Q2 2026 Better Collective A/S Earnings Call

August 21, 2026

Operator: Good day, and thank you for standing by. Welcome to Better Collective Q2 2026 presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link any time during the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Better Collective VP, Investor Relations and Communications, Mikkel Munch-Jacobsgaard. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to Better Collective Q2 2026 presentation. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. If you wish to ask a question via the webcast, please use the Q and A box available on the webcast link any time during the webcast. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Better Collective VP, Investor Relations and Communications, Mikkel Munch-Jacobsgaard. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the Better Collective Q2 2026 presentation. At this time, all participants are in listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link.

Speaker #1: At any time during the webcast, please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Better Collective VP of Investor Relations and Communications, Mikkel Munk-Jacobsen.

Speaker #1: Please go ahead.

Speaker #2: Good morning and welcome to Better Collective’s Q2 2026 webcast. My name is Mikkel Munk-Jacobsen, VP of Investor Relations and Communications, and I’m joined today by our co-founder and co-CEO, Jesper Søgaard, and CFO, Flemming Petersen, who will provide today’s business update.

Mikkel Munch-Jacobsgaard: Good morning, and welcome to Better Collective's Q2 2026 webcast. My name is Mikkel Munch-Jacobsgaard, VP of Investor Relations and Communications, and I am joined today by our Co-founder and Co-CEO, Jesper Søgaard, and CFO, Flemming Pedersen, who will provide today's business update. Please follow me to the next page. We ask you to pay attention to this slide where we display our disclaimer regarding any forward-looking statements in today's webcast. Please turn to the next page. Here you see today's agenda. Jesper will start by providing a business update, including some of the highlights for Q2 2026. After which, Flemming will take you through the financial development before handing the work back to Jesper for concluding remarks. As always, we end the call with a Q&A session. Please turn to the next page as I hand over the word to Jesper.

Mikkel Munch-Jacobsgaard: Good morning, and welcome to Better Collective's Q2 2026 webcast. My name is Mikkel Munch-Jacobsgaard, VP of Investor Relations and Communications, and I am joined today by our Co-founder and Co-CEO, Jesper Søgaard, and CFO, Flemming Pedersen, who will provide today's business update. Please follow me to the next page. We ask you to pay attention to this slide where we display our disclaimer regarding any forward-looking statements in today's webcast. Please turn to the next page. Here you see today's agenda. Jesper will start by providing a business update, including some of the highlights for Q2 2026. After which, Flemming will take you through the financial development before handing the work back to Jesper for concluding remarks. As always, we end the call with a Q and A session. Please turn to the next page as I hand over the word to Jesper.

Speaker #2: Please follow me to the next page. We ask that you pay attention to this slide, where we display our disclaimer regarding any forward-looking statements in today's webcast.

Speaker #2: Please turn to the next page. Here you see today's agenda. Jesper will start by providing a business update, including some of the highlights for Q2 2026.

Speaker #2: After which, Flemming will take you through the financial development before handing the work back to Jesper for concluding remarks. As always, we end the call with a Q&A session.

Speaker #2: Please turn to the next page as I hand over the word to Jesper.

Speaker #3: Thanks, Flemming. Let me begin with the key developments in the second quarter. We are pleased to report another solid quarter, with the growth momentum from Q1 continuing into Q2.

Jesper Søgaard: Thanks a lot, Mikkel. Let me begin with the key developments in the second quarter. We are pleased to report another solid quarter, with the growth momentum from Q1 continuing into Q2. Revenue reached €89 million, corresponding to growth of 9% year-over-year, while operational earnings increased 20% to €27 million. Cash generation was also strong. Cash flow before special items amounted to €30 million, corresponding to cash conversion of 111%. Our FIFA World Cup activities and prediction market initiatives delivered in line with expectations and supported engagement and commercial activity during the quarter. Underlying customer activity developed strongly during the quarter, boosted by the World Cup. New depositing customers grew 24% compared with Q2 last year, while value of deposits increased 17% to all-time highs. North America was the main growth driver in the quarter, driven by the revenue share transition, talent-led media, and prediction markets growth.

Jesper Søgaard: Thanks a lot, Mikkel. Let me begin with the key developments in the second quarter. We are pleased to report another solid quarter, with the growth momentum from Q1 continuing into Q2. Revenue reached EUR 89 million, corresponding to growth of 9% year-over-year, while operational earnings increased 20% to EUR 27 million. Cash generation was also strong. Cash flow before special items amounted to EUR 30 million, corresponding to cash conversion of 111%. Our FIFA World Cup activities and prediction market initiatives delivered in line with expectations and supported engagement and commercial activity during the quarter. Underlying customer activity developed strongly during the quarter, boosted by the World Cup. New depositing customers grew 24% compared with Q2 last year, while value of deposits increased 17% to all-time highs. North America was the main growth driver in the quarter, driven by the revenue share transition, talent-led media, and prediction markets growth.

Speaker #3: Revenue reached €89 million, corresponding to growth of 9% year over year, while operational earnings increased 20% to €27 million. Cash generation was also strong; cash flow before special items amounted to €30 million, corresponding to cash conversion of 111%.

Speaker #3: Our fee-for-World Cup activities and prediction market initiatives were delivered in line with expectations and supported engagement and commercial activity during the quarter. Underlying customer activity developed strongly during the quarter, boosted by the World Cup.

Speaker #3: New depositing customers grew 24% compared with Q2 last year, while the value of deposits increased 17% to all-time highs. North America was the main growth driver in the quarter.

Speaker #3: Driven by the revenue share transition, talent-led media, and prediction markets growth. This broad-based growth contributed to the North American EBITDA margin improving from 5% to 26%.

Jesper Søgaard: This broad-based growth contributed to the North American EBITDA margin improving from 5% to 26%. Finally, our full-year guidance remains unchanged. Overall, we are pleased with the quarter. We continued the growth momentum from Q1, reached a 30% EBITDA margin, and delivered strong cash conversion while progressing on several of our strategic growth initiatives. Please turn to the next page. Turning to the FIFA World Cup, the tournament was naturally a major focus during Q2. Following more than a year of preparation across our brands, products, platforms, and commercial teams, it delivered the expected boost to activity across the business. Publishing and paid media both benefited from strong tournament momentum. We saw higher user acquisition and reactivation, stronger engagement across our brands, and solid commercial activity. That activity provides a solid foundation for the continued development of our revenue share databases.

Speaker #3: Finally, our full-year guidance remains unchanged. Overall, we are pleased with the quarter. We continued the growth momentum from Q1, reached a 30% EBITDA margin, and delivered strong cash conversion.

Speaker #3: While progressing on several of our strategic growth initiatives, please turn to the next page. Turning to the FIFA World Cup, the tournament was naturally a major focus during Q2.

Speaker #3: Following more than a year of preparation across our brands, products, platforms, and commercial teams, it delivered the expected boost to activity across the business.

Speaker #3: Publishing and paid media both benefited from strong tournament momentum. We saw higher user acquisition and reactivation, stronger engagement across our brands, and solid commercial activity.

Speaker #3: That activity provides a solid foundation for the continued development of our revenue share databases. The clearest evidence is the growth in new depositing customers and the value of deposits.

Jesper Søgaard: The clearest evidence is the growth in new depositing customers and value of deposits, which I will cover on the next slide. Please turn to that page. NDCs grew by 24% year-over-year and 21% quarter-over-quarter to 373,000. The growth was supported by the FIFA World Cup and continued momentum within prediction markets. Importantly, 70% of NDCs were generated through revenue share agreements, providing a solid foundation for future revenue share growth. The mix also reflects the strong uptake in prediction markets, where partner agreements are structured on a CPA basis. At the same time, value of deposits reached an all-time high of EUR 836 million, increasing 17% year-over-year and 5% quarter-over-quarter. As a reminder, value of deposits measures the total amount deposited during the quarter by users referred under revenue share agreements. It is not a cumulative metric. Please turn to the next page.

