Correction: Annual report 2018 – a transforming year for Better Collective

Correction: The release sent on March 20, 2019 at 8.00 am CET had a reference to MAR, indicating that the report contains inside information. This is not the case. In this correction, the reference to MAR is deleted.

Regulatory Release 3/2019

Total revenue for the year amounted to 40,5 mEUR – a growth of 54%, of which the 9 percentage points were organic growth. Our operating result (EBITA) increased 47%, corresponding to an EBITA-margin of 40%.

Better Collective, the world’s leading developer of digital platforms for bookmaker information, iGaming communities, and betting tips, today publishes the annual report for 2018.

Financial highlights full year 2018

• In the full year of 2018, revenue grew by 54% to 40,483 tEUR (full year 2017: 26,257 tEUR). Organic revenue growth was 9%.
• In the full year of 2018, EBITA before special items increased 47% to 16,072 tEUR (full year 2017: 10,934 tEUR). The EBITA-margin before special items was 40% for the full year, resulting from 40% in Q2, growing to 43% in Q3, and 44% in Q4. Special items (IPO and M&A costs) were -4,080 tEUR, resulting in an EBITA after special items of 11,992 tEUR.
• Cash Flow from operations before special items was 15,158 tEUR (full year 2017: 9,492 tEUR), an increase of 60%. The cash conversion rate before special items was 89%.
• End of 2018, cash and unused credit facilities amounted to 51 mEUR.
• NDCs exceeded 260,000 (growth of 123%).
• The Net interest bearing debt to EBITDA before special items ratio was 1.37

Jesper Søgaard, CEO of Better Collective, commented:

“Taking into consideration that we listed the company on Nasdaq Stockholm and completed five acquisitions, the 2018 results surpassed our expectations. Looking at Better Collective, including the businesses that we have acquired during 2018, our company would have annual revenues of >50 mEUR and operational earnings (EBITA) of approximately 25 mEUR, based on proforma numbers, assuming all businesses were consolidated with full year effect for 2018. We strongly believe that size matters, as it allows us to continue investing in product innovation and in market expansion; for us this is key to a long term sustainable growing business.”

Financial targets and drivers for shareholder return

In connection with the IPO the Board of Directors decided upon the following Financial Targets for the short-medium term (average for the period 2018-2020). These targets remain unchanged: