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Affiliate Monitor Company-by-company Q3 results analysis
Better Collective
Stealing a march
If Catena was looking for the culprit for its revenue dive , then look no further than Better Collective . “ We grew revenue 26 % to € 75m , which was primarily driven by our media partnerships and the continued strong development in our paid media business ,” CEO Jesper Søgaard told analysts on the company ’ s third-quarter call .
Moreover , while Catena is labouring with its own transition to revenue share , Better Collective is – appropriately enough for the market leader – well ahead of the game . “ Sustainable longterm value creation is in our DNA , and our commercial team in North America has been able to fast forward the revenue share transition , which will provide strong value in the long run while having a short-term dampening effect on revenue and earnings ,” he said .
Of that revenue growth of 26 %, 16 % was organic while of the total of € 75m , recurring revenue – or revenue share by another term – saw growth of 46 % and now represents 61 % of the total group revenue . EBITDA grew by 35 % to € 20m .
The only cloud comes from the quarter-on-quarter declines seen in both the second quarter and
Chart 2 : Better Collective revenues Q421-Q323 (€ m )
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52.2
67.4
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Chart 3 : Better Collective EBITDA Q421-Q323 (€ m )
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16.3
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the three months just gone . It is a pattern that is repeated with the company ’ s EBITDA .
12.2
As with Catena , the quarter-onquarter revenue declines were pegged on the move towards more revenue-share agreements in North America with CFO
14.6
Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323
86.1
35.2
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Flemming Pedersen giving some further insight into the mechanics of the deals .
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“ Ever since the PASPA repeal in 2018 , we have been pushing for revenue-share agreements in North America , just like in most of our operations in the rest of iGB Affiliate Monitor