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Better Collective reports record revenue; strong growth in US business and media partnerships

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Interim report January 1 – December 31, 2021

Highlights fourth quarter 2021

  • Q4 Group Revenue grew by 44% to 52.8 mEUR (Q4 2020: 36.7 mEUR). Organic revenue growth was 25%
    • The continued large increase in NDCs sent on revenue share contracts has signif- icantly increased future recurring revenue (in Publishing business) but also had a short term dampening effect on revenue and earnings. Combined with an ex- ceptionally low sports win margin, we have estimated an effect of approximately 6 mEUR in the quarter compared to historical average.
  • Q4 Group EBITDA before special items increased 16% to 16.3 mEUR (Q4 2020: 14.1 mEUR). The Group EBITDA-margin before special items was 31% (Publishing 40% and Paid Media 5%).
  • Cash Flow from operations before special items was 13.5 mEUR (Q4 2020: 10.1 mEUR), an increase of 33%. The cash conversion was 82%. By the end of Q4, capital reserves stood at 33.5 mEUR of which cash of 30.1 mEUR and unused bank credit facilities of 3.4 mEUR.
  • New Depositing Customers (NDCs) were >267,000 in the quarter (growth of 74%). NDCs sent on revenue share contracts were >190,000 (growth of 69%).
  • On November 4, Better Collective completed the acquisition of the remaining 40% shares in the US based RotoGrinders Network at a total price of 33 mEUR.
  • On December 8, Better Collective initiated a share buyback program to cover future payments relating to completed acquisitions and incentive programs for up to 10 mEUR.

Financial highlights full year 2021

  • Revenue grew by 94% to 177.1 mEUR (FY 2020: 91.2 mEUR), with organic growth of 29%.
  • EBITDA before special items increased 46% to 55.8 mEUR (FY 2020: 38.2 mEUR). The EBITDA-margin before special items was 32% (Publishing 43% and Paid Media 8%).
  • Special items amounted to a cost of 16.7 mEUR (FY 2020: 0.1 mEUR). It includes an 11.5 mEUR adjustment of the contingent liability related to the 2019 acquisition of Rical LLC, treated as a P/L item under IFRS, as well as income related to an ad- justment of the variable payment recorded in connection with the acquisition of Dutch assets. M&A cost of 6.0 mEUR is related to M&A activities, primarily Action Network, and 2.5 mEUR cost of Management incentive program related to Action Network.
  • Cash Flow from operations before special items was 51.2 mEUR (FY 2020: 38.3 mEUR), an increase of 34%. Cash conversion rate before special items was 92%.
  • On May 26, 2021, Better Collective resolved on a directed share issue of 6.9 million shares, thereby raising gross proceeds of SEK 1,500 million and significantly in- creasing financial flexibility.
  • New Depositing Customers were >857,000 in 2021 (growth of 96%). NDCs sent on revenue share contracts were >607,000 (growth of 70%).

During 2021, Better Collective completed acquisitions of approximately 210 mEUR:

  • On January 1, 2021 Better Collective 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.
  • On March 31, 2021 Better Collective strengthened its position in the Swedish sports betting market by acquiring online sports betting media platform, Rekatochklart. com for 3.8 mEUR.
  • On May 28, Better Collective acquired leading US sports betting media platform, Action Network, for 196 mEUR (240 mUSD), gaining market leadership within sports betting media in the US.
  • On September 24, Better Collective acquired Soccernews.nl, a Dutch online sports betting community, in separate transactions for total upfront payments of 5.9 mEUR.

Significant events of the closure of the period

  • January revenue reached >26 mEUR, more than double vs. 2020, of which 69% was organic growth. Earnings (EBITDA before special items) were >11 mEUR. Performance was boosted by the market opening in the state of New York.
  • On January 21 2022, Better Collective entered into a media partnership with the New York Post to bring the best in commercial sports betting content to the pub- lication’s readership of more than 92 million unique users. The agreement covers the delivery of content, data, and statistics for the betting section of the New York Post. New York state opened for online sports betting on January 8, 2022. Better Collective is off to a great start across all assets, in particular Action Network.
  • On January 11, 2022 the share buyback program of 10 mEUR initiated on December 8, 2021 was completed with 532,482 shares accumulated under the program.
  • The board of directors have implemented a new Long Term Incentive Plan (LTI) for key employees in the Better Collective group (excluding the executive manage- ment). Grants under the new LTI will be in the form of performance share units and share options vesting over a 3-year period. The total value of the 2022 LTI grant program is 1.4 mEUR (Black-Scholes value) measured at the target level.

