a 39% increase compared to last year. This business contributed 77% of the group's total revenue and 104% of its operational profits. Q3 report 2024 Page 9 Key figures for Europe & RoW segment tEUR Q3 2024 Q3 2023 Growth YTD 2024 YTD 2023 Growth Revenue 62,180 53,988 15% 196,532 159,978 23% Share of Group 77% 70% 71% 66% Cost 39,005 36,305 7% 126,841 102,434 24% Share of Group 66% 65% 65% 64% Operating profit before depreciation and amortization and special items 23,175 16,637 39% 69,691 56,498 23% Share of Group 104% 85% 87% 69% EBITDA-Margin before special items 37% 31% 35% 36% Operating profit before depreciation and amortization 23,476 16,519 42% 70,621 55,055 28% EBITDA-Margin 38% 31% 36% 35% Organic Growth 1% 15% 7% 21% ===== SIDA 11 ===== Q3 report 2024 Page 10 North America North America, encompassing the United States and Canada, has recently initiated the regulation of sports betting and iGaming in selected states and provinces. As these markets are still relatively new in terms of regula- tion, most of the revenues have been generated from one-time payments (CPA). However, there is a gradual shift towards revenue sharing. Our North American portfolio features prominent sports brands such as Ac- tion Network, Yardbarker, The Nation Network, Play- maker HQ, VegasInsider, RotoGrinders, Sports Handle, and Canada Sports Betting, among others. North American revenue totaled 19 mEUR, reflecting a 12% decline overall, with organic growth decreasing by 24%. Revenue share income fell to 4 mEUR, primarily due to a reduced number of hybrid (revenue share con- tracts including an upfront payment) NDCs sent during the quarter. CPA revenue dropped by 13% to 5 mEUR, while subscription revenue remained steady. However, other revenues saw a 20% increase, driven by M&A ac- tivities. Better Collective has experienced market changes, re- quiring strategic flexibility, as overall partner activity has decreased. Following these changes, the North American group's largest partners primarily operate on revenue share con- tracts. This approach is focused on sustainable long - term growth, however amplifying the short -term reve- nue decline. In response to these market changes, the Management has initiated a restructuring of its opera- tions to ensure sustainability and profitability in North America. Operational profits were at -1 mEUR due to decreas ing revenues. This business contributed 23% to the group's total revenue. Q3 is typically characterized as a relatively low -season quarter especially in this market until the commence- ment of the US season towards its end. The US business has been on a revenue share transition which started two years ago, and as of this quarter, the Group estimates this strategic shift has resulted in an ac- cumulated Customer Lifetime Value (CLV) database value of more than 155 mEUR, with a portion already rec- ognized as revenue in hybrid deals. This leaves approxi- mately an estimated more than 120 mEUR to be recog- nized in the future, further supporting the financial out- look and growth prospects. The CLV database has not been discounted back, an d assumptions includ e churn, no inflation, and no change in the number of regulated states nor further regulation of online casino. Better Col- lective continues to send new depositing customers to its partners constantly adding more and more value to the revenue share databases. In 2025, Better Collective expects to recognize around 10-15 mEUR in pure revenue share income in the US mar- ket and expects this to increase in the future. Management has decided to aim for the North Ameri- can business to deliver a minimum 20% reported EBITDA-margin, and more than 35% margin when incor- porating the continued revenue -share build up. As the business navigates this transition, the commitment to adapting to the US market's shifting landscape remains steadfast. Key figures North America segment tEUR Q3 2024 Q3 2023 Growth YTD 2024 YTD 2023 Growth Revenue 18,972 21,444 -12% 78,773 81,514 -3% Share of Group 23% 30% 29% 34% Cost 19,814 19,532 1% 68,583 57,491 19% Share of Group 34% 35% 35% 36% Operating profit before depreciation and amortization and special items - 842 2,958 -128% 10,190 25,068 -59% Share of Group -4% 15% 13% 31% EBITDA-Margin before special items -4% 13% 13% 30% Operating profit before depreciation and amortization - 1,571 2,554 -161% 5,830 24,164 -76% EBITDA-Margin -8% 11% 7% 29% Organic Growth -24% 18% -21% 25% ===== SIDA 12 ===== Q3 report 2024 Page 11 Financial performance for the period Revenue growth of 14% to 275 mEUR Revenue showed growth v ersus 2023 of 14% and amounted to 275 mEUR (YTD 2023: 241 mEUR). Reve- nue share accounted for 4 8% of the revenue with 2 6% coming from CPA, 4 % from subscription sales, and 2 1% from other income. Cost of 195 mEUR - up 22% The increase in costs compared to Q3, 2023 is primarily driven by acquisitions contributing with 46 mEUR in in- creased cost base. The increase in personnel cost is mainly driven by an in- crease in average number of employees increasing from average 1,126 in Q3 2023 to 1,776 in Q3 2024, where 370 employees joined Better Collective as part of the acqui- sition of Playmaker Capital. Total direct cost relating to revenue increased by 7 mEUR to 82 mEUR (YTD 2023: 75 mEUR) corresponding to an increase of 10%. The increase primarily stems from increased cost related to media partnerships , paid media spending and increased cost base due to acquisi- tions. Personnel cost increased 30% to 86 mEUR 2024 (YTD 2023: 66 mEUR) due to the increase in the average num- ber of employees. Personnel costs include costs related to warrants of 1 mEUR (YTD 2023: 2 mEUR). Other external costs increased 9 mEUR or 4 6% to 28 mEUR (YTD 2023: 19 mEUR) primarily due to other pro- motions costs and increased cost base due to acquisi- tions. Depreciation and amortization amounted to 32 mEUR (YTD 2023: 19 mEUR), an increase of 13 mEUR compared to YTD 2023. The increase is mainly due to amortization related to intangible assets accounted for as part of the acquisitions of Skycon in Q2, 2023 and the acquisitions in H2, 2023 of Playmaker HQ, Digital Sportmedia I Nor- den AB (the four brands are SvenskaFans.com, Hock- eysverige.se, Fotbolldirekt.se and Innebandymaga- zinet.se), Goalmedia Technologia E Marketing Digital (the brand is Torcedores) and Tipsbladet as well as the acquisition of Playmaker Capital completed February 6, 2024 and new media partnerships entered during 2023 and 2024. Special items Special items amounted to an expense of 3 mEUR (YTD 2023: 2 mEUR). The net expense of 3 mEUR is primarily related to M&A expenses of 2 mEUR, restructuring of 1 mEUR, the early settlement of the Playmaker HQ earnout and related impairment of goodwill in Q2, with a net financial impact of 2.4 mEUR and positive impact of 2.5 mEUR related to earnout adjustments. Earnings Operational earnings (EBITDA) before special items de- creased 2% to 80 mEUR ( YTD 2023: 82 mEUR). The EBITDA-margin before special items was 29% ( YTD 2023: 34%). Including special items, the reported EBITDA was 75 mEUR. (YTD 2023: 79 mEUR). EBIT before special items decreased 24% to 48 mEUR (YTD 2023: 63 mEUR). Including special items, the re- ported EBIT was 44 mEUR (YTD 2023: 60 mEUR). Net financial items Net financial costs amounted to 17 mEUR (YTD 2023: 16 mEUR) and included net interest, fees relating to bank credit lines , unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 21 mEUR and included non-payable, calculated interest ex- penses on certain balance sheet items , 16 mEUR had cash flow effect. Net financial costs are impacted by a realized loss of 4 mEUR on Catena Media shares and unrealized net ex- change rate loss amounted to 3 mEUR. Income tax Better Collective has a tax presence in the places where the Group is incorporated . Income tax amounted to 8 mEUR (YTD 2023: 12 mEUR). The Effective Tax Rate was 28.4% (YTD Q3 2023: 27.0%) increasing primarily due to unrecognized tax losses of 1 mEUR. Net profit Net profit after tax was 19 mEUR (YTD 2023: 32 mEUR). Earnings per share (EPS) was EUR/share 0.31 versus 0.59 EUR/share YTD 2023. Equity The equity increased to 650 mEUR as per September 30, 2024, from 435 mEUR on December 31, 202 3. Besides the net profit of 19 mEUR, the equity has been primarily impacted by the share exchange in connection with the acquisition of Playmaker Capital of 46 mEUR, the acqui- sition and disposal of treasury shares of 3 0 mEUR and the capital increase in March with 145 mEUR. Balance sheet Total assets amounted to 1,142 mEUR ( YTD 2023: 931 mEUR), with an equity of 650 mEUR (2023: 438 mEUR). This corresponds to an equity to assets ratio of 5 7% (2023: 47%). The liquidity ratio was 1. 37 resulting from current assets of 105 mEUR and current liabilities of 7 7 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 2.16 at the end of September. ===== SIDA 13 ===== Q3 report 2024 Page 12 Investments In Q4 of 2023 Better Collective announced the acquisi- tion of Playmaker Capital, which closed on 6 February 2024. This strategic move, with a total purchase price of 111 million EUR, cements our position as a market leader in South America while reinforcing our North American market presence. Better Collective announced the acquisition of AceOdds on May 16, 2024 , for a total consideration of 4 3 mEUR on a net cash- /debt free basis. