===== SIDA 1 ===== Playmaker HQ and Shaquille O’Neal have partnered to launch “The BIG Podcast” February 21, 2024 Better Collective A/S Sankt Annæ Plads 28-30, 1250 Copenhagen K (DK) www.bettercollective.com CVR NO.: 27 65 29 13 Better Collective Interim report Q4 2023 Q4 • Strong performance with revenue of 85m EUR made it possible to exceed the 2023 revenue target • Recurring revenue of 47 mEUR; growth of 15% • EBITDA before special items 30 mEUR; down 16%; EBITDA-margin 35%; EBITDA ended in the high end of the range for the year • January trading; Revenue 27 mEUR, down 27%, following tough comparisons from strong launch of sports betting in Ohio last year 2023 • Revenue 327 mEUR, up 21%; on top of 52% growth the year prior • Recurring revenue 189 mEUR; growth of 47% • EBITDA before special items 111 mEUR; up 31%; EBITDA-margin 34% • 2023 financial targets; Revenue exceeded (315-325 mEUR), EBITDA in the high end of the target range (105-115 mEUR), debt target met (<2x) • 2024 financial targets; Revenue 390-420 mEUR (19-29% growth), EBITDA before special items 125-135 mEUR (13-22% growth), net debt to EBITDA below 3x ===== SIDA 2 ===== Q4 report 2023 Page 1 *Before special items Revenue mEUR EBITDA* mEUR Recurring revenue mEUR ===== SIDA 3 ===== Q4 report 2023 Page 2 Highlights Q4, 2023 3 Significant events after close 3 Financial highlights and key figures 4 CEO letter 5 Business review and financial performance 7 Financial targets 12 Other 13 Condensed interim financial statements 16 Notes 20 A conference call for Better Collective’s stakeholders will be held on February 22, at 10:00 a.m. CET and can be joined online here. To participate telephonically follow this link . Once signed up you will receive an e-mail with a phone num- ber and a personal dial-in code for the call. The presentation material for the webcast will be avail- able after market close on February 21 via: www.Bettercollective.com Upcoming events • March 20, 2024, Annual Report release • May 21, 2024, Q1 release • August 21, 2024, Q2 release Table of contents Q4 webcast February 22, 2024 Q4 report 2023 Page 2 ===== SIDA 4 ===== Q4 report 2023 Page 3 Highlights Q4, 2023 Group revenue was flat at 85 mEUR (Q4 2022: 86 mEUR) with organic revenue growth of -7%. In constant curren- cies revenue was negatively impacted by 2%-points. The strong performance made it possible to exceed the full year guidance on revenue. Recurring revenue was 4 7 mEUR, posting 15% growth, implying higher quality revenue. Recurring revenue makes up 56% of total group revenue. Group EBITDA before special items was 30 mEUR, down 16% versus the year before (Q4 2022: 35 mEUR). The group EBITDA- margin before special items was 3 5%. EBITDA was mainly impacted by the ongoing transition to revenue share in the US and the tough comparison from the Ohio state launch pre-registration. Cash flow from operations before special items was 3 8 mEUR (Q4 2022: 21 mEUR). The cash conversion was 124%. By the end of 2023, capital reserves stood at 122 mEUR of which cash of 43 mEUR, and other current fi- nancial assets of 7 mEUR and unused credit facilities of 72 mEUR. New depositing customers (NDC) numbered more than 483,000 down 17% on tough comparisons as Better Col- lective sent more than 300,000 NDCs during the World Cup 2022. Of the 483 ,000, 80% were sent on revenue share contracts. During 2023, Better Collective sent a record-breaking 1.9 million NDCs up 14 % out of which 83% were sent on revenue share contracts. The North American contractual transition towards rev- enue share continues at fast pace. In terms of NDCs, Bet- ter Collective sent 483,000 NDCs during the quarter. Of this 115,000 were sent in the US, where 55% of those were on revenue share contracts. This equal g rowth in North American revenue share NDCs of 66%. Special items amounted to an expense of 1.9 mEUR (YTD 2022: -54 tEUR). The net expense of 1.9 mEUR is primar- ily related to M&A expenses of 10.2 mEUR, dual listing in Copenhagen of 1.1 mEUR and restructuring of 0.5 mEUR as well as an income related to reversal of an earn-out in FUTBIN of 9.9 mEUR. The earn -out was related to cer- tain extraordinarily high-performance criteria that will not be met. Better Collective made its second largest acquisition to date, in a transaction to acquire Playmaker Capital for a total price consideration of 176 mEUR. Playmaker Capi- tal is a leading digital sports media group that owns and operates several strong sports media brands across the Americas. The acquisition will be transformational for Better Collective and will strengthen the group’s market leading position in North America, while also taking market leadership in South America. The closing of the transaction happened post-closing of Q4. Mindway AI, the Better Collective owned safer gambling software provider, entered a strategic partnership with the United States’ National Council on Problem Gam- bling (NCPG). The partnership will see the integration of Gamalyze, into NCPG’s flagship responsible gambling website; responsiblePlay.org In late September, Better Collective announced its in- tention to carry out a dual listing of the group’s shares on Nasdaq Copenhagen, in addition to the current listing on Nasdaq Stockholm. The first day of trading on Nasdaq Copenhagen was November 17, 2023. Significant events after close January revenues came in at 27 mEUR, implying a de- cline of 27 %. This was mainly impacted by tough com- parisons from January last year where the group saw a huge boost from the Ohio launch making it the strongest month ever. Further this is impacted by the ongoing transition towards revenue share in the US. While North America was impacted, Europe & ROW grew 12% assum- ing the same sports win margin as January last year. This will be the last time Better Collective reports on trading for the first month of the following quarter due to big fluctuations within quarters like seen in Q4 2023. The transaction of Playmaker Capital closed on February 6, 2024 , following which Playmaker Capital has been consolidated into the Better Collective group. All rele- vant information about the closing and share issue can be found in the regulatory release no 2/2024. Following the close of the Playmaker Capital transac- tion, Better Collective revisited its long -term financial targets for the per iod 2023-2027. The upgraded long - term financial targets are as follow: • Revenue CAGR of +20% (unchanged) • EBITDA margin before special items of 35-40% (previously 30-40%) • Net debt to EBITDA below 3 (unchanged). Better Collective announced a new major shareholder as BLS Capital Fondsmæg lerselskab A/S now has 6.7% of the voting rights. Better Collective is now included in the Nasdaq Stock- holm and Nasdaq Copenhagen Large Cap Index with companies that have a market cap higher than 1 bnEUR. HLTV, the leading es port community for CS:GO, suc- cessfully hosted its 2023 Award Show in Belgrade, Ser- bia, to celebrate and pay tribute to the legends of the global Counter-Strike scene. ===== SIDA 5 ===== Q4 report 2023 Page 4 Financial highlights and key figures tEUR Q4 2023 Q4 2022 2023 2022 Income statements Revenue 85,195 86,140 326,686 269,297 Recurring revenue 47,402 41,314 189,267 128,534 Revenue Growth (%) -1% 63% 21% 52% Organic Revenue Growth (%) -7% 44% 13% 34% Operating profit before depreciation, amortization, and special items (EBITDA before special items) 29,514 35,183 111,080 85,075 Operating profit before depreciation and amortization (EBITDA) 29,914 36,793 109,132 85,021 Depreciation 1,347 728 3,958 2,321 Operating profit before amortization and special items (EBITA before special items) 28,168 34,455 107,122 82,754 Special items, net 399 1,610 - 1,948 - 54 Operating profit before amortization (EBITA) 28,567 36,065 105,174 82,700 Amortization and impairment 7,969 3,625 24,283 12,347 Operating profit before special items (EBIT before special items) 20,199 30,829 82,839 70,407 Operating profit (EBIT) 20,598 32,439 80,891 70,353 Result of financial items - 6,896 - 3,428 - 22,881 - 5,389 Profit before tax 13,702 29,012 58,010 64,964 Profit after tax 7,491 20,279 39,835 48,075 Earnings per share (in EUR) 0.14 0.37 0.74 0.88 Diluted earnings per share (in EUR) 0.13 0.36 0.70 0.85 For a definition of financial key figures and ratios, please refer to page 34. tEUR Q4 2023 Q4 2022 2023 2022 Balance sheet Balance Sheet Total 937,862 785,229 937,862 785,229 Equity 435,273 412,917 435,273 412,917 Current assets 105,812 95,025 105,812 95,025 Current liabilities 103,493 65,068 103,493 65,068 Net interest bearing debt 221,133 177,879 221,133 177,879 Cashflow Cash flow from operations before special items 37,525 20,997 119,384 69,816 Cash flow from operations 34,781 20,515 114,639 68,423 Investments in tangible assets - 1,003 - 541 - 5,143 - 1,788 Cash flow from investment activities - 24,546 - 3,052 - 106,248 - 112,632 Cash flow from financing activities - 361 - 5,033 29,334 65,737 Financial ratios Operating profit before depreciation, amortization (EBITDA) and special items margin (%) 35% 41% 34% 32% Operating profit before amortization margin (EBITDA) (%) 35% 43% 33% 32% Operating profit margin (%) 24% 38% 25% 26% Publishing segment - EBITDA before special items margin (%) 38% 49% 37% 38% Paid media segment - EBITDA before special items margin (%) 28% 23% 29% 16% Net interest bearing debt / EBITDA before special items 1.99 2.09 1.99 2.09 Liquidity ratio 1.02 1.46 1.02 1.46 Equity to assets ratio (%) 46% 53% 46% 53% Cash conversion rate before special items (%) 124% 58% 103% 80% Average number of full-time employees 1,211 943 1,252 878 NDCs (thousand) 483 581 1,916 1,683 ===== SIDA 6 ===== Q4 report 2023 Page 5 CEO letter A successful year anchored in strong profitable growth and strategic investments for the future After a remarkable ending to 2022 driven by the suc- cessful men’s soccer World Cup, we initially scaled back our growth expectations for 2023. O ur financial targets by early 2023 anticipated topline of 290-300 mEUR and EBITDA of 90-100 implying growth of 9-11% and EBITDA growth of 6-18%. However, the exceptional efforts of the Better Collective group once again exceeded our expec- tations, resulting in a revision of our targets upwards , not once but twice during the year. The first revision took place with the acquisition of Sky- con, increasing the revenue range by 15 m EUR and the EBITDA range by 5 mEUR. In June, we experienced out- standing group performance, prompting us to further upgrade our targets with both the revenue and EBITDA ranges, seeing a positive adjustment of 10 mEUR. We closed 2023 just above the revenue target at 327 mEUR and with EBITDA of 111 mEUR in the high end of the range. This implies growth of 21% and 31% respectively. During the year we saw strong profitable growth in all areas of Better Collective as the group delivered its highest revenue and EBITDA ever while continuously making progress towards our vision of becoming the leading digital sports media group. Our global audience grew by an astonishing 270 million monthly visits both organically and through M&A, making us reach a sports audience of roughly 400 million monthly visits. We have continuously been investing in the future , sending a record number of new depositing customers (NDCs) to our partners on recurring revenue share con- tracts. The NDCs during the full year grew 14% of which 83% were on revenue share. Our recurring revenue - mainly stem ming from revenue share income - grew 47% to 18 9 mEUR, making our result of higher quality compared to last year. We estimate that a database of revenue share NDCs turns