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Better Collective reports organic revenue growth of 19% in Q1

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Interim report January 1 – March 31, 2021

Highlights first quarter 2021

  • Q1 revenue grew by 86% to 38,836 tEUR (Q1 2020: 20,921 tEUR). Organic revenue growth was 19%. The revenue split was 61% from Publishing and 39% from Paid Media.
  • Q1 EBITDA before special items increased 46% to 13,193 tEUR (Q1 2020: 9,045 tEUR). The EBITDA-margin before special items was 34%. EBITDA-margin was 51% in Publishing and 7% in Paid Media. The margin in the Paid Media segment was significantly impacted by the switch from pure CPA to hybrid revenue models at a cost of approx. 2 mEUR. Excluding these impacts, the margin would have been 19%.
  • Cash Flow from operations before special items was 16,102 tEUR (Q1 2020: 9,451 tEUR), an increase of 70%. The cash conversion was 121% due to an improvement of debtors and other short debt. End of Q1, capital reserves stood at 50.1 mEUR including cash of 34.8 mEUR and unused bank credit facilities of 15.1 mEUR.
  • New Depositing Customers (NDCs) was around 180.000 in the quarter (increase of 54%) and is at an all time high.
  • Better Collective has increased its ownership to 90% of the shares in Mindway AI that specialises in software solutions based on artificial intelligence and neuroscience for identifying, preventing and intervening in at-risk and problem gambling.
  • Better Collective has strengthened its position in the Swedish sports betting market by acquiring online sports betting media platform, Rekatochklart.com for 3.8 mEUR.

Significant events after the closure of the period

  • April revenue reached a record 13.1 mEUR, a growth of 185% vs. 2020, of which 51% was organic growth. Organic growth in the Publishing segment was 87% against a weak comparison due to the significant effect on April 2020 by the halt in sports during the COVID lockdown. In the Paid Media segment, organic growth was 14% against a strong comparison, as the halt in sports meant an increase in casino (predominant in the acquired Atemi Group)
  • On May 3, 2021, Better Collective signed an agreement to acquire 100% of the shares in The Action Network, Inc. for 240 mUSD (198 mEUR) on a cash and debt free basis. With the acquisition of Action Network, Better Collective gains clear market leadership within sports betting media in the US and now expects to increase its revenues in the US to more than 100 mUSD by 2022.
  • In April, a payment of 1.2 mEUR in cash, and 0.9 mEUR in shares were made to complete the 2020 earn-out payment relating to the acquisition of HLTV.
  • Following the AGM on April 26, 2021, Therese Hillman was elected to the Board of Directors. Therese is a Swedish national born in 1980. She is the current CEO of NOD, and was until recently Group CEO of NetEnt, a premium game supplier to online casino operators and listed on Nasdaq Stockholm.

Financial targets 2021
The Board of Directors have decided on targets for the financial year 2021 as announced in the full year report. Following the acquisition of The Action Network and contingent on the closing of the transaction in Q2, 2021, the financial targets for 2021 are updated: Total group revenue is now expected to exceed 180 mEUR (previously more than 160 mEUR). Operational profit is now expected to exceed 55 mEUR (previously more than 50 mEUR). Total group organic growth is now expected to exceed 25% (previously more than 20%). See page 10 of the report for more detail.

Jesper Søgaard, Co-founder & CEO of Better Collective, commented: “Q1 was another strong quarter for us with significant revenue growth and an increase in the number of New Depositing Customers of more than 50%. We have continued to strengthen our global market position with the addition of Swedish sports betting media platform, Rekatochklart, and most recently, US sports betting media market leader, Action Network, while also increasing our ownership of Mindway AI to 90% to further expand our initiatives within responsible gambling. We are very pleased with these accomplishments.

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New focus for safer gambling as Clarion confirms launch of Sustainable Gambling Zone

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The Consumer Protection Zone (CPZ), which since its launch at ICE 2018 has developed to become the highest profile feature on the ICE show floor has been re-branded to become the Sustainable Gambling Zone (SGZ). 

The strategic decision has been taken following extensive stakeholder consultation and is set against the heightened importance placed on proactive customer interventions at earlier stages of the player journey.

The SGZ will be debuted at July’s iGB L!VE prior to its official launch at ICE 2025, the first edition of the industry’s most influential b2b gaming show to be held at its new home in Barcelona

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Clarion Gaming’s Director of Industry Insight and Engagement, Ewa Bakun, who has seen the CPZ develop to become the key platform for the industry to advance its understanding and implementation of safer gambling measures and raise standards said: “I must stress that this is much more than just a cosmetic exercise. Instead, the Sustainable Gambling Zone, with its refreshed focus, will engage with the broader stakeholder group of operators who are focused on long-term sustainability, something which goes way beyond simply meeting the regulatory mandate.

“The overarching objective of the Sustainable Gambling Zone is to be at the vanguard of initiatives to help develop healthy play from the outset which includes the incorporation of safer gambling considerations from the very start rather than as a compliance requirement.

“While not yet standard across the whole of the industry, this more holistic approach underpins the safer gambling dynamic. Its goal is to create a more sustainable business in which players continue to enjoy their gambling entertainment experience with the small proportion who are at risk of developing problems pro-actively identified and assisted by operators.”

