Better Collective Soars While Catena Media Struggles

The sports betting partner network, Better Collective, is flourishing. Their recently published financial report for the second quarter of 2023 showcases a company undergoing substantial expansion, with income soaring by 39% compared to the same period last year, reaching €78.1 million.

This remarkable achievement was fueled by several elements, including a significant rise in consistent income, emphasizing the robustness of their operational strategy. Their profitability also surged, with earnings before interest, taxes, depreciation, and amortization (EBITDA) hitting €27.5 million, an exceptional 115% jump compared to the corresponding period the previous year. This perpetuates their pattern of robust EBITDA growth in recent times.

To illustrate this, their accomplishments stand in stark opposition to Catena Media, a major rival, which has encountered difficulties. A juxtaposition of their revenue paths clearly demonstrates the diverging courses of these two entities.

Although Better Collective did observe a year-over-year rise in net interest-bearing liabilities, reaching €2.574 billion compared to €2.191 billion in the second quarter of 2022, this was one of the few indicators that didn’t exhibit positive movement. On the whole, their Q2 2023 outcomes demonstrate their dominant market presence and capacity to leverage the expanding internet gaming sector.

Better Collective’s Chief Executive Officer, Jesper Søgaard, voiced apprehensions regarding the influence of artificial intelligence on internet search platforms during the company’s second-quarter 2023 earnings conference. He remarked that as a prominent digital sports media entity, Better Collective is perpetually expanding its global reach, but the escalating intricacy of AI is compelling search engines to continuously modify their algorithms to furnish more accurate and tailored search outcomes. These adjustments could profoundly affect the evolving search environment.

Søgaard also noted that the FIFA Women’s World Cup had a minimal effect on their Q2 financial figures, possibly because of inconvenient game schedules for their principal markets.

Notwithstanding these hurdles, Better Collective has elevated its financial projections for 2023 based on its robust Q2 showing. The firm now anticipates revenue to fall between €315 million and €325 million (increased from €305 million to €315 million), while EBITDA is forecasted to attain between €105 million and €115 million (up from €95 million to €105 million).

This upward course for Better Collective stands in stark contrast to the difficulties encountered by its former competitor, Catena Media. The competition between these two affiliate powerhouses has significantly diminished, particularly after Better Collective obtained over 5% ownership of Catena Media. While Michael Daly conveyed confidence in Catena Media’s prospects at a recent industry gathering, the company reported another quarterly deficit in Q2 2023. Their overall revenue for Q2 2023 amounted to €18.1 million, representing a 37% reduction compared to the same period last year.

Catenas modified earnings before interest, taxes, depreciation, and amortization, encompassing discontinued business lines, plummeted to a paltry €2.8 million. This result appears insignificant when contrasted with Better Collective’s own financial achievements, which boasted a considerably more substantial €27.5 million.

Since the commencement of 2023, Better Collective has been on an upward trajectory. Their share value skyrocketed, attaining a remarkable zenith of SEK 258 (equating to $23.59 USD) on August 15th. This surge propelled their market valuation to an astounding SEK 12.43 billion. As of this moment, their share price remains at a robust SEK 225.

Further augmenting their string of successes, Better Collective also proclaimed the triumphant culmination of their €100 million share repurchase initiative initiated in June. This accomplishment follows closely on the heels of a separate share buyback, wherein they reacquired 187,991 shares for a cumulative sum of SEK 44.6 million.