Quarterly earnings by Better Collective reach $94.1 million in the first quarter
In a surprising turn of events, the Danish iGaming company, Better Collective, has reported a revenue decline in Q1 2025. The decline, particularly noticeable in Brazil and North America, is a result of two key factors.
Brazil: Regulatory Impact
The implementation of new regulatory frameworks in Brazil has caused an estimated 50-70% short-term decline in Brazilian revenue share income for Better Collective. This regulatory impact is the main reason for a significant drop in revenue share in Brazil, affecting EBITDA by an estimated 35-50 million EUR in 2025. The decline in Brazilian revenue was especially notable following the regulation going live early in the year, although some recovery was seen subsequently.
North America (USA): Market Activity and Prior-Period Boost
The revenue decline in North America was also impacted by a significantly lower CPA (cost per acquisition) revenue compared to 2024. This was due to an exceptionally strong prior period boosted by a state launch in North Carolina in March 2024, which did not repeat in 2025. Additionally, overall US market activity declined, further depressing revenue. CPM (cost per mille) revenue in North America declined by 27%, reflecting a market-driven softness. Initiatives to improve CPM revenue have been implemented but have yet to produce measurable growth.
However, it's worth noting that subscription revenues grew by 15% in the US, providing some offset. Sponsorship revenues remained stable.
Global Strategy and Future Prospects
The overall group revenue saw an 18% decline in Q2 2025 compared to Q2 2024, as a continuation of the weak start in Q1. Co-founder and CEO Jesper Søgaard called the quarter a step in a longer-term strategy, marking the beginning of an exciting new chapter for Better Collective. The company is building the 'New BC' and focusing on global scalability and streamlining their House of Brands.
Better Collective has set its sights on a steadier stream of recurring revenue in North America. For the full year, they project revenue from revenue share in North America to fall between $11.3 million and $17 million. Despite the initial setbacks, the region is expected to offer more stability moving forward.
On May 21, Better Collective announced a new share buyback program worth up to $11.3 million. The share buyback program is set to run until August 26 or until the full amount is reached.
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- The decline in Better Collective's revenue in North America can be attributed to a significantly lower CPA revenue, a result of a prior period boost in 2024 that did not repeat in 2025, and a general decline in market activity.
- In an effort to secure a steadier stream of revenue in North America, Better Collective has set a projected revenue range from revenue share in North America for the full year 2025 between $11.3 million and $17 million, signifying a strategic focus on the region despite the initial setbacks.
