Better Collective has updated its annual financial guidance for the second time in two months following a series of recent developments. For the 12 months to 31 December, the betting company now expects to record revenue of between €315m and €325m. This would imply year-on-year growth of between 17% and 21%.
That’s up from the €305m to €315m range set in April, which had already been revised upwards from €290m to €300m following the acquisition of advertising company Skycon Limited.
The group also decided to raise the guidance for earnings before interest, tax, depreciation and amortization (EBITDA) before special items to a range of €105m to €115m. That would represent a year-over-year increase of between 24% and 35%.
This was higher than the €95m-€105m range set in April following the Skycon takeover, where initial guidance had been set at €90m-€100m.
Better Collective record performance
Better Collective said it made the adjustments after a record first quarter, in which revenue reached an all-time high of €88 million. This represented a 30% increase over the same period in 2022.
EBITDA before special items also increased 44% year-on-year to €33 million, while an April trading update indicated 40% growth at the start of the second quarter.
After a strong start to the year, the group said it maintained momentum in the second quarter, highlighting better-than-expected performance in the Americas, media partnerships and margin of victory in sports.
Long term goals
Earlier this year, Better Collective also set long-term financial goals for the next four years, through 2027, in line with its growth strategy.
Targets include a compound annual revenue growth rate of more than 20%, an EBITDA margin before special items of 30% to 40% and a net debt to EBITDA ratio below 3%.
The group also revealed that these targets will be based on the assumption that mergers and acquisitions will be funded exclusively by its own cash flow and debt.
