iGB-Affiliate-Monitor_OCTOBER-2021 - Page 13

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“ Media deals delivered more than 38,000 NDCs over the quarter for Better Collective out of a total of 179,000 or 21 %” revenues while the paid media division – largely the Atemi acquisition – was worth € 13.95m . Revenue share made up 47 % of total revenues while CPAs were worth 40 % with subscription ( 5 %) and other ( 8 %) making up the rest .
Signifying the growing importance of the US to both its own business and the wider sector , Better Collective broke out its revenues from the US for the first time in this quarterly report .
Revenues in the three months to June rose to € 6.95m , up 429 % year-on-year and now contributing 19 % of the total . This includes the debut contribution from the Action Network which totalled € 1.8m and a neutral EBITDA . On the earnings call , CEO Jesper Søgaard was keen to say there would be more to come from what in his view was “ the number one asset in the US sports betting industry ”.
“ US is a key market for Better Collective ,” he said . “ Most of our business is based on the affiliate marketing model but we have been adding revenue streams , meaning it should be viewed as more of a media play in the US .”
“ Adding Action clearly strengthens our position and market leadership ,” said chief financial officer Flemming Pedersen , before pointing out that the business shouldn ’ t be looked at as a “ linear case ”.
“ They are on a strong growth trajectory from here ,” he added . “ It is an asset that is fundamentally growing .”
“ Action is a company that under previous ownership went through the development and build up and now this year we are turning to a profit ,” Pedersen suggested . “ In the second half it is expected to turn to profit . We have high expectations that it will be one of the strongest assets in the US market .”
In fact , in total Better Collective now predicts the US market will be worth over $ 100m in revenues by the end of next year . That will be a noteworthy acceleration .
The stress on the media angle with Better Collective was hammered home by what the company said about the recent success it was enjoying with its media partnerships . Søgaard said such previously announced deals as the tie-ups with the Daily Telegraph in the UK and nj . com in New Jersey , as well as with three unnamed partners , had achieved a “ breakthrough ” in the second quarter having previously established the proof of concept .
The media deals delivered more than 38,000 NDCs over the quarter out of a total of 179,000 or 21 %. Søgaard noted that the nj . com deal in particular was helping answer one of the bigger questions that have arisen in the US ; namely , whether growth in affiliate traffic can be sustained once the initial rush of a market opening up can be sustained .
“ Our experience is very positive in New Jersey ,” he said . “ There is strong growth in that market – 40 % growth year-on-year . It is similar in our business , it performs well , we have the partnership with nj . com , so there are no signs
October 2021