Better Collective has released its latest annual earnings report following a fiscal year marred by a round of layoffs and lowered financial projections.
The Denmark-based digital sports media company generated $386.7 million in revenue in 2024, a 14% increase compared to the year prior. Better Collective reported an EBITDA before special items of $118 million nearly mirroring 2023’s results of $116 million.
Better Collective reported favorable revenue growth in 2024 despite a myriad of changes.
“In the U.S., our business started the year of 2024 well—helped by the launch of sports betting in North Carolina—but faced lower than expected activity leading into the NFL season,” said Better Collective CEO Jesper Søgaard in a letter to investors. “The U.S. market’s dynamics, dominated by few sportsbooks, highlighted the importance of active challengers. Many challenger brands shifted focus away from the U.S., reducing competitive pressure as well as lowering marketing spending by market leaders.”
As a result of the decline in spending, Better Collective lowered its 2024 revenue projection in Q3 2024 marking the first time the company lowered its target since being publicly listed on Nasdaq Stockholm. Better Collective projected full-year revenue in 2024 to range between $375.2 million and $396.3 million. The company’s previous full-year revenue guidance estimated revenue to range between $417.3 million and $449 million.
North America revenue for Better Collective closed at $112 million in 2024. By comparison, revenue in North America for Better Collective reached $113 million in 2023.
Better Collective also made organizational changes amid shifts in the affiliate industry.
The company laid off more than 300 employees in October 2024 following a review of the company’s operational costs. The layoffs represented 15% of Better Collective’s workforce.
Better Collective expands reach in Brazil
Better Collective projects revenue in 2025 to range between $333 million and $365 million.
The company anticipates the recent regulation of Brazil’s gaming market will impact results. In 2025, Better Collective projects up to a 70% decline in Brazilian revenue share income due to taxation, customer churn and added costs on net gaming revenue.
As a result, Better Collective projects its EBITDA before special items in 2025 to remain flat compared to the year prior.
Before Brazil legalized iGaming and sports betting on Jan. 1, the country contributed less than 20% to Better Collective’s total revenue. Last February, Better Collective prepared for its presence in Brazil’s gaming market with the acquisition of digital sports media group Playmaker Capital Inc., which has solidified a footprint across South America.
“This [acquisition] positioned us as the largest digital sports media group in the region, putting us in an ideal position to support our partners in what will undoubtedly be a highly competitive market landscape,” said Søgaard during the company’s Q4 earnings call.
Better Collective anticipates its presence in Brazil to generate long-term revenue as it delivers new depositing customers to new and existing partners.
iGaming and eSports emerge as growing verticals
In addition to Brazil, Better Collective is anticipating driving growth from eSports.
In 2024, the company’s eSports and gaming media portfolio reached roughly 100 million monthly visits across all brands with revenue reaching about $21 million for the year.
“This momentum underscores our strategic focus on eSports as a key growth area,” continued Søgaard. “I’m incredibly proud of the team’s achievements and excited about the continued potential within this space.”
In the U.S., Better Collective has ground to gain in iGaming. The company has voiced its desire to expand its reach in the vertical as more states legalize and its competitors lower marketing activity overall. Online casino operations in the U.S. generated $8.4 billion in revenue in 2024, a 28% increase year-over-year, according to data from the American Gaming Association.
“We have the predominant part of our business being focused on sports betting, but we really see online casino as a very complementary product and very relevant to our business as well,” added Søgaard.
Better Collective has recently initiated a share buy-back program for up to $10 million that ends on April 16. The company plans to release its Q1 2025 earnings results on May 22.
