Better COllective

Better Collective, a leading digital sports media group, has announced an expansion within esports by acquiring Futbin and related domains, constituting world-leading esports media brands within esoccer (FIFA), for a total price of up to €105 million.

With the addition of Futbin and related assets, Better Collective’s esports portfolio is expected to reach 100 million monthly visits, with the company further diversifying its income stream as Futbin revenues are mainly ads and subscription sales.

In connection with the acquisition, Better Collective has updated its financial targets for 2022.

With 50 million monthly visits on its website and three million daily active users (DAU) on its proprietary app, Futbin is a world leading esports brand related to the FIFA game. Together with its associated domains, the platforms provide a major player base with important insights into the game of FIFA. 

During the last 12 months, the platforms generated €13 million in revenues growing with a compound annual growth rate of 55 per cent from 2019 to 2021.

With its acquisition of the company, Better Collective expects to create “significant synergies” across its esports portfolio by developing products and services from a joint infrastructure, making it possible to effectively scale the esports brands to reach a large audience.

Reaching a combined 100 million monthly visits from Futbin, HLTV and other esports assets, Better Collective says it now hold a leading position in the esports market.

Granting a unique access to the esports audience, this is a key segment for retail and consumer brands in their global positioning. The increased scale allows for optimised revenue streams through improved partnerships.

Acquisition price

The purchase price is agreed at up to €105 million. Out of the total purchase price, €70 million will be paid upfront in cash and shares of Better Collective A/S will be paid at a market value of €5 million.

The shares are expected to be transferred from Better Collective’s holding of its own shares. The remaining up to €30 million is structured as a number of separate earn out payments to be paid over the coming two years subject to certain financial performance criteria.

Furthermore, the acquisition of assets provides Better Collective with rights to tax-depreciation.

Better Collective recently expanded its credit lines with Nordea Bank with an additional €100 million to finance further acquisitions, including the Futbin and associated assets.

Financial targets

In connection with the acquisition, Better Collective has updated its financial targets for the full year 2022 for operational earnings (EBITDA) to approximately €85 million (previously approximately €80 million).

The updated financial targets, reflects addition of approximately eight months of operational income from the acquired assets after inclusion of expected added costs to further develop the business.

Other financial targets relating to organic growth and debt leverage remain unchanged at 15 to 25 per cent for 2022 and over three times, respectively.

Jesper Søgaard, CEO and co-founder of Better Collective, commented on the acquisition, saying: “Esports is maturing and attracting more and more people globally – also professional athletes.

“Acquiring Futbin and related assets is a clear testament to Better Collective’s ambition of creating a platform that reaches esports audiences across the world.”

He added that the company will continue to look for additional growth, and that it is very impressed with the high growth profile and the technology behind Futbin and the other assets in its portfolio.

“We expect to see significant positive synergistic effects with Better Collective’s business going forward,” he concluded.

Continue Reading

Protect your cryptocurrency with these five expert tips

29 March 2024
by iGamingCapital.mt

'Hacks, scams and rug pulls not only pose a threat to individual investors but cast a shadow on the broader narrative of cryptocurrency as a revolutionary force in finance'

Safeguarding Malta’s business ecosystem: Geraldine Spiteri Lucas discusses recent changes at the MBR

28 March 2024
by Ramona Depares

'Processes have been re-engineered to specifically make it easier for companies to fulfill their reporting responsibilities’

Is the 4-day work week a trend or a reality?

27 March 2024
by iGamingCapital.mt

While the idea is certainly catching on, the big question remains whether it will become a standard and what consequences impacts this working arrangement will have

Responsible online gambling in Malta: Measures and practices in the online gambling sector

26 March 2024
by iGamingCapital.mt

Responsible gambling means being aware of the risks involved and taking care to never bet more than you can afford to lose

See more