Jesper Søgaard, Co-founder & CEO of Better Collective, commented:

“An all-time high intake of NDCs and an overall strong performance of our business mark the ending of 2021 – a year of many new opportunities for Better Collective. We managed to deliver growth of 44% over that of last year’s Q4. Our US business delivered prime results following the start of the NFL season, and contributed almost 40% to the total quarterly Group revenue. “

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Financial targets 2021

The Group financial targets for 2021 for organic growth (29% vs target of >25%) and Operational Earnings/EBITDA (55.8 mEUR vs target of >55 mEUR) were met. Total revenue ended at 177 mEUR slightly below the target of >180 mEUR. Total revenue and earnings were, as mentioned, affected negatively by an exceptionally low sports win margin in Q4 as well as a high intake of NDCs, which has a short- term dampening effect on margins.

Financial targets 2022

The Board of Directors have decided on new financial targets for the Better Collective Group for the financial year 2022. Excluding potential new M&A-trans- actions:

  • Double-digit organic revenue growth of 15-25%
  • Operating profit (EBITDA before special items) of approx. 75 mEUR
  • Debt leverage (Net interest bearing debt/EBITDA) <3,0
  • High operational cash conversion rate expected to be maintained

Conference call

A telephone conference will be held at 10.00 a.m. CET today by CEO Jesper Søgaard and CFO Flemming Pedersen. The presentation will simultaneously be webcasted, and both the telephone conference and the webcast offer an opportunity to ask questions.

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7777 gaming signs a strategic iLottery content deal with Scientific Games

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7777 gaming, a leading provider of digital gaming solutions, has announced a significant strategic partnership with Scientific Games a global leader in retail and digital lottery games, technology, analytics and services, to deliver digital lottery games through the SG Content Hub Partner Program.

The SG Content Hub Partner Program is a unique platform and game content partnership program featuring an expanding, highly curated selection of iLottery games from best-in-class, game studios worldwide in a variety of play styles appealing to all player types in multiple languages, as well as access to select licensed properties from the largest licensed brands portfolio in the lottery industry. Scientific Games currently serves 150 lotteries in 50 countries.

 

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Elena Shaterova, Chief Commercial Officer at 7777 gaming, expressed enthusiasm about the partnership: “Partnering with Scientific Games represents a significant milestone for 7777 gaming, solidifying our position as a global leader in digital lottery solutions. Through this collaboration, we are poised to deliver unparalleled gaming experiences to players worldwide, driving innovation and growth in the lottery industry.”

 

Steve Hickson, VP of Digital Games at Scientific Games commented: “We are delighted to welcome yet another top-class lottery game studio to the SG Content Hub Partner Program. The addition of 7777 gaming and their fantastic games aligns perfectly with our goal to make a variety of digital lottery content available to existing and new Scientific Games customers. Our SG Content Hub Partner Program is developing at pace as we continue to provide our customers with frictionless access to the very best content in the industry.”

The SG Content Hub Partner Program offers a one-stop solution for accessing multiple iLottery game studios, seamlessly integrating with a lottery’s existing gaming systems and iLottery technology. It streamlines operations, simplifies tech integrations, and enhances data analytics to drive game development and iLottery portfolio management.

7777 gaming is renowned for its ability to deliver high-quality iLottery games tailored to the unique requirements of different lotteries. The company ensures that its game content meets stringent government regulations and operators’ expectations for customization. With custom-made lottery concepts, 7777 gaming guarantees enhanced player satisfaction and fosters a deeper sense of connection and loyalty to the brand.

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The post 7777 gaming signs a strategic iLottery content deal with Scientific Games appeared first on European Gaming Industry News.

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Atlas-IAC’s CEO Maxim Slobodyanyuk Talks Winning Strategies & Vision for Future Growth in the iGaming Sector

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Atlas-IAC, a Next-Generation iGaming platform, has been recognized as the Best Sports Betting Provider Of The Year and Rising Star In Sports Betting Technology  at the Prague Gaming & Tech Awards 2024. The GamingTECH Awards annually  determine industry excellence in Central and Eastern Europe. Maxim Slobodyanyuk, CEO of Atlas-IAC, tells about insights into Atlas-IAC’s innovative solutions that are reshaping the iGaming landscape and the core principles of partnership driving mutual evolution for both Atlas-IAC and its esteemed operators.

 

Congratulations on winning “Best Sports Betting Provider Of The Year” and “Rising Star In Sports Betting Technology” at the GamingTECH CEE Awards 2024! How does Atlas-IAC feel about receiving such prestigious recognition?

We take pride in being acknowledged as the best sports betting provider and the rising star in sports betting technology across Central and Eastern Europe. At the heart of our success lies a team of exceptional visionaries, developers, and business analytics  striving to elevate the industry to new heights of technological innovation and responsible gaming practices.

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I’d like to thank our great partners for choosing Atlas-IAC as their technology provider, and for subscribing to our core business principle — to evolve and grow together. Our win is our partners’ win as well.

To be the best sports betting provider entails a weighty responsibility, one we approach with unwavering dedication. These awards serve as a validation of our unwavering commitment to excellence and as a catalyst for renewed determination to shape the future of sports betting technology. We are grateful for recognition and remain resolutely committed to charting new horizons of success alongside our valued partners.

 

Could you provide insights into the strategies that drove Atlas-IAC’s success in the iGaming industry?

At Atlas-IAC, our success strategy revolves around building strong partnerships and establishing a notable presence in the competitive global entertainment technology market. We prioritize automation, which gives us an edge in emerging markets and allows us to onboard partners quickly and streamline operations.

Continuously improving our platform to offer a seamless Sportsbook API experience is a priority. Our aim is to deliver fast performance, smooth betting experiences, real-time risk management, advanced anti-fraud measures, and scalable solutions for partners worldwide.

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Staying up-to-date, enhancing our product, analyzing market and partner needs, and proactively responding to them are essential. Being the top technological partner is a strategy that consistently works for us.

 

How does Atlas-IAC’s in-house developed Sportsbook differentiate itself from competitors?

Atlas-IAC’s in-house developed Sportsbook sets us apart because we have full control over its features and can make rapid improvements. Features like Personal Odds Boost and Clever Margin allow for customized experiences tailored to our partners’ needs. We focus on personalization, ensuring the product aligns perfectly with each operator’s requirements. With a skilled team dedicated to our partners’ needs, we can promptly address requests and deliver effective solutions.

 

Atlas-IAC offers one of the most automated Sportsbook available in the market. How does automation enhance the experience for both operators and users?

Our fully automated Sportsbook API is efficient and user-friendly, enhancing engagement and retention. It’s equipped to handle high demand periods effectively and offers tools for precise betting management and reliable results. We can swiftly develop and integrate custom modules for partners, giving us a competitive edge. We prioritize meeting partners’ needs while delivering enjoyable experiences for players, fostering mutual benefit for all involved.

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What specific features or tools have been well-received by operators in the iGaming industry?

In the realm of iGaming, Atlas-IAC has garnered recognition for its remarkable adaptability and keen responsiveness to the requirements of our partners. Understanding the distinctive needs of each operator, we have crafted a tailored approach to ensure effective solutions.

One specific example of our successful tools is our Cashback feature, which serves as a versatile tool for promoting sporting events and enhancing player entertainment. This feature offers customizable settings based on specific sports, events, odds criteria, and frequency. With such flexibility, operators can effectively incentivize participation and elevate excitement levels among players.

In essence, the suite of features and tools offered by Atlas-IAC not only addresses the diverse needs of operators but also fuels engagement and growth within the iGaming industry.

 

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What are Atlas-IAC’s goals for continued innovation and growth in the iGaming sector?

Looking ahead, our primary aim is to continually push the boundaries of innovation while delivering outstanding value to our partners. We remain steadfast in our commitment to leading the charge in the iGaming sector, fostering sustainable growth, and championing responsible gaming practices. Our strategy revolves around staying agile, adapting to emerging trends, and catering to the unique needs of operators worldwide.

The evolving sports betting landscape of 2024 underscores the critical importance of adaptability and innovation. Operators must navigate this dynamic environment marked by technological advancements and regulatory shifts, and Atlas-IAC stands ready to assist them in this endeavor.

In terms of market focus, we are meticulously evaluating opportunities in LATAM, Eastern Europe, South-East Asia, and Africa. These regions offer significant growth potential, and our tailored strategy is geared towards effectively meeting the unique demands of these diverse markets.

The post Atlas-IAC’s CEO Maxim Slobodyanyuk Talks Winning Strategies & Vision for Future Growth in the iGaming Sector appeared first on European Gaming Industry News.

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How to avoid failing at affiliate marketing in 2024?

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The evolving landscape of affiliate marketing within the iGaming ecosystem presents both opportunities and challenges due to regulatory shifts. Adapting to these changes is crucial to navigate the dynamic environment effectively. Slotegrator experts exploring strategies to avoid pitfalls globally and adopting adaptable approaches can optimize affiliate marketing amidst evolving regulations.

