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:
- Revenue growth; annually between 30-50% p.a. including M&A and including double-digit organic growth.
- Operating margin (EBITA); >40% before special items.
- Capital Structure; Net Debt/EBITDA < 2.5.
Expectedly, revenue will fluctuate between quarters based on NDC-growth, specific events and sports outcomes. The above targets are to be seen over short-medium term rather than for each quarter.
2019 outlook
Supported by a strong underlying organic growth in relevant KPIs such as NDCs, player's deposits and sports betting turnover, it is expected that the organic revenue growth will be stronger in 2019, implying that 2018 and 2019 combined will be above the financial target.
Contacts
CEO: Jesper Søgaard
CFO: Flemming Pedersen
Investor Relations: Christina Bastius Thomsen +45 2363 8844
e-mail: investor@bettercollective.com
This information was submitted for publication, through the agency of the contact persons set out above, at 09:40 a.m. CET on March 20, 2019.
About Better Collective
Better Collective'svision is to empower iGamers through transparency and technology - this is what has made them the world's leading developer of digital platforms for betting tips, bookmaker information and iGaming communities. Better Collective's portfolio includes more than 2,000+ websites and products. This includes bettingexpert.com, the trusted home of tips from expert tipsters and in depth betting theory, and SmartBets, the odds comparison platform made personal.
Attachment
- BetterCollective_AR18_web (https://ml-eu.globenewswire.com/Resource/Download/c5c94c1a-826a-43bb-876c-5dab0b015855)