Speaker #3: Which I will cover on the next slide. Please turn to that page. NDCs grew by 24% year over year, and 21% quarter over quarter to 373,000.

Speaker #3: The growth was supported by the fee for World Cup and continued momentum within prediction markets. Importantly, 70% of NDCs were generated through revenue share agreements, providing a solid foundation for future revenue share growth.

Speaker #3: The mix also reflects the strong uptake in prediction markets, where partner agreements are structured on a CPA basis. At the same time, value of deposits reached an all-time high of €836 million, increasing 17% year over year, and 5% quarter over quarter.

Speaker #3: As a reminder, value of deposits measures the total amount deposited during the quarter by a user referred on the revenue share agreement. It is not a cumulative metric.

Speaker #3: Please turn to the next page. Let me now turn to another important growth driver and an area that continues to diversify our revenue base, which is talent-led media.

Jesper Søgaard: Let me now turn to another important growth driver and an area that continues to diversify our revenue base, which is talent-led media. Since acquiring Playmaker HQ in 2023, we have strengthened its talent network, commercial capabilities, and content formats. During Q2, Playmaker HQ continued to make strong progress across all three areas. We expanded the roster of premium talent and introduced new formats, including the show "Man On" ahead of the FIFA World Cup. At the same time, Playmaker HQ continued to expand beyond digital content into high-impact live events. A standout example was the "Roommates Show", hosted by Jalen Brunson, Josh Hart, and Matt Hillman. Following the next NBA championship victory, the show hosted a live event at the Madison Square Garden Complex, selling more than 5,000 tickets in less than 15 minutes and airing nationally on ESPN.

Speaker #3: Since acquiring Playmaker HQ in 2023, we have strengthened its talent network, commercial capabilities, and content formats. During Q2, Playmaker HQ continued to make strong progress across all three areas.

Speaker #3: We expanded the roster of premium talent and introduced new formats, including the show Man On ahead of the FIFA World Cup. At the same time, Playmaker HQ continued to expand beyond digital content into high-impact live events. A standout example was The Roommate Show, hosted by Jalen Brunson, Josh Hart, and Matt Hellman.

Speaker #3: Following the next NBA Championship victory, the show hosted a live event at the Madison Square Garden Complex, selling more than 5,000 tickets in less than 15 minutes and airing nationally on ESPN.

Speaker #3: This demonstrates the strong audience connection that talent-led media can create. It also provides commercial partners with access to highly engaged audiences across content, social media, and live experiences.

Jesper Søgaard: This demonstrates the strong audience connection that talent-led media can create. It also provides commercial partners with access to highly engaged audiences across content, social media, and live experiences. Playmaker HQ was a key driver alongside HLTV, up to 39% increase in group sponsorship revenue to EUR 16 million during the quarter. Please turn to the next page, where I will dive a bit deeper into our strategic developments in improving our total advertising revenues. We have talked for some time about the opportunity to do more with the very large and highly engaged audience that we have built across Better Collective. For many years, a significant part of our focus was on building scale, strengthening our brands, and deepening our audience positions. The next step is to increase the value we generate from that reach, and it is encouraging to see that strategy now becoming increasingly visible in our financial performance.

Speaker #3: Playmaker HQ was a key driver, alongside HLTV, of the 39% increase in group sponsorship revenue to €16 million during the quarter. Please turn to the next page, where I'll dive a bit deeper into our strategic developments in improving our total advertising revenues.

Speaker #3: We have talked for some time about the opportunity to do more with the very large and highly engaged audience that we have built across Better Collective.

Speaker #3: For many years, a significant part of our focus was on building scale, strengthening our brands, and deepening our audience positions. The next step is to increase the value we generate from that reach.

Jesper Søgaard: The next step is to increase the value we generate from that reach, and it is encouraging to see that strategy now becoming increasingly visible in our financial performance.

Speaker #3: And it's encouraging to see that strategy now becoming increasingly visible in our financial performance. At the core of this is a continued shift towards more sophisticated and higher-value monetization.

Jesper Søgaard: At the core of this is a continued shift towards more sophisticated and higher-value monetization. We want to build deeper, more direct relationships with advertisers and partners, sell more of our inventory directly, and create products that allow us to capture a greater share of the value generated by our audiences. We are already seeing this across the portfolio. Playmaker HQ continues to demonstrate the potential of a strong direct sales organization. HLTV shows what is possible when you combine a highly engaged, category-leading audience with attractive sponsorship inventory. And through FanReach, we are building new capabilities to help us monetize our audiences in more targeted and scalable ways. These and many other initiatives all sit within our AdVantage framework, which brings together our efforts to systematically improve advertising monetization across the group. Naturally, as we optimize monetization, there will be some movement between CPM and sponsorship revenue.

Speaker #3: We want to build deeper, more direct relationships with advertisers and partners, sell more of our inventory directly, and create products that allow us to capture a greater share of the value generated by our audiences.

Speaker #3: We are already seeing this across the portfolio. Playmaker HQ continues to demonstrate the potential of a strong direct sales organization. HLTV shows what is possible when you combine a highly engaged, category-leading audience with attractive sponsorship inventory.

Speaker #3: And through fan reach, we're building new capabilities to help us monetize our audiences in more targeted and scalable ways. These and many other initiatives all sit within our Advantage framework, which brings together our efforts to systematically improve advertising monetization across the group.

Speaker #3: Naturally, as we optimize monetization, there will be some movement between CPM and sponsorship revenue. If we can replace lower-yielding programmatic revenue with higher-value direct sponsorship revenue, that is precisely the trade we want to make.

Jesper Søgaard: If we can replace lower-yielding programmatic revenue with higher-value direct sponsorship revenue, that is precisely the trade we want to make, and we can now see that in the numbers. in Q2, sponsorship revenue increased 39% to €16 million, while CPM revenue declined 16% to €6 million. Taken together, advertising revenue grew 18% year-over-year to €21 million and is becoming an increasingly meaningful part of our overall revenue base. For the H1 of the year, combined advertising revenue grew 13%. Importantly, AdVantage also creates spillover opportunities for performance marketing, enabling us to bundle broader commercial partnerships and increase the value of individual deals. As this strategy develops, the distinction between sponsorship and CPM is also becoming less meaningful from a management perspective.

Speaker #3: And we can now see that in the numbers. In Q2, sponsorship revenue increased 39% to €16 million, while CPM revenue declined 16% to €6 million.

Speaker #3: Taken together, advertising revenue grew 18% year over year to €21 million, and it's becoming an increasingly meaningful part of our overall revenue base.

Speaker #3: For the first half of the year, combined advertising revenue grew 13%. Importantly, Advantage also creates spillover opportunities for performance marketing, enabling us to bundle broader commercial partnerships and increase the value of individual deals.

Speaker #3: As this strategy develops, the distinction between sponsorship and CPM is also becoming less meaningful from a management perspective. From next year’s annual report, we therefore intend to combine the two into a single advertising revenue line.

Jesper Søgaard: From next year's annual report, we therefore intend to combine the two into a single advertising revenue line, which we believe better reflects both how we manage the business and our long-term strategy for monetizing our audiences. Please turn to the next page. Let me now turn to prediction markets, another growth opportunity that contributed positively during Q2. North American CPA revenue increased by 50% to €5 million, primarily driven by strong momentum within prediction markets. As mentioned previously, prediction market partner agreements are currently structured on a CPA basis. The strong NDC development within the category therefore translates into an immediate revenue contribution. The opportunity extends beyond the current revenue. User interest remains strong, while increasing competition among prediction market operators is supporting demand for efficient distribution and high-quality customer acquisition.

