Industry News
Better Collective provides extraordinary business update due to COVID-19 situation
Following the postponement of several sports events in many countries including the UEFA EURO 2020 due to the outbreak of COVID-19, the sports betting media group, Better Collective, provides an extraordinary business update with the following highlights:
- Until mid March, Better Collective’s business has shown strong performance and has not been notably affected by postponements of sports events caused by the COVID-19 outbreak.
- In the last couple of days, major sports events have been postponed, leading to reduced sports betting activity to approximately half of normal levels. The esports and casino business have not been affected.
- The financial targets for 2020 remain unchanged until further, given certain assumptions.
- Better Collective’s business model and strong balance sheet allows for a high degree of flexibility in this changing environment.
Current business performance:
Better Collective’s business has not been notably affected by COVID-19 until mid March 2019, despite some sports events having been played without a physical audience and some events having been cancelled.
For Better Collective, February 2020 revenue ended in line with expectations with revenue of 6,9 mEUR corresponding to a growth of 27% (of which 13% was organic growth). Revenue in January and February 2020 combined amounts to 14,1 mEUR corresponding to a growth of 37% (of which 21% was organic growth). Measured on gross gaming activity in revenue share accounts, player activity in February was all time high.
Postponement of sports events
From mid March, almost all major sports events have been postponed. This includes the EURO 2020, as announced by The Union of European Football Associations (UEFA), which is postponed to 2021. In the days after the almost full halt of all major sports events globally, sports betting activity has been reduced to approximately half of normal activity, whereas activities in esports and casino remain unchanged.
Following the postponement of several major sports events, Better Collective expects that some of the revenue, which would normally materialize in the first half of 2020, will either be lost or postponed until later in 2020 or to 2021, depending on the new scheduling of events.
Based upon the current activity level, Better Collective estimates that the postponement of EURO 2020 will imply an isolated revenue postponement of 2-4 mEUR from 2020 to 2021, whereas other cancellations/postponements may have a similar negative effect, in particular in the US, where the business is mostly exposed to the major sports leagues.
Financial targets:
The financial targets for 2020 remain unchanged (double-digit organic growth and total growth of >30%, operating margin (EBITA) >40% and Net Interest Bearing Debt/ EBITDA <2,5) until further, given the following assumptions:
- Reduced revenue in 2020 from EURO 2020, postponed to 2021, is estimated at 2-4 mEUR.
- Reduced revenue in 2020 from other postponed sports events is estimated at 4-6 mEUR.
- Esports (HLTV) and casino business continue to perform at regular levels.
- The estimated effect of reduced sports betting of a total 6-10 mEUR is based on the assumption that all major sports events, other than EURO 2020, will be back to a normal activity level in the second half of 2020.
- Costs are maintained at current levels and thus lower than budgeted for the full year, offsetting some of the reduced revenue.
Better Collective will on an ongoing basis evaluate the development of the business and potentially take measures to protect the business and cash flow if revenue will be impacted significantly by postponed sports events.
Flexible business model and strong balance sheet:
Better Collective operates in an online business that allows for a high degree of flexibility as operation is highly scalable and can take place almost anywhere. This allows the company to continue operations as usual while giving priority to the health and safety of the employees. Furthermore, the historical business model has to a high degree been based upon revenue share, where the large databases of players continue to generate revenue as long as betting events take place, thereby providing recurring revenue. In past periods with low activity in the absence of major sports events, there is normally still betting activity, i.e. on lower profiled sports events, virtual games, esports, casino. Therefore it can be expected that even though major sports events are not happening, there will still be betting activity.
Better Collective has a strong balance sheet and financing position. The net cash position was almost neutral at the end of February 2020, with a net bank debt (cash minus bank debt) of minus 13,9 mEUR after including upfront payment of approximately 24 mEUR in connection with the acquisition of HLTV.org ApS (esports) at the end of February. Cash and un-utilised committed bank credit facilities stood at 70 mEUR end of February 2020.
Jesper Søgaard, CEO of Better Collective, says:
“The COVID-19 has in many instances created an unprecedented situation for societies across the world. Just as many other companies, Better Collective will expectedly also be affected by the COVID-19, especially following the postponement of major sports events such as the EURO 2020. Nothing is more important than the health and safety of people and we look forward to the return of the sports we all enjoy, including a safe and exciting EURO 2021. Though visibility is currently limited, we stay optimistic that normal sports betting activity levels will be restored why our guidance remains unchanged.”
About Better Collective:
Better Collective’s vision is to empower iGamers through transparency and technology – this is what has made them the world’s leading developer of digital platforms for betting tips, bookmaker information and iGaming communities. Better Collective’s portfolio includes a range of websites and products, among other bettingexpert.com, the trusted home of tips from expert tipsters and in depth betting theory. Better Collective is headquartered in Copenhagen, Denmark, and listed on Nasdaq Stockholm (BETCO).
Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
Bragg Gaming Group announced it has reached an agreement with its lenders, certain entities controlled by Doug Fallon, to repay USD 5 million of its outstanding USD 7 million secured promissory note and to extend the maturity of the remaining USD 2 million until June 6, 2025 (the Note). The company is in the process of securing a new revolving credit facility from a third-party lender. This facility is expected to offer more favourable terms than the existing Note, including lower borrowing costs and improved drawdown flexibility. All other terms of the original Note remain unchanged.
