Interim report january 1 - December 31, 2019
Highlights fourth quarter 2019
- Q4 Revenue grew by 61% to 19,579 tEUR (Q4 2018: 12,135 tEUR). Organic revenue growth was 24%.
- Q4 EBITA before special items increased 32% to 7,117 tEUR (Q4 2018: 5,382 tEUR). The EBITA-margin before special items was 36% including an expected downwards impact of 4%-points from the acquired US-businesses. Excluding the impact from US, the EBITA-margin before special items was 40%.
- Sports win margins were significantly lower than historic average. Compared to historic average, revenue and earnings were affected negatively by an estimated 2 mEUR in the quarter.
- New Depositing Customers (NDCs) exceeded 118.000 in the quarter (growth of 55%, most of which organic). This established a new quarterly company record.
- Bank financing with Nordea has been re-structured and Better Collective now has committed 3-year credit facilities of >80 mEUR with an extension option for one additional year.
- A directed new share issue of 4 million shares raised cash proceeds to the Company of 30 mEUR (312 mSEK) before transaction costs.
- Cash Flow from operations before special items was 7,532 tEUR (Q4 2018: 5,411 tEUR), an increase of 39%. The cash conversion was 96%. End of Q4, capital reserves stood at 90 mEUR consisting of net cash of 23 mEUR and unused bank credit facilities of 67 mEUR.
- A new version of the flagship product bettingexpert.com was launched.
Financial highlights full year 2019
- Revenue grew by 67% to 67,449 tEUR (YTD 2018:40,483 tEUR). Organic revenue growth was 26%.
- EBITA before special items grew by 69% to 27,231 tEUR (YTD 2018: 16,072 tEUR). The EBITA-margin before special items was 40% (YTD 2018: 40%). Excluding the acquired US-business the EBITA-margin was 43%.
- Cash Flow from operations before special items was 26,585 tEUR (YTD 2018: 15,158 tEUR), an increase of 75%. The cash conversion rate before special items was 91% (YTD 2018: 89%).
- New Depositing Costumers (NDCs) exceeded 431,000 (growth of 66%).
- Acquisitions completed in 2019 by Better Collective:
- 60% of the shares in Rical LLC (RotoGrinders Network) were acquired for 18 mEUR (21 mUSD). Better Collective will acquire the remaining 40% of shares in the period 2022-24 and a contingent consideration of 26.7 mEUR is recorded.
- Through the wholly-owned US subsidiary, the assets of Florida based Vegasinsider.com and Scoresandodds.com for a total transaction price of 18 mEUR (20 mUSD).
- All shares in the company owning and operating the site mybettingsites.co.uk for up to 2.4 mEUR.
- 19.99% of the shares in Mindway AI at 0.5 mEUR, who develops software solutions for the identification of at-risk and problem gambling behaviour.
Other significant events after the closure of the period
- January trading update: Revenue of approximately 7.2 mEUR (growth of 48%, of which organic growth 30% compared to January 2019). The sports win margin in January was significantly higher than historical average.
- Advanced negotiations for the potential acquisition of 100% of the shares in an e-sport company, who promotes and advertises sports betting operators, for up to 34 mEUR.
- On January 23, 2020, Better Collective hosted the first edition of bookmaker awards starting in Greece with its Greek flagship product Betarades.gr.
- Better Collective won the “Affiliate of the Year” at the EGR Nordics Awards 2020 and bettingexpert.com won the iGB Affiliate Award for Best Sports Betting Affiliate website.
A telephone conference will be held at 10.00 a.m. CET on the same day by CEO Jesper Søgaard and CFO Flemming Pedersen. The presentation will simultaneously be webcasted, and both the telephone conference and the webcast offer an opportunity to ask questions.
Dial in details for participants:
Confirmation Code: 9877437
Denmark: +45 32 72 80 42
Sweden: +46 (0)8 50692180
United Kingdom: +44 (0)8445718892
Webcast link
The webcast can also be accessed from www.bettercollective.com and the presentation will be available from 8.00 a.m. CET.
This information is such information as Better Collective A/S
is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the
agency of the contact persons set out above, at 8.00 a.m. CET on February 19, 2020.
Contacts
Investor Relations: Christina Bastius Thomsen +45 2363 8844
e-mail: investor@bettercollective.com
