In This Article:
Regulatory release no. 34
Highlights second quarter 2020
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Q2 Revenue declined by 4% to 15,253 tEUR (Q2 2019: 15,834 tEUR). Organic revenue decline was 24%. The development was impacted by the complete halt of all major sports events from mid-March through April and May before a gradual re-start late May and in June. Positive revenue growth returned in June with 20% growth, of which 7% was organic, even though some major markets, like the US and LATAM, were still affected by sports closedowns.
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Q2 EBITA before special items declined 7% to 6,305 tEUR (Q2 2019: 6,789 tEUR). The EBITA-margin before special items was 41%. The EBITA-margin remained in line with the financial target as the cost base was lowered significantly following the cost reduction program implemented from April 1, which reduced the cost base in Q2 2020 by approximately 3 mEUR compared to Q1 2020.
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Cash Flow from operations before special items was 10,363 tEUR (Q2 2019: 6,601 tEUR), an increase of 57%. The cash conversion was 154%. End of Q2, capital reserves stood at 65.1 mEUR consisting of cash of 19.5 mEUR and unused bank credit facilities of 45.7 mEUR.
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New Depositing Customers (NDCs) was approx. 71,000 in the quarter, representing a decline of 36%, due to the cancellations and postponements of major sports events.
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Better Collective completed the share buyback program per June 30, 2020. During the period March 19, 2020 to June 30, 2020 625,964 shares for an amount of EUR 4,811,557 (SEK 52,523,439) were purchased.
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The payment of the third and last instalment relating to the acquisition of Ribacka AB in cash and shares from the buyback program combined was completed. The payment reflected the maximum earn-out of 9 mEUR and consisted of 8.4 mEUR in cash and 0,6 mEUR in shares.
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Better Collective Tennessee divested the website pocketfives.com for an amount of 0.6 mEUR. The website was originally part of the acquisition of RiCal in May, 2019 and was considered non-strategic for Better Collective. The profit from the divestment is recorded as income under Special Items.
Financial highlights first six months 2020
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In the first half of 2020, revenue grew by 18% to 36,174 tEUR (YTD 2019: 30,739 tEUR). Organic revenue declined 2%.
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In the first half of 2020, EBITA before special items increased 12% to 14,931 tEUR (YTD 2019: 13,310 tEUR). The EBITA-margin before special items was 41%.
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Cash Flow from operations before special items was 19,814 tEUR (YTD 2019: 14,161 tEUR), an increase of 40%. The cash conversion rate before special items was 124%. End of Q2 2020, cash and unused credit facilities amounted to 65.1 mEUR.
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New Depositing Customers (NDCs) exceeded 186,000 in the first half year (decline of 18%). The decline was mainly due to the cancellation of major sports events. In total, it is estimated that the cancellation and postponements of major sports events have resulted in approximately 90,000 fewer NDC’s during H1 2020, compared to a “pre-COVID-19 estimate”.