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's pres- ence across the UK, significantly. In Q3, Better Collective has acquired a smaller social me- dia asset in North America for a consideration of 7 mUSD. Cash flow and financing Cash flow from operations before special items was 32 mEUR (2023: 14 mEUR) with a cash conversion of 131% in Q3 2024. Better Collective A/S completed its offering of new shares through an accelerated bookbuilding process with a subscription price at market of DKK 189.4 on Feb- ruary 28. Total proceeds from the accel erated book- building process amounted to DKK 1,081.9 million (app. 145 mEUR). The proceeds prepare the Company for fu- ture M&A opportunities as the sports media landscape remains highly fragmented. On July 5, 2024 , Better Collective reestablished its 3 - year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100 mEUR higher accordion option. By the end of September 2024, capital reserves stood at 107 mEUR consisting of cash of 4 4 mEUR and unused bank credit facilities of 61 mEUR. The parent company Better Collective A/S is the parent company of the group. Revenue grew by 35 % to 96 mEUR (Q3 2023: 71 mEUR). Total costs including depreciation and amorti- zation was 86 mEUR (Q3 2023: 68 mEUR). Profit after tax was 33 mEUR (Q3 2023: 36 mEUR). The change in profit after tax is primarily due to increased cost and amortizations. Total equity ended at 676 mEUR by Sep- tember 30, 2024 (2023: 443 mEUR). ===== SIDA 14 ===== Q3 report 2024 Page 13 Financial targets 2024 Prior to releasing its Q3 report, Better Collective down- graded its 2024 financial targets as follows: • Revenue of 355-375 mEUR previously 395-425 mEUR • EBITDA of 100-110 mEUR previously 130-140 mEUR • Net/debt to EBITDA stay below 3x (unchanged) 2023- 2027 The long -term 2023 -2027 financial targets remain un- changed: • Revenue CAGR of +20% • EBITDA margin before special items of 35-40%. • Net debt to EBITDA before special items of <3. 2023-2027 implications The long-term targets include M&A funded by own cash flow and debt and not capital increases. After the changes to the short term 2024 guidance and uncertain- ties relating to selected markets, the targets remain in- tact. Disclaimer This report contains certain forward-looking statements and opinions. Forward -looking statements are state- ments that do not relate to historical facts and events. Such statements or opinions pertaining to the future, for example wording like; “believes”, “deems”, “estimates”, “anticipates”, “aims’, and “forecasts” or similar expres- sions are intended to identify a statement as forward - looking. This applies to statements and opinions con- cerning the future financial returns, plans and expecta- tions with respect to the business and management of the group, future growth , profitability, general eco- nomic and regulatory environment , and other matters affecting Better Collective. Forward-looking statements are based on current esti- mates and assumptions made according to the best of the group’s knowledge. These statements are inherently associated with both known and unknown risks, uncer- tainties, and other factors that could cause t he results, including the group’s cash flow, financial condition, and operations, to differ materially from the results, or fail to meet expectations expressly or implicitly, assumed or described in those statements or to turn out to be less favorable than the results expressly or implicitly as- sumed or described in those statements. Better Collec- tive can give no assurance regarding the future accuracy of the opinions set forth herein or as to the actual occur- rence of any predicted developments and/or targets. Considering the risks, uncertainties and assumptions as- sociated with forward-looking statements, it is possible that certain future events may not occur. Moreover, for- ward-looking estimates derived from third -party stud- ies may prove to be inaccurate. Actual results, perfor- mance or events may differ materially from those in such statements e.g. due to changes in general eco- nomic conditions, in particular economic conditions in the markets in which the group operates, changes af- fecting interest rate levels, c hanges affecting currency exchange rates, changes in competition levels, changes in laws and regulations, and occurrence of accidents or environmental damages and systematic delivery fail- ures. We undertake no obligation to update or revise any forward -looking statements, whether because of new information, future events or otherwise, except to the extent required by law. ===== SIDA 15 ===== Q3 report 2024 Page 14 Other Shares and share capital Better Collective A/S is listed on Nasdaq Stockholm main market and Nasdaq Copenhagen main market. The shares are traded under the ticker “BETCO” and “BETCO DKK”. As per September 30, 202 4, the share capital amounted to 6 30,776.27 EUR, and the total number of issued shares was 63,076,627. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. Shareholder structure As of September 30, 202 4, the total number of share- holders was 5,478. A list of top ten shareholders in Bet- ter Collective A/S can be found on the group’s website. Incentive programs To attract and retain key competences, the company has established warrant programs for certain key em- ployees. All warrants with the right to subscribe for one ordinary share. If all outstanding long -term incentive programs are subscribed, then the maximum shareholders dilution will be approximately 2.93%. On January 2, 2024, the board of directors implemented a Long-Term Incentive Plan (LTI) for key employees in the Better Collective group. On June 5, 2024, CFO exercised 150,000 warrants and on September 5, 2024, CEO, CFO and COO exercised 150,000 warrants each under the 2019 programs in ac- cordance with the terms of the long-term incentive pro- grams. As the program expires this was the final window to exercise. The Board decided to cash settled the pro- gram. In total the grants under the LTI in 202 4 cover 61,523 performance share units and 426,870 share options to 79 key employees in total, vesting over a 3-year period. The total value of the 202 4 LTI grant program is 3.6 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the fi- nancial goals. Risk management Through an Enterprise Risk Management process, vari- ous gross risks in Better Collective are identified. Each risk is described, including current risk mitigation in place, or planned mitigating actions. The subsequent analysis of the identified risks inclu des an inherent risk evaluation based on two main parameters: probability of occurrence and impact on future earnings and cash flow. Better Collective’s management continuously monitors risk development in the Better Collective group. The risk evaluation is presented to the Board of Directors annually. 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 ongoing basis. Better Collective seeks to identify and understand risks and mitigate them accordingly. Also, the group’s close and longstanding relationships with customers allow Better Collective to anticipate and re- spond to market movements and new regulations in- cluding compliance requirements from authorities and sportsbooks. With the continued expansion in North and South Amer- ica, the overall r isk profile of Better Collective has changed, and compliance as well as financial risk have increased. Better Collective has mitigated the additional risks in several ways, compliance risk through involve- ment of regulatory bodies in our licensing process for newly established entities, financial risk through a per- formance-based valuation of the acquired entities, and organizational risk through establishment of local gov- ernance, and finance, HR, and l egal organization dedi- cated to the North and South American operations. Other key risk factors are described in the Annual report 2023. Program Long-term incentive programs outstanding September, 2024 Vesting period Exercise period Exercise price DKK Exercise price EUR (rounded) 2019* 0 2020-2023 2022-2024 64.78 8.69 2020** 25,000 2021-2023 2023-2025 61.49 8.24 2020* 163,999 2021-2023 2023-2025 106.35 14.26 2021* 377,372 2022-2024 2024-2026 150.41 20.17 2021 US MIP Options 43,358 2021-2024 2024-2026 138.90 18.62 2022 US MIP Options 15,238 2022-2023 2023-2026 107.25 14.38 2022 Options 20,973 2022-2024 2025-2027 130.98 17.56 2022 PSU 62,810 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.05 2023 Options 236,730 2023-2025 2026-2028 87.06 11.67 2023 PSU 120,650 2023-2025 2026-2028 2024 Options 426,870 2024-2026 2027-2029 173.87 23.31 2024 PSU 55,236 2024-2026 2027-2029 * Key employees and members of executive management ** Following the AGM on April 22, 2020, 25,000 warrants were issued to the new board member, Todd Dunlap. ===== SIDA 16 ===== Q3 report 2024 Page 15 Contacts VP of Group Strategy, Investor Relations and Corporate Communications; Mikkel Munch-Jacobsgaard investor@bettercollective.com This information is such information as Better Collective A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on November 13, 2024, after market close (CET). About Better Collective owns global and national sport media, with a vision to become the leading digital sports media group. We are on a mission to excite sports fans through engaging content and foster passionate communities worldwide. Better Collective's portfolio of digital sports media brands includes; HLTV , FUTBIN, Betarades, Soc- cernews, Tipsbladet, Action Network , Playmaker HQ , VegasInsider, Bolavip and Redgol. Headquartered in Co- penhagen, Denmark, and dual listed on Nasdaq Stock- holm (BETCO) and Nasdaq Copenhagen (BETCO DKK). To learn more about Better Collective please visit www.Bettercollective.com Q3 report 2024 Page 15 ===== SIDA 17 ===== Q3 report 2024 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 in- terim financial statements and the parent company condensed interim financial statements for the period January 1 – September 30, 2024. Today, the B oard of D irectors and the E xecutive Management have discussed and approved the condensed consolidated interim financial statements and the parent company condensed interim financial statements of Better Collective A/S for the period Jan- uary 1 – September 30, 2024. The condensed consolidated interim financial state- ments for the period January 1 – September 30, 2024. , are prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and additional require- ments of the Danish Financial Statements Act. The par- ent company condensed interim financial statements have been included according to the Danish Executive Order on the Preparation of Interim Financial Reports. In our opinion, the condensed consolidated interim financial statements and the parent company con- densed interim financial statements give a true and fair view of the group’s and parent company’s assets, liabil- ities, and financial position on September 30, 2024, and of the results of the group’s and parent company’s op- erations and the group’s cash flows for the period Janu- ary 1 – September 30, 2024. Further, in our opinion, the management’s review gives a fair review of the development in the group’s and the parent company’s operations and financial matters and the results of the group’s and the parent company’s op- erations and financial position, as well as a description of the major risks and uncertainties, the group and the parent company are facing. The Interim Report has not been audited nor reviewed by the Company’s auditor. Copenhagen, November 13, 2024 Executive Management Jesper Søgaard Co-founder & CEO Christian Kirk Rasmussen Co-founder & COO Executive Vice President Flemming Pedersen CFO Executive Vice President Board of Directors Jens Bager Chair Therese Hillman Vice Chair Britt Boeskov Todd Dunlap Leif Nørgaard René Rechtman Petra von Rohr ===== SIDA 18 ===== Q3 report 2024 Page 17 Independent auditor’s report To the shareholders of Better Collective A/S We have reviewed the condensed consolidated interim financial statements of Better Collective A/S for the pe- riod 1 January – 30 September 2024, which comprise a consolidated income statement, consolidated state- ment of other comprehensive income, consolidated bal- ance sheet, consolidated statement of changes in eq- uity, consolidated cash flow statement and notes as pre- sented on page 18 - 35. The condensed consolidated in- terim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting , as adopted by the EU, and additional requirements of the Danish Finan- cial Statements Act. Management's responsibilities for the condensed consolidated interim finan- cial 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 control as Management determines is necessary to en- able 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 conducted our review in accordance with the Interna- tional Standard on Review of Interim Financial Infor- mation Performed by the Independent Auditor of the Entity and additional requirements applicable in Den- mark. 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 accordance 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 finan- cial statements in accordance with the International Standard on Review of Interim Financial Information Performed by the Independent Auditor of the Entity is a limited assurance engagement. The auditor p erforms procedures primarily consisting of making enquiries of Management and others within the company, as appro- priate, applying analytical procedures and evaluate the evidence obtained. The procedures performed in a review are substantially less that those performed in an audit conducted in ac- cordance 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 Financial Reporting , as adopted by the EU, and addi- tional requirements of the Danish Financial Statements Act. Other matters The condensed consolidated interim financial state- ments contain actual figures for the period 1 July – 30 September 2024 (Q3 2024), together with comparative figures for the period 1 July – 30 September 2023 (Q3 2023). The actual figures for Q3 2024 and the compara- tive figures for Q3 2023 have not been subject to review. Accordingly, we do not express an opinion or any other form of assurance on the actual Q3 2024 figures or on the comparative figures for Q3 2023. Copenhagen, November 13, 2024 EY Godkendt Revisionspartnerselskab CVR no. 30 70 02 28 Mikkel Sthyr State Authorised Public Accountant mne26693 Kennet Hartmann State Authorised Public Accountant mne40036 ===== SIDA 19 ===== Q3 report 2024 Page 18 Condensed interim financial statements for the period Consolidated income statement Note tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 3 Revenue 81,152 75,431 275,305 241,491 326,686 Direct costs related to revenue 24,871 25,669 82,008 74,862 99,296 4 Staff costs 25,852 23,408 85,564 66,018 88,921 Other external expenses 8,097 6,760 27,852 19,045 27,389 Operating profit before depreciation and amortization (EBITDA) and special items 22,333 19,595 79,881 81,566 111,080 Depreciation 2,281 1,200 5,383 2,611 3,958 Operating profit before amortization (EBITA) and special items 20,052 18,395 74,497 78,954 107,122 7 Amortization and impairment 10,712 6,375 26,830 16,314 24,283 Operating profit (EBIT) before special items 9,340 12,019 47,667 62,640 82,839 5 Special items, net - 428 - 522 - 3,429 - 2,347 - 1,948 Operating profit 8,913 11,498 44,238 60,293 80,891 Financial income 496 799 3,686 4,179 5,987 Financial expenses 5,842 7,178 21,446 20,164 28,868 Profit before tax 3,566 5,119 26,479 44,308 58,010 6 Tax on profit for the period 2,447 2,012 7,513 11,964 18,175 Profit for the period 1,119 3,107 18,966 32,344 39,835 Earnings per share attributable to equity holders of the company Average number of shares 62,219,980 55,183,479 61,472,484 55,164,474 55,186,772 Average number of warrants - converted to number of shares 2,385,990 2,635,780 2,506,396 2,679,260 2,658,571 Earnings per share (in EUR) 0.01 0.06 0.31 0.59 0.74 Diluted earnings per share (in EUR) 0.01 0.05 0.29 0.56 0.70 Consolidated statement of other comprehensive income Note tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Profit for the period 1,119 3,107 18,966 32,344 39,835 Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Fair value adjustment of hedges for the year - 537 0 - 54 0 - 483 Currency translation to presentation currency - 2,170 805 - 2,512 521 1,318 Currency translation of non-current intercompany loans - 12,834 8,055 - 3,650 3,048 - 9,440 Income tax 2,941 - 1,772 921 - 671 0 Net other comprehensive income/loss - 12,600 7,087 - 5,296 2,898 - 8,605 Total comprehensive income/(loss) for the period, net of tax - 11,481 10,194 13,671 35,242 31,230 Attributable to: Shareholders of the parent - 11,481 10,194 13,671 35,242 31,230 ===== SIDA 20 ===== Q3 report 2024 Page 19 Consolidated statement of financial position Note tEUR Q3 2024 Q3 2023 2023 Assets Non-current assets 7 Intangible assets Goodwill 344,660 262,980 255,074 Domains and websites 537,686 473,436 466,615 Accounts and other intangible assets 122,688 54,978 79,740 Total intangible assets 1,005,035 791,395 801,429 Tangible assets Right of use assets 18,774 14,906 15,575 Leasehold improvements, Fixtures and fittings, other plant and equipment 7,371 5,510 6,006 Total tangible assets 26,145 20,416 21,582 Other non-current assets Deposits 1,829 1,716 1,803 Deferred tax asset 3,612 10,732 7,236 Total other non-current assets 5,441 12,448 9,039 Total non-current assets 1,036,621 824,259 832,050 Current assets Trade and other receivables 47,151 45,097 48,954 Corporation tax receivable 7,624 6,854 2,252 Prepayments 6,585 4,306 4,250 Other current financial assets 0 9,742 6,804 Cash 43,617 40,676 43,552 Total current assets 104,977 106,674 105,812 Total assets 1,141,598 930,934 937,862 Note tEUR Q3 2024 Q3 2023 2023 Equity and liabilities Equity Share Capital 631 552 554 Share Premium 469,460 273,184 274,580 Reserves - 3,941 5,024 - 6,486 Retained Earnings 184,168 158,983 166,624 Total equity 650,319 437,744 435,273 Non-current Liabilities 8 Debt to credit institutions 260,100 248,359 248,657 8 Lease liabilities 14,942 12,577 13,326 8 Deferred tax liabilities 100,051 90,173 84,670 8 Other long-term financial liabilities 39,377 49,415 52,443 Total non-current liabilities 414,469 400,524 399,096 Current Liabilities Prepayments received from customers and deferred revenue 6,436 4,066 4,262 Trade and other payables 27,773 26,486 27,838 Corporation tax payable 5,988 4,516 6,754 8 Other financial liabilities 31,853 54,866 61,938 Debt to credit institutions 0 23 0 8 Lease liabilities 4,760 2,708 2,702 Total current liabilities 76,810 92,666 103,493 Total liabilities 491,279 493,189 502,589 Total Equity and liabilities 1,141,598 930,934 937,862 ===== SIDA 21 ===== Q3 report 2024 Page 20 Consolidated statement of changes in equity tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As at January 1, 2024 554 274,580 15,055 - 483 - 21,057 166,624 435,273 Result for the period 0 0 0 0 0 18,966 18,966 Fair value adjustment of hedges 0 0 0 - 54 0 0 - 54 Currency translation to presentation currency 0 0 - 6,162 0 0 0 - 6,162 Tax on other comprehensive income 0 0 803 118 0 0 921 Total other comprehensive income 0 0 - 5,360 64 0 0 - 5,296 Total comprehensive income for the year 0 0 - 5,360 64 0 18,966 13,671 Transactions with owners Capital