Better Collective AB is tackling a difficult phase with resilience, as the company contends with a tough third quarter in 2025, marked by regulatory adjustments in Brazil, reduced sports betting margins, and substantial investments in AI for future growth. The company’s Q3 2025 financial results showed group revenues at €78 million, a decrease of 4% compared to €81 million in Q3 2024. The sports media assets suffered from an unprecedented low in sports win margins, diminishing income by €10 million and causing a year-on-year EBITDA decline of 8% to €21 million. The company faced transition costs linked to its operations in Brazil, amounting to €4 million, coupled with a negative €2 million foreign exchange impact.
For the year-to-date, Better Collective reported revenues of €242 million, a 12% decline from the previous year, with EBITDA before special items at €65 million compared to €80 million in the prior year. The operating profit before special items was €36 million, reflecting the persistent market headwinds. Nevertheless, the group remains optimistic, maintaining its 2025 guidance with projected revenues between €320–350 million, EBITDA within €100–120 million, and free cash flow ranging from €55–75 million.
CEO Jesper Søgaard expressed confidence in the company’s strategic direction, stating, “Q3 marked another important step in Better Collective’s transformation. Despite short-term fluctuations from a record-low sports margin and regulatory changes in Brazil, our underlying business remains solid and increasingly diversified.”
Performance Review
In the Publishing division, which includes brands like Action Network, Tipsbladet, Playmaker HQ, and VegasInsider, revenue was reported at €46 million, an 11% drop, with EBITDA decreasing by 18% to €11 million. There was notable engagement in the U.S. with the NFL season’s kickoff, yet Brazil’s regulatory changes, such as a ban on welcome bonuses and delayed payments, resulted in a €4 million deficit.
Conversely, the Paid Media segment demonstrated resilience, with an 11% increase in revenue to €28 million, and a 19% rise in EBITDA to €7 million. This growth was driven by enhanced performance marketing efforts in the U.S. and U.K. and judicious capital use. Meanwhile, Esports activities, including HLTV and FUTBIN, secured €4.4 million in revenue, a slight 3% decrease, but maintained a robust 53% EBITDA margin, thanks to strong traffic and sponsorships despite reduced activity preceding the EAFC 26 launch.
Søgaard remarked on the company’s strategy: “Paid Media delivered excellent growth and strong returns, while our Publishing and Esports teams are enhancing engagement through deeper content and smarter partnerships.”
Advancing Finances and AI Initiatives
In a strategic move to bolster its finances, Better Collective secured a €319 million credit facility with an additional €80 million in expansion options from Nordea and Nykredit. This positions the company to pursue its 2027 targets of achieving a 35–40% EBITDA margin and establishing a fully AI-integrated digital media ecosystem.
In September, the company launched Playbook, an AI-powered sports betting assistant designed to integrate real-time odds and insights across its platforms. Søgaard highlighted this development as “a defining milestone,” shifting the company’s focus from customer acquisition to retention and setting the stage for AI-driven growth in 2026.
An industry analyst might argue that while AI investments are promising, the immediate financial impact remains uncertain, especially in volatile markets like Brazil. Critics could point out that reliance on emerging technologies requires robust data infrastructure and seamless integration into existing systems, which can be challenging and resource-intensive.
In contrast, proponents of Better Collective’s strategy might argue that AI’s potential to personalize user experiences and streamline operations offers long-term benefits that outweigh short-term financial setbacks. As digital media and sports betting continue to evolve, those like Søgaard are likely betting on AI to usher in new efficiencies and growth avenues.
The broader market context underscores the unpredictability in regulatory environments and the ongoing digital transformation within the igaming industry. Companies navigating these shifts must adapt quickly, balancing innovation with financial prudence to maintain competitiveness.
As Better Collective steers through these challenges, its commitment to strategic investments and market adaptation reflects a long-term vision focused on sustaining growth and exploring new revenue streams. The impact of these strategies will become clearer as the company continues to integrate AI solutions and respond to market dynamics in 2026 and beyond.
Erik Agary is a seasoned writer at True Games Reviews, specializing in gaming, casino games, and interactive entertainment. With a passion for all things digital, Erik dives deep into the latest trends and developments in the gaming world, offering insightful reviews and detailed analysis. His expertise spans across multiple gaming platforms, ensuring comprehensive coverage that resonates with both novice and experienced gamers alike.
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