Better Collective A/S has announced that it will enter an optimization process to improve group performance following major acquisitions and shifts in key market outlooks.
The Stockholm-and-Copenhagen listed media group made this decision after leadership’s assessment of Q3 trading.
Preliminary Q3 2024 results show Better Collective reporting unaudited revenues of €81 million ($85.6 million) and an EBITDA before special items of €22 million ($23.2 million).
The anticipated Q3 results remain above the 2023 figures, when Better Collective generated revenues of €75 million ($79.5 million) and an operating EBITDA of €20 million ($21.2 million).
Investors were informed that Better Collective revised its full-year revenue guidance to a range of €355–€375 million ($376.3–$397.5 million), down from the previously expected €395 million ($418.7 million).
Management expects EBITDA before special items to remain in the range of €100–€110 million ($106–$116.6 million), lower than the previous forecast of €130–€140 million ($137.8–$148.4 million).
Group performance continues to be impacted by lower-than-expected commercial activities from US partners. Further headwinds include a slowdown in activity in the Brazilian market, which is heading into expected regulation in 2025.
Management will lead the streamlining process to identify new cost synergies from recent acquisitions and operations within markets. H2 directives see Better Collective upgrade the systems and operating capacities of its acquisitions of Playmaker Capital and Playmaker HQ.
Streamlining objectives are expected to result in over €50 million ($53 million) in annualized operational cost savings. The initiatives will be implemented in the coming months and are anticipated to achieve full impact by 2025.
“Since 2017, Better Collective has grown significantly, both organically and through 35 acquisitions, expanding our team while adding increased complexity to our organization. As external market conditions shift, it’s important for us to recalibrate our spending and investment strategies to ensure sustainable long-term success” — said Jesper Søgaard, CEO and Co-Founder of Better Collective.
We are currently implementing adjustments that will better prepare us for the future, and I am confident that Better Collective will emerge even stronger following this exercise. We operate in a market with strong underlying growth, despite being subject to volatility, and we are well-equipped to adapt and are strategically positioned to sustain our growth in the future.”
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