Speaker #3: Which we believe better reflects both how we manage the business and our long-term strategy for monetizing our audiences. Please turn to the next page.

Speaker #3: Let me now turn to prediction markets, another growth opportunity that contributed positively during Q2. North American CPA revenue increased by 50% to €5 million, primarily driven by strong momentum within prediction markets.

Speaker #3: As mentioned previously, prediction market partner agreements are currently structured on a CPA basis. The strong NDC development within the category, therefore, translates into an immediate revenue contribution.

Speaker #3: The opportunity extends beyond the current revenue. User interest remains strong, while increasing competition among prediction market operators is supporting demand for efficient distribution and high-quality customer acquisition.

Speaker #3: For Better Collective, this expands our addressable market and increases the monetization potential of the high-intent sports audiences we already reach. We continue to scale our execution across our owned media brands, social-first content, product integrations, and paid media.

Jesper Søgaard: For Better Collective, this expands our addressable market and increases the monetization potential of the high-intent sports audiences we already reach. We continue to scale our execution across our own media brands, social-first content, product integrations, and paid media. This multi-channel approach positions us to capture rising demand across the category. Prediction markets remain an emerging revenue stream. However, the development in Q2 demonstrates that the category is already contributing positively while creating an additional growth opportunity across our platform. Please turn to the next page as I hand over the words to Flemming.

Speaker #3: This multi-channel approach positions us to capture rising demand across the category. Prediction markets remain an emerging revenue stream. However, the development in Q2 demonstrates that the category is already contributing positively, while creating an additional growth opportunity across our platform.

Speaker #3: Please turn to the next page as I hand over the floor to Fleming.

Speaker #2: Thank you, Jesper, and good morning to you all. Let me start by breaking down the revenue development in the second quarter. In Q2 last year, revenue amounted to €82 million.

Flemming Pedersen: Thank you, Jesper, and good morning to you all. Let me start by breaking down the revenue development in the second quarter. In Q2 last year, revenue amounted to €82 million. During this quarter, the business generated approximately €11 million of growth, primarily driven by talent-led media, paid media, prediction markets, and HLTV. This growth more than offset two external headwinds. First, the increase in UK Remote Gaming Duty from 21% to 40%, effective from 1 April, had a negative impact of approximately €2 million. Second, regulatory changes in Brazil had a further negative impact of approximately €2 million. As a result, revenue increased 9% to €89 million. Turn to the next slide. Let me now turn to the development in recurring revenue. Recurring revenue increased by 2% to €53 million during the quarter.

Speaker #2: During this quarter, the business generated approximately €11 million of growth, primarily driven by talent-led media, paid media, prediction markets, and HLTV. This growth more than offset two external headwinds.

Speaker #2: First, the increase in UK remote gaming duty from 21% to 40%, effective from April 1, had a negative impact of approximately €2 million.

Speaker #2: Second, regulatory changes in Brazil had a further negative impact of approximately €2 million. As a result, revenue increased 9% to €89 million.

Speaker #2: Turn to the next slide. Let me now turn to the development in recurring revenue. Recurring revenue increased by 2% to €53 million during the quarter.

Speaker #2: This was driven by revenue share income, which increased by 5% to €44 million, and now represents approximately 82% of the recurring revenue base.

Flemming Pedersen: This was driven by revenue share income, which increased by 5% to €44 million and now represents approximately 82% of the recurring revenue base, compared to 79% last year. The revenue share growth was supported by strong development in North America and paid media, despite the regulatory headwinds in the UK and Brazil. As the chart illustrates, revenue share remains the core component of our recurring revenue base and continues to provide long-term visibility and compounding value from our referred customer cohorts. Please turn to the next slide. Let me break down the EBITDA development during the quarter. In Q2 last year, EBITDA before special items amounted to €23 million. The net revenue growth delivered during the quarter contributed approximately €7 million to earnings. At the same time, cost increased by approximately €3 million.

Speaker #2: Compared to 79% last year, the revenue share growth was supported by strong development in North America and paid media, despite the regulatory headwinds in the UK and Brazil.

Speaker #2: As the chart illustrates, revenue share remains the core component of our recurring revenue base and continues to provide long-term visibility and compounding value from our preferred customer cohorts.

Speaker #2: Please turn to the next slide. Let me break down the EBITDA development during the quarter. In Q2 last year, EBITDA before special items amounted to €23 million. The net revenue growth delivered during the quarter contributed approximately €7 million to earnings.

Speaker #2: At the same time, cost increased by approximately €3 million. This primarily reflects higher activity around the FIFA World Cup, increased event activity at Playmaker HQ, and additional investment in paid media campaigns.

Flemming Pedersen: This primarily reflect higher activity around the FIFA World Cup, increased event activity at Playmaker HQ, and additional investment in paid media campaigns. Importantly, these higher costs were activity-related and focused on areas with attractive commercial opportunities. Staff costs declined during the quarter, while other external expenses remained broadly unchanged. Overall, total cost increased by 5% to €62 million. Result is that EBITDA before special items increased by 20% to €27 million, while the margin expanded by two percentage points to 30%. Please turn to the next slide. Let me now turn to cash flow and our financial position and capital allocation. Cash flow from operations before special items increased by 59% to €30 million compared to €19 million last year. This corresponds to a cash conversion of 111%.

Speaker #2: Importantly, these higher costs were activity-related and focused on areas with attractive commercial opportunities. Staff costs declined during the quarter, while other external expenses remained broadly unchanged.

Speaker #2: Overall, total cost increased by 5 percent to €62 million. As a result, EBITDA before special items increased by 20 percent to €27 million, while the margin expanded by 2 percentage points to 30 percent.

Speaker #2: Please turn to the next slide. Let me now turn to cash flow and our financial position and capital allocation. Cash flow from operations before special items increased by 59% to €30 million, compared to €19 million last year.

Speaker #2: This corresponds to a cash conversion of 111%. During the quarter, we repurchased shares worth €8 million, bringing the total share buybacks during the first half of the year to €14 million.

Flemming Pedersen: During the quarter, we repurchased shares worth €8 million, bringing the total share buybacks during the H1 of the year to €14 million. We therefore continue to execute against the annual share buyback target of €40 million, running until 3 March 2027. At the end of June, capital reserves stood at €80 million, comprised of €25 million of cash and €55 million of unused bank facilities. Our total bank credit facilities amounted to €319 million. Our capital allocation priorities remain unchanged, maintain leverage below 3x, invest in attractive organic growth, and selective accretive M&A. Return excess capital primarily through share buybacks. Please turn to the next slide. Concluding on the financial development, a strong performance during the H1 of the year keeps us on track to deliver on the full-year guidance.

Speaker #2: We therefore continue to execute against the annual share buyback target of €40 million, running until the 3rd of March, 2027. At the end of June, capital reserves stood at €80 million, comprised of €25 million in cash and €55 million of unused bank facilities.

Speaker #2: Our total bank credit facilities amounted to €319 million. Our capital allocation priorities remain unchanged: maintain leverage below 3x, invest in attractive organic growth, and pursue selective accretive M&A.

Speaker #2: And return excess capital primarily through share buybacks. Please turn to the next slide. Concluding on the financial development, strong performance during the first half of the year keeps us on track to deliver on the full-year guidance.

Speaker #2: Organic revenue increased by 9% in constant currencies during the first half of the year, while EBITDA before special items grew 14%. This places us within the full-year guidance range of 7% to 12% organic revenue growth and 8% to 18% EBITDA growth.

Flemming Pedersen: Organic revenue increased by 9% in constant currencies during the H1 of the year, while EBITDA before special items grew 14%. This places us within the full-year guidance of guide range of 7% to 12% organic revenue growth and 8% to 18% EBITDA growth. Cash conversion before special items was 106% during the H1 of the year. We completed the share buybacks of €14 million, while net debt to EBITDA before special items stood at 2.3x. Our guidance for 2026 therefore remains unchanged. Overall, the H1 performance supports the trajectory we have set out for the year and our longer-term financial ambitions. With that, I will hand the word back to Jesper for concluding remarks.

Speaker #2: Cash conversion before special items was 106% during the first half of the year. We completed the share buybacks of €14 million, while net debt to EBITDA before special items stood at 2.3x.

Speaker #2: Our guidance for 2026 therefore remains unchanged. Overall, the first half-year performance supports the trajectory we have set out for the year, and our longer-term financial ambitions.

Speaker #2: With that, I'll hand the word back to Jesper for concluding remarks.

Speaker #1: Thank you, Fleming. Let me close with a few reflections on what Q2 says about the direction of our business. I think the most important takeaway from Q2 is not any single KPI, but the momentum we are now seeing across several parts of Better Collective at the same time.

Jesper Søgaard: Thank you, Flemming. Let me close with a few reflections on what Q2 says about the direction of our business. The most important takeaway from Q2 is not any single KPI, but it is the momentum we are now seeing across several parts of Better Collective at the same time. We delivered solid growth and expanded our EBITDA margin while absolving regulatory headwinds in the UK and Brazil. To me, that demonstrates the earnings power and scalability of the business. The momentum is also becoming broader. The revenue share transition in North America continues to deliver. Talent-led media and sponsorships are developing strongly. Prediction markets are already making a positive contribution, and paid media continues to grow while directing investment towards the most attractive opportunities. Together, these developments are creating a more diversified and resilient business. Equally important is the work we are doing to improve how Better Collective operates.

Speaker #1: We delivered solid growth and expanded our EBITDA margin, while absorbing regulatory headwinds in the UK and Brazil. To me, that demonstrates the earnings power and scalability of the business.

Speaker #1: The momentum is also becoming broader. The revenue share transition in North America continues to deliver. Talent-led media and sponsorships are delivering strongly. Prediction markets are already making a positive contribution, and paid media continues to grow, while directing investment towards the most attractive opportunities.

Speaker #1: Together, these developments are creating a more diversified and resilient business. Equally important is the work we're doing to improve how Better Collective operates. We are accelerating the work with AI to simplify the organization, reduce fragmentation, and build a more integrated technology foundation across our house of brands.

Jesper Søgaard: We are accelerating the work with AI to simplify the organization, reduce fragmentation, and build a more integrated technology foundation across our house of brands. By consolidating platforms and applying AI across content, product, data, and selected commercial and support processes, we can scale our capabilities more efficiently. The FIFA World Cup was a good illustration of what the organization can achieve. After more than a year of preparation, teams across our brands, products, platforms, and commercial functions delivered the activity levels we expected. I would like to thank all employees for their continued dedication with a special thank you to everyone who worked long hours before and during the tournament. I would also like to thank our customers and commercial partners for their trust, and our shareholders and other stakeholders for their continued support.

Speaker #1: By consolidating platforms and applying AI across content, product, data, and selected commercial and support processes, we can scale our capabilities more efficiently. The FIFA World Cup was a good illustration of what the organization can achieve. After more than a year of preparation, teams across our brands, products, platforms, and commercial functions delivered the activity levels we expected.

Speaker #1: I would like to thank all employees for their continued dedication, with a special thank you to everyone who worked long hours before and during the tournament.

Speaker #1: I would also like to thank our customers and commercial partners for their trust, and our shareholders and other stakeholders for their continued support. We entered the second half of the year with strong momentum and a clear focus on executing our priorities.

Jesper Søgaard: We enter the second half of the year with strong momentum and a clear focus on executing our priorities. With that, we are ready to open for questions.

Speaker #1: With that, we're ready to open for questions.

Speaker #3: Thank you. To ask a question, you will need to press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *1, and then 1 again if you wish to ask a question via the webcast.

Operator: Thank you. To ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again. If you wish to ask a question via the webcast, please type it into the box and click submit. Thank you. We will now go to our first question. One moment, please. Our first question today comes from the line of Hjalmar Ahlberg from Redeye. Please go ahead.

Speaker #3: Please type it into the box and click submit. Thank you. We will now go to our first question—one moment, please. Our first question today comes from the line of Yalma Alberg with RedEye.

Speaker #3: Please go ahead.

Speaker #1: Thank you. Yes, maybe starting with the prediction markets, where you gave some flavor on the development there. I guess still small numbers, but pretty good growth in Q1.

Hjalmar Ahlberg: Thank you. Yeah, maybe starting with the prediction markets where you gave some flavor on the development there, which I guess are still small numbers, but pretty good growth in Q1. Could you say anything about what this kind of piece by relates for any specific sport? Also, if you can give some kind of sense what we should expect from here.

Speaker #1: Could you say anything about what this kind of beast might relate to or any specific sport? And also, can you give us some sense of what we should expect from here?

Jesper Søgaard: Well, yeah, we are pleased with how the prediction markets are developing in the US. I think, basically, we started the year with one player being active there, then during the Q2, we got one more into the market. Obviously, we know for US sports, the start of the NFL is a major milestone. We are really excited about the competition that the market will have leading up to the start of the NFL. Quite clearly, the ambitions that the prediction markets players demonstrate. All in all, we have seen good development in the H1 with the prediction market players and expect also an exciting development for the H2.

Speaker #2: Well, yeah, we were pleased with how the prediction markets are developing in the US, and I think basically we started the year with one player being active there, and then, sort of during the second quarter, we got one more into the market.

Speaker #2: And obviously, we know for US sports, the start of the NFL is a major milestone. We are really excited about the competition that the market will have leading up to the start of the NFL.

Speaker #2: And quite clearly, the ambitions that the prediction markets players have, they demonstrate. So, all in all, we have seen good development in the first half of the year with the prediction market players and expect also an exciting development for the second half of the year.

Speaker #1: All right, thank you. I'm also curious a bit—I mean, if you look at the development of the FIFA World Cup there, it sounds like you're pleased with the performance.

Hjalmar Ahlberg: All right. Thank you. I am also curious a bit, if you look at the development of the FIFA World Cup there, it sounds like you are pleased with the performance. If you look at the kind of, I guess it is a different market now with more AI search and so on, but if you compare how your products and all your tools worked this FIFA World Championship compared to maybe the previous Euro or previous World Championship, do you see any major differences?

Speaker #1: But I mean, if you look at the kind of—I mean, I guess it's a different market now, with more AI search and so on.

Speaker #1: But if you compare kind of how your products and all your tools work this FIFA World Championship compared to maybe the previous Euro or previous World Championship, do you see any major differences?

Jesper Søgaard: Well, I can speak quite concretely to how we have been creating content and utilizing AI during this World Cup. Obviously, a big part of what users are coming to some of our brands for is tips and getting expert opinions. Here we have been able to basically scale that content, utilizing AI more than tenfold, with tips and expert opinions being produced for one brand in one market that we can then scale utilizing AI across many more brands. So it is really driving efficiency on how we produce content. For me, that is a pretty clear example of a change for this World Cup in how we develop the content and how we are able to reach a lot of users with high-quality content originating from a few of our brands to all our brands.

Speaker #2: Well, I guess, quite concretely, it's about how we have been creating content and utilizing AI during this World Cup. Obviously, a big part of what users are coming to some of our brands for is tips and getting sort of expert opinions.

Speaker #2: And here, we've been able to basically scale that content utilizing AI more than tenfold, with tips and expert opinions being produced for one brand in one market that we can then scale utilizing AI across many more brands.

Speaker #2: So it's really driving efficiency in how we produce content. For me, that's a pretty clear example of a change for this World Cup in how we develop content and how we're able to reach a lot of users with high-quality content, originating from a few of our brands to all our brands.

Speaker #1: All right. Thank you. And also, maybe two questions in one. You mentioned the UK there—the tech side had some negative impact.

Hjalmar Ahlberg: Right. Thank you. Also maybe two questions in one. You mentioned UK there, the tax hike had some negative impact. What to see from that market region from here, and also if you can comment anything on Brazil, if any change there or still kind of a flat market?

Speaker #1: What do you see from that market region from here? And also, if you can comment on Brazil—is there any change there, or is it still kind of a flat market?

Speaker #2: Well, so in the UK, it's mostly our paid media business where we have sort of felt this change. But that also comes with auctions then adjusting to a new landscape with lowering bid prices.

Jesper Søgaard: Well, in the UK, it's mostly our paid media business where we have felt this change. That also comes with auctions then adjusting to a new landscape, we're lowering bid prices. Again, I think our paid team, they have displayed excellent performance and really being on top of this. So it's a headwind they need to manage but I think have done so very well. For Brazil, it's now several quarters where we have seen the impact of adjustments to the taxation and the regulation in Brazil, which is, of course, from a user and player perspective, sad because it does drive more people into the non-regulated market, and thus less consumer protection ultimately and less tax revenue. But it's also an environment we are now used to operating in. So for us, it's daily business, you could say.

Speaker #2: And again, I think our paid team has displayed excellent performance and is really on top of this. So, it's of course a headwind they need to manage, but I think they have done so very well.

Speaker #2: For Brazil, it's now several quarters where we have seen the impact of adjustments to taxation and regulation in Brazil. This is, of course, from a user and player perspective, sad because it does drive more people into the non-regulated market.

Speaker #2: And thus, less consumer protection ultimately, and less tax revenue. But it's also an environment where we are now used to operating in. So, for us, it's daily business, you could say.

Speaker #1: Understood. And maybe a final question: I mean, you mentioned some continued operational efficiencies here, also supported by using AI. How should we view this going forward?

Hjalmar Ahlberg: Understood. Maybe a final question. You mentioned some continued operational efficiencies there, also supported by using AI. How should we view this going forward? Do you think cost could come down even further, or is it more like it will drive the top line?

Speaker #1: Do you think costs could come down even further, or is it more likely that it will drive top line?

Speaker #2: Well, for us, AI is affecting our business in many ways. It's on the product side, with Playbook as a very good example of that.

Jesper Søgaard: Well, for us, AI is affecting our business in many ways. It's on the product side with Playbook as a very good example of that. It's on our content production, which I just alluded to in the World Cup. It's also a lot on the internal processes, where more or less all functions in BC are adopting AI at a high pace. It's the new normal, and I really feel a strong buy-in from the entire organization in Better Collective, which I'm very proud of and very pleased with. So it's just the new normal of conducting businesses that we are empowering ourselves with AI across.

Speaker #2: It's on our content production, which I just alluded to in the World Cup. It's also a lot on the internal processes, where more or less all functions in BC are adopting AI at a high pace.

Speaker #2: And it's the new normal, and I really feel a strong buy-in from the entire organization at Better Collective, which I'm very proud of and very pleased with.

Speaker #2: So it's just the new normal of conducting business, that we are empowering ourselves with AI across.

Speaker #1: All right, thank you very much.

Hjalmar Ahlberg: Right. Thank you very much.

Speaker #3: Thank you. We will now take the next question. And the question comes from the line of Paul Jessen from Danske Bank. Please go ahead.

Operator: Thank you. We will now take the next question, and the question comes from the line of Poul Jessen from Danske Bank. Please go ahead.

Speaker #1: Yes, thank you for taking the question. Just coming back to prediction market and the impact here: The increase you had sequentially in the number of CPA indices—is that mainly prediction market, or is there also an uptick from the traditional part of the market during the World Cup?

Poul Jessen: Yes, thank you for taking the question. Just coming back to prediction market and the impact here. The increase you had sequentially and the number of CPA NDCs, is that mainly prediction market or is there also an uptick from the traditional part of the market during the World Cup?

Speaker #2: Well, it is mainly driven by prediction markets. There's also an effect from the World Cup, but because we operate prediction markets purely on CPA, the main effect is from prediction markets.

Jesper Søgaard: Well, it is mainly driven by prediction markets. There is also an effect from the World Cup, but because we operate prediction markets purely on CPA, the main effect is from prediction markets.

Speaker #1: Okay. And if we do the math, then the average CPA is down from 300 to 175 in the quarter, which is the previous quarter.

Poul Jessen: Okay. If we do the maths, then the average CPA is down something from 300 to 175 in the quarter versus previous quarter, meaning that the average price for a prediction market CPA should then be in the range of 100 or slightly above. Is that fair that when we look forward and try to model the inclusion of growth prediction market, that that is the number or the level we should use for that part of the market?

Speaker #1: Meaning that the average price for a prediction market CPA should then be in the range of 100 or slightly above. Is that fair—that when we look forward and try to model inclusion of growth prediction market, that that's the number or the level we should use for that part of the market?

Speaker #2: I think what is probably worth mentioning here is that, with the market more or less starting this year with just one player, it's, of course, in terms of pricing and competition, not the most ideal scenario having just one player.

Jesper Søgaard: I think what is probably worth mentioning here is that, with the market more or less starting this year with just one player, it is of course, in terms of pricing and competition, not the most ideal scenario, having just one player. Now we are seeing another being active, we expect more to come. So from a pricing perspective, that is of course good for us and something we will, of course, as much as possible, implement in how we strike deals.

Speaker #2: Now we are seeing another being active. We expect more to come. So, from a pricing perspective, that is, of course, good for us and something we will, of course, as much as possible, implement in how we strike deals.

Speaker #1: So, we should see rising prices, potentially also from the traditional market, to take up competition with prediction?

Poul Jessen: So we should see rising prices potentially also from the traditional market to take up competition with prediction?

Speaker #2: Well, as I said, of course, we cannot predict deals, but that environment is exactly what drives prices when it's very competitive. So for us, it's how we would like to see it play out.

Jesper Søgaard: Well, as I said, of course, we cannot predict deals, but that environment is exactly what drives prices when it is very competitive. So for us, it is how we would like to see it play out.

Speaker #1: Okay, thank you. I have a question about the fact that you want to combine CPM and the sponsorship into one line from next year. That makes sense, but I was just wondering—is that also impacting the sponsorship part of it?

Poul Jessen: Okay. Thank you. I have a question on the fact that you want to combine CPM and the sponsorship in one line from next year, which makes sense. I was just wondering, AdVantage, is that also impacting the sponsorship part of it? I would have assumed it is mainly for the sell side of CPM more than its sponsorship. I guess sponsorships are not fitting into the system. They are more making a one-to-one negotiation of a price for a longer period than it is based on an auction system. Or am I wrong?

Speaker #1: I would have assumed it's mainly for the sales side of CPM, more than its sponsorship. I guess sponsorships are not fitting into the system.

Speaker #1: They are more making a one-to-one negotiation of a price for a longer period than it's based on an auction system. Why am I wrong?

Speaker #2: Flemming here. Thanks, Paul. I'll try to answer. You can see the initiatives that we have under the umbrella of the Advantage project that we installed a couple of years ago.

