Better Collective announced its Q1 2025 revenue as 83 million euros (approximately 93 million USD), a 13% decrease year-over-year. The organic growth rate fell by 18% due to regulatory environments in the US and Brazil. Nevertheless, the group's EBITDA, excluding special items, still reached 22 million euros, with a profit margin of 27%, maintaining the full-year revenue forecast of 320 to 350 million euros and EBITDA of 100 to 120 million euros.
The performance decline mainly originated from the Brazilian market's shift to regulated operations, resulting in a negative impact of 7 million euros; a new business in North Carolina contributed 5 million euros in revenue in the same period last year, creating a contrast effect; and reduced marketing activities by US partners further resulted in a 5 million euro shortfall. However, growth in other markets and the addition of Playmaker Capital in February contributed positively by 7 million euros, partially offsetting the negative impacts.
Recurring revenue decreased by 8%, mainly due to a 13% drop in revenue sharing. However, driven by early strong growth in Playmaker Capital and the Brazilian advertising market, revenue based on cost per thousand impressions (CPM) increased by 13%.
The cost optimization plan initiated in October 2024 continues to progress, with a 5 million euro reduction in costs in the first quarter, an 8% decrease, mainly attributed to reductions in staff and operational expenses. Notably, the Brazilian business generated 10 million euros in revenue in the first quarter, but delayed payments from customers resulted in a negative cash flow impact of 9 million euros.
The total number of new depositing customers (NDC) for the quarter was 316,000, a 30% decrease year-over-year, mainly due to bonus restrictions in Brazil and a slowdown in acquisitions. In terms of operational restructuring, the company appointed Christian Kirk Rasmussen and Jesper Søgaard as co-CEOs and established three major business divisions: publishing, paid media, and esports, with esports reporting separately from the second quarter.
These performances are built on the strong foundation of Better Collective's FY 2024, where revenue grew by 14% to 371 million euros, and EBITDA reached 113 million euros. In April, the group also confirmed a 10 million euro stock repurchase plan, with global monthly digital audience visits increasing to 450 million.
