Better Collective (BETCO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was €82 million and EBITDA €23 million, both in line with expectations, supported by €12 million in cost savings and completion of a €50 million cost efficiency program.

• Esports was established as a standalone, high-margin segment, reflecting audit requirements and long-term growth potential.

• Brazil experienced strong activity post-regulation, though regulatory changes led to an 18% year-over-year revenue decline and increased compliance risk.

• A new KPI, 'value of deposit,' was introduced to confirm the quality and stability of the recurring revenue base.

• A new share buyback program of up to €20 million was announced following the completion of the current program.

Financial highlights

• Q2 2025 revenue was €82 million, down 18% year-over-year, with EBITDA before special items at €23 million (28% margin), and group costs down 16% year-over-year.

• Cost efficiency program delivered €12 million in quarterly savings, annualizing to €50 million.

• Recurring revenue was €52 million (64% of total), with 86% of NDCs on revenue share contracts.

• Revenue share income reached €180 million last year, continuing a long-term growth trend.

• Free cash flow for Q2 was €13 million, with a cash conversion rate of 83%.

Outlook and guidance

• Full-year 2025 guidance unchanged: revenue €320–350 million, EBITDA €100–120 million, free cash flow €55–75 million, net debt/EBITDA <3x.

• 2027 targets: positive organic growth from 2026, EBITDA margin 35–40%, net debt/EBITDA <3x.

• Brazilian regulation expected to cause a 50–70% short-term decline in Brazilian revenue share income, impacting EBITDA by €35–50 million.

• Growth expected in Europe, Esports, South America (excluding Brazil), Canada, and US.

• Missouri state launch is included in the full-year guidance.