Flemming Pedersen: Flemming here. Thanks, Poul. I will try to answer. You can say the initiatives that we have under the umbrella of the AdVantage project that we installed a couple of years ago are multifold. You are right that you can say on one part, as you described, that is one thing. You can say it also comes with different initiatives, being our FanReach project we discussed also, you can say increasing focus on selling more direct of our inventory. Of course, the tail of all this is the CPM revenue where we sort of have, you can say, the lowest income per mil. So it is really multifold, and hence also why we are looking at this as a holistic effort rather than just one initiative. So advertising revenue is really, you can say, a focus and it comes in with many sub-projects, basically.

Speaker #2: There are multifold reasons, and you are right that you can say on one part, as you described, that is one thing. But you can say it also comes with different initiatives, including our fan reach project that we discussed as well.

Speaker #2: You can say increasing focus on selling more directly of our inventory. And of course, the tail of all this is the CPM revenue where we sort of have, you can say, the lowest, you can say, income per mille.

Speaker #2: So it's really multifold, and that's also why we are looking at this as a holistic effort rather than just one initiative. Advertising revenue is really a focus, and it comes with many sub-projects, basically.

Speaker #1: Okay. And then you also commented on events after the end of the quarter. There, you talk about a number of integration, optimization, and organizational changes.

Poul Jessen: Okay. You are also commenting on events after the end of the quarter, and there you talk about a number of integration, optimization, and organizational changes. Does this only impact the fact that you want to operate Better Collective, or is there also a cost element part of this initiative?

Speaker #1: Does this only impact the fact that you want to operate better, or is there also a cost element to this initiative?

Speaker #2: Well, I think, as I also alluded to in an answer just before, that overall we are very focused on being as efficient as possible in order to allocate resources to the biggest opportunity that we see in Better Collective.

Jesper Søgaard: Well, I think, as I also alluded to in an answer just before, is that overall we are very focused on being as efficient as possible in order to allocate resources to the biggest opportunity that we see in Better Collective. No doubt that AI is impacting significantly on all parts of Better Collective. So it is something we are really embracing, and that does allow for an efficient business to be run. Again, it is something we will just continue to utilize as much as possible. As I said before, I am very proud of how our organization as a whole are really embracing this path that we are on. So we will just continue to adapt AI wherever it makes sense for us. That will drive efficiency and allow for us to invest into the biggest opportunities of Better Collective.

Speaker #2: But no doubt that AI is impacting significantly on all parts of Better Collective. So it's something we are really embracing, and that does allow for an efficient business to be run.

Speaker #2: And again, it's something we will just continue to utilize as much as possible. And as I said before, I'm very proud of how our organization as a whole is really embracing this path that we're on.

Speaker #2: So we'll just continue to adapt AI wherever it makes sense for us, and that will drive efficiency and allow us to invest in the biggest opportunities of Better Collective.

Speaker #1: I have just a follow-up on that one. The restructuring charges you put into the Q2 numbers, is that part of these initiatives in the third quarter?

Poul Jessen: Just to follow up on that one. The restructuring charts you put into the Q2 numbers, is that part of these initiatives in the Q3? Or did that relate to action in the Q2?

Speaker #1: Or did that really lead to action in the second quarter?

Speaker #2: Sorry, Paul, did you ask whether the comment about after the quarter is hitting Q2 or Q3? Was that the question?

Flemming Pedersen: Sorry, Poul, did you ask whether the comment to after the quarter is hitting Q2 or Q3? Was that the question?

Speaker #1: You had restructuring costs of $1.4 to $1.5 million in the second quarter. Then you announced that you are doing some optimization in the third quarter.

Poul Jessen: You had a restructuring cost of DKK 1.4, DKK 1.5 million in the Q2. Then you announced that you are doing some optimization in the Q3. I was just wondering if that provision in the Q2 related to what you did in the Q3 or if it was actions in the Q2.

Speaker #1: I was just wondering if that provision in the second quarter related to what you did in the third quarter, or if it was actions in the second quarter.

Flemming Pedersen: It is actions in the Q2. Sorry. Yeah. I did not hear the question.

Speaker #2: It's actions in the second quarter. Sorry. Yeah, I didn't hear the question, but yeah. So, new initiatives—you will see that in the following quarters.

Flemming Pedersen: Yeah.

Flemming Pedersen: But it's, yeah. New initiatives you will see that in the following quarters.

Poul Jessen: That will be a special item there as well in Q3.

Speaker #1: That would be a special item there as well in the third quarter.

Poul Jessen: That will be a special item there as well in Q3.

Speaker #2: Yes.

Flemming Pedersen: Yes.

Speaker #1: I have two minor questions. In the media partnership, you do an investment of €11 million. I was just wondering, is that a new partnership, or is that an extension or expansion of existing ones?

Poul Jessen: I have two minor questions. In the media partnership, you do an investment of EUR 11 million. I was just wondering, is that a new partnership or is that an extension or expansion of existing ones that might be

Speaker #1: That might be. Running out of contract.

Flemming Pedersen: Yeah

Poul Jessen: running out of contract?

Speaker #2: Yeah. It's, you could say, partnerships in general, where we are investing in new acquisition of new rights, also including the talent-led part of the business.

Flemming Pedersen: Yeah. It's, you can say partnerships in general, where we are investing in acquisition of new rights, also including the talented part of the business.

Speaker #1: Okay. And the last one is that part of us outdoing a part of the profit guidance that they came with was because they had apparently not noticed that the NFL is starting one week later this year.

Flemming Pedersen: Okay. The last one is that Flutter was out doing a part of the profit warning they came with was because that they had apparently not noticed that the NFL is starting one week later this year. Just for planning or budgeting or modeling for the Q3, will that have an impact on your US business in the Q3, that it's starting one week later than last year?

Speaker #1: So, just for planning or budgeting, or modeling for the third quarter, will that have an impact on your U.S. business in the third quarter, that it's starting one week later than last year?

Jesper Søgaard: Well, it's five days to be precise. No, we don't see that having a significant impact to our business.

Speaker #2: Well, it's five days to be precise, and no, we don't see that having a significant impact on our business.

Speaker #1: Okay. Thank you. That's all.

Poul Jessen: Okay. Thank you. That's all.

Speaker #2: Thanks, Paul.

Jesper Søgaard: Thanks, Paul.

Speaker #3: Thank you. We will now take the next question, and the question comes from the line of Sebastian Grave from Nordea. Please go ahead.

Operator: Thank you. We will now take the next question. The question comes from the line of Sebastian Grave from Nordea. Please go ahead.

Speaker #1: Hi. Yes, for Flemming and Michael, thanks for taking my questions, and congrats on another quarter of steady sailing in a still dynamic market environment.

Sebastian Grave: Hi, Jesper, Flemming, and Mikkel. Thanks for taking my questions, and congrats on another quarter of steady sailing in a still dynamic market environment. I have a few, I will just take them one by one if it is okay. First, I would like to ask about the World Cup uplift here in the quarter. Jesper, you referred to activity around the tournament playing out, as you put it, broadly as expected. Could you maybe help us being a bit more specific on what you actually saw in the quarter in terms of revenue and NDCs relating to World Cup activities? I believe you previously provided those metrics in connection with other tournaments, so I guess this could be very much helpful here this time around as well.

Speaker #1: I have a few. I'll just take them one by one, if that's okay. First, I'd like to ask about the World Cup uplift here in the quarter.

Speaker #1: Yes, you referred to activity around the tournament playing out, as you put it, broadly as expected. Could you maybe help us be a bit more specific on what you actually saw in the quarter in terms of revenue and indices relating to World Cup activities?

