Better Collective A/S

good day and thank you for standing by welcome to better collective second quarter 2025 presentation at this time all participants are in the listen only mode after the speaker's presentation there will be question and answer session to ask a question during the session you will need to press star 1 1 on your telephone you will then hear an automated message advising your hand is raised if you wish to ask a question via the webcast please use the q a box available on the webcast link anytime during the webcast. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker today, Better Collective VP, Investor Relations and Communications, Miguel Monk Jacobs-Gore. Please go ahead.

Thank you very much and good morning and welcome to Better Collective's Q2 2025 webcast. As just said, my name is Mikkel Munch-Jakobsgaard, Vice President of Investor Relations and Corporate Communications here at Better Collective, and I'm today joined by our co-founder and co-CEO Jesper Söker and CFO Flemming Pedersen, who will provide today's business updating connection with our Q2 report that was disclosed yesterday. 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 as I hand over the word to Jesper for the second quarter highlights.

Thank you, Megan. Good morning all and thank you for joining today's webcast. Let's dive into the Q2 highlights and please follow me to the next slide. Q2 played out as anticipated with results in line with our expectations. Revenue reached €82 million and operational earnings €23 million. The results and comparisons to last year reflect the major market transition in Brazil and last year's exceptional event calendar, including UEFA Euro 2024 and Copa America in soccer, as well as the North Carolina launch. We've completed our 50 million euros cost efficiency program that we launched in October last year and thereafter completed a major organizational change where we have increased our focus on our strongest markets and brands and streamline the organization accordingly. Reporting wise, we have from this quarter established esports as its own business segment and launched a new value of deposit KPI to underline our quality of revenue and earnings. We are now entering the second half of the year where we anticipate increased activity around the beginning of major sports seasons And we are, in my view, well-positioned to getting back to growth again next year. Looking at the second quarter and the first half in general, Better Collective is in a place where we wished to be when we started the year. And we therefore maintain our full-year financial guidance, and the board has decided to initiate a new share buyback program of up to €20 million after completion of the currently run buyback. Please turn to the next page. Following this overall introduction, I'll focus on Brazil right away. Brazil has been the most significant market development for our business over the past year. Brazil has transformed into a fully regulated and taxed market after many years of being a big international market. It is the largest market ever to have undergone such a transition. As all other stakeholders in the market, we've had to adapt to this market change. Better Collective has established local presence, completed major acquisitions, and established relationships with all important stakeholders in the market. As such, Better Collective is now positioned as the largest digital sports media in Brazil and more broadly in South America. We expect Brazil and the broader region to become a very attractive growth market in the future. Of course, pending that regulation is attractive. When we entered this year, The outlook for the Brazilian market was highly uncertain. However, we delivered a slightly better than expected performance in the first six months, supported by swift adaptation by our local teams and solid work from our major partners. Player migration and waitering activity remain ahead of expectations. The absence of welcome bonuses continues to limit NDC volumes and unfortunately benefits non-licensed sportsbooks. However, we remain confident that the market will seek to remain competitive longer term. Please turn to the next slide. As previously announced, from this quarter, esports is reported as a standalone business segment, underscoring its scale, profitability, and growth potential. We're doing this now not only because accounting standards requires it, given it operates as a standalone business with its own management and the mere scale, but more importantly because it is a strategically important part of Better Collective, where we see significant future growth potential. We see esports as a powerful growth engine for Better Collective going forward. With HLTV and Footbin, we own two of the most respected and influential community platforms in global esports, giving us a rare opportunity to serve millions of passionate fans and grow alongside the scene. By establishing esports, As its own segment, we sharpen our strategic focus, increase transparency, and create room to invest even faster in new features, content, and partnerships so we can continue to provide the best fan engagement and unlock the full potential of these communities. Platforms that are deeply embedded in the fabric of esports are hard to replicate, and we are committed to nurturing them for the long-term benefit of fans, partners, and shareholders alike. The esports business segment represented 11% of group EBITDA in the first half and delivered an EBITDA margin of 56% in Q2. The revenue is almost solely generated from advertising and sponsorships. With unmatched audience loyalty and monetization opportunities, esports is a strategic growth pillar in our brand portfolio, allowing us to provide free, high-quality content to our users and fans. Please turn to the next slide. On this slide, you can see the revenue and EBITDA bridge outlining the key building blocks from Q2 last year to Q2 this year. First, the Brazilian market dynamics had a negative impact of €8 million on revenue. Secondly, in North America, activity levels were lower, and the North Carolina state launch last year created a tough comparison, resulting in a €6 million headwind this quarter. Thirdly, this quarter compares to Q2 2024 when we benefited from the UEFA Euro and Copa America tournaments. In Q2 2025, the football calendar was lighter with the Club World Cup in June and July being the main tournament of the quarter. The estimated effect is €5 million. Fourth, the weaker US dollar affected negatively with €2 million. And finally, we saw positive contributions from underlying growth in paid media and e-sports, as well as the full quarter effect of the acquisition of ATARs, combined adding €4 million. Altogether, this brought us to a Q2 revenue of €82 million. EBITDA decreased by €6 million in the quarter. The revenue-related effects just discussed accounted for an €18 million negative effect. On the positive side, Our cost efficiency program launched in October last year delivered 12 million euros in savings during the quarter. Altogether, this has resulted in a Q2 EBITDA of 23 million euros. Please turn to the next slide. Following Q2, our 2025 and 2027 guidances remain unchanged and can be seen here. Please turn to the next page as I hand the word to Flemming for a dive into the financial performance.