Better Collective Cuts 15% of Workforce
Danish sports media and betting giant Better Collective has laid off 15% of its workforce as part of a restructure to deal with a challenging year.
Profits are up 8% year-on-year in the company’s quarterly reports, with Q3 revenue posted at $85.36 million (€81 million). That’s a 14% increase in earnings to $54.80 million (€52 million) before interest, taxes, depreciation and amortization.
Despite the positive news, there are clouds on the horizon. Organic growth fell 6%, and the company’s net debt is still double the company’s EBITDA, which is a cause for concern. The company recently adjusted its full-year financial predictions downwards from $416-446 million to $374-395 million.
Better Collective is heavily focused on the US and Brazilian markets, and both of them are in upheaval at the moment. Brazil will introduce licensed online gambling for the first time in 2025, and this will already have a negative impact on Better Collective while the market gathers itself.
There’s potential for a complete recovery, and the regulatory framework could even provide a stronger opportunity in the end for a company that collects 20% of its revenue from Brazil, but operators are battening down the hatches until the rules are clear and some have pulled out the market altogether.
“Young markets bring challenges and opportunities, and we are committed to navigating this, like done historically in more mature regulations,” Søgaard said.
While the company has made cuts, Better Collective is still open to aggressive expansion when the right opportunity presents itself. It recently paid $7.3 million for a social media asset that is yet to be revealed and has more mergers and acquisitions in the works.
“Our long-term financial guidance remains intact, implying strong growth ahead, including M&A when the timing is right,” Søgaard affirmed. “By ensuring our operations reflect current demand, we retain the flexibility to scale up as opportunities arise,”
2024 has been a rocky road for the affiliate giant, but it has made the changes it needed to and is now looking to the future.
