Better Collective A/S · OMXCOP:BETCO_DKK
Better Collective A/S — Q4 2020 Earnings Presentation
26 slides from Better Collective A/S's earnings presentation, Feb 24, 2021
Slide 1: Presentation Q4 2020
Presentation Q4 2020 February 24, 2021 Q4 2020 Presentation - 24 February 2021
Slide 2: Forward looking statement
Forward looking statement This presentation contains certain forward-looking statements and opinions. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for example, contain wording such as “beli
Slide 3: Agenda
Agenda 01 Introduction 02 Business Highlights Q4/FY 2020 03 Financial Performance Q4/FY 2020 04 Financial Targets 2021 05 General Business Updates Flemming 06 Key Takeaways Pedersen CFO Jesper Søgaard CEO & founder Q4 2020 Presentation - 24 February 2021 3
Slide 4: Segment reporting from Q4 2020
Segment reporting from Q4 2020 ⬥ Segment reporting from Q4 2020 ○ Publishing ○ Paid media Q4 2020 Presentation - 24 February 2021 4
Slide 5: Business Highlights Q4 2020
02 Business Highlights Q4 2020
Slide 6: Financial highlights Q4 2020
Financial highlights Q4 2020 Revenue EBITA Cash flow NDCs +88% +92% +35% +30% 37 mEUR 14 mEUR 10 mEUR 153,000 Q4 2020 Presentation - 24 February 2021 6
Slide 7: Business highlights Q4 2020
Business highlights Q4 2020 ⬥ Acquisition and integration of Atemi Group - Paid Media ⬥ “Affiliate of the Year” at the EGR North America Awards ⬥ Responsible Gambling award at Global Regulatory Awards ⬥ Acquisition of Zagranie.com & Irishracing.com Significant events after the closure of Q4 ⬥ Mindway
Slide 8: Financial Performance Q4/FY 2020
03 Financial Performance Q4/FY 2020
Slide 9: Revenue and NDC's
Revenue and NDC’s Revenue New Depositing Customers (NDC’s) ⬥ 37 mEUR: 88% increase, organic growth 32% ⬥ 153,000 NDC’s with a growth of 30% ⬥ Continuous record high sports wagering in revenue share accounts ⬥ NDC’s full year > 437.000. ⬥ Sports win margin slightly above average ⬥ NDC FY similar to 2
Slide 10: Earnings
Earnings Operations Earnings (EBITA before special items) EBITA before special items ⬥ 13.7 mEUR growth of 92% mEUR ⬥ Group EBITA-margin 37% ⬥ EBITA-margin 52% in Publishing and 13% in Paid Media. CCGR 11% Cost ⬥ Total cost base grew due to acquisition of the Atemi Group ⬥ Cost expansion in Publishi
Slide 11: Cash flow & balance sheet
Cash flow & balance sheet 99% Cash flow ⬥ Operating cash flow Q4 2020: 10 mEUR; FY 2020: 38 mEUR ⬥ Q4 cash conversion rate 71% - FY 2020: 99% Full Year cash conversion Balance Sheet ⬥ Net debt/EBITDA: 1.66 (Q4 2019: 0.49) ⬥ End 2020: 43 mEUR in cash and unused credit facilities 43 ⬥ Equity ratio: 52% (
Slide 12: Better Collective's sport wagering
Better Collective’s sport wagering Q4 2020 index: 506 Please note that the financial analysis herein is derived from Better Collective’s aggregated data sources accounting historically for approx. 50% of Better Collective’s revenue share earnings. Q4 2020 Presentation - 24 February 2021 12
Slide 13: Better Collective's Sports win margin
Better Collective’s Sports win margin Q4 2020 index: 89.9 Average index in period shown: 88.2 Please note that the financial analysis herein is derived from Better Collective’s aggregated data sources accounting historically for approx. 50% of Better Collective’s revenue share earnings. Q4 2020 Prese
Slide 14: Sport wagering by regions
Sport wagering by regions Please note that the financial analysis herein is derived from Better Collective’s aggregated data sources accounting historically for approx. 50% of Better Collective’s revenue share earnings. Q4 2020 Presentation - 24 February 2021 14
Slide 15: Financial performance Full Year 2020
Financial performance Full Year 2020 ⬥ 3 years with > 50% CAGR in Revenue, Earnings and Cash Flow ⬥ Financial performance in line with targets Revenue EBITA before special items Operational cash flow before special items mEUR mEUR mEUR CAGR 50% CAGR 51% CAGR 59% Q4 2020 Presentation - 24 February 202
Slide 16: Financial performance
Financial performance 2018-2020 2018 IPO Raised 69 mEUR to fund ⬥ IPO in June 2018 M&A strategy ⬥ Total equity funding of 100 mEUR 2018 M&A Bola + Betarades + Ribacka ⬥ Continued expansion through M&A-activity: 250 mEUR Germany/Greece/Sweden, total of 69 mEUR ⬥ 3 year operational cash flow of 80 mEUR
Slide 17: Financial Targets 2021
04 Financial Targets 2021 Q4 2020 Presentation - 24 February 2021
Slide 18: Financial Targets 2021
Financial Targets 2021 ⬥ Revenue targets 2021: >160 mEUR - implied growth rate >80% ⬥ Operational Earnings > 50 mEUR Revenue >160 mEUR ⬥ Earnings margins: ○ Publishing at same high levels as previous ○ Paid Media >10%; investments in revenue share and Organic new market openings Net Debt growth <3.0
Slide 19: Continued growth
Continued growth Revenue EBITDA before special items mEUR mEUR CAGR 53% CAGR 50% Q4 2020 Presentation - 24 February 2021 19
Slide 20: General Business Updates
05 General Business Updates
Slide 21: Our sports betting media brands
Our sports betting media brands International brands Regional brands Global US ROW 40+ mio 15+ mio 10+ mio Monthly visits Monthly visits Monthly visits Q4 2020 Presentation - 24 February 2021 21
Slide 22: M&A expansion
M&A expansion Most recent acquisitions 20 Completed acquisitions since 2017 HLTV.org Acquired for More than 26.5 Newly added Completed acquisitions in Leading esports betting section platform 34.5 mEUR million visits per month to the site 2020 of approx. Atemi Group 80 mEUR Specialised Paid Media: I
Slide 23: The US growth opportunity
The US growth opportunity ⬥ Key brands ○ VegasInsider: from user subscription and brand advertising to affiliate marketing within sports betting ○ RotoGrinders: sports betting and Daily Fantasy Sports (DFS) ⬥ Affiliate revenue January YoY >200% growth ⬥ Possible acceleration in market potential as rea
Slide 24: A solid platform for further US expansion
A solid platform for further US expansion ◆ Dedication towards emerging US market ◆ Strong US brands & assets ◆ Recent Atemi acquisition to power paid media efforts in the US ◆ Media partnership with New Jersey media NJ.com ◆ Online sports betting expected to grow 80% YoY 2021 Current states total p
Slide 25: Key Takeaways
06 Key Takeaways Big sport events Strong growth calendar for 2021 in US business Strong performance Paid Media Strong M&A in Q4 segment boost pipeline Q4 2020 Presentation - 24 February 2021 25
Slide 26: Thank you for your attention
Thank you for your attention Upcoming events Contact 25/03/21 Jesper Søgaard Annual report 2020 CEO 26/04/2021 Flemming Pedersen Annual General Meeting CFO 12/05/2021 Christina Bastius Thomsen, Interim financial report Q1, 2021 Head of IR & CSR +45 2363 8844 [email protected] www.betterco