Better Collective A/s · OMXCOP:BETCO_DKK
Better Collective A/s — Q3 2024 Earnings Presentation
18 slides from Better Collective A/s's earnings presentation, Nov 14, 2024
Slide 1: Q3 2024 Webcast presentation
Q3 2024 Webcast presentation
Slide 2: Forward-looking statement
Forward-looking statement This presentation contains certain forward-looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for example, contain wording such as “beli
Slide 3: Agenda
Agenda I Business update and Q3 highlights II Financial performance III Key takeaways Jesper Søgaard Flemming Pedersen Mikkel Munch-Jacobsgaard Co-founder & CEO EVP & CFO VP Group Strategy, IR & Corporate Communication 3
Slide 4: Business update and Q3 highlights
Business update and Q3 highlights By Jesper Søgaard Co-founder & CEO 4
Slide 5: Profitable growth has always been our core focus
Profitable growth has always been our core focus 13% 34% 2018 - 2024 Revenue CAGR 45% 355- 375 EBITDA 327 29% CAGR 37% 269 8% 177 26% 91 100- 9% 111 68 110 85 40 56 37 16 27 40% 40% 41% 32% 32% 34% 5
Slide 6: The US market remains highly valuable
The US market remains highly valuable Maine Vermont Massachusetts ◆ New York US is still a young market with changing market Wyoming Michigan Connecticut Pennsylvania New Jersey dynamics Iowa Nevada Maryland Indiana Ohio Washington, DC Illinois Colorado West Virginia District of Columbia Kansas Kent
Slide 7: The Brazilian market is nearing regulation and Better Collective is well positioned
The Brazilian market is nearing regulation and Better Collective is well positioned Top 10 Regional Sports Digital Media Groups ◆ Brazil accounts for 20% of Group revenues Visits (Millions) 1 BETTER COLLECTIVE +206.2 ◆ Local regulation anticipated from January 1 2 ESPN +69.1 2025 - reduced marketing
Slide 8: Cost reduction program of more than 50 mEUR
Cost reduction program of more than 50 mEUR to prepare Better Collective for the next phase of growth ◆ Adapting to market developments and recognizing M&A synergies ◆ Terminated >300 positions end of October ◆ Other operating costs reduced to lower levels ◆ Full effect from beginning of 2025 ◆ Tact
Slide 9: Financial performance
Financial performance By Flemming Pedersen EVP & CFO 9
Slide 10: Organic growth was impacted by the US and Brazilian markets
Organic growth was impacted by the US and Brazilian markets Revenue mEUR *EBITDA mEUR +8% Before special items 81 75 -6% 60 Organic growth 45 Q3 21 Q3 22 Q3 23 Q3 24 10
Slide 11: Recurring revenue continues to compound this quarter
Recurring revenue continues to compound this quarter driven by M&A, as Brazil market slowdown has impacted revenue share Recurring revenue mEUR 11
Slide 12: Revenue share income continues to compound despite short term developments in Brazil
Revenue share income continues to compound despite being impacted by the short term developments in Brazil Revenue share income mEUR 12
Slide 13: Reported North American revenue growth seems like it has plateaued
Reported North American revenue growth seems like it has plateaued… ◆ The US business has been running with healthy margins since launch in 2019 ◆ From Q3 2022 the business gradually started transitioning from CPA (upfront payments) to recurring revenue share 31% 28% 37% 22% 13% Reported NA revenue
Slide 14: Significant value creation when including the revenue share transition
… however we have seen significant value creation when including the revenue share transition… ◆ The strategic shift to revenue share ensures long term financial sustainability ◆ The Group estimates an unrecognized accumulated Customer Lifetime Value (CLV) Pro forma historical database of >155 mEUR of
Slide 15: North American business adjusted after change in market dynamics
… and after the change in market dynamics we have adjusted the North American business accordingly ◆ Better Collective expects to recognize 10-15 mEUR of these >120 mEUR during 2025 ◆ Management aim for the North American business to deliver >20% reported EBITDA-margin, Pro forma historical and >35%
Slide 16: 2024 financial targets were downgraded, long term targets remain unchanged
2024 financial targets were downgraded, long term targets remain unchanged 2024 2027 • Revenue: 355-375 mEUR (former 395-425 mEUR) • Revenue: CAGR +20% • EBITDA*: 100-110 mEUR (former 130-140 mEUR) • EBITDA* margin: 35-40% • Net debt to EBITDA 3x • Net debt to EBITDA <3 *Before special items Assume M
Slide 17: Summary
Summary ◆ Nothing structural for Better Collective has changed ◆ We are operating in strong underlying growth markets ◆ When market dynamics change, we can and must adapt and adjust ◆ We have a flexible operating model that enables this ◆ We remain a strong financial position with a lot of recurring r
Slide 18: Q&A
Q&A Contact: Mikkel Munch-Jacobsgaard VP Group Strategy, IR & Corporate Communication investor@bettercollective.com www.bettercollective.com