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April presented challenging conditions for most listed gambling companies; however, three companies stood out as particularly resilient on the global stock markets: Betsson, BetMakers, and Better Collective.

Betsson

In April, Betsson emerged as the standout performer on NEXT.io‘s watchlist, witnessing a surge in its stock value while others faltered.

Over the span of the month, Betsson’s stock price rose by 15.68%, leaping from SEK105.90 on 28 March to SEK122.50 by 30 April.

The pinnacle of Betsson’s upward trajectory occurred on 26 April, coinciding with the release of its Q1 2024 financial results.

The operator generated revenue of €248.2m for the quarter, marking a substantial 12% year-on-year increase.

A quarter of this revenue was generated organically, indicating robust underlying growth.

EBITDA figures were equally impressive at €71.6m, up 32% on Q1 2023.

This translated to an EBITDA margin of 28.8%, a significant improvement from the previous year’s 24.5%.

Betsson AB CEO Pontus Lindwall lauded the Q1 2024 performance as a “strong start to the year,” despite facing headwinds from foreign exchange fluctuations.

Lindwall specifically pointed out the adverse impact of currency devaluation in Argentina, where a drastic depreciation of the Argentine peso, exceeding 50%, negatively affected the group’s reported revenue in the first quarter.

Despite these challenges, Betsson remained bullish about its future prospects, hinting at positive developments post-Q1.

The operator revealed that average daily revenue up to 22 April showed a robust 15.1% increase compared to the entire second quarter of 2023.

When adjusted for currency effects and acquisitions, this figure surged to 32%.

Moreover, Betsson reported an uptick in its sportsbook margins during this period, surpassing the average margin recorded over the past eight quarters.

BetMakers Technology Group

Among the suppliers, BetMakers registered the highest share gain at 20% during April.

The catalyst behind this upward momentum was BetMakers’ strategic move to acquire racing technology provider Racelab Global Assets.

The acquisition signalled BetMakers’ intention to bolster its technological capabilities in the wake of its separation from Betr, a move necessitated by Betr’s merger with BlueBet.

BetMakers touted the benefits of the acquisition, highlighting the infusion of new race form, preview, and statistics technology, as well as proprietary fixed-odds pricing solutions into its arsenal.

The deal, valued at A$1.5m, with an additional A$500,000 contingent upon customer novation within 30 days, positioned BetMakers to expand its services into the harness and greyhound form and preview sectors.

Moreover, BetMakers inked a significant agreement with Kambi, with BetMakers providing its Price Manager fixed odds platform and global racing data services to Kambi’s sportsbook through its Global Betting Services division.

However, the euphoria surrounding BetMakers’ ascent was tempered by the release of the supplier’s latest financial results at the end of April.

The company reported a 4.1% year-on-year revenue decrease to A$22.3m for Q3 of its fiscal year 2024 (three months ended 31 March).

BetMakers attributed the revenue slump to the challenging landscape for Australian operators, exacerbated by regulatory and tax-related headwinds.

Despite the revenue setback, BetMakers demonstrated resilience, narrowing its underlying EBITDA loss to A$2.5m from A$4.1m in the same period the previous fiscal year.

Better Collective

Amid a challenging stock market landscape for affiliates in April, Better Collective stood out with a marginal share gain of 2.78%.

The affiliate’s shares, which were valued at SEK287.50 at the end of March, climbed to SEK295.50 by the end of April, reflecting a steady upward trajectory.

While no singular event prompted this rise, Better Collective has demonstrated consistent performance over recent months.

Over the trailing six-month period up to 30 April, the affiliate recorded an 11.09% share price gain, with an even more impressive 36.28% increase over the trailing 12-month period.

This sustained growth underscores Better Collective’s robust market presence and strategic initiatives.

Earlier this year, the affiliate completed a DKK1.08bn (€145m) capital raise, positioning itself for future M&A.

Better Collective is already leading the pack in M&A activity within the gambling affiliate sphere.

With a track record of 34 acquisitions since 2017, the company has honed its expertise in integrating acquired brands into its portfolio, showcasing a robust rollout model.

Moreover, Better Collective’s financial performance has been robust, with full-year 2023 revenue reaching €327m, marking a 21% annual increase.

EBITDA before special items surged to €111m, reflecting 31% year-on-year growth, with an impressive EBITDA margin of 34%.

Looking ahead, Better Collective has set ambitious financial targets for full-year 2024, aiming for revenue of up to €420m and EBITDA of up to €135m, indicative of its confidence in sustained growth and market leadership.

Investors are surely eagerly anticipating Better Collective’s Q1 2024 results on 22 May.

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