The iGaming industry has had to focus on a number of changes in the area of affiliate marketing –  as a result of regulatory and advertising changes.

Beyond that, it’s important to keep in mind another important key initiatives that include key components of a successful affiliate program:

  • The quality of the content the affiliate creates.
  • Regulations the affiliate or affiliate program might be subject to.
  • This is especially important if the affiliate expects a commission for every sign-up. If the affiliate is getting paid for every player they send your way, the players need to stay for a while for it to be worth it.
  • An ongoing analysis of the size and quality of traffic the affiliate is delivering you.

To know more about these points you can read an instruction from the Slotegrator Academy by link.

The changes have not only affected the regulatory environment of the iGaming industry, but also affiliate marketing as a result of the general changes. What is important to look out for?

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Slotegrator shares some regional specifics of affiliate marketing:

  • Asia is a diverse and dynamic region for affiliate marketing in the iGaming industry. Affiliates operating in Asia have to navigate complex regulatory conditions and varying cultural attitudes. Marketing managers have to employ strategies that prioritize mobile channelization, collaboration with opinion leaders, and compliance with local laws — all of which are essential to success.
  • Affiliate marketing in Africa is still in its early stages but is already showing significant potential. With the increasing availability of the internet and the spread of smartphones, the continent is opening up opportunities for affiliates to reach a fast-growing market. However, factors such as regulatory uncertainty, payment processing difficulties, and the cultural diversity of the region need to be taken into account.
  • In Latin America working with local affiliates who have a deep understanding of the regional market helps to better customize marketing campaigns and achieve higher conversion rates. Given the strict regulation of gambling in some Latin American countries, it is important to comply with local laws and advertising restrictions to avoid negative consequences.
  • Affiliate marketing in Europe is a dynamic and competitive landscape where effective strategies and a professional approach can ensure significant business success and growth in the iGaming sector. One of the important parts of affiliate marketing in Europe is the use of a variety of channels to build audiences. It helps to diversify and increase the flow of traffic to the partner’s site, which helps to increase conversion rates. Careful research of each country’s rules and restrictions is needed regarding the advertising and promotion of gambling.

Alyce Fabel from CasinoRIX, Slotegrator’s media partner, summarizes key aspects for affiliate companies to concentrate on.“As each year passes, affiliates must strive to improve and keep pace with the market. Competition is growing, regulations are evolving, and that brings changes to many regions. We can highlight five key points for affiliate companies to focus on:

  • Continuously search for and acquire new traffic channels. It’s crucial not to focus only on one channel; diversification is necessary. This has been particularly evident in the past year, with significant changes and updates in SEO and mobile traffic (iOS/Android applications).
  • Ensure content quality. As AI tools continue to advance, it’s essential not only to learn to apply them in work but also to differentiate content written by humans from AI-generated content (especially crucial for SEO projects).
  • Configure deep analytics. Constantly work on improving traffic quality and understand where to make enhancements. The standards for traffic quality are rising.
  • Provide added value. It’s time to start developing the product aspect as well, thinking not only as an affiliate but also about providing customers with additional value. This will also help in achieving higher-quality marketing.”

Cultivate relationships with partners. Build strong and lasting relationships, stay informed about all industry changes and news, and keep up with technologies and innovations. This is crucial for achieving high results.

And some words about the affiliate marketing trends as a compass to guide development efforts in this area in the right direction. Khoren Ispiryan, sales manager at Slotegrator, and the speaker of the latest Prague Gaming & TECH Summit ‘24, shares some insights:

  • “The best thing is to include real people in the affiliate marketing. To create an environment where bloggers, streamers and influencers will make a bigger impact on the end user behavior.
  • In 2024, gambling companies will continue to partner with influencers and other internet celebrities. These partnerships will be increasingly effective methods of attracting new audiences, promoting products, and increasing brand awareness.
  • Loyalty programs and other ways of enhancing the user experience will also be essential for the promotion of gambling websites.
  • The development of partner relationship management software will be a major priority. It will help improve usability for affiliate partners and enable better communication between companies and affiliates. For instance, Partnergrator from Slotegrator offers a solution for online gambling platform operators who face difficulties in tracking their affiliate program data. This innovative solution provides the ability to manage and analyze affiliate programs in real-time, using analytics to simplify the decision-making process.”

The post How to avoid failing at affiliate marketing in 2024? appeared first on European Gaming Industry News.

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