Speaker #1: I believe you previously provided those metrics in connection with other tournaments, so I guess this could be very helpful here this time around as well.

Speaker #2: Well, I think first off, Q2 here covers roughly half of the World Cup, so the second half of the World Cup hits Q3.

Jesper Søgaard: Well, I think, first off, Q2 here covers roughly half of the World Cup, so the second half of the World Cup hits Q3. To speak to where we sort of see the positive impact, it is on the New Depositing Customers that we are able to deliver, where the normal part of this year is lower performance on NDCs, where for the World Cup, we saw a good performance on NDCs. In our advertising and sponsorship business, we have productions that will focus solely on the World Cup and thus sponsorship sales related directly to those shows. Overall, just higher demand for advertising towards our audiences whenever it was football related. So I would rate that as sort of the main impacts along with activity in our revenue share databases where we also flagged that we had an all-time high for value of deposits.

Speaker #2: But to speak to where we sort of see the positive impact, it's on the new depositing customers. We were able to deliver, where the normal part of this year is lower performance on indices.

Speaker #2: Where for the World Cup, we saw a good performance on indices. In our advertising and sort of sponsorship business, we have productions that were focused solely on the World Cup, and thus sponsorship sales related directly to those shows.

Speaker #2: And overall, just higher demand for advertising towards our audiences whenever it was football-related. So I would rate that as sort of the main impact.

Speaker #2: Along with activity in our revenue share databases, where we also flagged that we had an all-time high for value of deposits, the World Cup played a part as well.

Jesper Søgaard: Also there, the World Cup played a part.

Sebastian Grave: As I recall it back in Q2 2025, you provided this bridge from the Euro 2024, and I guess, as I recall back then, the impact was around EUR 5 million revenue and EBITDA from what you referred to as tournament comparisons year-on-year. Is it broadly the range we are in here for the World Cup as well or is that number off?

Speaker #1: And as I recall, back in Q2 '25, you provided this bridge from the Euro '24. And I guess, as I recall back then, the impact was around €5 million revenue and EBITDA from what you referred to as tournament comparisons year on year.

Speaker #1: Is that broadly the range we're in here for the World Cup as well, or is that number off?

Speaker #2: Yeah, I think in this quarter, clearly, it had an impact, as Jasper said, and was part of our—you can say—also our expectations.

Flemming Pedersen: Well, I think in this quarter, clearly it had an impact, as Jesper said, and was part of our, you can say, also our expectations. So I think it was in line with that number you mentioned is likely, you can say, representative also for this, you can say, 14 days of the World Cup. I think also we saw quite good traction on the finalization of the NBA in this quarter with a lot of activity, where we had, as you can say, success with especially the talented side of things. So, the World Cup was important, as Jesper said, and I think we also said before, the major impact is the uptake in new depositing customers. But of course, also on activity level. So, yeah. I think that's-

Speaker #2: So I think it was in line with that number you mentioned—that is likely representative also for this, you can say, 14 days of the World Cup.

Speaker #2: I think also we saw quite good traction on the finalization of the NBA in this quarter, with a lot of activity. Where we had, you can say, success with especially the talented side of things.

Speaker #2: Jasper said, and I think we also said before, the major impact is the uptake in new depositing customers. But of course, also on activity level.

Speaker #2: So yeah. I think that's.

Speaker #1: Okay, that's fair. No, thank you, Flemming. No, that's fair. That's fair. Then secondly, congrats also on the strong momentum in the US. As my colleagues, I’d also like to hear a bit more about the prediction market momentum here.

Sebastian Grave: Okay. That's fair. No, thank you, Flemming. No, that's fair. Secondly, congrats also on strong momentum in the US. As my colleagues, I also like to hear a bit more about the prediction market momentum here. You allude to Jesper, more operators coming online during the year here. I know you are not specific on how much an absolute revenue you get from this vertical here in the quarter. But still, is it fair to expect more from this vertical going forward in Q3 and Q4? On the former point, could it be possible for you to provide a bit more specific on the actual impact here for the quarter?

Speaker #1: You allude to Jasper—more operators coming online during the year here. I know you're not specific on how much in absolute revenue you get from this vertical here in the quarter, but still, is it fair to expect more from this vertical going forward in Q3 and Q4?

Speaker #1: And on the former point, could it be possible for you to provide a bit more—be a bit more specific on the actual impact here for the quarter?

Speaker #2: Yes. Well, as I said, this is overall driving a change in market dynamics. So it's not just a direct impact from prediction markets. It also spills over to our sports betting customers and their behavior.

Jesper Søgaard: Well, as I said, this is overall driving a change in market dynamics. It is not just a direct impact from prediction markets, it also spills over to our sports betting customers in their behavior. That is something we are really pleased with. I spoke to the fact that we started the year with just one in the US market. We now have two very active players. That is affecting how we can sell and the prices we can get. For the H2 of the year, we are really excited about this development and expect this to be growing further and really a significant part of the growth we expect for the H2. We are really excited about these developments and believe that the competition we will see for this half of the year will directly translate into the financial performance of our business.

Speaker #2: So that is something we are really pleased with. I spoke to the fact that we started the year with just one in the U.S. market.

Speaker #2: We now have two very active players, and that is affecting how we can sell and the prices we can get. So, for the second half of the year, we are really excited about this development and expect this to be growing further and to become a significant part of the growth we expect for the second half.

Speaker #2: So we are really excited about these developments and believe that the competition we will see for this half of the year will directly translate into the financial performance of our business.

Speaker #1: Cool. Thank you, Jasper. Then, just my last question. Similar to Paul, I also did the calculation on the implied CPA, and I get to the same numbers, meaning quite a steep step down from the previous quarters.

Sebastian Grave: Cool. Thank you, Jesper. Then just my last question. Similar to Poul, I also did the calculation on the implied CPA, and I get to the same numbers, meaning a quite steep step down from the previous quarters. I understand that there might be some prediction market dilution in this number, but is that the only dynamic or are there any other dynamics to be aware of on why the implied CPA is significantly lower this quarter?

Speaker #1: I understand that there might be some prediction market dilution in this number, but is that the only dynamic, or are there any other dynamics to be aware of as to why the implied CPA, in parentheses, is significantly lower this quarter?

Jesper Søgaard: There are other factors, such as in our paid media business, how the hybrids are structured. If we take more of the revenue share, the CPA component will be lower. There are more factors to this number. I think we can lean forward and say, on the prediction markets, because of this development, we are seeing prices go up. That will have a positive impact, compared to the H1 of the year, and then looking into the H2 of the year.

Speaker #2: There are other factors, such as in our paid media business, how the hybrids are structured. So, if we take more of a revenue share, the CPA component will be lower.

Speaker #2: So, there are more factors to this number. But I think we can lean forward and say, on the prediction markets, because of this development, we are seeing prices go up.

Speaker #2: So, that will have a positive impact compared to the first half of the year, and then looking into the second half of the year.

Speaker #1: Okay, good stuff. Thank you, Jasper, Flemming, and Miguel.

Sebastian Grave: Okay, good stuff. Thank you, Jesper, Flemming, and Mikkel.

Speaker #3: Thank you. As a reminder, if you wish to ask a question, please press star 11 on your telephone if you wish to ask a question via the webcast.

Operator: Thank you. As a reminder, if you wish to ask a question, please press star 1 1 on your telephone. If you wish to ask a question via the webcast, please type it into the box and click submit. I will now hand the call back to Mikkel for webcast questions.

Speaker #3: Please type it into the box and click Submit. I will now hand the call back to Miquel for webcast questions.

Speaker #1: Thank you. And I think maybe the first one is for you, Flemming, on the North American EBITDA margin expansion and whether the 26% is a sustainable baseline, or whether a seasonal high-margin revenue stream inflated it temporarily.

