Better Collective A/S

Good morning, everyone, and thank you for joining us today for our webcast. My name is Mikkel Munch-Jakobskog, and I'm the Vice President of Investor Relations, Group Strategy, and Corporate Communication Shared Better Collective. As always, I'm joined by our co-founder and CEO, Jesper Söker, and CFO, Flemming Pedersen, who will help me walk you through our Q1 performance. Please follow me to the next page. We ask you to pay attention to this slide where we display our disclaimer regarding any forward-looking statements in today's webcast. Please turn to the next slide. Here you see today's agenda. Jesper will start by taking you through the highlights of Q1. Hereafter, Flemming will take you through the financial performance before handing back the work to Jesper for a business review. And then we, of course, end the call with a Q&A session. So let's get going. Please turn to the next page as I hand over the word to you, Jesper.

Thank you, Megan. Q1 marked another strong quarter for Better Collective, with group revenue increasing by 8% to 95 million euros. Recurring revenue grew 14% to 53 million euros, cementing another high quarter with increased quality and revenue in earnings. Group EBITDA before special items was 29 million euros, down 13% as expected due to tough comparisons, which Flemming will expand on a bit later on. In early 2024, we announced the completion of the Playmaker Capital acquisition, making it the second largest acquisition to date in Better Collective's history. So far, the integration is progressing as planned, and we are very excited to have welcomed the Playmaker Capital team to the Better Collective group. We achieved notable success when the state of North Carolina launched online sports betting with revenue structured on a combination of revenue share and CPA-based contracts. I've been very pleased with our performance in North America, where we have never been stronger positioned commercially. Post Q1, Better Collective acquired UK sports betting media, Ace Arts, for a total consideration of 42 million euros, implying four times last 12 months EBITDA. Ace Arts offers a comprehensive range of betting tools, art, reviews, and streaming schedules through its web and app-based platforms, and comes with a significant amount of recurring revenue. Following the acquisition, Better Collective upgraded its 2024 full-year financial target by €5 million on revenue and EBITDA. Please follow me to the next page, where I hand the word over to Flemming.

Thank you, Jesper. Please follow me to the next slide, where we'll dive a bit deeper into the group's financial performance of the first quarter. As Jesper already pointed out, Q1 marked another good quarter, with revenue increasing 8% to €95 million, with organic revenue growth down 6%. The growth was attained despite the one-off overperformance last year during Q1, which included the launch of online sports betting in two major US states, Massachusetts and Ohio. These state launches operate on a CPA-based model, resulting in significant one-off upfront revenue whereas the state launch of North Carolina during Q1 this year was a blend of recurring revenue share and CPA. As expected, the EBITDA was down year-on-year due to the aforementioned impact from receiving revenue on an upfront basis versus recurring revenue share income. The margin was also impacted by our PlayMaker HQ and PlayMaker capital acquisitions being dilutive to group margins in the short term. Please follow me to the next slide. Our recurring revenue grew 14% to €53 million, now including significant audience-driven revenue from Playmaker Capital, hence signalling another quarter with revenue of higher quality. Recurring revenue makes up 56% of total group revenue, which we achieved even though our core revenue share markets in Europe and South America saw a reduction of more than 10% in the number of soccer games in major leagues when compared to last year, as well as seeing a sports win margin below last year. Overall, an impressive performance building for better collective sustainable future growth. Please follow me to the next slide. With the release of our 2023 annual report, we also disclosed our 2024 financial targets as displayed on this slide in gray. After Q1 closing, we announced the acquisition of a leading UK sports betting brand, ASOTS, which Jesper will be diving into later. With this acquisition, we upgraded our targets by €5 million on revenue and EBITDA for the full year of 2024, highlighting the high margin business it is. This means we now expect €395 to €425 million in revenue, implying growth of 21 to 30%, and EBITDA of €130 to €140 million, implying growth of 17 to 26% on that matrix. The net debt to EBITDA ratio remains unchanged at below 3x. Following the acquisition of Playmaker Capital earlier this year, we also raised our long-term financial targets for EBITDA from 30% to 40%, now 35% to 40%, underscoring our confidence in achieving the synergies over time. This adjustment indicated that the buildup of synergy realization will be more pronounced in the latter part of our forecast period. During the quarter, we raised 10% of new equity or around 145 million euro for future M&A. During the process of dual listing in Copenhagen and last year and the capital raise, we are excited to have welcomed a lot of new shareholders in Better Collective. Please turn to the next page and then I'll hand the word back to you before our Q1 business update. Thank you, Flemming.