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

Flutter Entertainment is set to deploy GTG Network’s (GTG) “Skill Zone” free-to-play (FTP) portfolio across its Paddy Power vertical. 

The operator says GTG’s Skill Zone inventory, which includes its flagship “Hit the Spot” game, along with trivia games and arcade basketball, will expand its sportsbook FTP offering and increase player engagement. 

Skill Zone games will be launched across Paddy Power desktop and mobile (iOS and Android) verticals. 

Commenting on the news co-founder and partner at GTG, Nathan Rothschild, said:

“In what is an unprecedented and difficult time, we’re fortunate to be in a position to have a suite of products to connect with fans whilst there is little sport being played. We have been excited about the response to Skill Zone. Already a unique offering for sportsbooks, the new features we are releasing will truly push the benchmark for industry innovation.”

While Paddy Power Sports Director, Ben Reilly, added:

“With the impacts of COVID19 on the sporting calendar, we’ve been looking for creative ways to keep our customers entertained and engaged with our brand. We’re really pleased with the early results from Skill Zone, providing a mix of sport and trivia games that our customers have really taken to.”

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Digital performance marketing company XLMedia has announced cost cutting measures, including staff cuts.

The company says it is aiming to save USD $5 million by laying off staff and focusing on automation and outsourcing. 

Commenting on the plans XLMedia Chief Executive, Stuart Simms, said:

“I joined XLMedia with the clear intention to orientate the Company towards a balanced portfolio of premium branded sites, in verticals and markets that deliver sustainable revenue growth. To support this transformation, we have been working diligently to augment our leadership team and operating structure, as well as to right-size the resources required for our business to operate most efficiently.

“Our transformation plan continues to gather momentum, and I am pleased to share our progress with all our major stakeholders, alongside welcoming new talent to the business.”

XLMedia has also promoted Chief Transformation Officer Sarah Clark, who joined the company in February, to the position of Chief Operational Officer full-time. Meanwhile Xen Lategan, formerly CTO for New International, has been appointed interim technology consultant. 

Jersey-based XLMedia works with many major gambling operators including betway, betsson, 888 Holdings, William Hill, UNIBET, PaddyPower, Mr Green, and Ladbrokes. 

AYO.NEWS says:

Ever-increasing regulation, brutal competition, and increasing apathy from consumers were making life difficult for affiliate marketing companies even before the COVID-19 crisis. As the economic catastrophe caused by governments’ overreactions to the pandemic start to bite, things are sure to get even harder.

Earlier today we reported that affiliate marketing company Raketech had reported a 77% plunge in total profits for the first quarter of 2020. 

‘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

Blitz Studios, developer of fantasy sports and messaging app Sleeper has raised $20 million in its latest funding round, and launched a new fantasy League of Legends game. 

The funding round was led by Andreessen Horowitz, and included Twitch co-founder Kevin Lin, former NBA player Baron Davis, and NFL player JuJu Smith-Schuster. NBA All-Star Kevin Durant also participated in a previous funding round.

The new LoL fantasy game is available on Sleeper’s app for iOS and Android, in five regions and their respective LoL leagues (LEC, LCK, LCS, VCS, and CBLoL), and according to the company, is perfect for casual gamers who are interested in “diving deeper into esports.” 

Sleeper says it has included added levels of strategy to its new strategy game that will be familiar to League of Legends players, including the concept of picks and bans. 

According to Sleeper CEO Nan Wang, the company is aiming to create a space where fans can bond over sports and esports, through games and chat.

In addition to its esports fantasy offering, Sleeper is also planning to expand its traditional fantasy sports offering to include sports like basketball and soccer later this year.

AYO.NEWS says:

Fantasy esports is really starting to find traction, and driving fan engagement to new highs. The fact that Sleeper is offering traditional fantasy sports, fantasy esports and messaging on the same platform clearly gives it the opportunity to tap into far wider demographics than other providers – indeed, this sports/esports/social mix may well be the future.

‘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

British horseracing could be set for a return on 1 June, as the government eases lockdown restrictions. 

The British Horseracing Authority (BHA), the Racecourse Association, the Racecourse Owners Association, and the National Trainers Federation, have all committed to restart horseracing on 1 June, and will be publishing a timeline of preparations shortly. 

It had been hoped to restart racing in Britain, which has been suspended since 17 March, in May, but this was not possible because the government extended lockdown measures. Across the Channel horseracing restarted in Germany on 7 May and France on 11 May. 

However, it should be stressed that the UK government’s plan to allow sports to resume on 1 June is dependent on satisfactory progress having been made in controlling the spread of the COVID-19 virus. 

AYO.NEWS says:

Sports bodies, including the Premier League, and fans across the UK now face a tense couple of weeks to see if “sufficient progress” is made in controlling the spread of the virus. 

If sufficient progress is not made, lockdown measures may be extended. Also, it is worth bearing in mind that some countries have already reintroduced local lockdowns as infection rates have risen again, and it is widely expected there will be multiple major waves of infection globally. 

‘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

Swedish gambling operator Svenska Spel has extended its partnership with the Swedish Sports Federation. 

The new deal, said to be worth SEK 17M (approx. €1.61m), will now run through 31 December 2020 and extends a partnership that dates back to 2017. 

Over the course of the partnership, Svenska Spel has helped the federation run several projects, including the Forward Project, which helps support 62 sports associations annually, and the Future Fund, which offers funding for associations that improve sports accessibility. The partnership will continue to support the Elite Sports Scholarship, which awards funding of SEK 50K to 75  athletes each year.

Collaboration will also continue in the fight against match fixing and sports fraud. 

Commenting on the extended partnership President and CEO of Svenska Spel, Patrik Hofbauer, said:

“When the Swedish sports movement has been hit hard by the corona pandemic, it feels good that Svenska Spel and the Swedish Sports Federation extend the cooperation. 

“In this way we secure important funds for Swedish sport. At the same time, work is underway on a more long-term plan for how we together can continue to strengthen the sports movement.”

Staying in Sweden, earlier today we reported that LeoVegas has launched a public awareness campaign in the country, aimed at encouraging players to choose licensed operators, as the industry prepares for the introduction of draconian new emergency restrictions. 

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