igamingbusiness . com
What ’ s your view ? Tweet @ iGamingBusiness
13
“ 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 .
ALL GUNS BLAZING
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 .
FRIENDS IN THE MEDIA
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