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Affiliate Monitor Company-by-company Q2 results analysis
and was “ basically upping the facilities with our increased earnings and leverage ”.
He said that taken together , its unused credit facilities and the market value of the company ’ s own shares meant that the total financial capacity for potential M & A exceeds € 150m now . “ Hence , we have plenty of firepower for expanding our activities ,” he added .
HEADING SOUTH FOR THE WINTER
A clear focus for Better Collective are the developments in Latin America . “ Recently , I had the pleasure of visiting Rio de Janeiro as we opened our South American headquarters ,” Søgaard said . “ And I was impressed to experience the region ’ s strong sports culture . I ’ m certain that Better Collective will have a long growth trajectory in this region as we continue to expand our efforts .”
He added that South America will be a “ very important pillar ” for growth given the legalisation efforts taking place across the region , particularly in Brazil . “ With the anticipated upcoming regulation of sports betting in Brazil , we expect a lot more from this region ,” he said .
However , Pedersen noted the current uncertainty over timings . “ We don ’ t expect that to have any effect before next year ,” he said . “ It ’ s unknown how our partners and customers will position themselves ahead of that .”
“ If you compare it to the US , it ’ s going to be a regulation for all of Brazil , which is good for us ”
JESPER SØGAARD , BETTER COLLECTIVE CEO
Søgaard added that the company was “ not going to put a number ” on the market potential but said prospects were at least positive . “ It is a very big country , with a culture which is very passionate about sports ,” he said .
“ So , it ’ s ideal from that perspective and from a GDP perspective . And if you compare it to the US , it ’ s going to be a regulation for all of Brazil , which is also good for us . And as I alluded to , we now have a significant presence and we ’ re going to build upon that .”
TALKING OF WHICH …
While the seasonality of the European sporting calendar will have played a part of the sequential downturn , it is of course the US market which is majorly the issue . Pedersen was speaking a matter of weeks before the new NFL season kicked off and he noted that “ one of the more volatile things is , of course , the North American markets where we are just approaching the high season for sports that kicks off in September ”.
The puts and takes of the US market right now mean that while there have been some high-profile operator exits , there are also some new entrants entering the space and that meant that , as Pedersen said , the market was a “ moving target right now ”.
“ There is more uncertainty there than in the rest of the business , given the dynamics of the market ,” he added .
But Søgaard was keen to stress that with high-profile brands such as the Action Network on its books , Better Collective was well set to compete in the North American market .
“ I don ’ t think we ’ ve seen a big change to the landscape ,” he said . “ It has always been very competitive , and I definitely expect it to continue to be very competitive to operate in North America . But we also feel that we have some very strong brands that are very relevant , and therefore , we ’ ll have a position in this market . And also , ideally and likely a leading position .” iGB Affiliate Monitor