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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