Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Better Collective AS (BTRCF, Financial) achieved a strong revenue growth of 27% in Q2, with 5% organic growth, despite challenging market conditions.
- The company successfully integrated three major acquisitions: Playmaker Capital, Playmaker HQ, and AceOdds, which have enriched its foundation and provided a stronger base for future growth.
- Better Collective AS (BTRCF) maintained a low debt ratio and improved capital reserves, ensuring a robust financial position.
- The in-house adtech platform, AdVantage, has shown proof of concept and initial operational success, indicating potential for future revenue growth.
- Recurring revenue grew by 26% to EUR 62 million, making up 62% of total group revenue, signaling sustainable future growth.
Negative Points
- The performance of Playmaker HQ fell short of expectations, impacting North American operations and leading to a reduced acquisition price.
- The transition to revenue share in North America resulted in a decrease in revenue share earnings compared to Q2 2023.
- The company's North American sales were down 18% organically, with a 44% decrease in revenue share in the US.
- Google's policy revisions in early Q2 affected some media partnerships, impacting content rankings and audience scale.
- The integration of Playmaker Capital is still in progress, with limited contribution to Q2 earnings and margin dilution.
Q & A Highlights
Q: Can you explain the reasons behind the NDC development trends, particularly in Europe and Rest of World?
A: Jesper Soegaard, CEO, explained that the NDCs were impacted by a 20% decrease in games in major European leagues and a slowdown in Brazil due to potential regulation. Despite these challenges, the company delivered 100,000 NDCs during the Euros, which was considered a strong performance.
Q: What is the current status of Playmaker Capital's contribution and are you still on track for the EUR15 million EBITDA target?
A: Flemming Pedersen, CFO, stated that the integration and performance of Playmaker Capital are going as planned, with early contributions being limited as expected. The company remains on track with its guidance and is pleased with the progress.
Q: How is the transition to revenue share contracts progressing, and when can we expect to see significant results?
A: Jesper Soegaard, CEO, noted that transitioning a media sales-based business like Playmaker Capital to revenue share takes time. The company is ahead of expectations in creating content and securing ranks, but it will take time before these efforts translate into net positive performance.
Q: Can you comment on the impact of Google's policy changes on your media partnerships and search rankings?
A: Jesper Soegaard, CEO, mentioned that while some media partnerships were affected, the company has learned to navigate these changes effectively. The diversified strategy has allowed them to maintain good performance, and they are confident in managing future changes.
Q: What is the expected timeline for the rollout and revenue impact of the AdVantage platform?
A: Jesper Soegaard, CEO, stated that while they are not providing specific guidance on AdVantage's revenue impact, they have seen incremental revenue growth on a small brand. The focus is on building the sales organization to support larger brand rollouts, with ongoing development expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
