Better Collective Q3.
300 people were laid off as the company restructures its operations. This represents 15% of the workforce.
Following recent large acquisitions as well as a changing market outlook, Better Collective has announced a cost reduction program of more than 50 mEUR. At the end of October, Better Collective made the difficult decision to lay off more than 300 employees, representing more than 15% of the workforce, and certain other operating costs will be reduced to lower levels. With most measures already having been executed, Better Collective is well on track for the cost reductions and tactical adjustments to have full effect from the beginning of 2025.
The CEO is very confident and the long-term targets remain unchanged:
- Long term 2023-2027 targets remain unchanged as per below:
- Revenue CAGR of +20%
- EBITDA before special items margin of 35-40%
- Net debt to EBITDA below 3x
The reason for the weakness in Brazil was explained quite clearly there. Before regulation, operators do not market actively, and because of that, BetCO cannot sell its products either. In 2025 everything changes, meaning this year is just a small speed bump.
Better Collective notes that several international sportsbooks have reduced activity in anticipation of the official regulation early 2025. This dynamic has affected Better Collective in two ways; Firstly, revenue share income has declined and secondly, there has been a decrease in new depositing customers as partners have limited marketing activity in the period leading up to the regulation.
Regarding Google changes:
- On May 5, Google activated a new policy focusing on third-party content across a variety of commercial categories. This impacted the rankings and thereby audience to some of Better Collective’s media partnerships. The owned and operated sports media portfolio has made up for the decreased performance. Since Q2, Better Collective has not experienced more changes.