Better Collective A/S

Good day and thank you for standing by. Welcome to Better Collective Q3 2025 presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a 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 would now like to hand the conference over to your speaker today, Better Collective VP, Investor Relations and Communications, Mikau Monk-Jakobsgaard. Please go ahead.

Thank you very much and good morning and welcome to Better Collective's Q3 webcast. My name is, as you just heard, Mikkel Munch Jacobsgaard and I'm the Vice President of IR and Corporate Communications here at Better Collective. I'm joined today by our co-founder and co-CEO Jesper Söker and CFO Flemming Pedersen who will provide today's business update in connection with our Q3 report that was disclosed yesterday. Please follow me to the next slide. 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 third quarter highlights.

Thanks a lot, Mikkel. Good morning, all, and thank you for joining today's webcast. Let's dive into the Q3 highlights, and please follow me to the next slide. Overall, we are happy to show good underlying growth in Q3 when normalizing for the sports win margin. During especially September, the Sportsbook saw player-friendly results, which dampened revenue and earnings by €10 million when comparing to the same period last year. Group revenue reached €78 million and EBITDA came in at €21 million. I'm very satisfied with this performance, despite the low sports win margin, which is an external factor we cannot control and also that normalizes over time. In Brazil, we continue to see good activity levels in line with recent quarters, with revenue above our expectations. Although the market remains affected by the ongoing regulatory transition, dampening our ability to send new customers to our partners. In North America, revenue share more than doubled compared to last year, further strengthening our base of recurring revenue in the region. Our new KPI, the value of deposits, reached €726 million, up 2% year-over-year. Considering the continued regulatory transition in Brazil, this stable development is a strong achievement and confirms the solid quality of our underlying player databases. On the cost side, group costs continue to trend down, reflecting the successful execution of our cost efficiency programs. Finally, we maintain our financial guidance for the year and continue our share buyback, which we announced with the Q2 report. Please turn to the next slide. On this slide, you can see the main factors influencing our revenue performance in the third quarter. First, the sports wind margin reached a record low in Q3, impacting revenue negatively by 10 million euros. Secondly, the ongoing regulatory transition in Brazil continued to weigh on performance, contributing with €4 million negative impact, although this is better than expected. Thirdly, we had an FX headwind of €2 million. On the positive side, the North American revenue share doubled, showing €4 million of growth. Furthermore, we saw underlying growth in the business of €9 million. This was particularly within paid media, sports media, and our talent-led media. Altogether, this brought us to a Q3 revenue of 78 million euros. Please turn to the next slide where we look at the development in EBITDA. EBITDA was largely flat with key components being the revenue-related effects just discussed accounted for a 3 million euro negative impact. where the sportsman margin had full negative effect. Last year's cost reductions included temporary one-off items, such as variable pay reversals, which created a €6 million positive effect last year. We also continued to invest in growth, particularly within paid media, where higher activity levels led to €2 million in additional costs. Lastly, our cost efficiency program launched in October last year delivered 8 million euros in cost reductions. Altogether, this brought us to a Q3 EBITDA of 21 million euros. Please turn to the next slide. Following Q3, our 2025 and 2027 financial targets remain unchanged and are shown here. We remain confident in delivering on our 2025 guidance with Q4 expected to be our largest quarter of the year, consistent with prior years. The quarter will be supported by a higher top line in the busy sports season and continued cost discipline as demonstrated in Q3. Please turn to the next slide. In September, we reached one of the most defining milestones in Better Collective's history with the launch of Playbook, our new AI-powered betting solution. Playbook marks the beginning of a new chapter for Better Collective, as we expand beyond customer acquisition to also include user retention and long-term engagement. This is a vision my co-founder Christian and I have shared since founding the company, to empower fans with smarter, more personal and more intuitive ways to engage with sports and betting. By using AI to understand intent and context at scale, Playbook transforms fan engagement into real-time, data-driven experiences. This allows fans to seamlessly make bets directly from the communities and platforms where they already spend time, whether that's on X, in messaging apps, or across our own media brands. Our partnership with X in the U.S. positions us exactly where sports conversations naturally happen, giving us access to unmatched scale, data, and first-party insights. Within just a few weeks, Playbook has already generated millions of bets placed and shown exponential growth, clearly validating both the product and the vision behind it. Ultimately, for me, Playbook represents the next evolution of Better Collective, transforming how we connect with fans, deepening engagement, and creating lasting value for users, partners, and shareholders alike. Since launching Playbook in September, we've seen exceptional and rapidly accelerating growth. This measures when a user is directed to a sportsbook after choosing a bet slip suggestion. Very encouraging, almost all of these clicks result in bets being placed, which clearly demonstrates the strong user intent and conversion rate of the product innovation. We are very pleased that only a few weeks after launch, Playbook has already generated millions of bets placed with our partners. A very encouraging start for what we see as a long-term growth driver for Better Collective. Please turn to the next slide and let Flemming take us through the financial performance for the quarter.