Better Collective reports 18% revenue decline in Q2 2025

Better Collective, a leading international affiliate group in the sports betting and iGaming sector, reported its financial results for the second quarter of 2025, revealing a decline in revenue and profitability compared to the same period last year. The company’s revenue for Q2 reached €82 million ($95.5 million), marking an 18% decrease year-on-year. Organic growth fell by 19%, highlighting ongoing market challenges, particularly in Brazil, and the impact of comparison effects from major sports events that took place in 2024.

Despite these setbacks, the company confirmed its full-year guidance and highlighted operational cost savings initiatives, which have been implemented to strengthen financial resilience and enhance long-term profitability.

Revenue performance and regional impacts

Better Collective’s Q2 results were influenced by multiple factors. Revenue share income fell by 15%, mainly due to new regulatory measures in Brazil. These regulations introduced restrictions on bonuses for new depositing customers (NDCs) and caused delays in payment flows from partners. Jesper Søgaard, Co-Founder and Co-CEO, noted, “I’m pleased that our Q2 results were in line with expectations. The first half of the year was a transition period mainly driven by structural changes in key markets such as Brazil.”

Revenue in the North American market fell by €8 million compared to the corresponding period in 2024. This decline was partly due to the North Carolina market launch in Q2 2024, which created a challenging comparison basis, and a reduction in partner marketing expenditure.

Recurring revenue remained a significant contributor to the group’s total revenue, reaching €52 million and representing 64% of overall revenue. Revenue from cost-per-acquisition (CPA) models fell 31%, while cost-per-mille (CPM) revenue decreased by 25%. In contrast, subscription revenue showed positive momentum, rising 8%, largely driven by North American community-based media initiatives. Sponsorship income fell slightly by 5% but continued to outperform broader industry trends.

Esports reported as a standalone segment

From Q2 2025 onwards, Better Collective has reported esports as a separate business segment, reflecting the company’s strategic focus on this rapidly growing market. In the quarter, the esports segment brought in €5 million in revenue, driven by the performance of key platforms HLTV and FUTBIN. The decision to split out esports follows a broader restructuring earlier in the year, designed to sharpen operational focus and align resources with high-growth areas.

The move highlights Better Collective’s recognition of esports as a distinct vertical within its portfolio, allowing the company to allocate investments, marketing resources, and product development efforts more efficiently. Analysts suggest that reporting esports separately can provide clearer visibility into the company’s performance and growth potential in this emerging sector.

Paid media growth and cost-saving measures

Paid Media activities contributed €4 million in incremental revenue during the quarter, bolstered by the acquisition of AceOdds. This growth demonstrates Better Collective’s continued commitment to expanding its digital marketing capabilities and leveraging strategic acquisitions to enhance market reach.

Operational cost savings were also a key feature of the quarter, with the group achieving €12 million in savings, contributing to an annualized target of €50 million, which was initially announced in October 2024. These savings have been achieved through a combination of strategic restructuring, process optimization, and improved operational efficiency across global operations.

Digital audience growth

Better Collective’s media network continued to expand its global reach, with the company reporting a 10% growth in its digital audience earlier in 2025. The network now reaches approximately 450 million monthly visits, reflecting strong engagement and content relevance across its platforms. The growth in audience underscores the effectiveness of the company’s content strategy and its ability to maintain relevance in highly competitive online markets.

Profitability and financial position

EBITDA before special items fell by 21% to €23 million, resulting in a margin of 28% for the quarter. The company generated €13 million in free cash flow during the period, achieving a cash conversion ratio of 83%. The company’s capital reserves stood at €87 million at the end of June 2025, supported by credit facilities totaling €319 million.

Despite the decline in revenue and EBITDA, the group’s financial position remains solid, with liquidity and capital structure providing flexibility to invest in strategic initiatives and respond to regulatory and market changes.