profitable 12 -18 months out, hence it is worth noting that most of our revenue share income stems from NDCs sent prior to 2022. Therefore, I am very optimistic about the future as we have sent more than 3 million revenue share NDCs during 2022 and 2023 which in turn will increase the “snowball” of recurring revenues moving forward . This means we in the past two years have sent more NDCs than we have accumulated from our beginning in 2004 and up until 2022. One of our core objectives for 2023 was to establish a physical presence in South America as well as securing leading sports brands in this region. During Q1, a mem- ber of our management moved to Rio de Janeiro to put together a regional team, and it has already turned out to be beneficial to have feet on the ground. We now have two offices in Brazil, in Rio de Janeiro and São Paulo. Intensifying on our South American efforts has made us better capable at integrating Playmaker Capi- tal’s South American business, “Futbol Sites”, with its re- gional audience of more than 180 million monthly visits from sport fans and its large organization anchored in Buenos Aires. Additionally , our media partnerships in South America have continued to perform well. We have paved the way for a clear market leading position in and we are geared to play an even bigger role as the Brazil- ian iGaming regulation is expectedly approaching. Since 2018, more than 30 US states have launched online sports betting and during this phase we have worked to perfect our commercial efforts during launch es. This year, we delivered our strongest monthly revenue of 37 mEUR in January, driven by the launch of onli ne sports betting in Ohio. Our previous revenue record was set in January 2022 as the New York state launched, landing at 31 mEUR. As we steadily transition to revenue share contracts in North America, we will see tough Q1 com- parisons. Despite this the entire group still expects strong NDC -growth, strong growth in revenue share build-up, and growth in absolute revenue and profits for the full year . During Q4 we have sent 115,000 NDCs of which 55% were on revenue share contracts. This transition will prove to be crucial for Better Collective to ensure a long-term sustainable business in the region - just as it has for our operations in the rest of the world during the past decade. We are confident that this is the right strategy for us to take part in the underlying mar- ket growth and future opportunities within iGaming and beyond. The European markets delivered strong growth throughout the year in both owned and operated sports brands and media partnerships. Even Q4 grew 14% of which 4% organically on the very t ough comparison from the World Cup. We have seen success in acquiring national sports media and integrating these on our tech platforms, which immediately has created better Google rankings and strong audience growth. This is a topic we will dive more into in the 2023 Annual Report. It is a pleasure to have such a strong business in our core re- gion, making it possible to absorb the North American revenue share transition as well as our many invest- ments. Seven acquisitions take us closer to our vision 2023 was an acquisitive year fo r Better Collective , ac- quiring seven businesses for a consideration of up to 298 mEUR. These businesses and brands have their own stake in realizing our vision to become the leading digi- tal sports media group. ===== SIDA 7 ===== Q4 report 2023 Page 6 The acquisition of the global display advertising com- pany, Skycon, provided our Paid Media division with great knowledge and intel within a new field and ex- panded the addressable market. The integration was swift, and the company has out performed our expecta- tions. The acqui sitions of strong sports media brands in the Nordics and emerging markets secured our position as a market lead er in this region. We have seen great trends in audience growth as well as monetization and we have been approached by new customers to discuss collaborations. Playmaker HQ is a content and social media company, which provided the group with greater knowledge within these areas and expanded our reach to new plat- forms. We are extremely excited to have announced a new Podcast series with the basketball legend, Shaquille O’Neill. The acquisition of Torcedores, a Brazilian sports media, provided intel on the market as well as an office in Sao Paolo. Following integration into our tech stack the au- dience has grown an astonishing +170% over a few months, while we have decreased operational costs by 35%. Playmaker Capital is a group of strong sports media brands. The group has the biggest sports media audience in South America as well as strong North American brands. The acquisition doubles Better Collec- tive’s global reach to nearly 400 million monthly visits. With the acquisition we secured the market leading po- sition in South America and cemented our leading posi- tion in North America. The deal closed after Q4. AdVantage shows a promising start I have previously expressed that our extensive reach de- serves an in -house AdTech platform, and developing such a platform has been a strategic initiative we launched during 2023. Our audience has more than dou- bled, making the proposition even more relevant. During 2023, we absorbed the project investments in building our internal AdTech platform, “AdVantage”, while al- ready having secured proof of concept. The develop- ment of the platform was demand-driven, with many in- coming requests from different brands wanting to reach our audience. AdVantage will enable us to better cater and serve tar- geted and contextual content and advertising. The first AdVantage campaigns have been run on our brands and media partnerships ac ross eight markets. If successful, the platform will optimize our third-party agency rela- tions, and we will rid ourselves of most of the interme- diary fees. Being able to do more direct advertising, we also expect a significantly higher CPM than currently achieved. Our long-term ambition with AdVantage is to become the go -to par tner for organizations searching for sports audience exposure and sports fan engage- ment. Currently, we only run ads on our esport brands but moving forward this will expand to most of our owned and operated sports brands, and ideally in t he long run also all our media partnerships. Integrating, innovating, and investing in the future Following the seven acquisitions made during 2023 , 2024 calls for consolidation and integration. It is time to harvest the fruits through tech platform migration and optimization of revenue models, resulting in audience growth and improved monetization. 2024 will also be a year where we continue our innovation and investments into AdVantage as well as several AI-projects such as automated proprietary content cr eation and distribu- tion. Further, we will continue to push the North Ameri- can revenue share transition. For Playmaker Capital we will shift the revenue mix towards performance market- ing, which will result in a change in cash flow recognition and flat performance during 2024 for this asset. 2024 outlook and update of long-term targets 2024 is filled with exciting sporting events such as the Africa Cup of Nations at the start of the year as well as a busy summer with both the European Championship and Copa America both for men’s soccer. It is also expected that the state of North Carolina will launch online sports betting in Q1. Lastly, the legalization of sports betting in Brazil also seems to be approaching, however the timing is uncertain. With the abovemen- tioned anticipations for the future, I am excited to share our bold 2024 financi al targets expecting revenue of 390-420 mEUR, implying 19-29% growth, and EBITDA of 125-135 mEUR implying 13-22% growth with net/debt to EBITDA to stay below 3x. We will thereby maintain strong operational earnings while confidently continu- ing our investments in the future. For more intel on our financial targets go to page 12. All of this c ould only be achieved with a talented and dedicated group and therefore I would like to thank all my colleagues in Better Collective for their outstanding efforts. I also welcome our new colleagues who have be- come part of the Better Collective group during the past year. In Better Collective, we pride ourselves in delivering on our promises and we are proud to have done so year af- ter year since the IPO. Looking ahead, we remain highly committed to our financial targets as we see significant growth prospects within the sports media industry. An industry Better Collective will take the leading position within. J esper Søgaar d Co-founder & CEO Better Collective ===== SIDA 8 ===== Q4 report 2023 Page 7 Business review and financial performance Group Q4 was another solid quarter for the Better Collective group, however given the tough comparison from Q4 2022 revenues were flat at 85 mEUR. Operational earnings (EBITDA before special items) were 30 mEUR, implying a margin of 35 %. The group ’s operational income decreased by 16% due to tough comparisons, the ongoing revenue share transition in the US, and the negative impact from a weak sports win margin recorded during October. Recurring revenue came in at 4 7 mEUR, implying growth of 15%, and made up 56% of group revenues. Of the recurring revenues 75% came from revenue share income, 17% from subscription, and 8% from advertise- ment sales. The group delivered 483,000 new depositing customers to partnering sportsbooks and continued its strong growth path during its transitional phase to revenue share agreements in the US. Q4 NDCs was down by 17% due to the tough comparison from the men’s soccer World Cup 2022. Out of the total NDCs 80% were reve- nue share contracts. Q4 report 2023 Page 7 Key figures for the group tEUR Q4 2023 Q4 2022 Growth 2023 2022 Growth Revenue 85,195 86,140 -1% 326,686 269,297 21% Cost 55,680 50,957 9% 215,605 184,222 17% Operating profit before depreciation and amortization and special items 29,514 35,183 -16% 111,080 85,075 31% EBITDA-Margin before special items 35% 41% 34% 32% Operating profit before depreciation and amortization 29,914 36,793 -19% 109,132 85,021 28% EBITDA-Margin 35% 43% 33% 32% Organic Growth -7% 44% 13% 34% ===== SIDA 9 ===== Q4 report 2023 Page 8 Publishing The Publishing business includes revenue from Better Collective’s proprietary owned and operated sports me- dia as well as media partnerships. The audiences for these brands are mostly generated through direct or or- ganic search results. Revenues from this segment came in at 59 mEUR imply- ing a flat development. Operational profits came in at 22 mEUR, implying a margin of 38%. The publishing seg- ment accounted for 69 % of group revenue and 75 % of operational earnings. The flat development was a chieved despite very tough comparisons from 2022 where the m en’s soccer World Cup was a big boost to the group. In the Publishing seg- ment the performance came from strongly owned and operated sports brands as well as well performing media partnerships. For the full year the revenue growth and EBITDA growth ended at 18% and 13% respectively with organic growth at 15%. The North American contractual transition towards rev- enue share has continued in full force . In terms of US- NDCs, Better Collective grew extensively during Q4 and sent 115.000 NDCs, of which 55% were on revenue share contracts. This implies grow th of 66%. The transition postpones revenue and earnings, as it has a short -term dampening effect on revenues and earnings. All central costs and costs of new areas of expansion