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A daily podcast delving into the biggest stories of the day throughout the sports betting and igaming sector.
Charlie Horner (00:58.542)
Better Collective has told investors it has successfully reignited its US media engine to return its business profile back to growth. Positive H1 trading saw Better Collective improve across its core financial metrics, led by the recovery of its North American media portfolio led by Playmaker, Vegas Insider, and the Action Network. Regardless of a US uplift, financial results are dragged by international wins as the UK and Brazil costs are detailed to have a direct impact on bottom line profits.
Ted Menmuir (01:17.575)
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Charlie Horner (01:28.172)
The dilemma for Better Collective is whether it can balance these international pressures or just hit its twenty twenty six and longer term targets riding a current US slipstream. Welcome back to iGaming Daily, supported by Optimove, the creator of positionless marketing and the number one player engagement solution for sports betting and iGaming operators. I'm Charlie Horner, and to discuss this today with me is our editor at large Ted Manmure and SBC News editor Ted Orm Clay. Ted how are you?
Ted Menmuir (01:59.301)
Very well, Charlie, enjoying the sweets that have been delivered to us at the London office. So yeah, just munching on them all day.
Charlie Horner (02:11.041)
Very nice. Ted L C, how are you?
Ted Orme-Claye (02:14.232)
Yeah, I'm good, thank you, Charlie. I'm intrigued, Ted. Is the pick and mix going to be a permanent feature of our London HQ? is this some sort of... Is this a temporary treat?
Ted Menmuir (02:20.614)
I've told.
Ted Menmuir (02:26.662)
I don't know which sales guy has got the bribe, but thank you. To whichever partner I supply this is more sweet than any offer should have.
Ted Orme-Claye (02:36.316)
What they got? What's your favourite selection out there? It's all good.
Ted Menmuir (02:41.474)
everything.
Ted Menmuir (02:45.286)
Yeah, I'm into the story jammed. Yeah, this'll be mushy on them. Not good, not good for my bikini look,
Ted Orme-Claye (02:50.532)
Nice. Nice.
Charlie Horner (02:52.994)
Sorry.
Charlie Horner (03:00.897)
Very good. Well, you know, w it feels like we're very much kids in a sweet shop picking which story to talk about today, but alas we are focusing on Better Collectives H one results. And they landed on Friday, didn't they, Ted? And it made for quite interesting reading. how about you give us the overview? What does Better Collectives performance tell us about the company? And and how it's navigating current economic conditions, because we know it's quite tough for i gaming media, isn't it?
Ted Menmuir (03:08.646)
Ayyyy
Ted Menmuir (03:29.094)
Hmm. Yeah, I'll take the first question. So Better Collective has a right to be positive as it publishes its first interim since H1 2024, reporting corporate growth, group accounts detail and increase in income in group income by 7 % to 175 million euros and a beta fell increased by 70 % to 50 million.
Results see better collective report growth on 2025 comparatives, but these interim figures still remain below the comparatives of 2023 and 2024. The turnaround really points to gains in its US portfolio, and as we saw, H1 was detailed as kind of a non-stop period of headline sports events covering the World Cup and NBA finals. The media network also, its US media network also
so benefited from aggressive spend and a returning to kind of increased action by US sports betting operators and clients paying for that kind of premium to be listed on top of these sites.
I think when you step back, it's a case that in simple terms, US media is by far outpacing better collectives kind of heritage portfolio in Europe and international. It is the kind of growth engine of the business, but it's how long can it just last on one vertical? And is it necessary the foundation for longer lasting growth? That's yet to be found out.
Charlie Horner (05:06.221)
Mm-hmm. Yeah. A couple of years ago we saw a a a group of affiliate and and media companies sort of pivoting towards really focusing on on North America. And maybe if if we would have had this conversation a year ago, we would we would have said maybe that was a mistake because a lot of these companies w were struggling in that region. but TED OC, it seems like for better collective, North America is now the the the growth engine and and there has been a s a a recovery there.
Ted Menmuir (05:23.696)
Hmm.
Charlie Horner (05:34.903)
Could you tell us what assets and revenue streams make up that North American business and and why that is such a an advantage for the company?
