Better Collective A/S today released its Q4 2024 interim report, detailing a year marked by significant challenges and strategic adjustments. While the company demonstrated resilience with a 13% revenue increase reaching 96 million EUR in Q4, and a 14% rise for the full year at 371 million EUR, it also faced headwinds in key markets and operational adjustments, as other affiliates business (Raketech, Catena)
Key Highlights
- Revenue Growth: 13% in Q4, 14% for the year.
- Recurring Revenue: 28% increase in Q4, demonstrating the strength of the company’s subscription-based model.
- EBITDA: 34 million EUR before special items, reflecting a healthy 35% margin.
- Market Challenges: Significant slowdown in Brazil due to regulatory changes and reduced marketing activity in the US impacted overall performance.
- Strategic Realignment: Implementation of a 50 million EUR efficiency program and a shift towards organic growth and share buybacks signal a focus on financial discipline and shareholder value.
- 2025 Guidance on decline :
- Revenue of 320-350 mEUR •
- EBITDA before special items of 100-120 mEUR •
- Free cash flow of 55-75 mEUR •
- Net debt to EBITDA below 3x
Market Analysis and Outlook
Better Collective’s report highlights a complex interplay of factors affecting the digital sports media market. The company faced significant regulatory changes in Brazil, a key growth market, which led to a slowdown in marketing activities by partners. Additionally, the US market experienced a reduction in marketing spend by major players, impacting Better Collective’s revenue.
Despite these challenges, Better Collective remains optimistic about the future. The company is focusing on organic growth, operational efficiency, and returning value to shareholders through share buybacks and debt reduction.
- Geographic Focus: The company has seen strong performance in Europe and the rest of the world, with revenue reaching €68 million, marking a 16% growth. The North American segment faced challenges, with revenue at €29 million, up 6% but with an organic decline of 8%.
- Publishing vs. Paid Media: The Publishing business generated €71 million in revenue, reflecting a 20% growth, with a 1% organic growth. The Paid Media business saw a 3% decline in revenue, with organic growth down 7%.
Strategic Initiatives
In response to market dynamics, Better Collective has implemented a 50 million EUR efficiency program, demonstrating its commitment to cost management and operational agility. The company is also shifting its focus towards organic growth and away from mergers and acquisitions, signaling a strategic realignment to navigate current market conditions.
Shareholder Value
Better Collective announced a new 10 million EUR share buyback program and proposed the cancellation of its holding of own shares at the upcoming AGM, underscoring its focus on enhancing shareholder value.
Conclusion
Better Collective’s Q4 2024 report paints a picture of a company navigating a challenging yet evolving market landscape. With its strategic initiatives and focus on operational efficiency and shareholder value, Better Collective appears poised to capitalize on future opportunities in the digital sports media market.