Comments from management

Jesper Søgaard, Co-Founder and Co-CEO of Better Collective, highlighted the company’s strategic focus and readiness to capitalize on opportunities in the second half of 2025:
“I’m pleased that our Q2 results were in line with expectations. The first half of the year was a transition period mainly driven by structural changes in key markets such as Brazil. We have completed the restructuring of our business and are ready to capture the opportunities of a sports-rich second half of the year.”

This statement reinforces management’s confidence in the company’s ability to navigate regulatory challenges, optimize operational efficiency, and leverage key market events to drive growth.

Full-year guidance and outlook

Better Collective has maintained its full-year guidance despite the challenges experienced in Q2. For 2025, the company anticipates revenue to fall between €320 million and €350 million, with EBITDA projected in the €100–€120 million range.

The guidance reflects the company’s assessment of market conditions, regulatory environments, and expected performance in upcoming sports-rich periods. It also incorporates the benefits of cost-saving measures and operational improvements implemented during the first half of the year.

Q1 2025 review

In May 2025, Better Collective announced that Q1 revenue reached €83 million, reflecting a 13% decline compared with Q1 2024. First-quarter EBITDA dropped 24% to €22 million, with the results indicating a €7 million adverse effect from regulatory changes in Brazil and lower marketing expenditures in the United States. Despite the slower start to the year, the company reaffirmed its full-year guidance and signaled the strategic reporting of esports as a separate segment beginning in Q2.

The sequential performance demonstrates the company’s resilience in adapting to regulatory shifts and market dynamics, emphasizing a long-term approach to growth and profitability.

Strategic initiatives and market positioning

Better Collective’s recent operational restructuring and focus on esports represent a strategic effort to diversify revenue streams and strengthen competitive positioning. By splitting esports into its own segment, the company can more accurately track performance, allocate resources, and attract dedicated audiences and partners.

Additionally, the integration of AceOdds into Paid Media initiatives highlights a commitment to expanding digital marketing capabilities and driving incremental revenue growth. The ongoing cost-saving programme also positions the company to remain financially resilient, particularly in volatile regulatory environments such as Brazil.

Conclusion

Better Collective’s Q2 2025 results reflect a challenging operating environment characterized by regulatory changes in Brazil, comparison effects from prior-year sports events, and reduced partner marketing expenditure in North America. While revenue and EBITDA declined, the company achieved operational efficiencies, expanded its esports segment, and maintained robust cash flow and liquidity positions.

The group’s full-year guidance remains unchanged, demonstrating management’s confidence in navigating ongoing challenges and capturing opportunities in the second half of 2025. As Better Collective continues to grow its digital audience and diversify its offerings, the company remains well-positioned to sustain long-term growth in the global iGaming and sports betting affiliate market.

FAQs

What was Better Collective’s revenue in Q2 2025?
Revenue reached €82 million, marking an 18% year-on-year decline.

Why did revenue fall in Q2 2025?
Revenue declined due to regulatory changes in Brazil, reduced partner marketing in North America, and comparison effects from sports events in 2024.

How much did recurring revenue contribute to total revenue?
Recurring revenue amounted to €52 million, representing 64% of total group revenue.

What was the impact of Brazil regulation?
Brazilian regulations restricted bonuses for new depositing customers and caused delays in payment flows, reducing revenue share income by 15%.

How did Better Collective perform in North America?
North American revenue fell by €8 million compared with last year, partly due to prior-year market launches and reduced partner marketing spend.

What is the significance of reporting esports as a standalone segment?
Esports reporting allows Better Collective to focus on a high-growth area, allocate resources efficiently, and provide clearer performance visibility.

What were the Q2 EBITDA results?
EBITDA before special items fell 21% to €23 million, with a margin of 28%.

What cost-saving measures were implemented?
The group achieved €12 million in Q2 cost savings, bringing annualized savings to the €50 million target.

What is Better Collective’s full-year guidance for 2025?
The company expects revenue of €320–€350 million and EBITDA of €100–€120 million.

How large is Better Collective’s digital audience?
The global digital audience grew by 10% to reach 450 million monthly visits across its media network.