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Market Monitor Better Collective
Chart 3 : Better Collective NDCs 3Q18-3Q20
120
60 67,000 76,000 116,000 111,000 85,000
118,000 116,000 76,000 97,000
0 3Q18
4Q18
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Source : Company reports
impressive , with revenues of € 12.4m , up 87 % on the same period last year ( which included the first month of Atemi Group being included ). The company said 33 % of the growth was organic growth . Excluding Atemi , organic growth was 20 %.
The company is clearly happy to maintain its targets for 2020 and 2021 on the basis that the calendar will be filled with high-profile sporting events and high levels of betting activity .
ATEMI ACQUISITION ‘ TRANSFORMATIONAL ’
The big news from Better Collective was the acquisition of Atemi Group for up to € 44m just after the period ’ s close . The deal propels Better Collective into the paid media arena and will substantially alter the earnings profile for the group as a whole .
Following the Atemi acquisition , the € 20.9m quarterly revenue record of Q1 will soon be eclipsed .
According to analysis from analysts at Redeye in Stockholm , fourthquarter revenue will hit € 35m and this will continue to rise to hit € 45m by the last quarter of next year . This means annual revenues are predicted to rise from € 89.5m this year to € 162.5m next year , an increase of more than 80 %.
EBITDA , meanwhile , is also forecast to rise , from an estimated € 37.2m for this year to € 63.3m in 2021 ( again , 80 %-plus growth ) and € 81.9m the year after , a further 22 % year-on-year rise .
It will also significantly move the dial for new depositing customers . In the press release announcing the deal , Better Collective said Atemi is on course to send more than 180,000 NDCs to its partners . Over the past four quarters , Better Collective has achieved NDCs of more than 400,000 . Consequently , it is likely it will be hitting somewhere close to 600,000 for 2021 , or about 150,000 per quarter , depending on seasonality .
At present , most of the Atemi traffic will be casino customers , but as was noted at the time of the deal , Atemi was working on developing sports betting comparison platforms .
In other words , the Atemi deal is truly transformational . “ The price is attractive , the synergies should be substantial , and Better Collective has an excellent track record of making value-adding acquisitions ,” the Redeye analysts concluded . “ All in all , Atemi Group seems to be another impressive acquisition by Better Collective .”
The only downsides , they added , were what the deal meant iGB Market Monitor