Better Collective, a developer of educational platforms for the igaming industry, has published a glowing set of full year results for 2018, marred only slightly by a decline in organic revenue growth in Q4. The firm also used the dispatch to set out its vision for the US market where it has been increasing its efforts in the wake of the repeal of PASPA.
In the full year of 2018, Better Collective reported revenue growth of 54% to $45,666.6 (full year 2017: $26,257). Organic revenue growth was 9%. In the full year of 2018, EBITA before special items increased 47% to $18,129.94 (full year 2017: $12,334.04). The EBITA-margin before special items was 40% for the full year, resulting from 40% in Q2, growing to 43% in Q3, and 44% in Q4.
CEO Jesper Søgaard, updating investors on activity stateside, commented: “US opportunity will continue to guide activities in 2019. In 2018, following the repeal of the PASPA Act, we increased our efforts in the US. We have had US-focused products up and running for some time, leading to revenue streams from online sports betting since late Q3. Building a presence and taking part in ‘the race’, which many stakeholders are entering, will continue in 2019.
“In Q4, further resources were allocated to the process of offering new products and adjusting current products to US needs. While we do not expect organic growth to do it alone, we believe that Better Collective has a unique offering in terms of technology and know-how in order to find attractive business in this new and potentially very big market. My expectation is that we will find new business from the organic approach as well as through collaborations and acquisitions.”
Talking more generally about the business, he added: “In Q4, we continued to deliver significant growth. However, when comparing to the extraordinarily strong Q4 2017, organic revenue declined as expected. This is explained by the volatility that we face in our line of business, where the timing and results of big sport events plus NDC growth have a direct impact on revenue.
“For the full year 2018, we are in line with our expectations, and we are well prepared for 2019. The strong growth in NDCs and other relevant KPIs, including player deposits and sports betting turnover, were significantly higher compared to revenue growth and continue the trend we have seen throughout the year. As most NDCs are on revenue-share based contracts my expectation is that this will accelerate future growth.”