Better Collective (BETCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 13% year-over-year to EUR 83 million, in line with expectations, amid regulatory and market headwinds in Brazil and the U.S.

• EBITDA for Q1 2025 was EUR 22 million, a 24% decrease year-over-year, with a 27% margin.

• Strategic reorganization implemented: transition to three global business units (Publishing, Paid Media, Esports), new co-CEO structure, and COO appointment.

• Major cost efficiency program delivered EUR 9–12 million in Q1 savings, targeting EUR 50 million annualized.

• New EUR 10 million share buyback program launched after completing a previous EUR 10 million buyback; 1.8% of share capital canceled.

Financial highlights

• Q1 2025 revenue: EUR 83 million, down from EUR 95 million in Q1 2024.

• Q1 2025 EBITDA: EUR 22 million, down from EUR 29 million in Q1 2024.

• Recurring revenue accounted for 49% of group revenue in Q1 2025.

• Net profit after tax was EUR 4 million, with EPS of EUR 0.06.

• Cost efficiency program delivered EUR 8–12 million in savings, partially offsetting revenue decline.

Outlook and guidance

• 2025 guidance: revenue EUR 320–350 million, EBITDA EUR 100–120 million, free cash flow EUR 55–75 million, net debt/EBITDA below 3x.

• Long-term guidance unchanged; positive organic growth expected from 2026, with EBITDA margin target of 35–40% by 2027.

• Management remains confident in recurring revenue growth, especially as deferred U.S. revenue materializes.

• Short-term revenue and EBITDA impacted by Brazilian regulation, with 50–70% decline in Brazilian revenue share income expected.

• Cautious optimism for Brazil as the market stabilizes post-regulation, but uncertainty remains due to lack of welcome bonuses and ongoing channelization challenges.