Copenhagen-based sports betting affiliate firm Better Collective has reported strong performance in the first quarter of 2020, with revenue growing 40%.
Group revenues climbed to €20 million, driven by improved sports win margins and growing customer activity. EBITDA was up 32% year-on-year to €8.6m, and group operating profits were up 27% to €6.5m for the quarter.
Despite the great start to the year, the cancellation of global sports from mid-March due to COVID-19 lockdowns is expected to have a big impact during the second quarter. The company reported a drop of around €4.6m in April, which puts it on track for its first negative quarter since it listed on the Stockholm Nasdaq in 2018.
Reflecting on the quarter, Better Collective CEO, Jesper Søgaard, said the group’s digital business model had “proven strong” despite the unprecedented circumstances, demonstrating “the flexibility to withstand a period with low sports activity.”
As we previously reported, when the scale of the crisis became clear Better Collective implemented a cost-savings strategy, with board members and founders waiving their 2020 salaries and compensation packages.
In March, immediately before the COVID-19 lockdowns in Europe, Better Collective entered esports, acquiring leading Nordic esports publishing group HLTV.org in a €34.5 million deal.
AYO.NEWS says:
As we’ve said time and again after Q1 reports from affiliates and operators, we wouldn’t expect to see much impact from COVID-19 in the first quarter, because for most of it sports were still running. However, the second quarter will be a different story altogether.
We also feel it is far too early to consider the crisis over, and bookies and affiliates alike should brace themselves for the high likelihood of further waves of infection, with further and sudden lockdowns and disruption.
One thing’s for sure, Better Collective’s acquisition of HLTV.org looks like a very shrewd and well-timed move!
‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates.
All original content featured on this site is © Pentagon Digital Limited, 2020
