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“ We anticipate extraordinary customer churn within our revenue share databases [ in Brazil ]”
JESPER SØGAARD, BETTER COLLECTIVE
[ and ] an EBITDA impact of € 35 million to € 50 million for 2025.”
But despite short-term challenges, he remained positive on the longer-term picture.“ Once the business rebases, we anticipate a return to growth in the Brazilian market from 2026 and onwards,” he told the analysts.“ We remain highly optimistic about our strategic positioning in what is poised to become one of the world’ s largest gambling markets.”
A BRAZILIAN HISTORY LESSON
Better Collective emphasised that its presence in Brazil originated from an early, organic affiliate strategy that proved highly successful:“ A few years ago, we noticed growing interest from our partners in Brazil, prompting us to start planting organic seeds in the market. These initial efforts performed exceptionally well.” This early traction led to increased investment in paid media and media partnerships, further enhancing affiliate-led user acquisition.
The company’ s affiliate-driven growth in Brazil culminated in the acquisition of Playmaker Capital, making Better Collective the largest digital sports media group in South America.
Brazil became a major revenue contributor:“ Brazil was insignificant for Better Collective a few years ago, while last year contributing almost 20 % of revenues,” said Søgaard.
Then came the regulation of the
market and the accompanying structural reset for the affiliate sector. The key impacts on the affiliate business model identified by the Better Collective team include the fact that revenue share income is under pressure with the transition to a regulated market meaning reduced margins on referred players.
Then there is the disruption caused by the player reregistration requirement. This means that existing players must reregister with sportsbooks under the new regulated framework. This creates a disruption in the affiliate tracking chain and potential loss of previously acquired users.
All this means that there will be a material EBITDA impact going forward due to reduced revenue
April 2025