are recorded in the Publishing segment. Paid Media The Paid Media business includes revenue efforts in paid advertising on search platforms like Google and Bing, as well as advertising on third party sports media. Given the upfront payment to advertise on t hird party plat- forms the gross margin is lower than in the Publishing business. Paid Media revenue was 26 mEUR, implying a decline of 3%. This was quite an achievement as Paid Media was at full force during the men’s soccer World Cup during 2022 as well as the Ohio pre -registration, which always is the case during large single events. Over the past quarters, the transition in revenue share agreements has paid off as margins have improved and made it possible to further fuel growth. Operational profits came in at 7 mEUR with a margin of 28%, which implies growth of 18 % versus last year. For the full year the Paid Media division has increased reve- nues by 29% and operational earnings by 127%, of which 13% was organic. Key figures for the Publishing segment tEUR Q4 2023 Q4 2022 Growth 2023 2022 Growth Revenue 59,114 59,251 0% 220,328 187,057 18% Share of Group 69% 69% 67% 69% Cost 36,924 30,258 22% 139,685 115,376 21% Share of Group 66% 59% 65% 63% Operating profit before depreciation and amortization and special items 22,190 28,993 -23% 80,642 71,681 13% Share of Group 75% 82% 73% 84% EBITDA-Margin before special items 38% 49% 37% 38% Operating profit before depreciation and amortization 22,589 30,603 -26% 78,695 71,627 10% EBITDA-Margin 38% 52% 36% 38% Organic Growth -2% 29% 15% 30% Key figures for the Paid Media segment tEUR Q4 2023 Q4 2022 Growth 2023 2022 Growth Revenue 26,081 26,889 -3% 106,358 82,241 29% Share of Group 31% 31% 33% 31% Cost 18,757 20,699 -9% 75,920 68,846 10% Share of Group 34% 41% 35% 37% Operating profit before depreciation and amortization and special items 7,324 6,190 18% 30,438 13,394 127% Share of Group 25% 18% 27% 16% EBITDA-Margin before special items 28% 23% 29% 16% Operating profit before depreciation and amortization 7,324 6,190 18% 30,438 13,394 127% EBITDA-Margin 28% 23% 29% 16% Organic Growth -16% 94% 13% 45% ===== SIDA 10 ===== Q4 report 2023 Page 9 Europe & Rest of World The Europe & Rest of the world (ROW) business includes all markets outside of North America. The European markets consist of more mature markets and are the leg- acy markets of Better Collective . South America is a strong growth market and makes up an increasingly big- ger part of the business. Examples of sports brands in- clude Soccernews in the Netherlands, Betarades in Greece, Tipsbladet in Denmark, Wettbasis in Germany, Goal.pl in Poland, and Les Transferts in France. The port- folio further includes the esport communities HLTV and FUTBIN. Given the strong legacy in the European mar- kets there is a lot of recurring revenue in this business. Europe & ROW posted revenues of 58 mEUR, implying growth of 14%. Operational profits came in at 23 mEUR, giving a margin of 39%, which is a decline of 6%. Europe & ROW revenue accounted for 68% and operational earnings accounted for 77% of the group. As mentioned, these markets are heavily exposed towards recurring revenue share income, meaning fluctuations in the sports win margin has a bigger impact here. During Q4, the sports win margin was abnormally low in October, impacting the performance. With time the sports win margin will return to its mean, which was also the case for the rest of Q4. Despite of the tough comparison from the World Cup and the sport win mar gin, Q4 still grew 14% of which 4 % was organic. For the full year the Europe & ROW segment grew revenues 29% and opera- tional earnings by 49%. North America Both the US and the Canadian markets are somewhat recently regulated. The first states in the US started reg- ulating in 2018. As both markets are young, revenues largely have been generated from one- time payments (CPA). During Q3 2022 , Better Collective started its transition towards recuring revenues in the US. Key North American sports brands include but are not lim- ited to Action Network, Playmaker C apital, Playmaker HQ VegasInsider, RotoGrinders, Sportshandle, and Canada Sports Betting. The North Ameri can revenue came in at 27 mEUR, implying a decline of 23% impacted by the ongoing transition of revenues and the tough comparison from the Ohio preregistration period during the year prior . Operational profits came in at 7 mEUR equaling a margin of 25% , impacted by th e same measures. The group continues its transition towards re- curring revenue share. In terms of NDCs, Better Collec- tive sent 115,000 NDCs during the quarter, whereof 55% of those were on revenue share contracts. This equal growth of 66% in revenue share NDCs. Despite the rev- enue share transition, the North American business still grew 5% organically during 2023. Key figures for North America segment North America tEUR Q4 2023 Q4 2022 Growth 2023 2022 Growth Revenue 27,086 35,200 -23% 108,600 100,022 9% Share of Group 32% 41% 33% 37% Cost 20,212 19,359 4% 77,703 68,602 13% Share of Group 36% 38% 36% 37% - - Operating profit before depreciation and amortization and special items 6,875 15,841 -57% 30,897 31,420 -2% Share of Group 23% 45% 28% 37% EBITDA-Margin before special items 25% 45% 28% 31% Operating profit before depreciation and amortization 6,891 17,936 -62% 30,009 32,725 -8% EBITDA-Margin 25% 51% 28% 33% Organic Growth -24% 71% 5% 71% Key figures for Europe & RoW segment Europe & ROW tEUR Q4 2023 Q4 2022 Growth 2023 2022 Growth Revenue 58,108 50,939 14% 218,085 169,275 29% Share of Group 68% 59% 67% 63% Cost 35,468 31,598 12% 137,902 115,620 19% Share of Group 64% 62% 64% 63% Operating profit before depreciation and amortization and special items 22,640 19,342 17% 80,183 53,656 49% Share of Group 77% 55% 72% 63% EBITDA-Margin before special items 39% 38% 37% 32% Operating profit before depreciation and amortization 23,023 18,857 22% 79,123 52,296 51% EBITDA-Margin 40% 37% 36% 31% Organic Growth 4% 30% 17% 22% ===== SIDA 11 ===== Q4 report 2023 Page 10 Financial performance 2023 Revenue growth of 21% to 327 mEUR and organic growth of 13% Revenue showed strong growth versus 2022 of 21% and amounted to 326.7 mEUR (2022: 269.3 mEUR). Revenue share accounted for 44% of the revenue with 37% com- ing from CPA, 5% from subscription sales, and 14% from other income. Cost of 216 mEUR - up from 184 mEUR The increase in costs is primarily driven by personnel costs increasing 20.1 mEUR corresponding to an in- crease of 43 %. The increase is driven by an increase in average number of employees increasing from average 878 in 2022 to 1,252 in 2023. Direct costs related to me- dia partnerships and Paid Media increased as well, how- ever in line with overall growth in revenue. The cost base excluding depreciation and amortization grew 32 mEUR, up to 215.6 mEUR (2022: 184.2 mEUR). Total direct cost relating to revenue increased by 7 .1 mEUR to 99.3 mEUR (2022: 92.2 mEUR) with the growth coming from increased cost in Paid Media , and direct costs related to media partnerships. Beyond the cost of paid traffic, this includes hosting fees of websites, con- tent generation, and external development. Personnel cost increased 30 % from Dec ember 2022 to 88.9 mEUR 2023 (2022: 68.6 mEUR). The average num- ber of employees increased 43% to 1,252 (2022: 878). Personnel costs include costs related to warrants of 2, 5 mEUR (2022: 1.9 mEUR). Other external costs increased 4.0 mEUR or 17% to 27.4 mEUR (2022: 23 .4 mEUR). Depreciation and amortiza- tion amounted to 28.2 mEUR (2022: 14.7 mEUR). The in- crease is primarily due to amortization related to the ac- quisition of FUTBIN , and acquisitions during 2023 as Skycon, Playmaker HQ, Digital Sportmedia I Norden AB (the four brands are SvenskaFans.com, Hockeysve- rige.se, Fotbolldirekt.se and Innebandymagazinet.se ), Goalmedia Technologia E Marketing Digital (the brand is Torcedores.) and Tipsbladet as well as new media part- nerships. Special items Special items amounted to an expense of 1.9 mEUR (YTD 2022: -54 tEUR). The net expense of 1.9 mEUR is primar- ily related to M&A expenses of 10.2 mEUR, dual listing in Copenhagen of 1.1 mEUR and restructuring of 0.5 mEUR as well as an income related to reversal of an earn -out of 9.9 mEUR. The earn -out was related to certain ex- traordinarily high-performance criteria that will not be met. Earnings Operational earnings (EBITDA) before special items grew 31% to 111.1 mEUR (2022: 85.1 mEUR). The EBITDA- margin before special items was 3 4% (2022: 32 %). In- cluding special items, the reported EBITDA was 109 .1 mEUR. (2022: 85.1 mEUR). EBIT before sp ecial items increased 18 % to 82.8 mEUR (2022: 70.4 mEUR). Including special items, the re- ported EBIT was 80.9 mEUR (2022: 70.4 mEUR). Net financial items Net financial cos ts amounted to 22. 9 mEUR (2022: 5.4 mEUR) and included net interest, fees relating to bank credit lines , unrealized losses on shares and exchange rate adjustments. Interest expenses amounted to 12 .6 mEUR and included non-payable, calculated interest ex- penses on certain balance sheet items . Out of the net interest 10.7 mEUR is paid. Net financial costs are impacted by an unrealized loss of 8.1 mEUR on Catena Media shares and financing fees of 1.2 mEUR whereas net exchange rate loss amounted to 1.3 mEUR. Income tax Better Collective has a tax presence in the places where the company is incorporated . These places count Den- mark (where the parent company is incorporated), Austria, France, Greece, Malta, Netherlands, Poland, Portugal, Romania, Serbia, Sweden, UK, Canada , Brazil, and the US. Income tax amounted to 1 8.2 mEUR (2022: 16.9 mEUR). The Effective Tax Rate (ETR) was 3 1% (2022: 26%). Net profit Net profit after tax was 39.8 mEUR (2022: 48.1 mEUR). Earnings per share (EPS) decreased by nearly 15% to 0.74 EUR/share versus 0.88 EUR/share 2022. Equity The equity increased to 4 35.2 mEUR as per Dec ember 31, 2023, from 412.9 mEUR on December 31, 202 2. Be- sides the net profit of 39.8 mEUR, the equity has been impacted by the acquisition of treasury shares of 13 .4 mEUR and share-based payments of 2.5 mEUR. The de- crease in USD versus EUR has impacted the equity by 8.1 mEUR. Balance sheet Total assets amounted to 9 37.9 mEUR (202 2: 785.2 mEUR), with an equity of 43 5.2 mEUR (202 2: 412.9 mEUR). This corresponds to an equ ity to assets ratio of 46% (2022: 53%). The liquidity ratio was 1. 02 resulting from current assets of 105.8 mEUR and current liabilities of 103.5 mEUR. The ratio of net interest-bearing debt to EBITDA before special items was 1. 