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Affiliate Monitor Executive summary
Executive summary
WELCOME
BETTER COLLECTIVE DOMINATES this report as it dominates the entire sector . Its rise is nothing short of extraordinary , an ascent that has been helped along not only by phenomenal organic growth but also hugely significant and sector-defining M & A .
As the company said during its recent capital markets day presentation , it has gone through three distinct phases in its history . The first was the startup era in the early 2000s , the second an organic growth phase from 2009 to 2016 , and the third the M & A period from 2017 .
The IPO in 2018 was a turning point , providing Better Collective with the capital to embark on an M & A spree , which has diversified the company both geographically and in terms of revenue sources . Better Collective has moved away from a reliance on Google and a single big customer and now derives revenue from a broader base , including advertising and subscriptions .
“ The shadow Better Collective casts over the rest of the sector is clearly evident and none more so than for what was once the sector ’ s standard bearer ”
The company has made significant investments in M & A , spending € 598m on acquisitions since 2017 with the biggest deal to date being the € 240m acquisition of the Action Network , which did not turn a profit at the time .
The diversification strategy has reduced the company ’ s reliance on affiliates and enabled it to move into adtech . Better Collective is investing in its platform , which has the potential to bring in significant revenue from partnerships with companies such as Coca-Cola , Red Bull and Mastercard .
The shadow Better Collective casts over the rest of the sector is clearly evident and none more so than for what was once the sector ’ s standard bearer . The questions for Catena Media appear to be more complicated and potentially existential as it faces up to a year ahead clouded by Better Collective ’ s 5 % stake in its own business . How that one is resolved will say a lot about Better Collective ’ s ambitions and the rest of the sector it seems intent on leaving behind . iGB Affiliate Monitor