Ted Orme-Claye (05:44.445)
Well, Better Collective has an enormous portfolio of brands. We'd be here all day if we listed them all out. But from what I understand, Ted may be more knowledgeable about them and the Phillips space in general than I am, to be honest. But the Action Network and Vegas Insider are two pretty big ones there. I think those are really, what I'd say is they're kind of their core North American
Ted Menmuir (06:04.986)
Mm-hmm.
Ted Orme-Claye (06:14.076)
portfolio. They do also have the Playmaker HQ, think, although would be, am I right in saying that's more of a Latin America focused asset, Ted From what we're-
Ted Menmuir (06:23.714)
yeah, so in terms of...
Ted Orme-Claye (06:26.63)
Yeah.
Ted Menmuir (06:26.79)
better collectives overall US portfolio. It's like, they've got, you know, specialist sites like Rotor Breaks, Rotor Grinders, Schools of the North and Sports Handle, kind of very kind of dedicated to kind of localised US coverage. Going off the call, what we've seen is that the US uplift, like, yes, you can say it's down through a higher spend over a period of concentrated sports for better collective. But what leadership is kind of really underlining is that it's also
getting a much better kind of diversification. What used to be primarily a very kind of CPA heavy market is now turning towards rev share.
but also tenancy deals and subscriptions that Bellacollect is kind of hitting out with the market. And they believe that that's kind of a stronger kind of commercial mold for the US engine that it has over its kind of international and European counterpart. Again, this returns to that narrative that we're talking to. How long will this kind of sugar rush or high premium period last for? That's yet to be seen.
Ted Orme-Claye (07:38.055)
The point about revenue share and so on I think is quite an important one isn't it in the US because I think from what I understand I think that will probably be better for affiliate groups and media networks like Better Collective in the long run because there's more sustainability with it right whilst the CPA method won't be as good because the US is dominated by a handful of players isn't it when the majority of people have already
Ted Menmuir (07:54.309)
Mm-hmm.
Ted Orme-Claye (08:04.38)
who are better, have already got an account with Fangil or DraftKings and that's who they bet with. They're not interested in, they might not be interested in new platforms, getting to sign up for them and getting that CPA money through that is going to be difficult. Whilst revenue share, everyone who's in there, you've already got that customer base, haven't you? It's stable, it's more long-term. I think, to be fair, another thing, we might get into this a bit more later, Ted mentioned the diversification.
I think something that has really played into Better Collective's hands this year with regards to that is the rise of prediction markets platforms and how much they've grown this year. That is something that Better Collective have been focusing quite heavily on. They've had some ambitions in this space for much of the year. I think they might have even said towards the end of last year that they were monitoring it closely. And this year they rolled out
new editorial hubs across the Action Network and Vegas Insider, I think, that were focusing specifically on that prediction space. So they've clearly done a good job, I think, of establishing themselves in that, in something that is a multi-billion dollar industry, is continuing to grow despite some regulatory uncertainty around it. So I think, yeah, they've planned that well by looks of it.
Ted Menmuir (09:09.21)
Mm-hmm.
Charlie Horner (09:26.221)
Mm.
Charlie Horner (09:31.286)
Yeah, I I think the the number one fundamental, maybe existential question I I would have had for affiliates was how do you keep growing in the US when there are no more states turning on for for iGaming for online casino and for for sports betting, a lot of that market is also taken up and the states that remain probably aren't going to legalize for a long time. And then along comes prediction markets and and it's a a fantastic growth opportunity.
Ted Menmuir (09:57.571)
Mm.
Charlie Horner (10:01.421)
I guess the question is whether you know, whether th those legal hurdles can can be overcome over the long term and and and to see prediction markets become a sustainable growth driver. Ted, what what do you make of the prediction markets angle for for Better Collective? Ted that is.