Increase 77 194,880 0 0 0 - 1,758 193,199 Acquisition of treasury shares 0 0 0 0 - 15,414 0 - 15,414 Disposal of treasury shares 0 0 0 0 23,254 9,017 32,271 Share based payments 0 0 0 0 0 - 5,679 - 5,679 Transaction cost 0 0 0 0 0 - 3,002 - 3,002 Total transactions with owners 77 194,880 0 0 7,840 - 1,422 201,375 At September 30, 2024 631 469,460 9,695 - 419 - 13,217 184,168 650,319 During the period no dividend was paid. tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As at January 1, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917 Result for the period 0 0 0 0 0 32,344 32,344 Fair value adjustment of hedges 0 0 0 0 0 0 0 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 0 32,344 35,242 Transactions with owners Capital Increase 1 634 0 0 0 0 635 Acquisition of treasury shares 0 0 0 0 - 13,368 0 - 13,368 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,359 2,359 Transaction cost 0 0 0 0 - 13 - 27 - 40 Total transactions with owners 1 634 0 0 - 13,381 2,332 - 10,414 At September 30, 2023 552 273,184 26,074 0 - 21,050 158,983 437,744 During the period no dividend was paid. ===== SIDA 22 ===== Q3 report 2024 Page 21 Consolidated statement of changes in equity - continued tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As at January 1, 2023 551 272,550 23,177 0 - 7,669 124,307 412,917 Result for the period 0 0 0 0 0 39,835 39,835 Fair value adjustment of hedges 0 0 0 - 483 0 0 - 483 Currency translation to presentation currency 0 0 - 8,122 0 0 0 - 8,122 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 8,122 - 483 0 0 - 8,605 Total comprehensive income for the year 0 0 - 8,122 - 483 0 39,835 31,230 Transactions with owners Capital Increase 3 2,030 0 0 0 0 2,033 Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,495 2,495 Transaction cost 0 0 0 0 - 13 - 12 - 26 Total transactions with owners 3 2,030 0 0 - 13,389 2,482 - 8,874 At December 31, 2023 554 274,580 15,055 - 483 - 21,057 166,624 435,273 During the period no dividend was paid. ===== SIDA 23 ===== Q3 report 2024 Page 22 Consolidated statement of cash flows Note tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Profit before tax 3,566 5,119 26,479 44,308 58,010 Adjustment for finance items 5,346 6,378 17,759 15,985 22,882 Adjustment for special items 428 522 3,429 2,347 1,947 Operating Profit for the period before special items 9,340 12,019 47,667 62,640 82,839 Depreciation and amortization 12,992 7,575 32,213 18,926 28,241 Other adjustments of non-cash operating items - 691 807 1,168 2,417 2,581 Cash flow from operations before changes in working capital and special items 21,640 20,402 81,048 83,983 113,661 Change in working capital 10,780 - 6,157 222 - 2,124 5,722 Cash flow from operations before special items 32,421 14,245 81,271 81,859 119,384 Special items, cash flow - 542 - 333 - 13,065 - 2,000 - 4,744 Cash flow from operations 31,879 13,912 68,205 79,858 114,639 Financial income, received 161 - 475 1,169 166 493 Financial expenses, paid - 3,633 - 3,027 - 18,468 - 7,078 - 10,712 Cash flow from activities before tax 28,407 10,410 50,907 72,946 104,420 Income tax paid - 4,069 - 3,005 - 9,884 - 11,972 - 15,411 Cash flow from operating activities 24,338 7,406 41,023 60,974 89,009 9 Acquisition of businesses - 900 - 19,636 - 117,399 - 49,403 - 57,282 7 Acquisition of intangible assets - 20,556 - 8,094 - 28,588 -11,718 - 27,469 Acquisition of property, plant and equipment - 3,296 - 1,958 - 4,866 - 4,140 - 5,143 Sale of property, plant and equipment 117 0 555 3 3 Acquisition of other financial assets 0 0 0 - 14,930 - 14,930 Sale of other financial assets 454 0 3,226 0 0 Change in other non-current assets 69 - 1,253 - 25 - 1,514 - 1,427 Cash flow from investing activities - 24,112 - 30,941 - 147,098 - 81,702 - 106,248 Note tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Repayment of borrowings 0 0 - 136,321 - 1,486 - 1,486 Proceeds from borrowings 13,434 0 124,195 45,490 45,490 Lease liabilities - 1,669 - 1,475 - 3,548 - 1,993 - 2,814 Other non-current liabilities 0 4,569 - 2,582 444 - 483 Capital increase 1,218 397 146,362 634 2,033 Treasury shares - 13,103 - 3,804 - 13,103 - 13,381 - 13,381 Transaction cost - 33 - 4 - 3,002 - 13 - 26 Warrant settlement, sale of warrants - 5,195 0 - 5,698 0 0 Cash flow from financing activities - 5,348 - 317 106,303 29,694 29,334 Cash flows for the period - 5,121 - 23,853 227 8,967 12,095 Cash and cash equivalents at beginning 48,756 64,536 43,552 31,497 31,497 Foreign currency translation of cash and cash equivalents - 18 - 7 - 163 211 - 41 Cash and cash equivalents period end 43,617 40,676 43,617 40,676 43,552 Cash and cash equivalents period end Cash 43,617 40,676 43,617 40,676 43,552 Cash and cash equivalents period end 43,617 40,676 43,617 40,676 43,552 ===== SIDA 24 ===== Q3 report 2024 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 performance marketing. Better Collec- tive’s vision is to become the leading digital sports media group. Basis of preparation The Interim Report (condensed consolidated interim financial statements) for the period January 1 – September 30, 2024, has been prepared in accordance with IAS 34 “Interim financial reporting ” as adopted by the EU and additional requirements in the Danish Financial Statements Act. The parent company condensed interim financial statements has been included according to the Danish Executive Order on the Preparation of Interim Financial Reports. These condensed consolidated interim financial statements incorporate the results of Better Collective A/S and its sub- sidiaries. The condensed consolidated interim financial statements refer to certain key performance indicators, which Better Col- lective and others use when evaluating the performance of Better Collective. These are referred to as alternative per- formance measures (APM s) and are not defined under IFRS. The figures and related subtotals give management and investors important information to enable them to fully analyze the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. New financial reporting standards All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on January 1, 2024, have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the condensed consolidated interim financial statements. Accounting policies The condensed consolidated interim financial statements have been prepared using the same accounting policies as set out in note 1 of the 2023 annual report which contains a full description of the accounting policies for the Group and the parent company. The lifetime of accounts and other intangible assets has been reassessed in connection with acquisi- tions in 2024. The lifetime for accounts is 3-5 years and for other intangible assets 2-3 years. The annual report for 2023 including full description of the accounting policies can be found on Better Collective’s web- site: https://storage.mfn.se/9896a1ee-39d1-49c3-a0fd-7447b83bcb8e/annual-report-2023.pdf Significant accounting judgements, estimates and assumptions The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets, and liabilities. Beyond the risks mentioned above, the significant accounting judgements, estimates and assumptions applied in these consolidated interim financial statements are the same as disclosed in note 2 in the annual report for 202 3 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 25 ===== Q3 report 2024 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 partnerships where the audience is coming either directly or through organic search results, whereas Paid Media gener- ates revenue through paid ad-traffic to our brands, thereby running on a lower gross margin. The performance for each segment is presented in the below tables: Publishing Paid Media Group tEUR Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Revenue Share 28,573 28,636 12,455 11,319 41,028 39,955 CPA 5,784 5,717 12,336 15,120 18,120 20,837 Subscription 3,986 4,106 0 0 3,986 4,106 Other 18,018 10,003 0 530 18,018 10,533 Revenue 56,361 48,463 24,792 26,969 81,152 75,431 Cost 39,997 36,574 18,822 19,262 58,820 55,837 Operating profit before depreciation, amortization and special items 16,364 11,888 5,969 7,707 22,333 19,595 EBITDA-Margin before special items 29% 25% 24% 29% 28% 26% Special items, net - 428 - 522 - 0 0 - 428 - 522 Operating profit before depreciation and amortiza- tion 15,936 11,366 5,969 7,707 21,905 19,073 EBITDA-Margin 28% 23% 24% 29% 27% 25% Depreciation 2,230 1,196 50 4 2,281 1,200 Operating profit before amortization 13,705 10,170 5,919 7,703 19,624 17,873 EBITA-Margin 24% 21% 24% 29% 24% 24% Publishing Paid Media Group tEUR YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 Revenue Share 92,878 91,934 39,343 29,571 132,222 121,504 CPA 33,116 28,698 39,730 49,150 72,846 77,848 Subscription 12,204 12,669 0 0 12,204 12,669 Other 55,648 27,912 2,386 1,557 58,033 29,469 Revenue 193,845 161,214 81,459 80,277 275,305 241,491 Cost 134,882 102,761 60,542 57,164 195,424 159,925 Operating profit before depreciation, amortization and special items 58,963 58,452 20,917 23,113 79,881 81,566 EBITDA-Margin before special items 30% 36% 26% 29% 29% 34% Special items, net - 3,413 - 2,347 - 16 0 - 3,429 - 2,347 Operating profit before depreciation and amortiza- tion 55,550 56,105 20,901 23,113 76,451 79,218 EBITDA-Margin 29% 35% 26% 29% 28% 33% Depreciation 5,237 2,601 147 10 5,383 2,611 Operating profit before amortization 50,314 53,504 20,754 23,103 71,068 76,607 EBITA-Margin 26% 33% 25% 29% 26% 32% ===== SIDA 26 ===== Q3 report 2024 Page 25 2. Segments, continued Publishing Paid Media Group tEUR 2023 2023 2023 Revenue Share 120,776 