Better Collective (BETCO) Q2 2024 earnings summary

Executive summary

• Revenue grew 27% year-over-year to €99m in Q2 2024, with 5% organic growth despite tough comps and major changes in the search landscape.

• Recurring revenue increased 26% to €62m, now 62% of total revenue, driven by revenue share, sports win margin, and acquisitions.

• EBITDA before special items was flat at €29m (29% margin), reflecting margin dilution from recent acquisitions.

• Major acquisitions (Playmaker Capital, Playmaker HQ, AceOdds) strengthened the business, with AceOdds integrating seamlessly and Playmaker Capital showing early synergies.

• Over 501,000 new depositing customers (NDCs) were delivered, with 82% on revenue share contracts; over 100,000 NDCs attributed to the Men's European Championship.

Financial highlights

• Q2 2024 revenue: €99.1m (Q2 2023: €78.1m); recurring revenue: €61.6m (Q2 2023: €48.7m).

• EBITDA before special items: €28.5m (Q2 2023: €28.7m); EBITDA margin: 29% (Q2 2023: 37%).

• Net profit after tax: €10.3m (Q2 2023: €8.3m); EPS: €0.16 (Q2 2023: €0.15).

• Cash flow from operations before special items: €27.2m; cash conversion rate: 93%.

• Net interest-bearing debt/EBITDA: 2.03x at quarter end.

Outlook and guidance

• 2024 revenue target upgraded to €395–425m (21–30% growth); EBITDA target to €125–135m (17–26% growth).

• Net debt/EBITDA to remain below 3x.

• AdVantage expected to have insignificant financial impact in 2024, with broader rollout planned for coming years.

• Full-year guidance unchanged after AceOdds acquisition; H2 expected to benefit from high sports season and full AceOdds impact.

• Long-term (2023–2027) targets: revenue CAGR >20%, EBITDA margin 35–40%.