99 at the end of De- cember. ===== SIDA 12 ===== Q4 report 2023 Page 11 Investments On 14 April, Better Collective acquired Skycon for a pur- chase price of up to 51 mEUR (45 mGBP) on a cash and debt free basis. The net cash flow impact of the transac- tion was 30 mEUR considering deferred payments and acquired net assets. On July 3, 2023, Better Collective US, Inc. completed the acquisition of Playmaker HQ for up to 51 mEUR (54 mUSD) with an initial consideration of 14.1 mEUR ( 15 mUSD) on a cash and debt-free basis. On August 15, 2023, Better Collective announced the ac- quisition of four brands SvenskaFans.com, Hockeysve- rige.se, Fotbolldirekt.se and Innebandymagazinet.se from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt -free ba- sis. On September 4, 2023, Better Collective announced the acquisition of Torcedores.com, by acquiring Goalmedia Technologia E Marketing Digital S.A. On September 18, 2023, Better Collective announced the acquisition of Tipsbladet.dk ApS to further expand its position in Denmark for a total consideration of 6.5 mEUR on a cash and debt -free basis with closing 2 Oc- tober 2023. During the period investments in accounts and other intangible assets amounted to 8.1 mEUR. Cash flow and financing Cash flow from operations before special items was 119.4 mEUR (202 2: 69.8 mEUR) with a cash conversion of 103%. In August Better Collective extended the bank-financing by three years to October 2026 as well as executing the accordion option and thereby increasing the available facilities with 72 mEUR, leaving the group with a total financing of 319 mEUR where 247 mEUR has been uti- lized by the end of December. By the end of 2023, capi- tal reserves stood at 122 mEUR of which cash of 43 mEUR, and other current financial assets of 7 mEUR in form of listed shares and unused credit facilities of 72 mEUR. The parent company Better Collective A/S, is the parent company of the group. Revenue grew by 51% to 98.5 mEUR (2022: 65.3 mEUR). Total costs including depreciation and amorti- zation was 93.8 mEUR (2022: 61 mEUR). Profit after tax was 39.3 mEUR (2022: 46.9 mEUR). The change in profit after tax is primarily due to differences in dividend pay- ments from subsidiaries, exchange rate adjustments, fi- nancial expenses, and corporate tax. Total equity ended at 443.2 mEUR by Dec ember 31, 202 3 (2022: 411.1 mEUR). The equity in the parent company was impacted by treasury share transactions (13.4 mEUR), cost of war- rants of 2.5 mEUR and HLTV merger (3.2 mEUR). ===== SIDA 13 ===== Q4 report 2023 Page 12 Financial targets 2023 The Board of Directors decided on targets for the finan- cial year 2023 as announced in the 2022 full year report. Following the acquisition of Skycon Limited and the rec- ord-breaking Q1, the financial targets were upgraded with 15 mEUR on revenues and 5 mEUR on EBITDA. Fol- lowing a very strong H1, the targets were upgraded again by 10 mEUR on both revenue and EBTIDA. • Revenue of 315-325 mEUR; Exceeded at 327 mEUR • EBITDA before special items of 105-115 mEUR; In the high end of range at 111 mEUR • Net debt to EBITDA before special items <2.0; Met 2024 The Board of Directors has decided on financial targets for the Better Collective group for the year 2024: • Revenue of 390 -420 mEUR, implying 1 9-29% growth. • EBITDA of 125-135 mEUR implying 13-22% growth. • Net/debt to EBITDA stay below 3x. 2024 implications The targets factor in an eleven-month impact from the Playmaker Capital acquisition with the deal clos ing on February 6. The acquisition is expected to ramp up over time with expected flat revenue and earnings for 2024. More factors are c ontinued investment in developing the AdTech platform , several AI-projects and scaling commercial development. Further the continued North American recurring revenue share transition to invest in future sustainable growth coupled with high expecta- tions for the men’s European Championship this sum- mer. 2023- 2027 The long-term 2023 -2027 financial targets have been updated following the acquisition of Playmaker Capital. • Revenue CAGR of +20% (unchanged) • EBITDA margin before special items of 35-40% (previously 30-40%). • Net debt to EBITDA before special items of <3 (un- changed). 2023-2027 implications The long-term targets include M&A funded by own cash flow and debt, and not ca pital increases. With Play- maker Capital, Better Collective utilized cash, debt, treasury shares and a small capital increase, resulting in a minimal dilution of 3 %. Hence, a large part of the ac- quisition was already included in the guidance , making the group more comfortable in its ability to reach these. Given the opportunity to move revenue from advertis- ing to performance marketing and the increased profit- ability therein the margin target is upgraded, narrowing it toward the high end. Given the nature of performance marketing and the change in cash flow, the margin up- tick will happen after 12-24 months. Disclaimer This report contains certain forward-looking statements and opinions. Forward -looking statements are state- ments that do not relate to historical facts and events. Such statements or opinions pertaining to the future, for example wording like; “believes”, “deems”, “estimates”, “anticipates”, “aims’, and “forecasts” or similar expres- sions are intended to identify a statement as forward - looking. Thi s applies to stat ements and opinions con- cerning the future financial returns, plans and expecta- tions with respect to the busines s 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 estimates and ass umptions made according to the best of the group’s knowledge. These statements are inherently associated with both known and unknown risks, uncertainties, and other factors that could cause the results, including the group’s cash flow, financial condition, and operations, to dif fer 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 ex- pressly or implicitly assumed or described in thos e statements. Better Collective can give no assurance re- garding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments and/or targets. Considering the risks, un- certainties and assumptions associated with forward - looking statements, it is possible that certain future events may not occur. Moreover, forward -looking esti- mates derived from third-party studies may prove to be inaccurate. Actual results, performance or events may differ materially from those in such statements e.g. due to changes in general economic conditions, in particular economic conditions in the markets in which the group operates, changes affecting interest rate levels, changes affecting currency exchange rates, changes in competi- tion levels, changes in laws and regulat ions, and occur- rence of accidents or environmental damages and sys- tematic delivery failures. We undertake no obligation to update or revise any forward -looking statements, whether because of new inform ation, future eve nts or otherwise, except to the extent required by law. ===== SIDA 14 ===== Q4 report 2023 Page 13 Other Shares and share capital Better Collective A/S is listed on Nasdaq Stockholm main market. The shares are traded under th e ticker “BETCO”. As per December 31 , 2023, the share capital amounted to 55 3,674.18 EUR, and the total number of issued shares was 55, 367,418. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings. Shareholder structure As of December 31, 2023, the total number of sharehold- ers was 4, 820. A list of top ten shareholders in Better Collective A/S can be found on the group’s website. Annual General Meeting 2024 The annual general meeting 2024 will be held on April 22, 2024. Shareholders who wish to have a specific mat- ter brought before the general meeting must submit a written request to the company’s Board of Directors no later than six weeks prior to the general meeting. If the request is received less than six weeks before the date of the general meeting, the Board of Directors must de- cide whether the request has been made with enough time for the issue to be included on the agenda. Dual listing In late September, Better Collective announced its in- tention to carry out a dual listing of the group’s shares on Nasdaq Copenhagen, in addition to the current listing on Nasdaq Stockholm. The first day of trading on Nasdaq Copenhagen was November 17, 2023. Incentive programs To attract and retain key competences, the company has established warrant programs for certain key em- ployees. All warrants with the right to subscribe for one ordinary share. If all outstanding warrants are sub- scribed, then the maximum shareholders dilution will be approximately 4.1%. On January 3, 2023, the board of di- rectors implemented a Long -Term Incentive Plan (LTI) for key employees in the Better Collective group. In total the grants under the LTI in 2023 cover 13 1,311 performance share units and 239, 360 share options to 64 key employees in total, vesting over a 3-year period. The total value of the 2023 LTI grant program is 2.9 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the fi- nancial goals. On April 25, 2023, a new LTI program was approved for executive management. The total grant of 300,000 share options will vest over a 3 -year period given certain vesting conditions set by the Board of Di- rectors. The total value of the 2023 LTI grant program is 2.6 mEUR (calculated Black-Scholes value) measured at the target level, which is to say 100% achievement of the financial goals. Program Warrants outstanding December 31, 2023 Vesting period Exercise period Exercise price DKK Exercise price EUR (rounded) 2019* 805,183 2020-2023 2022-2024 64.78 8.70 2020** 25,000 2021-2023 2023-2025 61.49 8.26 2020* 219,998 2021-2023 2023-2025 106.35 14.28 2021* 377,372 2022-2024 2024-2026 150.41 20.20 2021 US MIP Options 43,358 2021-2024 2024-2026 138.90 18.65 2021 US MIP PSU*** 0 2021-2024 2024-2026 2022 US MIP Options*** 15,238 2022-2023 2023-2026 107.25 14.40 2022 US MIP PSU 0 2022-2023 2023-2026 2022 Options 22,138 2022-2024 2025-2027 130.98 17.59 2022 PSU 67,276 2022-2024 2025-2027 2023 CXO Options 300,000 2023-2025 2026-2028 142.08 19.08 2023 Options 239,336 2023-2025 2026-2028 85.76 11.52 2023 PSU 131,311 2023-2025 2026-2028 * 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. *** Performance adjusted during 2023 to 0 ===== SIDA 15 ===== Q4 report 2023 Page 14 Risk management Through an Enterprise Risk Management process, vari- ous gross risks in Better Collective are identified. Each risk is described, including current risk mitigation in place, or planne d mitigating actions. The subsequent analysis of the identified risks includes an inherent risk evaluation based on two main parameters: probability of occurrence and impact on future earnings and cash flow. Better Col lective’s management continuously monitors risk development in the Better Collective group. The risk evaluation is presented to the Board of Directors annually, for d iscussion and any further miti- gating actions required. The board evaluates risk dy- namically to account for this variation in risk impact. The policies and guidelines in place stipulate how manage- ment must work with risk management. Better Collective’s compliance with these policies and guidelines is also monitored by the manage ment 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 fro m authorities and sportsbooks. With the US division, the overall risk profile of Better Collective has changed, and compliance as well as finan- cial risk have increased. Better Collective has mitigated the additional risks in US in several ways, compliance risk through involvement of regulatory bodies in our li- censing process for newly established entities, financial risk through a performance-based valuation of the ac- quired entities, and organizational risk through estab- lishment of local governance, and finance, HR, and legal organization dedicated to the US operations. During 2022 and 2023 the macroeconomic environment has im- pacted the global economy with rising interest rates. Better Collective has mitigated and addressed the credit and interest rate risk by entering a new long-term com- mitted facility with three banking partners in August, se- curing attractive terms and a long-term 3-year commit- ment. Other key risk factors are described in the Annual report 2022. Contacts Senior Director 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 submitt ed for publication, through the agency of the contact person set out above on February 21, 2024, after market close (CET). About Better Collective owns global and national sport media, with a vision to become the leading digital sports media group. We are on a mission to excite sports fans through engaging content and foster pa ssionate communit ies 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 bet- tercollective.com. To learn more about Better Collective please visit www.Bettercollective.com ===== SIDA 16 ===== Q4 report 2023 Page 15 Statement by the Board of Directors and the Executive Management Statement by the Board of Directors and the Execu- tive Management on the condensed consolidated in- terim financial statements and the parent company condensed interim financial statements for the period January 1 – December 31, 2023. 