FULLTEXT DEL 1 AV 1
Kvartalsrapport Q4 2023
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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
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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
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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.
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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
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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.
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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%
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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