Better Collective AS (FRA:9C8) (Q2 2026) Earnings Call Highlights: Revenue Up 9%, North ...

Q & A Highlights

Q: Can you provide more detail on the prediction markets' development, including the specific sports driving growth and expectations going forward? A: Jesper Soegaard, Co-Founder and Co-CEO, stated that the company is pleased with the development of prediction markets in the U.S. They started the year with one active player and added a second during Q2. The upcoming NFL season is seen as a major milestone, and the company is excited about the increased competition among prediction market operators, which is expected to drive further growth and improve pricing dynamics in the second half of the year.

Q: The implied CPA per NDC dropped significantly this quarter. Is this solely due to prediction market dilution, or are there other factors at play? A: Jesper Soegaard explained that while prediction markets are a major factor, other elements like the structure of hybrid deals in the Paid Media business also influence the metric. He added that with more prediction market operators entering the market, the company is seeing prices increase, which should have a positive impact on this metric in the second half of the year compared to the first.

Q: Is the 26% EBITDA margin in North America a sustainable baseline, or was it inflated by seasonal high-margin revenue? A: CFO Flemming Pedersen noted that the strong margin was driven by two key factors: the robust performance of the North American revenue share databases, which are now contributing more recurring revenue, and the new market dynamics around prediction markets. He stated that on a full-year basis, this margin level is sustainable and likely to be higher, reflecting the very positive development in the region.

Q: How did the FIFA World Cup impact Q2 results, and can you quantify the effect compared to previous tournaments? A: Jesper Soegaard highlighted that the World Cup positively impacted new depositing customers (NDCs), advertising and sponsorship revenue, and activity in revenue share databases, which saw an all-time high in value of deposits. CFO Flemming Pedersen added that the impact was in line with expectations and that the EUR 5 million revenue and EBITDA bridge figure from the Euro '24 tournament is likely representative of the World Cup's effect on the quarter.

Q: What are the current dynamics in the U.K. and Brazil markets following recent regulatory and tax changes? A: Jesper Soegaard explained that the U.K. tax hike primarily impacted the Paid Media business, but the team has managed the headwind well by adapting to the new auction landscape. Regarding Brazil, the company has been dealing with the effects of taxation and regulation changes for several quarters. He noted that while the regulatory environment is driving some users to the unregulated market, it has become "daily business" for Better Collective to operate in this environment.

Q: How is AI being utilized across the business, and what impact is it having on costs and efficiency? A: Jesper Soegaard stated that AI is affecting the business in many ways, including product development (e.g., Playbook), content production (scaling tips and expert opinions tenfold across brands during the World Cup), and internal processes across all functions. He emphasized that AI adoption is the "new normal" for the organization, driving efficiency and allowing the company to allocate resources to its biggest opportunities.

Q: Can you elaborate on the AdVantage framework and its impact on the decision to combine CPM and sponsorship revenue into a single line? A: CFO Flemming Pedersen explained that AdVantage is a holistic effort with multiple subprojects, including the FanReach project and a focus on selling inventory directly. The initiative aims to improve overall advertising monetization, and the decision to combine CPM and sponsorship into one "advertising revenue" line from next year's annual report reflects how the company manages the business and its long-term strategy for monetizing audiences.

Q: What is the outlook for the Brazilian market given the upcoming election and ongoing regulatory discussions? A: Jesper Soegaard stated that while the election sparks debate, he believes the Brazilian state will want to protect the tax revenue generated from the regulated market. He noted that weakening the regulated market drives users to the non-licensed market, which results in no consumer protection or tax revenue. The company is accustomed to operating in this environment and continues to manage it as part of its daily business.

Q: How should we view the restructuring charge in Q2, and will there be further special items in Q3 related to optimization initiatives? A: CFO Flemming Pedersen clarified that the restructuring charge of approximately EUR 1.4-1.5 million in Q2 related to actions taken during that quarter. He confirmed that new initiatives announced for Q3 will result in additional special items in the following quarters.

Q: How is the broader competitive environment affecting Better Collective, and how is the company positioned to handle industry changes? A: Jesper Soegaard emphasized that Better Collective is on a good track, thanks to its long-term focus on diversification. From being a pure affiliation business at IPO, the company has expanded into multiple markets, added Paid Media, esports, new products like Playbook, and a talent-led business. This diversification provides resilience and optionality in a fast-moving industry, allowing the company to return to growth despite constant changes.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .