Better Collective reported revenue of EUR95m and EBITDA of EUR29m for Q1 2024 which can be compared to our forecast of EUR93m and EUR29m, respectively. The slightly stronger than expected topline was driven by North America while Europe & RoW saw revenue in line with our expectations. As expected, the EBITDA-margin of 31% was softer than Q1 last year owing to the transition to revenue-share and the consolidation of Playmaker Capital which initially will impact profitability negatively, as it transitions to an increased mix of performance marketing revenue.

Better Collective stated in its Q1-report that its traffic and ranking in Media partnerships has been impacted negatively following a Google policy change on May 5. While it is too early to say how this will impact in the longer term, the company reiterated its guidance for the full year, suggesting limited impact in the short term. Furthermore, the company highlights its broad portfolio of assets with traffic from many channels providing optionality which can mitigate potential negative longer-term impact.

While the update regarding Media partnerships adds uncertainty in the short term, the reiterated guidance provides support to our estimates. The company is also heading into a busy sport event schedule, including the UEFA EURO 2024, which should be supportive for the business in general. Still, allowing for some uncertainty in the near term, we have slightly trimmed our 2024E estimates (EBITDA down 2%) while we leave 2025-26E estimates unchanged.