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Chart 3 : Better Collective NDCs Q419-Q321
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Source : Company reports
“ We have a strong pipeline ,” he told analysts on the call . “ There are always conversations ongoing . Obviously timing is difficult to predict . We have said before there ’ s a difference when you look at the US and Europe when it comes to multiples . That is due to the growth nature in the US .”
“ We ’ re basically getting inbounds quite often from European businesses and US businesses ,” he added . “ It is known in the market that Better Collective is acquiring businesses in this industry . At the same time , we do selective outreach to targets we find interesting .”
The driver of growth is the US business where Better Collective said revenues grew by five times the 2020 total and revenue in September “ jumped ” to € 8.9m , or over $ 10m and worth 62 % of the total US revenues for the quarter . The combination of the RotoGrinders acquisition and Better Collective ’ s most ambitious M & A to date , the Action Network , is clearly working well .
“ The acquisition of the Action Network has placed Better Collective in a leading position in sports betting media in the US and creates a strong foundation for benefitting from the continuous regulation of the betting market ,” said Søgaard .
The US operations received a particular boost from the opening of the sports betting market in Arizona as well as the start of the NFL season – hence the leap in US revenues in September . CFO Flemming Pedersen said that like all new states , Arizona had demonstrated the “ one-time hit ” that can be enjoyed from a new state opening .
“ It goes for all states ,” he added . “ We see a pent-up demand . Arizona was very strong because of that pent-up demand . It will normalise .”
The next test came earlier this year with New York , something that Søgaard had said he was very excited about on the call . Of the nine licensees that went toe to toe in January , he noted that the majority were already Better Collective partners . “ Even with the significant tax burden of 51 %, we expect a competitive market with the opportunity for Better Collective to generate significant revenues ,” Søgaard told the analysts .
“ We were quite pleased to see nine get a licence . That will create a strong competitive dynamic which is great for our business ,” he continued . “ It is a market which is of high interest to all operators that have been awarded licences there and we know there are operators that didn ’ t get a licence that will surely want one if possible .”