Better Collective reported a year-on-year revenue decline of 13% in Q1, falling to €83m ($93m). EBITDA also dropped, down to €22m, which marked a 24% decline from Q1 2024.
Despite the lower figures, the Danish-based gambling affiliate reiterated its projection of €320–€350 million in revenue and EBITDA of €100–€120 million for 2025. The results were published on May 21
The company expected a decline in growth after posting revenue of €386.7 million last year. EBITDA is expected to be around the same as 2024’s €118 million.
In the report, the company stated, “By the end of April, Better Collective has embarked on a transformative journey to align our organizational structure with our long-term strategic objectives.
“Recognizing the need for enhanced scalability, focus, and global integration, we have transitioned to a model that better supports our growth ambitions.”
Revenue down 32% in North America
Revenue in North America dropped to €23 million, a 32% decline from the €35 million of Q1 in 2024. EBITDA fell to €4.2 million, a 54% decrease from €9.1 million in the same quarter last year.
Around €5 million of the revenue decline is attributed to the boost the company got in Q1 last year from North Carolina sports betting launching. Another €5–6 million decline resulted from decreased marketing spending by U.S. partners, leading to lower customer acquisition.
The company has also shifted from Cost Per Acquisition (CPA) deals to revenue-sharing models, which have led to deferred payments, impacting immediate performance.
The report states that “North American business performed in line with expectations”, but there must be some disappointment that some of the negatives were not offset.
Brazil regulation impacts performance
Regulation of sports betting in Brazil at the start of the year also impacted results. The market shift is identified as causing a €7 million negative. But, as with the negatives in the US, the company stated that, “The shift towards a regulated market in Brazil from January 1, has so far gone better than expected”.
New depositing customers (NDCs) totalled 316,000 for the quarter, down 30% year-on-year, largely due to Brazil’s bonus restrictions and slower acquisition. However, an upturn is expected later in the year.
“The Brazilian business is expected to return to growth by 2026,” read the report.
“Better Collective maintains a strong long-term outlook for Brazil, anticipating it will return to a highgrowth market, offsetting the short-term impact observed in the current transition phase.”
Cost efficiency programs to offset damage
In response to the market challenges, the company has implemented cost-saving measures that are estimated to save €50 million. In Q1, costs fell by €5 million, with significant reductions in staff and operational spending.
The report commented, “Our recent organizational restructuring is centered around the establishment of three global business units: Publishing, Paid Media, and Esports – a strategic shift away from our former geography-based structure. This new setup is designed to reduce complexity, eliminate duplication, and allow us to scale best practices more efficiently across all markets.”
Better Collective has also named Christian Kirk Rasmussen as Co-CEO alongside Jesper Søgaard, and believes that “Together, they form a robust leadership duo, geared to guide Better Collective into a new era of growth.”
The inclusion of Playmaker Capital in results from February added a €7m positive revenue effect, and the company will hope it can offset the $176 million paid in 2023 with better results in the US and Brazil to come.
It has been a quarter of struggle for many gambling affiliate groups, with Raketech, Gentoo, and Catena also seeing revenue drops. Gambling.com, however, was able to buck the trend and posted record revenue numbers for Q1.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