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 – December 31, 2023. The condensed consolidated interim financial state- ments for the period January 1 – December 31, 2023, 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 December 31, 2023, and of the results of the group’s and parent company’s op- erations and the group’s cash flows for the period Janu- ary 1 – December 31, 2023. Further, in our opinion, the management’s review gives a fair review of the development in the group’s and t he 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, February 21, 2024 Executive Management Jesper Søgaard Co-founder & CEO Christian Kirk Rasmussen Co-founder & COO Executive Vice President Flemming Pedersen CFO Executive Vice President Board of Directors Jens Bager Chair Therese Hillman Vice Chair Britt Boeskov Todd Dunlap Leif Nørgaard René Rechtman Petra von Rohr ===== SIDA 17 ===== Q4 report 2023 Page 16 Condensed interim financial statements for the period Consolidated income statement Note tEUR Q4 2023 Q4 2022 2023 2022 3 Revenue 85,195 86,140 326,686 269,297 Direct costs related to revenue 24,434 26,780 99,296 92,227 4 Staff costs 22,903 17,912 88,921 68,639 Other external expenses 8,343 6,265 27,389 23,356 Operating profit before depreciation and amortization (EBITDA) and special items 29,514 35,183 111,080 85,075 Depreciation 1,347 728 3,958 2,321 Operating profit before amortization (EBITA) and special items 28,168 34,455 107,122 82,754 7 Amortization and impairment 7,969 3,625 24,283 12,347 Operating profit (EBIT) before special items 20,199 30,829 82,839 70,407 5 Special items, net 399 1,610 - 1,948 - 54 Operating profit 20,598 32,439 80,891 70,353 Financial income 1,808 19 5,987 4,198 Financial expenses 8,705 3,447 28,868 9,587 Profit before tax 13,702 29,012 58,010 64,964 6 Tax on profit for the period 6,211 8,733 18,175 16,888 Profit for the period 7,491 20,279 39,835 48,075 Earnings per share attributable to equity holders of the company Average number of shares 55,252,940 54,768,551 55,186,772 54,363,312 Average number of warrants - converted to number of shares 2,598,855 2,368,829 2,658,571 2,495,614 Earnings per share (in EUR) 0.14 0.37 0.74 0.88 Diluted earnings per share (in EUR) 0.13 0.36 0.70 0.85 Consolidated statement of other comprehensive income Note tEUR Q4 2023 Q4 2022 2023 2022 Profit for the period 7,491 20,279 39,835 48,075 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Fair value adjustment of hedges for the year - 483 0 - 483 0 Currency translation to presentation currency 797 - 752 1,318 - 905 Currency translation of non-current intercompany loans - 12,488 - 26,313 - 9,440 17,030 Income tax 0 5,789 0 - 3,747 Net other comprehensive income/loss - 11,690 - 21,276 - 8,122 12,379 Total comprehensive income/(loss) for the period, net of tax - 4,682 - 997 31,230 60,455 Attributable to: Shareholders of the parent - 4,682 - 997 31,230 60,455 ===== SIDA 18 ===== Q4 report 2023 Page 17 Consolidated statement of financial position Note tEUR 2023 2022 Assets Non-current assets 7 Intangible assets Goodwill 255,074 183,942 Domains and websites 466,615 460,513 Accounts and other intangible assets 79,740 27,016 Total intangible assets 801,429 671,471 Property, plant and equipment Right of use assets 15,575 6,269 Leasehold improvements, Fixtures and fittings, other plant and equipment 6,006 2,574 Total property, plant and equipment 21,582 8,843 Other non-current assets Deposits 1,803 726 Deferred tax asset 7,236 9,165 Total other non-current assets 9,039 9,891 Total non-current assets 832,050 690,204 Current assets Trade and other receivables 48,954 53,179 Corporation tax receivable 2,252 6,423 Prepayments 4,250 3,926 Other current financial assets 6,804 0 Cash 43,552 31,497 Total current assets 105,812 95,025 Total assets 937,862 785,229 Note tEUR 2023 2022 Equity and liabilities Equity Share Capital 554 551 Share Premium 274,580 272,550 Currency Translation Reserve 15,055 23,177 Hedging reserves - 483 0 Treasury Shares - 21,057 - 7,669 Retained Earnings 166,624 124,307 Total equity 435,273 412,917 Non-current Liabilities 8 Debt to credit institutions 248,657 201,708 8 Lease liabilities 13,326 4,962 8 Deferred tax liabilities 84,670 78,167 8 Other long-term financial liabilities 52,443 22,407 Total non-current liabilities 399,096 307,244 Current Liabilities Prepayments received from customers and deferred revenue 4,262 8,023 Trade and other payables 27,838 22,252 Corporation tax payable 6,754 5,221 8 Other financial liabilities 61,938 26,865 Debt to credit institutions 0 1,055 8 Lease liabilities 2,702 1,653 Total current liabilities 103,493 65,068 Total liabilities 502,589 372,312 Total Equity and liabilities 937,862 785,229 ===== SIDA 19 ===== Q4 report 2023 Page 18 Consolidated statement of changes in equity tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As of 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 Other comprehensive income 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. tEUR Share capital Share premium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2022 546 267,873 10,798 0 - 8,074 73,705 344,848 Result for the period 0 0 0 0 0 48,075 48,075 Other comprehensive income 0 0 0 0 0 0 0 Currency translation to presentation currency 0 0 16,125 0 0 0 16,125 Tax on other comprehensive income 0 0 - 3,747 0 0 0 - 3,747 Total other comprehensive income 0 0 12,379 0 0 0 12,379 Total comprehensive income for the year 0 0 12,379 0 0 48,075 60,454 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 0 - 14,250 0 - 14,250 Disposal of treasury shares 0 0 0 0 14,656 842 15,498 Share based payments 0 0 0 0 0 1,713 1,713 Transaction cost 0 0 0 0 0 - 28 - 28 Total transactions with owners 5 4,677 0 0 406 2,526 7,615 At December 31, 2022 551 272,550 23,177 0 - 7,669 124,307 412,917 During the period no dividend was paid. ===== SIDA 20 ===== Q4 report 2023 Page 19 Consolidated statement of cash flows Note tEUR Q4 2023 Q4 2022 2023 2022 Profit before tax 13,702 29,012 58,010 64,964 Adjustment for finance items 6,897 3,428 22,882 5,389 Adjustment for special items - 400 - 1,610 1,947 54 Operating Profit for the period before special items 20,199 30,829 82,839 70,407 Depreciation and amortization 9,315 4,354 28,241 14,668 Other adjustments of non-cash operating items 164 512 2,581 1,690 Cash flow from operations before changes in working capital and special items 29,679 35,695 113,661 86,765 Change in working capital 7,846 - 14,698 5,722 - 16,949 Cash flow from operations before special items 37,525 20,997 119,384 69,816 Special items, cash flow - 2,744 - 482 - 4,744 - 1,393 Cash flow from operations 34,781 20,515 114,639 68,423 Financial income, received 327 115 493 1,682 Financial expenses, paid - 3,635 - 1,579 - 10,712 - 5,666 Cash flow from activities before tax 31,473 19,051 104,420 64,439 Income tax paid - 3,439 - 11,428 - 15,411 - 16,239 Cash flow from operating activities 28,035 7,623 89,009 48,200 9 Acquisition of businesses - 7,387 - 517 - 57,282 - 14,337 7 Acquisition of intangible assets - 16,243 - 1,994 - 27,469 - 96,452 Acquisition of property, plant and equipment - 1,003 - 541 - 5,143 - 1,804 Sale of property, plant and equipment 0 16 3 16 Acquisition of other financial assets 0 0 - 14,930 0 Change in other non-current assets 87 - 15 - 1,427 - 55 Cash flow from investing activities - 24,546 - 3,052 - 106,248 - 112,632 Note tEUR Q4 2023 Q4 2022 2023 2022 Repayment of borrowings 0 - 200,844 - 1,486 - 215,993 Proceeds from borrowings - 0 201,655 45,490 296,665 Lease liabilities - 820 - 287 - 2,814 - 1,274 Other non-current liabilities - 927 0 - 483 0 Capital increase 1,399 17 2,033 618 Treasury shares 0 - 5,566 - 13,381 - 14,250 Transaction cost - 13 - 8 - 26 - 28 Warrant settlement, sale of warrants 0 0 0 0 Cash flow from financing activities - 361 - 5,033 29,334 65,737 Cash flows for the period 3,128 - 461 12,095 1,306 Cash and cash equivalents at beginning 40,676 32,564 31,497 30,093 Foreign currency translation of cash and cash equiva- lents - 252 - 605 - 41 99 Cash and cash equivalents period end* 43,552 31,497 43,552 31,497 Cash and cash equivalents period end Cash 43,552 31,497 43,552 31,497 Cash and cash equivalents period end 43,552 31,497 43,552 31,497 ===== SIDA 21 ===== Q4 report 2023 Page 20 Notes 1. General information Better Collective A/S is a limited liability company and is incorporated in Denmark. The parent company and its subsidiaries (referred to as the “Group” or “Better Collective”) engage in online affiliate marketing. Better Collective’s vision is to empower iGamers by leading the way in transparency and technology. Basis of preparation The Interim Report (condensed consolidated interim financial statements) for the period January 1 - December 31, 2023, has been prepared in ac cordance with IAS 34 “Interim f inancial statements” as adopted by the EU and additional re- quirements 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 Co llective. These are referred to as alternative per- formance measures (APMs) and are not defined under IFRS. The figures and related subtotals give management and investors important information to enable them to fully analyze the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. New financial reporting standards All new or amended standards (IFRS) a nd interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on January 1, 2023, have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the condensed consolidated interim financial statements. Accounting policies The condensed consolidated interim financial statements have been prepared using the same accounting policies as set out in note 1 of the 2022 annual report which contains a full description of the accounting policies for the Group and the parent company, except for the scope of operating segments, “Other current assets” and financial instruments. The scope of operating segments has been modified following changes in management responsibilities as from January 1, 2023. US has been renamed to North America (NA) and will now cover both USA and Canada. Canada was previously included in the operating segment “Europe and RoW”. 