Better Collective Reports Strong North American Momentum as Revenue Share Doubles in Q3

Better Collective has reported that it now has a “strong foundation” for sustained growth in North America, after revenue share income in the region doubled year-on-year during Q3.

The affiliate said a €4m increase in regional performance highlights the success of its strategic shift towards revenue share agreements, a transition that began in Q3 2022. While the move has had a short-term impact on reported revenues, the company said it is now delivering a more predictable and recurring income model.

“While this shift has temporarily impacted reported revenue, it has built a strong foundation for future recurring revenue to be recognised in the coming quarters and years,” the company said.

“During Q3, revenue share income in North America began to ramp up, doubling compared to the same period last year. Management expects revenue share income in North America to continue growing steadily, ultimately providing a more stable recurring revenue base, similar to the group’s established model in the rest of the world.”

Despite regional growth, Better Collective reported total group revenue of €78m for the quarter, representing a four per cent year-on-year decline. Results were impacted by a €10m hit from lower sports betting margins, while recurring revenue fell five per cent to €50m and accounted for 64 per cent of total revenue.

The company also highlighted progress with its AI-powered betting product, Playbook, developed in partnership with social media platform X. Since launching earlier this year, the product has reportedly driven “millions of bets” to operator partners.

Co-founder and CEO Jesper Søgaard said the underlying performance remained positive once external factors were adjusted for.

“I’m pleased to see that, when adjusting for the unusually low sports win margin of the quarter, Better Collective is back to organic revenue growth.”

“It’s a clear sign of the strength and resilience of our diversified business model and the solid execution across our organization.

“The launch of Playbook marks the next evolution of Better Collective as the digital home of sports fans - expanding our focus from customer acquisition to retention.

“Playbook is already generating millions of bets with our partners, showing strong early traction and user adoption.”

Elsewhere, the company said revenue share income in Brazil continued to exceed expectations, although the ongoing regulatory transition in the market had a negative financial impact of approximately €4m during the quarter.