PENN Entertainment Inc announced plans for an expected $180–$200 million project to relocate its Ameristar Casino Hotel Council Bluffs (Ameristar) riverboat casino operations to a new, state-of-the-art land-based property to be rebranded as Hollywood Casino Council Bluffs (Hollywood Council Bluffs). The proposal is approved by the Iowa Racing and Gaming Commission in conjunction with a 15-year extension of Ameristar’s partnership with the nonprofit Qualified Sponsoring Organisation (QSO) Iowa West Racing Association. All commercial operators in Iowa are required to have an operating agreement with a QSO licensed to conduct gaming operations. Under the proposed plan, the new Hollywood Council Bluffs is expected to include roughly 125,000 square feet of new development with approximately 58,000 square feet of gaming space.
PENN Entertainment Inc announced that it intends to nominate Johnny Hartnett and Carlos Ruisanchez for election to its Board of Directors following discussions with HG Vora Capital Management LLC (HG Vora). Ron Naples has informed the Board that he will retire from the Board, effective immediately. Barbara Shattuck Kohn and Saul Reibstein have notified the Company that they will not stand for reelection at the 2025 Annual Meeting of Shareholders. The Board now comprises eight directors, seven of whom are independent.
Partnerships
The National Collegiate Athletic Association (NCAA) and Genius Sports Limited have announced a significant extension of their long-term partnership, reinforcing their shared commitment to innovation, transparency and the integrity of college athletics. Under the expanded agreement, Genius Sports has been appointed as the exclusive distributor of official NCAA data to licensed sportsbooks for all post-season tournaments, including March Madness, through 2032. This long-term agreement ensures the delivery of fast, accurate and secure data to the regulated sports betting market.
PrizePicks, the largest daily fantasy sports operator in North America, announced that it has been named the Official Daily Fantasy Partner of the San Francisco Giants. The new partnership strengthens the DFS leader’s presence in professional baseball and features digital and in-park activations at Oracle Park. As part of the multi-year partnership, PrizePicks branding will be showcased prominently throughout Oracle Park with rotating signage behind home plate and LED signage on each baseline. PrizePicks logos will be featured across the K-Counter in right field, creating an interactive experience for fans in the ballpark. Fans seated on top of the right field wall near the strikeout counter will have the opportunity to flip over the PrizePicks branded signs, revealing a “K” for each strikeout earned by a Giants pitcher.
The post Gaming Americas Weekly Roundup – April 28-May 4 appeared first on European Gaming Industry News.
Ruud Bergervoet has been reappointed as CFO of Holland Casino. He will remain financially responsible for the gambling provider for another two years. Bergervoet has already been CFO for two terms of four years, but due to the special circumstances of the company, he has been asked to remain as a director.
CEO Petra de Ruiter said: “I am very happy that Ruud is prepared to stay with us. With his experience and knowledge of the company, he is indispensable at this moment. We have to work very hard in the coming years to keep Holland Casino financially healthy. And I am certain that this is in good hands with Ruud.”
Ruud Bergervoet has been working at Holland Casino since 2017. Before that, he worked as CFO at FD Mediagroep and Sdu Uitgevers, among others.
During the shareholders’ meeting of April 16, Bergervoet was nominated by the Supervisory Board and his nomination was confirmed.
The post Ruud Bergervoet Reappointed as CFO of Holland Casino appeared first on European Gaming Industry News.
AskGamblers has announced that the final voting stage of the 8th annual AskGamblers Awards has started.
The voting phase kicked off on 28 April, and will last until the award ceremony scheduled for 12 June.
As in previous editions of the Awards, players can cast their votes for one of the top 10 finalists in the following categories: Best Casino, Best New Casino, Best Sportsbook, Best New Slot and Best Software Provider.
The Best Crypto Casino, Best Partner and Best Manager categories will traditionally be chosen by the AskGamblers team. This year’s edition introduces a new category, the Superstar Award, a crown achievement handed out to one operator that best represents the values of brands, whose laureate will also be chosen solely by AskGamblers.
Another novelty in this year’s Awards cycle is the Forum vote: the votes from the members of AskGamblers Forum will be counted towards the final tally of votes as a separate voting tier.
Commenting on the launch of the 8th AskGamblers Awards voting stage, Dijana Radunović, General Manager at AskGamblers, said: “Now that we have the finalists, we are entering the final stages of preparation for our biggest night of the year. To say that we are excited about the 8th edition of the AskGamblers Award would be an understatement.”
“As everybody in the team is working tirelessly to make the gala ceremony a night to remember, we invite our players to do their bidding: to give a vote to their favourite contestants and help us choose the rightful winners in the five categories that are open to public vote,” Radunović added.
Before the award ceremony on 12 June, AskGamblers will host the traditional Charity Night on 11 June, where the partners will bid for positions on the website, with the money raised allocated to a humanitarian cause.
The post The 8th AskGamblers Awards Officially Enters the Voting Stage appeared first on European Gaming Industry News.
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