Mikkel Munch-Jacobsgaard: Thank you. I think maybe the first one is for you, Flemming, on the North American EBITDA margin expansion and whether the 26% is a sustainable baseline or whether a seasonal high margin revenue stream inflated it temporarily.

Speaker #2: Yeah, I think you can say discussing margins per quarter is, of course, difficult. But the result here is basically impacted by two things. Our performance in the US, or North American revenue share databases, was really strong. And, as some will know, we have weighted that, and also invested a lot into revenue share in North America for a long time.

Flemming Pedersen: Well, I think you can say discussing margins per quarter is always difficult, but the result here is basically impacted by two things. Our performance in the US or North American revenue share databases was really strong and as some will know, we have weighted that and also invested a lot into revenue share in North America for a long time. That is now beginning to fill relatively more in the performance as recurring revenue. Then, of course, as we have discussed now a few times, the new market dynamics around prediction markets are also hitting this quarter, which is normally quite slow for sports in North America, is also helping this. So yes, I would expect if we look on the full year, clearly, that is sustainable and likely also higher than this. So, it's a very good development that we are seeing in that region.

Speaker #2: And that is now beginning to fill relatively more in the performance as recurring revenue. And then, of course, as we have discussed now a few times, the new market dynamics around prediction markets also hit this quarter.

Speaker #2: Which is normally quite slow for sports in North America, is also helping this. So yes, I would expect if we look on the full year, clearly that is sustainable and likely also higher than this.

Speaker #2: So, it's a very good development that we are seeing in that region.

Speaker #1: Thank you. And then we have several questions around Brussels that I will combine into one, but they're all around whether there have been any changes to the Brazilian market and the regulation, also that we show in our bridge.

Mikkel Munch-Jacobsgaard: Thank you. Then we have several questions around Brazil, that I will combine into one, but they're all around whether there have been any changes to the Brazilian market and the regulation also that we show in our bridge. Also a few comments to the election in the H2 of the year and what our expectations are for the markets in general.

Speaker #1: And also, a few comments on the election in the second half of the year and what our expectations are for the markets in general.

Speaker #2: Yeah, and I also touched a bit upon that earlier in the webcast—that we are affected by the regulatory changes and taxation in the Brazilian business.

Jesper Søgaard: Yeah, I also touch a bit upon that earlier in the webcast that we are affected by the regulatory changes and taxation in the Brazilian business. There is an upcoming election, which obviously also sparks some debate and opinions about the development of the market. Fundamentally, I personally believe that with the amount of tax revenue that the Brazilian state is seeing now, that yes, there will be constant discussion, but they will also want to protect this tax revenue combined with the ability to protect consumers in a regulated and licensed market. Whenever they sort of weaken the regulated market, it unfortunately spills over to the non-licensed market, with no consumer protection and no tax revenue coming in.

Speaker #2: And there is an upcoming election, which obviously also sparked some debate and opinions about the development of the market. But fundamentally, I personally believe that with the amount of tax revenue that the Brazilian state is seeing now, yes, there will be constant discussion, but they will also want to protect this tax revenue, combined with the ability to protect consumers in a regulated and licensed market.

Speaker #2: And whenever they sort of weaken the regulated market, it unfortunately spills over to the non-licensed market, with no consumer protection and no tax revenue coming in.

Speaker #2: So it's a balance that is happening and being discussed in all markets. And especially in Brazil right now, with an upcoming election, I think the topic is then flaring a bit more than normally.

Jesper Søgaard: It is a balance that is happening and being discussed in all markets, and especially in Brazil right now with an upcoming election, I think the topic is then filling a bit more than normally.

Speaker #1: Thank you, Jasper. And then I have the final question, but once again, I will combine it because there are quite a few questions related to other players in the industry that are reporting different numbers than ours, and we don't comment specifically on others.

Mikkel Munch-Jacobsgaard: Thank you, Jesper. I have the final, but one again I will combine because there are quite a few questions related to other players in the industry that are reporting different numbers than us, and we do not comment specifically on other companies, of course. So I will try and make it a question about ourselves. What are we seeing in the broader competitive environment right now, also towards our partners and the general performance in the market?

Speaker #1: Companies, of course, so I will try and make it a question about ourselves. But what are we seeing in the broader competitive environment right now, also towards our partners and the general performance in the market?

Speaker #2: I think first off, I think Better Collective is on good track. And I think you can tell that in the performance of our of the first half of this year.

Jesper Søgaard: I think first off, I think Better Collective is on good track, and I think you can tell that in the performance of the H1 of this year. There is no doubt we are in a fast-moving industry with constant change, and everybody has to adapt to that. I am really proud of how Better Collective, several years ago, has been very focused on diversifying our business. Meaning that if we go all the way back to our IPO, we were more or less a pure affiliation business with almost all revenue stemming from revenue share and just one line. To now where we have developed into many more markets, not just Europe, we are in North America and South America. We have expanded to a paid media business. We have added esports as a new category for Better Collective with very powerful brands and big audiences.

Speaker #2: There's no doubt we are in a fast-moving industry with constant change, and everybody has to adapt to that. I'm really proud of how Better Collective, several years ago, became very focused on diversifying our business.

Speaker #2: Meaning that, if we go all the way back to our RPO, we were more or less a pure affiliation business, with almost all revenue stemming from revenue share and just one line.

Speaker #2: To now, where we have developed into many more markets—not just Europe—we are in North America and South America. We have expanded to a paid media business.

Speaker #2: We have added eSports as a new category for Better Collective, with very powerful brands and large audiences. We have also launched new engagement products, such as Playbook.

Jesper Søgaard: We have launched new products, engagement products like Playbook. We have a big talent-led business, which is very creative-focused and living on social, driving strong sponsorship revenue for us. We have really been focused on diversifying Better Collective, I think that is helping us right now in the fast-paced industry and the change that we experience here, giving us a very attractive position in this ecosystem with a lot of optionality in many directions. We are not immune to changes, as we have also seen in the past, but we are really resilient with this business. We are back to growth, and the focus for us is just a continued disciplined execution of the business with all the opportunities we see in Better Collective and ahead of us.

Speaker #2: We have a big talent-led business, which is very creative-focused and active on social, driving strong sponsorship revenue for us. So we have really been focused on diversifying Better Collective.

Speaker #2: And I think that is helping us right now in the fast-paced industry and the change that we experience here, giving us a very attractive position in this ecosystem with a lot of optionality in many directions.

Speaker #2: So, of course, we are not immune to changes, as we have also seen in the past. But we are really resilient with this business.

Speaker #2: We're back to growth, and the focus for us is just continued, disciplined execution of the business, with all the opportunities we see in Better Collective and ahead of us.

Speaker #2: But I very much agree with the questions that this industry is just constantly changing, and everybody needs to adapt and be ready for that.

Jesper Søgaard: I very much agree with the questions that this industry is just constantly changing, and everybody needs to adapt and be ready for that. Thank you. That was the final question. With that, thank you for the questions, and thank you very much for showing interest in Better Collective. Have a nice day.

Jesper Søgaard: I very much agree with the questions that this industry is just constantly changing, and everybody needs to adapt and be ready for that.

Speaker #1: Thank you. And that was the final question. So, with that, thank you for the questions, and thank you very much for showing interest in Better Collective.

Mikkel Munch-Jacobsgaard: Thank you. That was the final question. With that, thank you for the questions, and thank you very much for showing interest in Better Collective. Have a nice day.

Speaker #1: Have a nice day.

Operator: Thank you. This concludes today's conference call. Thanks for participating. You may now disconnect.

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Q2 2026 Better Collective A/S Earnings Call

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