Clarion Gaming Managing Director, Stuart Hunter added: “The relocation to Barcelona will enable us to expand the ICE and iGB Affiliate offerings but also raise the bar in terms of what we already deliver on behalf of the international industry.

“The intended broader appeal of the Sustainable Gambling Zone dovetails with our relocation and will bring the SGZ closer geographically to continental Europe and closer culturally to the Latin American markets that we serve.

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“Barcelona will open a new chapter for ICE/iGB Affiliate and their respective features, not least the Sustainable Gambling Zone.”

The post New focus for safer gambling as Clarion confirms launch of Sustainable Gambling Zone appeared first on European Gaming Industry News.

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INSPIRED LAUNCHES SOLID GOLD™: THE LATEST GEM IN THE FORTUNE COMMUNITY™ LINEUP!

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Inspired Entertainment, Inc., a leading B2B provider of gaming content, systems, and solutions, is delighted to launch Solid Gold™ to the Cat C market, the latest addition to our Fortune Community™ slot lineup. Fortune Community offers a multiplayer gaming experience tailored for the Category C and bingo markets. Fortune Community games can activate a community bonus during play, ensuring all eligible players can share in the rewards.

Prepare to embark on a nostalgic journey with Solid Gold™, a classic retro slot that seamlessly blends vintage charm with exhilarating thrills.

In Solid Gold, a Gold Bar character hovering above the reels brings players closer to victory. When these characters grace each of the three reels, they unlock one of three bonuses. During the Wild Pick bonus, players take charge and choose one of three reels to turn Wild – or two if they’re lucky. Once a reel is selected, a stack of Wilds fills the entire reel, whilst the Wild symbol substitutes for all other symbols to enhance or create wins.

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Players fortunate enough to trigger the Wild Pick bonus will have the opportunity to win a bonus spin. During this feature, the Wild reels will lock in position while the remaining reels spin again, providing players with an additional opportunity to win.

The Solid Gold community bonus steals the spotlight, played on alternative reels and offering 6 enticing prizes up for grabs. The reels will continue to spin until either a £100 jackpot prize is awarded, or a losing combination appears. Solid Gold not only offers players the opportunity to relive the golden era of slots but also engages them in a community bonus.

Richard Terry, UK Market Product Director, said: ” Solid Gold is the latest in a series of fantastic Fortune Community Cat C titles from Inspired, and once again sees the return of a much-loved classic game brand from yesteryear, likely to engage both new players with its absorbing presentation and experienced players with fond memories of the original product”

The post INSPIRED LAUNCHES SOLID GOLD™: THE LATEST GEM IN THE FORTUNE COMMUNITY™ LINEUP! appeared first on European Gaming Industry News.

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ESIC Announces Establishment of Global Esports Industry Advisory Board

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The Esports Integrity Commission (ESIC) is pleased to announce the establishment of its Global Esports Industry Advisory Board, designed to enhance integrity and ethical practices across the esports landscape. The Advisory Board will serve a pivotal role by providing expert advice to ESIC’s Chief Executive Officer on a range of critical industry issues. 

The primary function of the Advisory Board is to create a robust framework for integrity and fairness, setting a global benchmark for ethical conduct and fair competition in esports. The board will offer strategic insights, help shape policies governing fair play, liaise with key industry stakeholders, and act as ambassadors advocating for ethical practices. 

ESIC has appointed two highly esteemed members to inaugurate this board: 

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  • David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG), joins the Advisory Board with over fifteen years of experience in the video games industry, including significant roles at Activision-Blizzard and Electronic Arts. David’s profound impact on international and public affairs initiatives makes him an invaluable addition to the board. 
  • Robbie Douek, CEO of BLAST, also joins the Advisory Board, bringing a wealth of experience from his roles at Google and Disney, along with his leadership through major acquisitions. Robbie is celebrated for his strategic leadership and his instrumental role in elevating esports to a significant global entertainment platform. 

The formation of the Advisory Board is an engagement that underscores the commitment of its members to upholding and promoting the highest standards of integrity within the esports industry. The board will meet as required to address strategic challenges and ensure that ESIC’s initiatives effectively meet current and future industry needs. 

“Both David and Robbie bring a remarkable depth of knowledge and a passion for advancing the integrity of esports,” said Stephen Hanna, CEO of ESIC. “Their expertise will be crucial as we navigate the evolving landscape of esports and strive to maintain the integrity that our community expects and deserves.” 

Robbie Douek, CEO at BLAST, said: “I’m honoured to be given the opportunity to support the Global Esports Industry Advisory Board and ESIC in their ambition to create the best and fairest environment possible for players, teams and fans.” 

David Neichel, Senior Vice President of Public & International Affairs at ESL FACEIT Group (EFG) also commented: “It is a true honour to join the Global Esports Industry Advisory Board and support ESIC’s successful journey. Fairplay and integrity are at the core of esports. We owe it to the players and to the fans and for a better endemic industry governance” 

The post ESIC Announces Establishment of Global Esports Industry Advisory Board appeared first on European Gaming Industry News.

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