Better Collective Q1 revenue drops amid regulatory shifts
Image credit: Better Collective Digital sports media and affiliate group Better Collective has reported a 13% year-on-year revenue decline in Q1 2025, with total revenue falling to €83m (~£69.8m). The company’s EBITDA before special items also dropped 24% to €22m (~£18.5m), as the group navigated regulatory headwinds in key markets, notably Brazil and the United … Continued The post Better Collective Q1 revenue drops amid regulatory shifts appeared first on Esports Insider.
Digital sports media and affiliate group Better Collective has reported a 13% year-on-year revenue decline in Q1 2025, with total revenue falling to €83m (~£69.8m).
The company’s EBITDA before special items also dropped 24% to €22m (~£18.5m), as the group navigated regulatory headwinds in key markets, notably Brazil and the United States.
The primary drag on Q1 performance was Brazil’s transition to a regulated betting market, which contributed a €7m (~£5.89m) negative impact on both revenue and EBITDA compared to Q1 2024.
While Brazilian operations generated €10m (~£8.41m) in Q1 revenue, delayed payments from clients under the new regulatory framework negatively affected cash flow by €9m.
Additionally, the prior year’s North Carolina launch and reduced marketing activity from US partners accounted for further revenue shortfalls.
Despite these challenges, Better Collective maintained its full-year guidance, projecting €320–€350m in revenue and €100–€120 million in EBITDA for 2025.
The company’s cost efficiency programme, launched in October 2024, delivered €5m (~£4.21m) in quarterly savings, largely through staff and operational reductions.
New depositing customers (NDCs) totalled 316,000 for the quarter, down 30% year-on-year, primarily due to bonus restrictions in Brazil and slower acquisition rates.
Better Collective’s Esports Focus
Operationally, Better Collective introduced a Co-CEO model and reorganised into three global business units: Publishing, Paid Media, and Esports.
Notably, esports will be reported as a standalone segment starting Q2 2025, reflecting its growing strategic importance.
Better Collective has significantly expanded its esports presence over the years, acquiring leading brands like HLTV and FUTBIN.
HLTV.org is one of the largest Counter-Strike 2 communities, providing tournament coverage, statistics, and the annual HLTV Awards. Meanwhile FUTBIN leads in esoccer content with 50 million monthly visits.
According to the company, its esports portfolio attracts around 100m monthly visits, a substantial share of Better Collective’s total digital audience of over 400m monthly visits.
Esports was also highlighted in the company’s Q1 video update, with Co-founder & Co-CEO Jesper Søgaard stating: “After year’s of strong growth, we are evolving out structure to better scale our business and meet the demands of a fast changing digital sports media and sports betting media landscape.
“We’ve transitioned from a local geographic-based set-up to three global business units: publishing, paid media and esports. This shift reduces complexity, aligns our teams and positions us for long-term success.”
While recurring revenue declined by 8% and revenue share dropped 13%, CPM-based revenue rose 13%, aided by the acquisition of Playmaker Capital and early strength in Brazil’s advertising market.
The group’s financial position remains robust, with €25m (~£21m) in cash and €65m (~£57.6m) in available credit.
As Better Collective moves forward, its commitment to esports and digital media innovation positions it to capitalise on new growth opportunities, even as regulatory and market dynamics continue to evolve.
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