2022 comparative information has been restated. Revenue recognized under the hybrid revenue model consists of upfront revenue share (one- time upfront fee for each new referred player) and revenue share for the amount that aggregate revenue share exceeds the aggregate upfront revenue share. Upfront revenue share is recognized at a point in time equal to the month in which the player referral is made. Revenue share is recognized once the aggregate revenue share exceeds the upfront revenue share and is recog- nized at a point in time equal to the month that it is earned by the respective gaming operator. Listed shares included under other current financial assets are measured at fair value (market price) at the balance sheet date. (Fair Value Level 1) Fair Value Level 1: Value based on the fair value of corresponding assets/liabilities in a well-functioning market. Financial instruments: Financial instruments are recognize d on the tra de date and are measured at fair value. Positive and negative fair values are included in other current receivables or other current payables in the statement of financial position. Positive and negative fair values are only of fset if the Group has a right and an intention to settle several financial instruments net (by means of settlement of differences). Fair value is determined based on generally accepted valuation methods using available observable market data. When entering into contracts f or financial instruments, an assessment is made of whether the instrument qualifies for hedge accounting, including whether the instrument hedges recognized assets and liabilities. Fair value changes classi- fied as and fulfilling the criteria for recognition as a fair value hedge are recognize d in the statement of profit or loss together with changes in the value of the specific portion of the asset or liability that has been hedged. Fair value changes in the part of the derivative which is classified as and qualifies f or recognition as a future cash flow hedge and which effectively hedges against changes i n the value of the hedged item are recognized in other compre- hensive income as a separate hedging reserve. When the underlying hedged item is realized, any gain or loss on the hedging transaction is transferred from equity and recognized together with the hedged item. Fair value changes that do not meet the criteria for treatment as hedging instruments are recognize d on an ongoing basis in the statement of profit or loss under financial items. ===== SIDA 22 ===== Q4 report 2023 Page 21 The annual report for 2022 including full description of the accounting policies can be found on Better Collective’s web- site: https://storage.mfn.se/0e9df7fa-f018-42b8-9189-6ee99458c094/bc-2022-annual-report-final.pdf Significant accounting judgements, estimates and assumptions The preparation of condensed consolidated inte rim financial statements requires management to make ju dgements, 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 t hese consolidated interim financial statements are the same as disclosed in note 2 in the annual report for 202 2 which contains a full description of significant accounting judgements, estimates and assumptions. ===== SIDA 23 ===== Q4 report 2023 Page 22 2. Segments Publishing and Paid Media Better Collective operates two different business models regarding customer acquisi tion with different earnings - profiles. The segments Publishing and Paid Media have been measured and disclosed separately for Revenue, Co st and Earnings. The Publishing business includes revenue from Better Collective’s proprietary online sports media and media partnerships where the online traffic is coming either directly or through organic search results, wherea s Paid Media generates revenue through paid ad-traffic to our websites, thereby running on a lower earnings margin. The performance for each segment is presented in the below tables: Publishing Paid Group tEUR Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Revenue Share 26,991 23,908 11,479 6,331 38,470 30,239 CPA 11,891 16,692 14,221 19,959 26,112 36,651 Subscription 5,290 5,419 0 0 5,290 5,419 Other 14,941 14,193 381 599 15,323 14,792 Revenue 59,114 59,251 26,081 26,889 85,195 86,140 Cost 36,924 30,258 18,757 20,699 55,680 50,957 Operating profit before depreciation, amortization and special items 22,190 28,993 7,324 6,190 29,514 35,183 EBITDA-Margin before special items 38% 49% 28% 23% 35% 41% Special items, net 399 1,610 0 0 399 1,610 Operating profit before depreciation and amortization 22,589 30,603 7,324 6,190 29,914 36,793 EBITDA-Margin 38% 52% 28% 23% 35% 43% Depreciation 1,308 725 39 3 1,347 728 Operating profit before amortization 21,282 29,878 7,286 6,187 28,567 36,065 EBITA-Margin 36% 50% 28% 23% 34% 42% Publishing Paid Group tEUR 2023 2022 2023 2022 2023 2022 Revenue Share 118,925 78,581 41,049 17,868 159,974 96,449 CPA 40,590 60,567 63,371 63,757 103,960 124,324 Subscription 17,959 17,042 0 0 17,959 17,042 Other 42,855 30,867 1,937 615 44,792 31,482 Revenue 220,328 187,057 106,358 82,241 326,686 269,297 Cost 139,685 115,376 75,920 68,846 215,605 184,222 Operating profit before depreciation, amortization and special items 80,642 71,681 30,438 13,394 111,080 85,075 EBITDA-Margin before special items 37% 38% 29% 16% 34% 32% Special items, net - 1,948 - 54 0 0 - 1,948 - 54 Operating profit before depreciation and amortization 78,695 71,627 30,438 13,394 109,132 85,021 EBITDA-Margin 36% 38% 29% 16% 33% 32% Depreciation 3,909 2,306 49 15 3,958 2,321 Operating profit before amortization 74,785 69,321 30,389 13,379 105,174 82,700 EBITA-Margin 34% 37% 29% 16% 32% 31% ===== SIDA 24 ===== Q4 report 2023 Page 23 2. Segments, continued Europe & Rest of World and North A merica Better Collective’s products cover more than 30 languages and attract millions of users worldwide - with international brands with a global reach as well as regional brands with a local reach. Better Collective’s regional brands are tailored according to the specific regions or countries and their respective regulations, sports, betting behaviors, user needs, and languages. From Q2 2021 and following the acquisition of Action N etwork (included in Group accounts from time of closing on May 28, 2021) the North American market constitutes >20% of Group Revenue and >30% of revenue in Pub- lishing on an annualized basis. Hence, Better Collective reports on the geographical segments North America and Europe & ROW (Rest of World), measuring and disclosing separately for Revenue, Cost and Earnings. Historical financial figures are reported accordingly. The performance for each segment is presented in the below tables: Europe & RoW North America Group tEUR Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Revenue Share 35,447 28,873 3,023 1,366 38,470 30,239 CPA 12,498 11,860 13,614 24,791 26,112 36,651 Subscription 930 249 4,361 5,170 5,290 5,419 Other 9,234 9,958 6,089 3,873 15,323 14,792 Revenue 58,108 50,939 27,086 35,200 85,195 86,140 Cost 35,468 31,598 20,212 19,359 55,680 50,957 Operating profit before depreciation, amortization and special items 22,640 19,342 6,875 15,841 29,514 35,183 EBITDA-Margin before special items 39% 36% 25% 49% 35% 41% Special items, net 383 - 485 16 2,095 399 1,610 Operating profit before depreciation and amortization 23,023 18,857 6,891 17,936 29,914 36,793 EBITDA-Margin 40% 35% 25% 56% 35% 43% Depreciation 1,094 436 252 292 1,347 728 Operating profit before amortization 21,929 18,421 6,638 17,644 28,567 36,065 EBITA-Margin 38% 34% 24% 55% 34% 42% * 2022 figures have been restated because of the transfer of Canada and renaming USA to North America (NA), which now covers both USA and Canada from January 1, 2023. Europe & RoW North America Group tEUR 2023 2022 2023 2022 2023 2022 Revenue Share 136,211 90,874 23,763 5,576 159,974 96,449 CPA 49,173 54,061 54,788 70,263 103,960 124,324 Subscription 2,461 1,539 15,499 16,464 17,959 17,042 Other 30,241 22,802 14,551 7,719 44,792 31,482 Revenue 218,085 169,275 108,600 100,022 326,686 269,297 Cost 137,902 115,620 77,703 68,602 215,605 184,222 Operating profit before depreciation, amortization and special items 80,183 53,656 30,897 31,420 111,080 85,075 EBITDA-Margin before special items 37% 32% 28% 31% 34% 32% Special items, net - 1,060 - 1,360 - 888 1,306 - 1,948 - 54 Operating profit before depreciation and amortization 79,123 52,296 30,009 32,725 109,132 85,021 EBITDA-Margin 36% 31% 28% 33% 33% 32% Depreciation 2,947 1,671 1,011 650 3,958 2,321 Operating profit before amortization 76,176 50,625 28,998 32,075 105,174 82,700 EBITA-Margin 35% 30% 27% 32% 32% 31% ===== SIDA 25 ===== Q4 report 2023 Page 24 3. Revenue specification In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition (CPA), Subscription, and Other as follows: Note tEUR Q4 2023 Q4 2022 2023 2022 4 Revenue category Recurring revenue (Revenue share, Subscription, CPM) 47,402 40,353 189,267 127,573 CPA, Fixed Fees 37,697 45,492 137,236 140,436 Other 95 296 183 1,288 Total revenue 85,195 86,140 326,686 269,297 %-split Recurring revenue 56 47 58 48 CPA, Fixed Fees 44 53 42 52 Other 0 0 0 0 Total 100 100 100 100 Note tEUR Q4 2023 Q4 2022 2023 2022 4 Revenue type Revenue Share 38,470 30,239 159,974 101,618 CPA 26,112 36,651 103,960 119,155 Subscription 5,290 5,419 17,959 17,042 Other 15,323 13,831 44,792 31,482 Total revenue 85,195 86,140 326,686 269,297 %-split Revenue Share 45 35 49 38 CPA 31 43 32 44 Subscription 6 6 5 6 Other 18 16 14 12 Total 100 100 100 100 * 2022 figures have been restated for Revenue Share and CPA because of the reclassification of upfront payments related to hybrid revenue share contracts as well as 2023 numbers, impacting Q4, 2023 with 2.9 mEUR and YTD 15.7 mEUR, respectively (2022: 5.9 mEUR). 4. Share-based payment plans 2019 Warrant programs: During the fourth quarter of 202 3 the company did not grant any new warrants and 116,903 warrants were exercised under this program. 2020 Warrant programs: During the fourth quarter of 2023 the co mpany did not grant any n ew warrants and 26, 608 warrants were exercised under this program. 2022 Incentive Program: During the fourth quarter of 2023 no performance share units or share options were granted under this program. A new Long-term Incentive (LTI) program was established for key employees in Q1 2022, and 73,894 performance share units and 24,564 share options were granted to a total of 36 employees. 2023 Incentive Program: During the first quarter of 2023 a new Long-term Incentive (LTI) program was established for key employees. Under the program 134,953 performance share units and 239,350 share options were granted to a total of 64 employees. 2023 CXO Options Program: During the second quarter of 2023 a new options program was established for the executive management. Under the program 300,000 share options were granted to a total of 3 employees. Management Incentive Program - Action Network: During the quarter no performance share units or share options were granted under this program. The cost related to the MIP program is recognized as special items and amounts to 0 tEUR in 2023 (2022: 936 tEUR). Total share-based compensation: The total share-based compensation expense for the above programs recognized for Q4 2023 is 150 tEUR (Q4 2022: 621 tEUR) and the cost in 2023 is 2.5 mEUR (2022: 1.9 mEUR). ===== SIDA 26 ===== Q4 report 2023 Page 25 5. Special items Special items consist of recurring and non-recurring items that management does not consider to be part of the group’s ordinary operating activities, i.e. acquisition costs, adjustment of earn-out payments related to acquisitions, and restructuring costs are presented in the Income statement in a separate line item labelled ‘Special items’. The impact of special items is specified as follows: tEUR Q4 2023 Q4 2022 2023 2022 Operating profit 20,598 32,439 80,891 70,353 Special Items related to: Special items related to dual listing - 1,129 0 - 1,129 0 Special items related to M&A - 8,508 - 352 - 10,224 - 1,263 Variable payments regarding acquisitions - cost 0 - 133 0 - 192 Variable payments regarding acquisitions - income 9,969 0 9,924 2,467 Special items related to Restructuring - 10 - 130 - 519 - 130 Special items related to Management Incentive Program 78 2,225 0 - 936 Special items, total 399 1,610 - 1,948 - 54 Operating profit (EBIT) before special items 20,199 30,829 82,839 70,407 Amortization and impairment 7,969 3,625 24,283 12,347 Operating profit before amortization and special items (EBITA before special items) 28,168 34,455 107,122 82,754 Depreciation 1,347 728 3,958 2,321 Operating profit before depreciation, amortization, and special items (EBITDA before special items) 29,514 35,183 111,080 85,075 6. Income tax Total tax for the period is specified as follows: tEUR Q4 2023 Q4 2022 2023 2022 Tax for the period 6,211 8,733 18,175 16,888 Tax on other comprehensive income 0 - 5,789 0 3,747 Total 6,211 2,944 18,175 20,635 Income tax on profit for the period is specified as follows: tEUR Q4 2023 Q4 2022 2023 2022 Deferred tax 2,033 4,768 3,641 6,785 Current tax 6,495 4,062 16,400 10,153 Adjustment from prior years - 2,317 - 97 - 1,867 - 49 Total 6,211 8,733 18,175 16,888 Tax on the profit for the period can be explained as follows: tEUR Q4 2023 Q4 2022 2023 2022 Specification for the period: Calculated 22% tax of the result before tax 3,015 6,383 12,762 14,292 Adjustment of the tax rates in foreign subsidiaries relative to the 22% 488 1,332 1,955 1,563 Tax effect of: Special items 295 - 480 868 - 83 Special items - taxable items 308 579 - 233 - 243 Other non-taxable income 1,682 1 - 410 - 150 Other non-deductible costs 2,976 1,017 5,471 1,558 Tax deductable - 235 0 - 371 0 Adjustment of tax relating to prior periods - 2,317 -97 -1,867 -49 Total 6,211 8,733 18,175 16,888 Effective tax rate 45.3% 30.1% 31.3% 26.0% ===== SIDA 27 ===== Q4 report 2023 Page 26 7. Intangible assets tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2023 183,942 460,513 63,705 708,159 Additions 0 3,412 53,914 57,326 Acquisitions through business combinations 75,335 10,842 29,579 115,756 Transfer 0 0 0 Disposals 0 0 - 6,531 - 6,531 Currency Translation - 4,203 - 8,151 - 602 - 12,956 At December 31, 2023 255,074 466,615 140,065 861,754 Amortization and impairment As of January 1, 2023 0 0 36,688 36,688 Amortization for the period 0 0 24,707 24,707 Impairment for the period 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 1,070 - 1,070 At December 31, 2023 0 0 60,325 60,325 Net book value at December 31, 2023 255,074 466,615 79,740 801,429 tEUR Goodwill Domains and websites Accounts and other intangible assets Total Cost or valuation As of January 1, 2022 178,182 329,276 36,827 544,285 Additions 0 118,185 26,337 144,522 Acquisitions through business combinations 0 0 0 0 Transfer 0 0 0 0 Disposals 0 0 0 0 Currency Translation 5,760 13,051 540 19,351 At December 31, 2022 183,942 460,513 63,705 708,159 Amortization and impairment As of January 1, 2022 0 0 24,374 24,374 Amortization for the period 0 0 12,348 12,348 Impairment for the period 0 0 0 0 Amortization on disposed assets 0 0 0 0 Currency translation 0 0 - 33 - 33 At December 31, 2022 0 0 36,688 36,688 Net book value at December 31, 2022 183,942 460,513 27,016 671,471 ===== SIDA 28 ===== Q4 report 2023 Page 27 8. Non-current liabilities and other current financial liabilities Debt to credit institutions: As per December 31, 2023, Better Collective has drawn 248.7 mEUR (2022: 201.7) out of the total committed club facility of 319 mEUR established with Nordea, Nykredit, and Citibank. In August Better Collective extended the club -financing from October 2022 with Nordea, Ny kredit and Citibank by 3 years to October 2026 as well as executing the accordion option increasing available facilities with 72 mEUR , leaving the group with a total financing of 319 mEUR where afore- mentioned 248.7 mEUR has been utilized. Lease liabilities: Non-current and current lease liabilities, of 13.3 mEUR (2022: 5.0 mEUR) and 2.7 mEUR (2022: 1.7 mEUR) respectively. Deferred Tax liability: Deferred tax liability as of December 31, 2023, amounted to 84.7 mEUR (2022: 78.2 mEUR). The change from January 1, 2023, originates from changes in deferred tax related to acquisitions, amortization of accounts fr om acquisitions, and deferred tax changes in Parent Company and Better Collective US, Inc. Deferred Tax asset: Deferred tax asset as of December 31, 2023, amounted to 7.2 mEUR (2022: 9.2 mEUR). Other financial liabilities: As per December 31, 2023, other financial liabilities amounted to 61.9 mEUR (2022: 26. 9 mEUR) due to deferred and variable payments related to acquisitions. The increase f rom January 1, 2023, is related to the capitalization of media agreements, acquisition of Skycon, Playmaker HQ and Digital Sportmedia i Norden. Fair Value of financial assets and liabilities is measured based on level 3 - Valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value. The fair value of financial instruments are measured based on level 2. The fair value is measured according to generally accepted valuation techniques. Market-based input is used to measure the fair value. 9. Business combinations Acquisition of Skycon Limited On April 14, 2023 Better Collective completed the acquisition of Skycon Limited (Skycon) for a total consideration up to 51 mEUR (45 mGBP) with an initial consideration of 28.3 mEUR (25 mGBP ) on a cash and debt -free basis. Skycon is a global display advertising company and perfectly complements Better Collective’s Paid Media division. The acquisition is a strategic move for Better Collective with significant synergistic opportunities. The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 24,227 Accrued Income 2,372 Other receivables 45 Cash 3,647 Deferred Tax Liability - 6,502 Identified net assets 23,790 Goodwill 32,239 Total consideration 56,029 A goodwill of 32,239 tEUR emerged from the acquisition of Skycon as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportunities. The earn outs are based on certain financial performance targets in the 12 months post-closing period. The goodwill is not tax deductible. Transaction costs related to the acquisition of Skycon amounts to 381 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on April 14, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 332 mEUR and result after tax would have amounted to 43 mEUR. The purchase price allocation is provisional due to uncertainties regarding measure- ment of acquired intangible assets. tEUR Purchase amount 56,029 Cash and cash equivalents 3,647 Deferred payment 22,614 Cash outflow 29,767 ===== SIDA 29 ===== Q4 report 2023 Page 28 Acquisition of Playmaker HQ On July 3, after the end of Q2, 2023 Better Collecti ve US, Inc. completed the acquisition of Playmaker HQ for up to 51 mEUR (54 mUSD) with an initial consideration o f 14.1 mEUR (15 mUSD) on a cash and debt-free basis. Playmaker HQ is a leading sports and entertainment media platform headquartered in South Florida, US. The sports media group special- izes in providing original entertainment and sports content with exclusive athlete collaborations and creator talent mainly targeting the US market. tEUR Purchase amount 38,864 Cash and cash equivalents 0 Deferred payment 23,968 Cash outflow 14,896 The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Accounts and other intangible assets 5,352 Accounts receivable 320 Trade payables - 94 Total net assets 5,578 Goodwill 33,286 Total consideration 38,864 The acquisition of Playmaker HQ was included in the balance sheet for the condensed consolidated interim report ended September 30, 2023 based on a provisional assessment.The opening balance was amended per December 31, 2023 and a revised PPA is th erefore included in this rep ort. The revised PPA includes an adjustment on goodwill of 5,850 tEUR. Goodwill is connected to the future growth expectations given the strong platform and significant synergistic opportu- nities. In order to reach the full earn-out payment, Playmaker HQ will have to generate >75 mUSD in accumulating rev- enues and >25 mUSD in accumulating operational earnings (EBITDA) during the first three years p ost acquisition. The goodwill is tax deductible. Transaction costs related to the acquisition of Playmaker HQ amounts to 347 tEUR in 2023. Transaction costs are ac- counted for in the income statements under “special items”. The acquisition was completed on July 3, 2023. If the trans- action had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 330 mEUR and result after tax would have amounted to 39 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. Other acquisitions 2023 On August 15, 2023 Better Collective announce d the acquisition of four brands SvenskaFans.com, Hockeysverige.se, Fotbolldirekt.se and Innebandymagazinet.se by acquiring Digital Sportmedia i Norden AB from Everysport Group to further expand its position within the Swedish sports media ecosystem for a total consideration of 3.7 mEUR on a cash and debt-free basis. On September 4, 2023 Better Collective announced the acquisition of the platform Torcedor es.com, by acq uiring Goalmedia Technologia E Marketing Digital S.A. The acquisition strengthens Better Collectives position in the South American region through the acquisition of leading national Brazilian sports media platform Torcedores.com. Adding the first Brazilian sports media brand to the group, Better Collective will leverage its best -in-class digital expertise in one of the world’s fastest growing markets. Acquired net assets during acquisitions Domains 6,650 Contingent liabilities - 1,902 Deferred tax liabilities - 1,308 Net assets (other) - 1,099 Total net assets 2,341 Goodwill 6,614 Total consideration 8,955 A goodwill of 6,614 tEUR emerged from the acquisitions as an effect of the difference between the transferred consid- eration and the fair value of acquired net assets. The goodwill is not tax deductible. Transaction costs related to the acquisition of Digital Sport Media i Norden AB and Torcedores amounts to 484 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition s were com- pleted on August 15, 2023 and September 4, 2023. If the transactions had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR. The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets. ===== SIDA 30 ===== Q4 report 2023 Page 29 Acquisition of Tipsbladet.dk On September 18, 2023 Better Collective announced the acquisition of Tipsbla det.dk ApS to further expand its position in Denmark for a total consideration of 6.5 mEUR on a cash and debt-free basis with closing 2 October 2023. tEUR Purchase amount 7,432 Cash and cash equivalents 0 Deferred payment 1,500 Cash outflow 5,932 The transferred consideration was in cash and a deferred payment payable in cash. Acquired net assets at the time of acquisition tEUR Domains 4,192 Net assets (other) 1,548 Cash - 587 Deferred Tax Liability - 917 Identified net assets 4,236 Goodwill 3,196 Total consideration 7,432 A goodwill of 3,196 tEUR emerged from the acquisition of Tipsblade t 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 earn outs are based on certain performance targets in the 12 months post-closing period. The goodwill is not tax deductible. Transaction costs related to the acquisition of Tipsbladet amounts to 42 tEUR in 2023. Transaction costs are accounted for in the income statements under “special items”. The acquisition was completed on October 2, 2023. If the transaction had been completed on January 1, 2023 the group’s revenue YTD would have amounted to 328 mEUR and result after tax would have amounted to 39 mEUR. The purchase price allocation is provisional due to uncertainties regarding meas- urement of acquired intangible assets. 