Better Collective plans €45m acquisition
As it publishes interim results, the affiliate marketing giant has revealed it plans to acquire an iGaming business.
Denmark.- Affiliate marketing company Better Collective has revealed it has signed a letter of intent to acquire an unnamed international iGaming business for €45million.
The planned acquisition is designed to boost Better Collective’s lead generation capabilities.
The company said the acquisition target is a global specialist in lead generation that expects to report €40million in revenue and €8million in EBITA for the current financial year.
It said: “We remain highly dedicated to continuing to build our position as the main consolidator in the industry and currently have a healthy pipeline of acquisition candidates.”
The Copenhagen-headquartered company made the announcement as it published financial results for the first half of 2020.
It reported a 17.7 per cent rise in revenue year-on-year to €36.2million. Net profit for the six months increased 16.2 per cent to €8.6million.
The positive results for the first six months came despite a downturn in the last quarter. Revenue for Q2 dropped 4 per cent year-on-year to €15.3million.
The network attributed the fall to the suspension of sports due to the Covid-19 pandemic. It said numbers had begun to recover from June.
CEO Jesper Søgaard said: “As expected, Q2 was a challenging quarter for online sports betting as the Covid-19 pandemic set a halt on major sports events. April was the low point, May still significantly affected and in June some of the major sports in Europe resumed with accelerated play-offs.
“Sports markets in large countries like the US and LATAM are still affected and will expectedly start again in the second half of the year.
“However, our digital business model has proven strong under these difficult circumstances and Better Collective has demonstrated the flexibility to withstand a period of low sports activity.”
Denmark has reported a 19 per cent drop in gambling revenue for the first half of the year.