Better Collective (BETCO) Q4 2024 earnings summary

Executive summary

• 2024 was marked by significant external headwinds, including regulatory changes in Brazil and lower-than-expected U.S. activity, prompting a swift cost-efficiency program.

• Achieved profitable growth with a 45% CAGR in revenue and 39% CAGR in EBITDA from 2018–2024, with recurring revenue reaching record levels and business resilience highlighted.

• Growth in 2024 was driven by acquisitions (Playmaker Capital, AceOdds), recurring revenue, and strong performance in Europe, Canada, and eSports, while organic growth declined due to US and Brazil market slowdowns.

• The company shifted focus to organic growth, cash flow protection, and financial agility, with a strategic pivot away from near-term M&A.

• A 50 mEUR cost-efficiency program was executed faster than planned, improving EBITDA and resulting in over 300 job reductions.

Financial highlights

• Full-year 2024 revenue was 371.5 mEUR, up 14%, with recurring revenue up 21% to 230.7 mEUR, and EBITDA before special items up 2% to 113.4 mEUR (31% margin).

• Q4 2024 revenue reached 96.2 mEUR (+13%), recurring revenue 63.1 mEUR (+28%), EBITDA before special items 33.5 mEUR (+14%), EBITDA margin 35%.

• Delivered 1.75 million new depositing customers (NDCs) in 2024, with 81% on revenue share agreements.

• eSports assets generated over 20 million EUR in 2024, primarily from advertising and sponsorships.

• Cash flow from operations before special items was 82.6 mEUR for 2024, with a cash conversion rate of 86%.

Outlook and guidance

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

• Short-term revenue and EBITDA will be impacted by Brazilian regulation, with an estimated 35–50 mEUR negative effect on 2025 EBITDA.

• Organic growth expected to return in 2026 after Brazilian market rebases, with long-term EBITDA margin target for 2027 at 35–40%.

• Net debt to EBITDA expected to remain below 3x.

• Free cash flow guidance for 2025: 55–75 mEUR.