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 will be consolidated into Better Collective Group from the closing date. As per the date of publication of the interim financial statements it has not been possible to obtain sufficient financial data to fulfill reporting requirements according to IFRS3. Therefore, the opening balance, the acquired net assets at the time of the acquisition and goodwill are not included in these interim financial statements. ===== SIDA 31 ===== Q4 report 2023 Page 30 10. Note to cash flow statement tEUR Q4 2023 Q4 2022 2023 2022 Acquisition of business combinations: Net Cash outflow from business combinations at acquisition - 7,387 0 - 57,282 0 Business Combinations deferred payments from current period 0 0 0 0 Deferred payments - business combinations from prior periods 0 - 517 0 - 14,337 Total cash flow from business combinations - 7,387 - 517 - 57,282 - 14,337 Acquisition of intangible assets: Acquisitions through asset transactions - 30,576 - 2,855 - 50,639 - 144,522 Deferred payments related to acquisition value - 494 0 - 494 29,408 Deferred payments - acquisitions from prior periods - 7 0 - 9,745 - 121 Intangible assets with no cash flow effect 14,834 3,895 33,613 24,325 Other investments 0 - 3,034 - 203 - 5,541 Total cash flow from intangible assets - 16,243 - 1,994 - 27,469 - 96,452 ===== SIDA 32 ===== Q4 report 2023 Page 31 Financial statements for the period Income statement – Parent company tEUR Q4 2023 Q4 2022 2023 2022 Revenue 27,207 20,665 98,513 65,282 Other operating income 339 6,762 12,516 14,797 Direct costs related to revenue 5,065 4,524 23,071 14,292 Staff costs 10,762 8,664 40,796 25,061 Depreciation 616 136 1,438 540 Other external expenses 5,742 5,126 18,632 17,248 Operating profit before amortization (EBITA) and special items 5,360 8,976 27,091 22,939 Amortization 3,791 1,152 9,908 3,875 Operating profit (EBIT) before special items 1,569 7,824 17,182 19,064 Special items, net 1,755 - 293 312 - 1,168 Operating profit 3,324 7,532 17,494 17,896 Financial income 21,059 7,724 70,010 72,388 Financial expenses 20,595 30,600 45,054 35,057 Profit before tax 3,788 - 15,344 42,450 55,227 Tax on profit for the period 984 - 4,477 3,181 8,279 Profit for the period 2,804 - 10,867 39,269 46,949 Statement of other comprehensive income tEUR Q4 2023 Q4 2022 2023 2022 Profit for the period 2,804 - 10,867 39,269 46,949 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Fair value adjustment of hedges for the year - 483 0 - 483 0 Currency translation to presentation currency 0 0 - 910 22 Currency translation of non-current intercompany loans Income tax 0 0 0 0 Net other comprehensive income/loss 0 0 - 910 22 Total comprehensive income/(loss) for the period, net of tax 2,321 - 10,867 37,877 46,970 ===== SIDA 33 ===== Q4 report 2023 Page 32 Statement of financial position – Parent company tEUR 2023 2022 Assets Non-current assets Intangible assets Goodwill 17,812 0 Domains and websites 167,831 144,374 Accounts and other intangible assets 50,418 13,287 Total intangible assets 236,061 157,661 Property, plant and equipment Right of use assets 7,469 334 Fixtures and fittings, other plant and equipment 2,494 410 Total property, plant and equipment 9,962 744 Financial assets Investments in subsidiaries 234,330 190,448 Receivables from subsidiaries 282,016 273,515 Deposits 940 174 Total financial assets 517,285 464,137 Total non-current assets 763,308 622,542 Current assets Trade and other receivables 15,735 17,163 Receivables from subsidiaries 13,153 30,229 Tax receivable 1,479 5,913 Prepayments 2,453 2,519 Other current financial assets 6,804 0 Cash 17,825 8,705 Total current assets 57,450 64,529 Total assets 820,758 687,071 tEUR 2023 2022 Equity and liabilities Equity Share Capital 554 551 Share Premium 274,580 272,550 Currency Translation Reserve - 336 574 Hedging reserves - 483 0 Treasury shares - 21,057 - 7,669 Retained Earnings 189,953 145,047 Total equity 443,211 411,054 Non-current Liabilities Debt to credit institutions 248,657 201,708 Lease liabilities 6,024 16 Deferred tax liabilities 13,832 6,141 Other non-current financial liabilities 25,261 19,543 Total non-current liabilities 293,774 227,408 Current Liabilities Prepayments received from customers and deferred revenue 312 1,583 Trade and other payables 11,495 5,719 Payables to subsidiaries 11,993 20,822 Tax payable 196 30 Other current financial liabilities 58,295 19,045 Debt to credit institutions 0 1,055 Lease liabilities 1,483 356 Total current liabilities 83,773 48,609 Total liabilities 377,547 276,017 Total equity and liabilities 820,758 687,071 ===== SIDA 34 ===== Q4 report 2023 Page 33 Statement of changes in equity – Parent company tEUR Share capital Share pre- mium Currency translation reserve 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 Other comprehensive income 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. tEUR Share capital Share pre- mium Currency translation reserve Hedging reserves Treasury shares Retained earnings Total equity As of January 1, 2022 546 267,873 552 0 - 8,074 94,223 355,121 Result for the period 0 0 0 0 0 46,949 46,949 Other comprehensive income 0 0 0 0 0 0 0 Currency translation to presentation currency 0 0 22 0 0 0 22 Tax on other comprehensive income 0 0 0 0 0 0 0 Total other comprehensive income 0 0 22 0 0 0 22 Total comprehensive income for the year 0 0 22 0 0 46,949 46,970 Transactions with owners Capital Increase 5 4,677 0 0 0 0 4,683 Acquisition of treasury shares 0 0 0 0 - 14,250 0 - 14,250 Disposal of treasury shares 0 0 0 0 14,656 842 15,498 Share based payments 0 0 0 0 0 3,061 3,061 Transaction cost 0 0 0 0 0 - 28 - 28 Total transactions with owners 5 4,677 0 0 406 3,875 8,963 At December 31, 2022 551 272,550 574 0 - 7,669 145,047 411,054 During the period no dividend was paid. ===== SIDA 35 ===== Q4 report 2023 Page 34 The group uses and communicate certain Alternative Performance Measures (“APM”), which are not defined under IFRS. Such are not to replace performance measures defined and under IFRS. The APM’s may not be indicative of the group’s historical operating results, nor are such measures meant to be predictive 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 that the presentation of these APMs enhances an investor’s understanding of the group’s operating performance and the group’s ability to service its debt. Accordingly, the group discloses the APM’s to permit a more complete and comprehensive analysis of its operating performance relative to other companies and across periods, and of the group’s ability to service its debt. However, these APM’s may be calculated differently by other companies and may not be comparable with APM’s with similarly titled measures used by other companies. The group’s APMs are not measurements of financial performance und er IFRS and should not be considered as alternatives to other indicators of the Company’s operating performance, cash flows or any other measures of performance derived in accordance with IFRS. The group’s APM’s have important limitations as analytical tools, and they should not be considered in isolation or as substitutes for analysis of the group’s results of operations as reported under IFRS. Our currently applied APM’s are summarized and described below. Alternative Performance Measures Alternative Performance Measure Description SCOPE Earnings per share (EPS) Net Profit for the period / (Average number of shares - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share. Diluted earnings per share Net profit for the period / (Average number of shares + Average number of outstanding warrants - Average number of treasury shares held by the company) The group reports this APM for users to monitor de- velopment in the net profit per share, assuming full dilution from active warrant programs. Operating profit before amortization (EBITA) Operating profit plus amortizations Better Collective reports this APM to allow monitor- ing and evaluation of the Group’s operational profit- ability. Alternative Performance Measure Description SCOPE Operating profit before amortizations margin (%) Operating profit before amortizations / reve- nue This APM supports the assessment and monitoring of the Group’s performance and profitability EBITDA before special items EBITDA adjusted for special items This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Operating profit before amortizations and special items margin (%) Operating profit before amortizations and special items / revenue This APM supports the assessment and monitoring of the Group’s performance as well as profitability excluding special items that do no stem from ongo- ing operations, providing a more comparable meas- ure over time. Special items Items that are considered not part of ongoing business Items that are not part of ongoing business, e.g. cost related to M&A and restructuring, adjustments of earn-out payments. Net Debt / EBITDA before special items* (Interest bearing debt, minus cash and cash equivalents) / EBITDA before special items on rolling twelve months basis This ratio is used to describe the horizon for pay back of the interest-bearing debt and measures the leverage of the funding. Liquidity ratio Current Assets / Current Liabilities Measures the ability of the group to pay its current liabilities using current assets. Equity to assets ratio Equity / Total Assets Reported to show how much of the assets in the company is funded by equity Cash conversion rate before special items (Cash flow from operations before special items + Cash from CAPEX) / EBITDA before special items This APM is reported to illustrate the Group’s ability to convert profits to cash NDC New depositing customers A key figure to reflect the Group’s ability to fuel long-term revenue and organic growth Organic Growth Revenue growth as compared to the same pe- riod previous year. Organic growth from ac- quired companies or assets are calculated from the date of acquisition measured against the historical baseline performance. Reported to measure the ability to generate growth from existing business Alternative Performance Measures and Definitions ===== SIDA 36 ===== Q4 report 2023 Page 35 Alternative Performance Measure Description SCOPE Recurring revenue Recurring revenue is a combined set of reve- nues that is defined as recurring as manage- ment considers that the sources of these rev- enue streams will continuously generate reve- nue over a variable period of time and size e.g. if players continue to bet with gaming opera- tors with which BC has revenue share agree- ments, customers continue current subscrip- tions or if BC on a current basis receive reve- nues from customers having current market- ing agreements in respect of banners, etc. on the group’s websites. Accordingly, it includes Revenue share income, CPM /Advertising and subscription revenues. The group reports this APM to distinguish between what management consider as recurring revenue streams and what management consider as non-re- curring revenue streams, e.g. revenues reflecting one-time settlements with gaming operators. *Net debt definition has been changed from Q3, 2023 so it is excluding earn-outs. Comparatives have been changed accordingly. Definitions Term Description PPC Pay-Per-Click SEO Search Engine Optimization Sports win margin Sports net player winnings (operators) / sports wagering Sports wagering The value of bets placed by the players Recurring revenue Recurring revenue is a combined set of revenues that is defined as recurring. It includes revenue share income, CPM/Advertising and subscription revenues Board The Board of Directors of the company Executive management Executives that are registered with the Danish Company register Company Better Collective A/S, a company registered under the laws of Denmark ===== SIDA 37 ===== Q4 report 2023 Page 36 Better Collective A/S Sankt Annæ Plads 26-28 1250 Copenhagen K Denmark CVR no 27 65 29 13 +45 29 91 99 65 info@bettercollective.com bettercollective.com