41,049 161,825 CPA 40,589 63,371 103,960 Subscription 17,959 0 17,959 Other 41,003 1,938 42,941 Revenue 220,328 106,358 326,686 Cost 139,685 75,920 215,605 Operating profit before depreciation, amortization and special items 80,642 30,438 111,080 EBITDA-Margin before special items 37% 29% 34% Special items, net - 1,948 0 - 1,948 Operating profit before depreciation and amortization 78,695 30,438 109,132 EBITDA-Margin 36% 29% 33% Depreciation 3,909 49 3,958 Operating profit before amortization 74,785 30,389 105,174 EBITA-Margin 34% 29% 32% ===== SIDA 27 ===== Q3 report 2024 Page 26 2. Segments, continued Europe & Rest of World and North A merica Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a national reach. Better Collective’s regional brands are tai- lored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. Better Collective reports on the geographical segments Europe & ROW (Rest of World) and North America, measuring and disclosing sepa rately 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 2024 Q3 2023* Q3 2024 Q3 2023* Q3 2024 Q3 2023 Revenue Share 37,478 33,918 3,550 6,037 41,028 39,955 CPA 12,645 14,621 5,475 6,216 18,120 20,837 Subscription 645 477 3,342 3,630 3,986 4,107 Other 11,413 4,971 6,606 5,562 18,018 10,533 Revenue 62,180 53,988 18,972 21,444 81,152 75,431 Cost 39,005 36,305 19,814 19,532 58,820 55,837 Operating profit before depreciation, amortization and special items 23,175 16,637 - 842 2,958 22,333 19,595 EBITDA-Margin before special items 37% 31% -4% 13% 28% 26% Special items, net 301 - 118 - 728 - 403 - 428 - 522 Operating profit before depreciation and amortization 23,476 16,519 - 1,571 2,554 21,905 19,073 EBITDA-Margin 38% 31% -8% 11% 27% 25% Depreciation 1,922 912 359 288 2,281 1,200 Operating profit before amortization 21,554 15,607 - 1,929 2,266 19,624 17,873 EBITA-Margin 35% 29% -10% 10% 24% 24% *Figures were restated because of the transfer of Canada and renaming USA to North America (NA) in Q3 2023 and Q4 2023. Europe & RoW North America Group tEUR YTD 2024 YTD 2023* YTD 2024 YTD 2023* YTD 2024 YTD 2023 Revenue Share 118,657 100,764 13,565 20,740 132,222 121,504 CPA 41,385 36,675 31,461 41,173 72,846 77,848 Subscription 1,877 1,531 10,327 11,138 12,204 12,670 Other 34,613 21,007 23,420 8,462 58,033 29,469 Revenue 196,532 159,978 78,773 81,514 275,305 241,491 Cost 126,841 102,434 68,583 57,491 195,424 159,925 Operating profit before depreciation, amortization and special items 69,691 56,498 10,190 25,068 79,881 81,566 EBITDA-Margin before special items 35% 36% 13% 30% 29% 34% Special items, net 930 - 1,443 - 4,360 - 904 - 3,429 - 2,347 Operating profit before depreciation and amortization 70,621 55,055 5,830 24,164 76,451 79,218 EBITDA-Margin 36% 35% 7% 29% 28% 33% Depreciation 4,461 1,853 922 759 5,383 2,611 Operating profit before amortization 66,160 53,202 4,908 23,405 71,068 76,607 EBITA-Margin 34% 33% 6% 28% 26% 32% ===== SIDA 28 ===== Q3 report 2024 Page 27 2. Segments, continued Europe & Row North America Group tEUR 2023 2023 2023 Revenue Share 136,211 25,614 161,825 CPA 49,173 54,787 103,960 Subscription 2,461 15,499 17,960 Other 30,241 12,700 42,941 Revenue 218,085 108,600 326,686 Cost 137,903 77,702 215,605 Operating profit before depreciation, amortization and special items 80,182 30,898 111,080 EBITDA-Margin before special items 37% 28% 34% Special items, net - 1,060 - 888 - 1,948 Operating profit before depreciation and amortization 79,123 30,010 109,132 EBITDA-Margin 37% 27% 33% Depreciation 3,199 759 3,958 Operating profit before amortization 76,176 28,998 105,174 EBITA-Margin 35% 27% 32% ===== SIDA 29 ===== Q3 report 2024 Page 28 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 2024 Q3 2023 YTD 2024 YTD 2023 2023 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 52,825 46,312 167,661 141,864 191,118 CPA, Fixed Fees 28,183 29,055 106,991 99,539 135,385 Other 144 64 653 88 183 Total revenue 81,152 75,431 275,305 241,491 326,686 %-split Recurring revenue 65 61 61 59 58 CPA, Fixed Fees 35 39 39 41 42 Other 0 0 0 0 0 Total 100 100 100 100 100 tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Revenue type Revenue Share 41,028 39,955 132,222 121,504 161,825 CPA 18,120 20,837 72,846 77,848 103,960 Subscription 3,986 4,107 12,204 12,669 17,959 Other 18,018 10,533 58,033 29,469 42,941 Total revenue 81,152 75,431 275,305 241,491 326,686 %-split Revenue Share 51 53 48 50 50 CPA 22 28 26 32 32 Subscription 5 5 4 5 5 Other 22 14 21 12 13 Total 100 100 100 100 100 4. Share-based payment plans 2019 Warrant programs: During the third quarter of 202 4 the company did not grant any new warrants and 545,835 warrants were exercised under this program. 2020 Warrant programs: During the third quarter of 2024 the company did not grant any new warrants and 27,000 warrants were exercised under this program. 2021 Incentive Program: During the third quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2022 Incentive Program: During the third quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2023 Incentive Program: During the third quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2023 CXO Options Program: During the third quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. 2024 Incentive Program: On January 2, 2024, a new LTI program consisting of Performance Stock Units and stock options was announced. Un- der the program 426,870 options and 61,523 PSUs were granted to certain key employees. Whereas the options have the right to subscribe for one ordinary share, the PSUs have a performance-based element that can increase to two shares for one PSU – both are classified as equity-settled share-based payment transactions*. The vesting period runs from 2024-2026 and the exercise period runs from 2027 to 2029. ===== SIDA 30 ===== Q3 report 2024 Page 29 4. Share-based payment plans, continued Management Incentive Program - Action Network: During the third quarter of 2024 the company did not grant any new warrants and 0 warrants were exercised under this program. Total share-based compensation: The total share-based compensation expense for the above programs recognized for Q3 2024 is -693 tEUR (Q3 2023: 1,407 tEUR) and the cost YTD 2024 is 1,167 tEUR (YTD 2023: 2,467 tEUR). The Board of Directors keeps the right to change the classification of the share-based programs, to a cash-settled. 5. Special items Special items consist of recurring and non-recurring items that management does not consider to be part of the group’s ordinary operating activities, i.e. acquisition costs, dual listing, adjustment of earn-out payments related to acquisitions, impairments and restructuring costs are presented in the Income statement in a separate line item la- belled ‘Special items’. The impact of special items is specified as follows: tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Operating profit 8,908 11,498 44,234 60,293 80,891 Special Items related to: Special items related to dual listing 0 0 0 0 - 1,129 Special items related to M&A 728 - 760 - 1,359 - 1,716 - 10,224 Variable payments regarding acquisitions - cost 0 98 0 - 44 0 Variable payments regarding acquisitions - income 115 0 19,114 0 9,924 Special items related to Restructuring - 1,270 158 - 2,601 - 509 - 519 Special items related to impairment 0 0 - 18,584 0 0 Special items related to Management Incentive Program 0 - 18 0 - 78 0 Special items, total - 428 - 522 - 3,429 - 2,347 - 1,948 Operating profit (EBIT) before special items 9,336 12,019 47,663 62,640 82,839 Amortization and impairment 9,158 6,375 26,830 16,314 24,283 Operating profit before amortization and special items (EBITA before special items) 18,494 18,395 74,493 78,954 107,122 Depreciation 2,281 1,200 5,383 2,611 3,958 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 20,775 19,595 79,876 81,566 111,080 Due to underperformance from acquisition of SOME content producer and podcast maker Playmaker HQ (not to be confused with Play- maker Capital), Better Collective and the founders and former owners of Playmaker HQ have agreed to renegotiate and settle the earn out. The initial acquisition price of Playmaker HQ was 54mUSD of which 15mUSD was upfront cash. The final price agreed is 25mUSD (23m EUR). Consequently, Better Collective have performed an impairment test based on the reassessment, identifying an impairment of 20mUSD (18m EUR) for the CGU North America, recognized in Q2. The net impact on special items is negative 2.4mEUR, resulting from the aforementioned goodwill impairment and the recognition of the remaining earn-out as income. ===== SIDA 31 ===== Q3 report 2024 Page 30 6. Income tax Total tax for the period is specified as follows: tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Tax for the period 2,447 2,012 7,513 11,964 18,175 Tax on other comprehensive income - 2,941 1,772 - 921 671 0 Total - 494 3,784 6,592 12,635 18,175 Income tax on profit for the period is specified as follows: tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Deferred tax 261 - 283 1,499 1,608 3,641 Current tax 1,749 1,829 6,345 9,906 16,400 Adjustment from prior years 437 467 - 331 450 - 1,867 Total 2,447 2,012 7,513 11,964 18,175 Tax on the profit for the period can be explained as follows: tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Specification for the period: Calculated 22% tax of the result before tax 785 1,126 5,825 9,748 12,762 Adjustment of the tax rates in foreign subsidiaries relative to the 22% - 167 470 361 1,467 1,955 Tax effect of: Special items 0 186 0 573 868 Special items - taxable items 0 - 541 0 - 541 - 233 Other non-taxable income - 348 - 312 - 652 - 