Ted Menmuir (10:17.368)
Okay, this was an area that was kind of heavily probed on the analyst and investor call and looking on paper, prediction markets or advertising from prediction markets generated about five million euros. Leadership was very pleased just because they noted that this was like the initial segment and they hadn't actually made as, you know, they hadn't contributed that many kind of resources. They're just beginning to kind of
out their kind of capabilities out for the market but to generate five million off the cuff is very kind of positive sign for them. One thing that leadership did not want to kind of...
show any kind of light on is the actual kind of economics of running a prediction markets campaign. What they said was that actually as stands, it's the prediction markets, the calcium polymarket buying high premium tenancies off their inventory rather than going for traditional rev share rev share or CPA deals. But these are definitely kind of partnerships that re reshake better collectives portfolio and the commercial pipe.
Ted Orme-Claye (11:21.884)
share with the EPA deal. But these are definitely the kind partnerships that reshape the federal collective.
Ted Menmuir (11:31.396)
lines they are welcome to kind of that diversification that the US gambling kind of needed beyond the likes of Fandio and Draft Kings and Fanatics or else. The pool in the US is getting deeper it's something that better collective should welcome.
Charlie Horner (11:51.074)
Yeah, certainly, diversification at a time when it was really needed. so that's the US and and North America is is a bit of a growth engine for for Better Collective at the moment. Ted O C though, let's let's take a look at some of the other regions. perhaps you could give us a bit of an insight into how Better Collective performed across Europe, and Latam.
Ted Orme-Claye (12:03.804)
Thank you.
Ted Orme-Claye (12:07.76)
bit of an insight into how...
Ted Orme-Claye (12:14.748)
But you're gonna have to do some editing, so I'm afraid I can't because I don't know how they did the... It's not in Ted's article.
Ted Menmuir (12:21.124)
Okay. Sorry about that.
Ted Menmuir (12:28.174)
Okay, don't worry, I'll put it here, That'll just, yeah, okay.
Charlie Horner (12:30.413)
Okay.
Ted Orme-Claye (12:36.826)
Do you know Ted? Have you got the details on this? Yeah, sorry Charlie, can you just take the same question to Ted?
Ted Menmuir (12:38.714)
Yeah, no, no, it's just, yeah.
Charlie Horner (12:48.269)
Okay, so North America is clearly the growth engine for for Better Collective throughout H one. But Ted, let's have a little look at how the company performed e elsewhere in the world. Could you give us a bit of an insight into how it performed in in Europe and and Latam?
Ted Menmuir (13:04.102)
Yeah, it's just such a kind of stark comparison here. Yes, as I mentioned, North America is by far kind of outpacing European and rest of the world growth that remains stagnant at 125 million euros. Yes, when you step back, Europe and the rest of the world are still kind of the biggest markets or the biggest revenue generating markets. However,
those revenue or that commercial pipelines appear appears to be stagnant. Other factors to consider that is that it's not kind of seeing this diversification of the pipeline. The majority of the money is still coming through kind of revenue shared legacy revenue shared deals. And then finally, the weaker points here point towards kind of the CPM and subscription models that hasn't been able to apply in Brazil.
What you see is that the international unit of Better Collective is really responding to the market, the economic conditions of the international segment in Europe on Better Collective's business. And that's applicable to higher taxes and higher compliance costs still out in Brazil. It's going to be kind of a long hit.
Yeah, it's going to be quite a burdensome time for them to recover and get back on track.
Charlie Horner (14:39.041)
Yeah, absolutely. Well Ted Ted, let's take a very short break and we'll come back and we'll we'll talk about Better Collectives wider reset.
Charlie Horner (14:51.489)
Welcome back to iGaming Daily. Now, despite the improved US performance of of Better Collective, I think Ted it's fair to say that it's a company still in transition. what operational and strategic changes do you think management is sort of prioritising across across the entire group? What what sense did you get off of the call on Friday?
Ted Orme-Claye (15:18.172)
Which Ted, sorry.
Charlie Horner (15:20.811)
Well who who can can you can you answer this one, Ted? LC.
Ted Orme-Claye (15:24.316)
Sorry.
