In This Article:
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Revenue: Declined by 14% compared to the previous quarter and 13% year over year, resulting in Q1 revenue of EUR83 million.
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Cost Savings: Achieved EUR9 million in cost reductions year over year in Q1.
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EBITDA: Decreased by EUR7 million in the quarter, resulting in Q1 EBITDA of EUR22 million.
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Regulatory Impact: EUR7 million negative impact on revenue and EBITDA due to regulatory changes in Brazil.
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Share Buyback Program: Initiated a new EUR10 million share buyback program.
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Cost Efficiency Program: On track to deliver EUR50 million in annual cost reductions.
Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Better Collective AS (BTRCF) successfully navigated regulatory changes in Brazil, with player migration and post-regulation activity exceeding expectations.
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The company achieved significant cost savings, reducing expenses by approximately EUR9 million year over year in Q1, with a EUR50 million cost efficiency program on track.
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A strategic shift to a global management structure with three core business units (publishing, paid media, and eSports) aims to enhance scalability and operational efficiency.
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The company launched a new EUR10 million share buyback program, following a previous EUR10 million buyback earlier in the year.
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Better Collective AS (BTRCF) reported a record 450 million monthly visits across its platforms, indicating strong audience engagement and potential for alternative monetization strategies.
Negative Points
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Revenue declined by 14% compared to the previous quarter and 13% year over year, primarily due to regulatory changes in Brazil and tough comparables in the US.
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The absence of welcome bonuses in Brazil's new regulated environment slowed new customer acquisition, impacting NDC volumes.
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Lower marketing activity from US partners contributed to a EUR5 million revenue impact, reflecting challenges in the US market.
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EBITDA decreased by EUR7 million in the quarter, influenced by revenue-related impacts from Brazil and the US.
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The ongoing ban on welcome bonuses in Brazil poses a challenge for customer acquisition and market competitiveness.
Q & A Highlights
Q: What is keeping Better Collective from revising the underlying assumptions in the Brazilian market despite performing better than expected? A: Jesper Soegaard, CEO, explained that while Q1 performance in Brazil was in line with expectations, there remains uncertainty due to the recent start of the soccer season and the absence of welcome bonuses. These factors, along with the challenge of offshore markets offering bonuses, affect market channelization and competitiveness. Therefore, they are cautious about revising assumptions until more stability is observed.