1,027 - 410 Other non-deductible costs 374 752 943 1,431 3,461 Unrecognized tax losses carried forward 1,366 0 1,366 0 2,010 Tax deductible 0 - 136 0 - 136 - 371 Adjustment of tax relating to prior periods 437 467 - 331 450 -1,867 Total 2,447 2,012 7,513 11,964 18,175 Effective tax rate 68.6% 39.3% 28.4% 27.0% 31.3% 7. Intangible assets tEUR Goodwill Domains and websites Accounts and other intangible assets* Total Cost or valuation As of January 1, 2024 255,074 466,615 140,065 861,754 Additions 0 0 29,149 29,149 Acquisitions through business combinations 110,322 76,523 41,510 228,355 Transfer 0 0 - 295 - 295 Disposals 0 0 - 4,655 - 4,655 Currency Translation - 2,872 - 5,452 645 - 7,679 At September 30, 2024 362,524 537,686 206,420 1,106,630 Amortization and impairment As of January 1, 2024 0 0 60,325 60,325 Amortization for the period 0 0 26,717 26,717 Impairment for the period 18,584 0 0 18,584 Amortization on disposed assets 0 0 - 2,151 - 2,151 Currency translation -720 0 - 1,159 - 1,879 At September 30, 2024 17,863 0 83,732 101,595 Net book value at September 30, 2024 344,660 537,686 122,688 1,005,035 *Accounts and other intangible assets consist of accounts (63,373 tEUR), Media Partnerships (53,521 tEUR), Development projects (1,550 tEUR) and software and others (4,245 tEUR) ===== SIDA 32 ===== Q3 report 2024 Page 31 7. Intangible assets, continued tEUR Goodwill Domains and websites Accounts and other intangible assets* Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,832 16,231 20,063 Acquisitions through business combinations 78,350 7,758 29,579 115,688 Transfer 0 0 0 0 Disposals 0 0 - 2,324 - 2,324 Currency Translation 688 1,333 74 2,095 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 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 *Accounts and other intangible assets consist of accounts (36,398 tEUR), Media Partnerships (18,027 tEUR) and software and others (553 tEUR) tEUR Goodwill Domains and websites Accounts and other intangible assets* Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,412 53,914 57,326 Acquisitions through business combinations 75,335 10,842 29,579 115,756 Transfer 0 0 0 0 Disposals 0 0 - 6,531 - 6,531 Currency Translation - 4,203 - 8,151 - 602 - 12,956 At December 31, 2023 255,074 466,616 140,065 861,754 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 24,283 24,283 Currency translation 0 0 - 646 - 646 At December 31, 2023 0 0 60,325 60,325 Net book value at December 31, 2023 255,074 466,616 79,740 801,429 *Accounts and other intangible assets consist of accounts (30,474 tEUR), Media Partnerships (48,769 tEUR) and software and others (497 tEUR) ===== SIDA 33 ===== Q3 report 2024 Page 32 7. Intangible assets, continued Goodwill and intangible assets with indefinite life The Group normally performs its annual impairment test in December or otherwise when circumstances my indicate that the carrying amount may be impaired. When it was announced on 24,October 2024 that the financial outlook for 2024 had been changed and the financial guidance was downgraded. The changed outlook indicates a potential decrease in the recoverable amount, for which reason management have performed an impairment test for the group and the indi- vidual CGUs. The Group added intangible assets YTD 2024 from business combinations of AceOdds and Playmaker Capital. Goodwill and domains and websites arising on business combinations are not subject to amortization, but are reviewed annually for impairment, or more frequently if there are any indicators of impairment that are noted during the year. The Group’s impairment test for goodwill and domains and websites with indefinite life are based on a value-in-use basis. Cash-generating units Goodwill from a business combination is allocated to cash-generating units in which synergies are expected to be gen- erated from the acquisition. A cash -generating unit represents the smallest identifiable group of assets that together have cash inflows that are largely independent of the cash inflows from other assets. In Q3 2024 Better Collective continues to have four cash generating units with the business acquisitions of Aceodds included in Publishing, and the acquisition of Playmaker Capital Playmaker allocated between existing cash generating units. Goodwill in Playmaker Capital is allocated to the CGU’s; Paid Media (9%), Rest of BC (57%) and North America (35%) based on the proportional share of the fair value of acquired intangible assets identified in the Purchase Price Allocation (PPA). This allocation reflects the economic benefits each CGU is expected to generate . The allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Performance and cash flows from domains and websites owned by the individual cash generating units are allocated for the basis for impairment. Recoverable amount When testing for impairment, the Group estimates a recoverable amount for goodwill and for domain s and websites. The recoverable amount is the higher of the asset or cash-generating unit’s fair value less costs of disposal and its value in use. The recoverable amount is normally determined for an individual asset, unless the asset does not generate cas h inflows that are largely independent of those from other assets or groups of assets. The recoverable amount of domains and websites has been determined on the level of the cash-generating units, as explained above. Carrying amount of goodwill and Domains and Websites for the CGUs Impairment test For all CGUs North America, HLTV, Paid Media and the rest of Better Collective, the Group has performed an impairment test on goodwill and domains and websites as of September 30, 202 4, on a value -in-use basis. Key estimates in the impairment test are growth in revenue, gross profits, discount rate and growth expectations in the terminal period. These are based on current and future development in the four CGUs and on historical data, including expected long - term market growths. Data is based on both internal and external data sources. The Group uses a 10 -year forecast in the Discounted Cash Flow (DCF) model, including a 3-year budget and a 7 -year projection leading to steady -state. This period is chosen due to high expected growth in the initial years, with growth gradually reducing to a steady rate by the terminal period. A shorter forecast would result in an inflated terminal value . Therefore, a 10-year period allows for a more accurate present value of the groups assets for impairment assessment. Management has based the value-in-use by estimating the present value of future cash flows from a three-year forecast for 2025-2027. The forecast indicates an average annual revenue growth up to 11% in 2028 and a normalized average margin of 35% . Beyond the forecast, EBITDA growth, cash conversion and tax -rates have been projected with a time horizon of 7 years until 2034. From 2028 onward, the average gross profit growth rate is estimated to decline. In 202 8, the average growth rate is projected to be 9% and the decline continues, reaching 3% by 2034, stabilizing thereafter at a theoretical steady state level in the terminal period. Q3 2024 tEUR North America HLTV Paid Media Rest of BC Total Goodwill 138,868 17,812 81,347 106,633 344,660 Domains and Websites 236,336 20,579 0 280,771 537,686 2023 tEUR North America HLTV Paid Media Rest of BC Total Goodwill 126,399 17,812 73,771 37,092 255,074 Domains and Websites 213,764 20,551 0 232,300 466,615 ===== SIDA 34 ===== Q3 report 2024 Page 33 7. Intangible assets, continued Based on expected 2034 EBITDA and cash flow, management has applied a terminal value rate of 2.5%. The cash flows assume a discount factor of 9.2% for HLTV, Paid Media, Rest of BC and 10.4 % for North America based on the Group’s weighted average cost of capital (WACC) in all years 202 5-2034, with individual tax rates per country (22 -25%). The applied pre-tax discount rate was 12% in 2023 for all CGU’s. As at September 30, 2024 and December 31, 2023 the Board of Directors have evaluated goodwill, domains and websites for impairment. The results of the impairment tests for goodwill and domains and websites showed that the recoverable amount exceeded the carrying value and that there was no impairment loss to be recognized. The Board of Directors have approved the inputs to the impairment testing and are satisfied that the judgements made are appropriate. Sensitivity test Sensitivity tests have been performed to determine the lowest forecast and terminal period growth rates and/or high- est discount rates that can occur in the CGUs with indefinite useful life without leading to any impairment loss. 8. Non-current liabilities and other current financial liabilities Debt to credit institutions As per September 30, 2024, Better Collective has drawn 2 60.1 mEUR (2023: 248.7) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. On July 5, 2024 Better Collective reestablished its 3 year financing agreement with Nordea, Nykredit Bank and Citibank with a total committed facility of 319 mEUR and a 100 mEUR higher accordion option with expiry at the end of October 2026. Lease liabilities Non-current and current lease liabilities, of 14.9 mEUR (2023: 13.3 mEUR) and 4.7 mEUR (2023: 2.7 mEUR) respectively. Deferred Tax liability Deferred tax liability as of September 30, 2024, amounted to 100 mEUR (2023: 86.2 mEUR). The change from January 1, 2024, originates from changes in deferred tax related to acquisitions, amortization of accounts from acquisitions, and deferred tax changes in the Parent Company and Better Collective US, Inc. Deferred Tax asset Deferred