Ted Menmuir (15:24.518)
Okay, look, no, no, no, no, okay, no, no, no, no, no, no,
Leadership still understands that this is a business in transition. It's also kind of looking at kind of media efficiencies in terms of how it runs its network, cost controlled. But then one thing that they're really exploring now is AI, and AI to help them kind of operationally and kind of scale down costs. So CapEx, they really want to narrow in on CapEx. That's it.
Ted Orme-Claye (16:06.396)
Right, okay. Alright, Charlie, sorry, do want to start again?
Ted Menmuir (16:14.124)
Kiss my...
Ted Orme-Claye (16:14.364)
Just take this to Ted and I'll chime in every now and then. I didn't write this article, I only listened to a little bit of the call. Yeah, just go for Ted.
Ted Menmuir (16:18.924)
Okay, fine, fine,
Ted Menmuir (16:29.732)
Good, thank you.
Charlie Horner (16:31.053)
Okay, sure.
Charlie Horner (16:35.893)
Welcome back to iGaming Daily. Now we know that there's have been improvements in the US, but I think it's fair to say that Better Collective is a company that remains in transition. Ted what what operational and strategic changes do you think that management is prioritizing across the group? What what sense did you get off the call on Friday?
Ted Menmuir (16:54.182)
Yes, I found this to be kind of the most intriguing section of the call and...
Part of the reason why is because at the same time, you're talking about a company that's going through transition, but it's also, it has been a rough two years for Better Collective on the whole. And I think that it's trying to of point a different picture to market. Leadership understands that this is a transformational point for the business, right? And also I think it understands that its investors, like all kind of counterparts, wants to
kind of a better control on costs and expenditure. So I think there are two kind of areas that better collective.
wants to kind of underline. Number one, I think it wants to kind of speed up its US potential and continue that kind of acceleration. So we'd expect kind of bigger spend coming on there. The other factor here is that it is investing significantly or it's beginning to invest significantly in AI to advance the transition and improve cost controls and operations. One of the big pressures here on
better collective is the need to kind of improve CAPEX. And I think that they kind of use AI as one of the weapons that it has in its armory for this.
Charlie Horner (18:20.255)
Mm. Well, I think it's a really interesting time in the US affiliate landscape, really, because we have to consider that both Genius Sports and Sport Radar are are expanding across media, advertising and affiliate operations. Ted O C, how do you consider that sort of evolving landscape and where do you think better collective is is most likely to to try and invest to to defend off that competition?
Ted Orme-Claye (18:48.356)
It's a very good question. It's a tough one. It's a tough one for me to answer. I'm sure it's a very tough one for Better Collective leadership to answer as well. Because it does seem like everyone is moving in the same direction in a few different areas. But I mean, you you're right in terms of like what Genius Sports and SportRadar are doing out there. I'm sure Better Collective probably have been paying quite close attention to Genius's acquisition of a legend.
that multi-billion takeover that's really going to expand Genius' footprint, well, is expanding Genius' footprint, I should say, in the affiliate and media sort of space. I think Better Collective are paying a lot of close attention to predictions, and I think that's really where they see a lot of room for expansion. From what I remember from the call that they had with Analyst last week,
that was something they were very confident about, they're very keen on. They say they've been making progress with signing new partners and building up some relationships with the emerging prediction space. So I think that's something they're going to be going harder in on over the coming months, definitely. But also while simultaneously, just to...
Hark back to what Ted's just said. They are going to be looking very closely at how they can make the business more efficient Whether that's using AI or other technologies or other practices The in terms of like areas that they're going to focus on market regarding new markets and products and so on predictions is front and center I think
Charlie Horner (20:30.005)
Yeah, we'll we'll let's talk about some of those those cost efficiencies. I think Better Collective has said that it's gonna consolidate its tech platforms and different content systems and operations across all of its different house of brands TED is is it a cost efficiency exercise or do you think that managing that all of that tech from the same platform is is is a way way to scale the business much much larger?
Ted Menmuir (20:39.429)
Mm-hmm.
Ted Menmuir (20:52.262)
.