tax asset as of September 30, 2024, amounted to 3.6 mEUR (2023: 7.2 mEUR). The change from January 1, 2024, originates from changes in deferred tax related to acquisitions, amortization of accounts from acquisitions, and deferred tax changes in Better Collective US, Inc and Playmaker Capital. The group has total tax assets of 1,366t EUR related to tax losses carried forward, which are not recognized in the finan- cial statement due to the uncertainty of utilizing the tax asset. Of not recognized tax losses carry forwards 1,366t EUR, may be carried forward for up to 3 years. Other financial liabilities As per September 30, 202 4, other non- current and current financial liabilities amounted to 70.7 mEUR (202 3: 114.4 mEUR) due to deferred and variable payments related to acquisitions and media partnerships. The decrease from Jan- uary 1, 2024, is mainly related to changes in earn outs and media partnerships. Fair Value of financial assets and liabilities is measured based on level 3 - Valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value. The fair value of financial instruments is measured based on level 2. The fair value is measured according to generally accepted valuation techniques. Market-based input is used to measure the fair value. ===== SIDA 35 ===== Q3 report 2024 Page 34 9. Business combinations Acquisition of Playmaker Capital On November 6, 2023 Better Collective announced the acquisition of Playmaker Capital for a total price consideration of 176 mEUR. The consideration comprises 35 % cash and a cap of 65 % shares in Better Collective A/S. The considera- tion is financed partly by own cash and utilization of available facilities of 72 mEUR as well as a share consideration. The share consideration payable to Playmaker Capital shareholders, a total of 3,143,009 Better Collective shares, has been provided by Better Collective delivering 1,387,580 existing shares held as treasury shares and by issuing 1,755,429 new shares. Playmaker Capital is a leading digital sports media group that owns and operates several strong sports media brands across the Americas. The acquisition has been closed on 6 February 2024, and Playmaker Capital are consolidated into Better Collective Group from the closing date. tEUR Purchase amount 110,762 Cash and cash equivalents 4,840 Shares 73,314 Cash outflow 32,608 The transferred consideration was in cash and shares in Better Collective A/S. Acquired net assets at the time of acquisition tEUR Domains and websites 76,523 Customer Relations 7,446 Technology 2,137 Other assets 18,034 Deferred tax liabilities - 18,376 Other liabilities - 68,314 Identified net assets 17,450 Goodwill 93,312 Total consideration 110,762 A goodwill of 93,312 tEUR emerged from the acquisition of Playmaker Capital as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expecta- tions given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of Playmaker Capital amounts to 6,420 tEUR. Transaction costs are ac- counted for in the income statements under “special items” since the announcement. The acquisition was completed on February 6, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 279 mEUR and result after tax would have amounted to 21 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Acquisition of AceOdds On May 16, 2024 Better Collective announced the acquisition of AceOdds for a total price consideration of 43 mEUR. The consideration consist of 38 mEUR in cash and 2mEUR as shares in Better Collective A/S. AceOdds is a UK sports betting media brand with its roots in the UK, and this acquisition is poised to enhance Better Collective's presence across the UK, significantly. The acquisition is a strategic move for Better Collective with significant synergistic oppor- tunities. The acquisition was closed on 16 May 2024, and AceOdds are consolidated into Better Collective Group from the closing date. tEUR Purchase amount 42,969 Cash and cash equivalents 2,919 Shares 2,340 Cash outflow 37,710 The transferred consideration was in cash and shares in Better Collective A/S. Acquired net assets at the time of acquisition tEUR Accounts 31,927 Other receivables and assets 680 Cash 2,919 Corporate Tax - 1,420 Deferred Tax Liability - 7,982 Identified net assets 26,124 Goodwill 16,845 Total consideration 42,969 ===== SIDA 36 ===== Q3 report 2024 Page 35 9. Business combinations, continued A goodwill of 16,845 tEUR emerged from the acquisition of AceOdds as an effect of the difference between the trans- ferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The goodwill is not tax deductible. Transaction costs related to the acquisition of AceOdds amounts to 283 tEUR. Transaction costs are accounted for in the income statements under “special items” since the announcement. The acquisition was completed on May 16, 2024. If the transaction had been completed on January 1, 2024 the group’s revenue would have amounted to 280 mEUR and result after tax would have amounted to 22 mEUR. The purchase price allocation is provisional due to uncertain- ties regarding measurement of acquired intangible assets. 10. Note to cash flow statement tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition 0 - 19,636 - 70,318 - 49,403 - 57,282 Business Combinations deferred payments from current period 0 0 0 0 0 Deferred payments - business combinations from prior periods - 900 0 - 47,081 0 0 Total cash flow from business combinations - 900 - 19,636 - 117,399 - 49,403 - 57,282 Acquisition of intangible assets: Acquisitions through asset transactions - 5,806 - 4,120 - 5,806 - 20,063 - 50,639 Deferred payments related to acquisition value 0 0 0 0 - 494 Deferred payments - acquisitions from prior periods - 8,500 - 9,250 - 8,500 - 9,738 - 9,745 Intangible assets with no cash flow effect 0 5,276 0 18,287 33,613 Other investments - 6,250 0 - 14,283 - 203 - 203 Total cash flow from intangible assets - 20,556 - 8,094 - 28,588 - 11,718 - 27,469 11. Subsequent events after closing On 10th of October, Better Collective appointed its nomination committee as per Regulatory Release no. 50. On 24th of October. Better Collective adjusted its financial guidance for 2024 following an assessment of preliminary Q3 performance, in- cluding the first six weeks of high season in the US market. After recent large acquisitions and the market outlook, the Group also announced the implementation of a streamlining process to optimize the organization accordingly. ===== SIDA 37 ===== Q3 report 2024 Page 36 Financial statements for the period Income statement – Parent company tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Revenue 29,269 23,101 96,033 71,306 98,513 Other operating income 3,108 3,284 9,352 12,177 12,516 Direct costs related to revenue 5,000 6,928 16,620 18,006 23,071 Staff costs 12,656 11,418 38,229 30,034 40,796 Depreciation 1,176 510 2,375 822 1,438 Other external expenses 5,762 4,648 18,645 12,891 18,632 Operating profit before amortization (EBITA) and special items 7,783 2,881 29,516 21,730 27,091 Amortization 4,168 2,281 10,147 6,117 9,908 Operating profit (EBIT) before special items 3,614 600 19,370 15,613 17,182 Special items, net - 50 - 276 1,895 - 1,443 312 Operating profit 3,565 324 21,265 14,170 17,494 Financial income 6,090 36,361 47,225 48,951 70,010 Financial expenses 18,236 7,096 32,180 24,459 45,054 Profit before tax - 8,581 29,589 36,310 38,663 42,450 Tax on profit for the period - 1,067 1,490 2,838 2,197 3,181 Profit for the period - 7,515 28,099 33,472 36,465 39,269 Statement of other comprehensive income tEUR Q3 2024 Q3 2023 YTD 2024 YTD 2023 2023 Profit for the period - 7,515 28,099 33,472 36,465 39,269 Other comprehensive income Other comprehensive income that may be reclassified to profit or loss in subsequent periods: Fair value adjustment of hedges for the year - 537 0 - 54 0 - 483 Currency translation to presentation currency 33 441 - 2,477 - 1,162 - 910 Income tax 118 0 118 0 0 Net other comprehensive income/loss - 386 441 - 2,413 - 1,162 - 1,393 Total comprehensive income/(loss) for the period, net of tax - 7,901 28,540 31,058 35,303 37,877 ===== SIDA 38 ===== Q3 report 2024 Page 37 Statement of financial position – Parent company tEUR Q3 2024 Q3 2023 2023 Assets Non-current assets Intangible assets Goodwill 17,805 17,802 17,812 Domains and websites 169,180 168,387 167,831 Accounts and other intangible assets 49,976 22,184 50,418 Total intangible assets 236,960 208,373 236,061 Tangible assets Right of use assets 9,057 7,889 7,469 Fixtures and fittings, other plant and equipment 3,132 2,228 2,494 Total tangible assets 12,189 10,117 9,962 Financial assets Investments in subsidiaries 375,991 226,799 234,330 Receivables from subsidiaries 347,098 293,908 282,016 Deposits 958 1,094 940 Total financial assets 724,047 521,801 517,285 Total non-current assets 973,197 740,291 763,308 Current assets Trade and other receivables 15,262 12,584 15,735 Receivables from subsidiaries 22,897 15,151 13,153 Tax receivable 2,580 6,153 1,479 Prepayments 3,384 2,251 2,453 Other current financial assets 0 9,751 6,804 Cash 18,134 17,978 17,825 Total current assets 62,256 63,867 57,450 Total assets 1,035,452 804,158 820,758 tEUR Q3 2024 Q3 2023 2023 Equity and liabilities Equity Share Capital 631 552 554 Share Premium 469,460 273,184 274,580 Reserves - 16,449 - 21,638 - 21,876 Retained Earnings 222,002 186,997 189,953 Total equity 675,645 439,095 443,211 Non-current Liabilities Debt to credit institutions 260,100 248,359 248,657 Lease liabilities 7,123 6,392 6,024 Deferred tax liabilities 15,582 12,400 13,832 Other non-current financial liabilities 199 15,362 25,261 Total non-current liabilities 283,004 282,513 293,774 Current Liabilities Prepayments received from customers and deferred revenue 2,012 - 382 312 Trade and other payables 4,707 7,851 11,495 Payables to subsidiaries 15,453 23,223 11,993 Tax payable 906 309 196 Other current financial liabilities 51,671 50,068 58,295 Lease liabilities 2,054 1,482 1,483 Total current liabilities 76,803 82,550 83,773 Total liabilities 359,806 365,063 377,547 Total equity and liabilities 1,035,452 804,158 820,758 ===== SIDA 39 ===== Q3 report 2024 Page 38 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2024 554 274,580 - 336 - 483 - 21,057 189,952 443,211 Result for the period 0 0 0 0 0 33,472 33,472 Fair value adjustment of hedges 0 0 0 - 54 0 0 - 54 Currency translation to presentation currency 0 0 - 2,477 0 0 0 - 2,477 Tax on other comprehensive income 0 0 0 118 0 0 118 Total other comprehensive income 0 0 - 2,477 64 0 0 - 2,413 Total comprehensive income for the year 0 0 - 2,477 64 0 33,472 31,059 Transactions with owners Capital Increase 77 194,880 0 0 0 - 1,758 193,199 Acquisition of treasury shares 0 0 0 0 - 15,414 0 - 15,414 Disposal of treasury shares 0 0 0 0 23,254 9,017 32,271 Share based payments 0 0 0 0 0 - 5,679 - 5,679 Transaction cost 0 0 0 0 0 - 3,002 - 3,002 Total transactions with owners 77 194,880 0 0 7,840 - 1,422 201,375 At September 30, 2024 631 469,460 - 2,813 - 419 - 13,217 222,002 675,645 During the period no dividend was paid. tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054 Result for the period 0 0 0 0 0 36,465 36,465 Fair value adjustment of hedges 0 0 0 0 0 0 0 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 0 36,465 35,303 Transactions with owners Capital Increase 1 634 0 0 0 3,152 3,787 Acquisition of treasury shares 0 0 0 0 - 13,368 0 - 13,368 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,359 2,359 Transaction cost 0 0 0 0 - 13 - 27 - 40 Total transactions with owners 1 634 0 0 - 13,381 5,485 - 7,262 At September 30, 2023 552 273,184 - 588 0 - 21,050 186,997 439,095 During the period no dividend was paid. ===== SIDA 40 ===== Q3 report 2024 Page 39 Statement of changes in equity – Parent company tEUR Share capital Share premium Currency transla- tion re- serve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2023 551 272,550 574 0 - 7,669 145,047 411,054 Result for the period 0 0 0 0 0 39,269 39,269 Fair value adjustment of hedges 0 0 0 - 483 0 0 - 483 Currency translation to presentation currency 0 0 - 910 0 0 0 - 910 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 - 910 - 483 0 0 - 1,393 Total comprehensive income for the year 0 0 - 910 - 483 0 39,269 37,877 Transactions with owners Capital Increase 3 2,030 0 0 0 3,154 5,187 Acquisition of treasury shares 0 0 0 0 - 13,375 0 - 13,375 Disposal of treasury shares 0 0 0 0 0 0 0 Share based payments 0 0 0 0 0 2,495 2,495 Transaction cost 0 0 0 0 - 13 - 12 - 26 Total transactions with owners 3 2,030 0 0 - 13,389 5,636 - 5,720 At December 31, 2023 554 274,580 - 336 - 483 - 21,057 189,953 443,211 During the period no dividend was paid. ===== SIDA 41 ===== Q3 report 2024 Page 40 The group uses and communicate certain Alternative Performance Measures (“APM”), which are not defined under IFRS. Such are not to replace performance measures defined and under IFRS. The APM’s may not be indicative of the group’s historical operating results, nor are such measures meant to be predictive of the group’s future results. The group be- lieves however that the APMs are useful supplemental indicators that may be used to assist in evaluating a company’s future operating performance, and its ability to service its debt. Accordingly, the APMs are disclosed to permit a more complete and comprehensive analysis of the group’s operating performance, consistently with how the group’s business performance is evaluated by the Management. The group believes th at the presentation of these APMs enhances an investor’s understanding of the group’s operating performance and the group’s ability to service its debt. Accordingly, the group discloses the APM’s to permit a more complete and comprehensive analysis of its operating performance relative to other companies and across periods, and of the group’s ability to service its debt. However, these APM’s may be calculated differently by other companies and may not be comparable with APM’s with similarly titled measures used by other companies. The group’s APMs are not measurements of financial performance under IFRS and should not be considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other measures of performance derived in accordance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as reported under IFRS. Our currently applied APM’s are summarized and described below. Alternative Performance Measures Alternative Performance Measure Description SCOPE Earnings per share (EPS) Net Profit for the period / (Average number of shares - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share. Diluted earnings per share Net profit for the period / (Average number of shares + Average number of outstanding warrants - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share, assuming full dilution from active warrant programs. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitor- ing and evaluation of the Group’s operational profit- ability. Alternative Performance Measure Description SCOPE Operating profit before amortizations margin (%) Operating profit before amortizations / reve- nue This APM supports the assessment and monitoring of the Group’s performance and profitability EBITDA before special items EBITDA adjusted for special items This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Operating profit before amortizations and special items margin (%) Operating profit before amortizations and special items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Special items Items that are considered not part of ongoing business Items that are not part of ongoing business, e.g. cost related to M&A and restructuring, adjustments of earn-out payments. Net Debt / EBITDA before special items* (Interest bearing debt, minus cash and cash equivalents) / EBITDA before special items on rolling twelve months basis This ratio is used to describe the horizon for pay back of the interest-bearing debt and measures the leverage of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current liabilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the company is funded by equity Cash conversion rate before special items (Cash flow from operations before special items + Cash from CAPEX) / EBITDA before special items This APM is reported to illustrate the Group’s ability to convert profits to cash NDC New depositing customers A key figure to reflect the Group’s ability to fuel long-term revenue and organic growth Organic Growth Revenue growth as compared to the same pe- riod previous year. Organic growth from ac- quired companies or assets are calculated from the date of acquisition measured against the historical baseline performance. Reported to measure the ability to generate growth from existing business Alternative Performance Measures and Definitions ===== SIDA 42 ===== Q3 report 2024 Page 41 Alternative Performance Measure Description SCOPE Recurring revenue Recurring revenue is a combined set of reve- nues that is defined as recurring as manage- ment considers that the sources of these rev- enue streams will continuously generate reve- nue over a variable period of time and size e.g. if players continue to bet with gaming opera- tors with which BC has revenue share agree- ments, customers continue current subscrip- tions or if BC on a current basis receive reve- nues from customers having current market- ing agreements in respect of banners, etc. on the group’s websites. Accordingly, it includes Revenue share income, CPM /Advertising and subscription revenues. The group reports this APM to distinguish between what management consider as recurring revenue streams and what management consider as non-re- curring revenue streams, e.g. revenues reflecting one-time settlements with gaming operators. CLV The Customer Lifetime Value (CLV) shows expected revenue generated throughout the lifetime of a New Depositing Customer (NDC). This measure is pivotal for under- standing how much value a NDC is antici- pated to bring to the Group. The prerequi- sites going into the CLV are a number of fac- tors such as average value, average fre- quency, NDC lifespan and churn rate. Average revenue per NDC x NDC lifespan A key figure to assess the value of NDCs generated by the Group, providing critical insights into NDC profitability. It allows the Group to identify the most valuable segments and optimize marketing strate- gies accordingly. *Net debt definition has been changed from Q3, 2023 so it is excluding earn-outs. Comparatives have been changed accordingly. Definitions Term Description PPC Pay-Per-Click SEO Search Engine Optimization Sports win margin Sports net player winnings (operators) / sports wagering Sports wagering The value of bets placed by the players Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue share income, CPM/Advertising and subscription revenues Board The Board of Directors of the company Executive management Executives that are registered with the Danish Company register Company Better Collective A/S, a company registered under the laws of Denmark ===== SIDA 43 ===== Q3 report 2024 Page 42 Better Collective A/S Sankt Annæ Plads 26-28 1250 Copenhagen K Denmark CVR no 27 65 29 13 +45 29 91 99 65 info@bettercollective.com bettercollective.com