Ted Menmuir (20:57.882)
That's a good question. we're going to find out how good and agile Better Collective are. Because also, you're talking about a company that was very aggressive in the acquisition of
media platforms and companies that it felt were competing in the same space as it. Better Collective has grown organically, but it has grown significantly via &A, and I don't think that it's going to play the same trick again. I think the question now is how good is it at integrating, finding cost controls and synergies from what it has, both in terms of its US portfolio and its international unit.
question that remains is what it does about Brazil. It's not getting those margins, it's not getting that revenue or income in there and it's also a market that's having a direct hit on bottom line. You you reported on this before Charlie that everything's up in the air in Brazil of how that market kind of pans out. If...
If that situation or condition turns negative, it could really, really dampen better collective private prospects coming in for H2 and beyond. Yes, US growth is big. It's the most important market for them. But there are kind of other dynamics in the background playing out that don't carry favor for them.
Charlie Horner (22:25.389)
Yeah, I think there might have been plenty of different companies who were perhaps underwhelmed by Brazil in the f in the first year or so. and now that is turning into existential worry and dread about what what what might happen post election. But let's let's bring things towards a close for today, Ted and Ted. because we know that it is it's a tough time to be an IGaming affiliate at the moment. but on the evidence of H one.
Ted Menmuir (22:30.022)
Mm-hmm.
Charlie Horner (22:53.121)
Do we think that better collective can still lay claim to being the the top dogs in this sector? Or has has the landscape just fundamentally changed and we're dealing with a a completely different context? Ted O. C. What do you think?
Ted Orme-Claye (23:07.932)
I mean, yes, there's certainly still a leader there. I think they've responded to the challenges of 2026 quite well. This was acknowledged by leadership in the call as well, talking about some of the headwinds in Brazil. Ted just mentioned the increases in tax that we're seeing there that's come on a lot earlier than a lot of people expected it would. They mentioned the UK as well, which I think had an impact on their paid media business. The taxes here had an impact on their paid media business, I should clarify.
I think they've responded to those challenges well and have set themselves out in good stead for the rest of the year. However, I guess we should always consider a bit like with a lot of operator financials that we've been seeing over the past few weeks as everyone puts the H1s out, how much of this is because of World Cup revenue? And now that obviously the World Cup is over, I know we're back to the domestic football seasons and everything, which are always lucrative.
But is that going to provide a tough comparative in later quarters when you've not got that spike in traffic and in revenue that you'll get in June, July of a World Cup year? The predictions as well, they're doing well on that front. Clearly they're making a lot of progress. But again, we've talked a lot on this podcast about the regulatory uncertainty around them. How much of a long-term viable market will that be? And then you mentioned the...
what's it like the restructurings are going on in the affiliate and media space. We talked about Genius and their acquisition of Legend and so on. that's, better collectors, competitors expanding into these new areas as well is going to be something that they're have to respond to over the coming months and probably over the coming year or two as well. So yeah, after H1 they're looking strong but.
Ted Menmuir (24:39.344)
Mm-hmm.
Ted Orme-Claye (25:01.852)
There's a lot more things consider as we go, as we carry on.
Ted Menmuir (25:07.82)
I still view them as leader of the pack. However, I don't think that it's kind of at this best position now. I think it comes with a lot more scrutiny.
their investor base will be getting a lot more demanding, especially with the previous deals that they've done. And also in light of that, there's two new very big challenges in sports radar, in genius, who are listed companies and who offer something else. Well, that kind of tells me, I think, the remit or the barriers or the battle between affiliates are changing. And I think that they all kind of bring something different to market, but it'd be interesting.
I think that there is going to be another round of consolidation in the affiliate market, but it's who kind of makes their first move and what actually can they get out in such kind of tight times because the affiliate market is intertwined with wider kind of gaming. So where are these new competitors going to get their margins? There's a lot of kind of interplays.
to think through.
Charlie Horner (26:19.458)
Yeah, some some fascinating questions that that still are left a bit to be answered, and we'll we'll continue to monitor everything going on in the affiliate scene to to make sure that we're on top of all those developments. But for now, Ted, Ted, thanks ever so much for joining me today. Thanks to Optimove for supporting the show, and to our audience, thanks for tuning in to today's episode of iGaming Daily, and come back tomorrow to keep up to date with all the latest global gambling news.