BETTER COLLECTIVE

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Q2 2021

January 1 - June 30

Interim report

Highlights Q2 2021

Revenue of 40 mEUR; growth 162% y-o-y, organic growth 47%
Operational Earnings of 13 mEUR; EBITDA-margin 32%; Publishing segment 43% and Paid Media segment 11%
NDCs 197,000; growth of 179%
US business and media partnerships strong growth drivers
Better Collective acquired leading US sports betting media platform Action Network for 240 mUSD
The full-year financial targets remain unchanged

BETTER COLLECTIVE A/S CVR no, 27 65 29 13

Interim report Q2 2021 Copenhagen, August 24, 2021

www.bettercollective.com

BETTER COLLECTIVE

CONTENTS

Interim Report Q2 2021

Revenue
mEUR

EBITDA
mEUR

From Q2, 2021, and following the acquisition of Action Network (included in Group accounts from the time of closing on May 28, 2021), Better Collective will report on the geographical segments US and RoW (Rest of World), measuring and disclosing separately for Revenue, Cost and Earnings. Historical financial figures will be reported accordingly.

Highlights second quarter 2021

Q2 Group Revenue grew by 162% to 40,009 tEUR (Q2 2020: 15,253 tEUR). Organic revenue growth was 47%.
The US business performed strongly, even before inclusion of Action Network, by recording NDC performance and revenue on par with a strong Q1 2021, despite Q2 being low season.
Q2 Group EBITDA before special items increased 90% to 12,662 tEUR (Q2 2020: 6,672 tEUR). The EBITDA-margin before special items was 32% (Publishing segment 43% and Paid Media segment 11%).
Special items include cost related to the acquisition of Action Network of 5.3 mEUR.
Cash Flow from operations before special items was 11,069 tEUR (Q2 2020: 10,363 tEUR), an increase of 7%. The cash conversion was 93% following a 121% conversion rate in Q1. End of Q2, capital reserves stood at 69 mEUR including cash of 40 mEUR and unused bank credit facilities of 29 mEUR.
New Depositing Customers (NDCs) were 197,000 in the quarter with an implied growth of 179%, establishing a new quarterly record.
Media partnerships saw breakthrough performance delivering more than 38.000 NDCs. Three new media partnerships signed.
Earn-out payments of 1.2 mEUR in cash and 0.9 mEUR in shares were made in relation to the 2020-acquisition of HLTV and its achievement of pre-agreed financial performance.
At the AGM, Therese Hillman, CEO of NOD and former Group CEO of NetEnt, was elected to the board of directors.

Financial highlights and key figures ... 4
CEO comments ... 5
Business review and financial performance Q2 2021 ... 7
Financial review first half 2021 ... 11
Other ... 14
Statement by the Board of Directors and the Executive Management ... 16
Financial statements for the period January 1 – June 30 ... 17
Notes ... 23
Parent company ... 33

Conference call

A conference call for investors, analysts, and the media will be held today, August 24, 2021, at 10:00 a.m. CET and can be joined online at www.bettercollective.com.

The presentation material for the call will be available on the website one hour before the call.

To participate, please dial:

Confirmation code: 7994289
Denmark +45 3272 0417
The UK +44 (0) 8444819752
Sweden +46 (0) 856618467

Interim report Q2 2021

Copenhagen, August 24, 2021

BETTER COLLECTIVE

CONTENTS

Better Collective acquired leading US sports betting media platform, Action Network, for 196 mEUR (240 mUSD), gaining market leadership within sports betting media in the US.
Better Collective resolved on a directed share issue of 6.9 million shares, raising proceeds of 145 mEUR to maintain financial flexibility.
For the fourth consecutive year, Better Collective topped the prestigious EGR Global's Power Affiliates 2021 ranking.

Financial highlights first six months 2021

In the first half of 2021, revenue grew by 118% to 78,845 tEUR (YTD 2020: 36,174 tEUR).
In the first half of 2021, EBITDA before special items increased 64% to 25,855 tEUR (YTD 2020: 15,718 tEUR). The EBITDA-margin before special items was 33%.
Cash Flow from operations before special items was 27,171 tEUR (YTD 2020: 19,814 tEUR), an increase of 37%. The cash conversion rate before special items was 107%. End of Q2 2021, cash and unused credit facilities amounted to 69 mEUR.
New Depositing Customers (NDCs) exceeded 371,000 in the first half year (growth of 99%).

Significant events after the closure of the period

July revenue reached 12.4 mEUR, more than double of July 2020, with an organic growth of 13%. July 2021 revenue was negatively impacted by an extraordinarily low sports win margin, especially in connection with the finalisation of EURO2020. This should be seen in the light of a comparison month of July 2020, which was positively impacted by the rescheduling of sports events due to COVID-19 and an above average sports win margin.

Financial targets

The full-year financial targets remain unchanged.

Quarterly Revenue
* Compounded Quarterly Growth Rate

Quarterly EBITDA before special items

Financial calendar

November 17, 2021
Interim financial report Q3, 2021

February 24, 2022
Interim financial report Q4, 2021

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER

COLLECTIVE

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Financial highlights and key ratios

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Revenue	40,009	15,253	78,845	36,174	91,186
Revenue Growth (%)	162%	-4%	118%	18%	35%
Organic Revenue Growth (%)	47%	-24%	32%	-2%	8%
Operating profit before depreciation, amortisations, and special items (EBITDA before special items)	12,662	6,673	25,855	15,718	38,152
Operating profit before depreciation and amortisations (EBITDA)	7,071	7,281	20,438	15,925	38,272
Depreciation	419	368	849	786	1,548
Special items, net	-5,591	608	-5,417	208	120
Amortisations	1,536	1,575	3,072	3,215	6,235
Operating profit before special items (EBIT before special items)	10,707	4,730	21,935	11,716	30,369
Operating profit (EBIT)	5,116	5,338	16,518	11,924	30,489
Result of financial items	-1,115	-546	-1,581	-768	-1,778
Profit before tax	4,001	4,793	14,936	11,156	28,712
Profit after tax	1,693	3,919	10,000	8,600	21,927
Earnings per share (in EUR)	0,03	0,08	0,20	0,19	0,47
Diluted earnings per share (in EUR)	0,03	0,08	0,19	0,18	0,45
Balance sheet
Balance Sheet Total	538,066	259,649	538,066	259,649	315,065
Equity	333,282	145,282	333,282	145,282	162,542
Current assets	65,617	30,138	65,617	30,138	48,555
Current liabilities	55,827	14,425	55,827	14,425	26,312
Net interest bearing debt	89,336	36,580	89,336	36,580	63,275
Cashflow
Cash flow from operations before special items	11,069	10,363	27,171	19,814	38,321
Cash flow from operations	9,956	10,701	25,950	19,951	37,696
Investments in tangible assets	744	-103	603	-264	-459
Cash flow from investment activities	-183,532	-9,206	-191,984	-34,341	-68,090
Cash flow from financing activities	180,708	1,990	181,635	16,427	46,790
Financial ratios
Operating profit before depreciation, amortisations (EBITDA) and special items margin (%)	32%	44%	33%	43%	42%
Operating profit before amortisations margin (EBITDA) (%)	18%	48%	26%	44%	42%
Operating profit margin (%)	13%	35%	21%	33%	33%
Net interest bearing debt / EBITDA before special items	1.85	1.21	1.85	1.21	1.66
Liquidity ratio	1.18	2.09	1.18	2.09	1.85
Equity to assets ratio (%)	62%	56%	62%	56%	52%
Cash conversion rate before special items (%)	93%	154%	107%	124%	99%
Average number of full-time employees	589	415	541	415	420

For definitions of financial ratios, see definitions section in the end of the report

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

CONTENTS

CEO Comments

Better Collective reports record revenue; strong growth in US business and media partnerships

Q2 marks yet a record quarter in terms of revenue and NDCs delivered to our partners. At the same time, we continue to record strong profitability and cash flows. The strong performance is especially driven by the US business, and by our media partnerships that saw breakthrough performance during Q2. The peak of the quarter was the closing of our largest acquisition to date, Action Network, which is a game changer and consolidates our leading sports betting media position in the US.

Acquisition of Action Network and financial flexibility

The acquisition of Action Network was completed on May 28, 2021. We were excited to finalise this acquisition and to welcome more than 100 new colleagues to the Better Collective Group. The acquisition gives us a leading position within sports betting media in the US and a strong foundation for the continuous expansion of the US betting market. In Q2, we also raised 145 mEUR to maintain a flexible capital structure which allows us to act on future strategic opportunities. I was pleased to see the high level of support from existing as well as new shareholders in this transaction. Our acquisition pipeline remains strong, and the financial flexibility gives us the ability to pursue more opportunities.

US performing better than expected

With the US as one of the main growth drivers, Q2 performance was even stronger than expected. The number of new depositing customers (NDCs) and revenue were on par with a very strong Q1 despite Q2 being low season when it comes to US sports. This is before including the newly acquired Action Network. The strong performance was driven primarily by our assets VegasInsider and RotoGrinders.

Action Network also performed very well in the first months after the acquisition, and I am very pleased to see the teams already working closely together to achieve positive synergies across the business areas.

Breakthrough for our media partnerships

In 2019 we signed two media partnerships with The Telegraph, in the UK, and with nj.com in New Jersey, the first-to-regulate state in the US. The vision of the partnerships was to combine traditional high quality media traffic with Better Collective's competences within sports betting, and thereby utilise different online traffic channels to direct customers to our partners.

Late last year, we reached proof-of-concept and since then, we have entered three new media partnerships. In Q2 we saw a real breakthrough as the partnerships delivered more than 38.000 NDCs. I am very pleased to see that our strategy and efforts have paid off, and I truly believe that Better Collective has a unique set of competences in this area; we can provide relevant content under an external media's strict editorial guidelines, and at the same time provide betting information that support the sign-up process with online sportsbooks. On this basis we have decided to seek more partnerships with big online media around the world.

> “As could be expected with a big event like EURO2020, we saw strong performance in Q2. On top of that, our US business was a strong growth driver this quarter as was our media partnerships.”

Jesper Søgaard

Co-founder and CEO

3 New media partnerships

in 2021

Interim report Q2 2021

Copenhagen, August 24, 2021

BETTER COLLECTIVE

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Together at last

While the entire globe is still affected by the COVID pandemic, we saw the return of big sport events following a one-year postponement. Across 11 hosting nations, many spectators returned to the stadiums to watch the EURO2020 games, and in other parts of the world spectators have also gradually returned to the sports arenas. Again, we experienced the unique solidarity big sport events can breed, and how important socialising around sports events are to people and societies. For Better Collective, the EURO tournament was a big event, as the World Cup and European Championship usually are, and it sparked high activity. Our teams were more than ready to deliver relevant media coverage, data, statistics, and betting information for this event.

Momentous opportunities driven by new market regulations

We continue to see new US states deciding to regulate online sports betting and some also online casinos. Arizona is expected to launch mobile/online wagering on sports events in 2021 which poses yet another opportunity for Better Collective in addition to the states of Michigan and Virginia that opened for business in Q1. Collectively, the Americas offer very high potential in additional US states regulating as well as promising developments in both Canada and LATAM countries where new regulation is expected to provide new market openings in the near future.

In Europe we saw Germany implementing the new interstate treaty on gambling from July 1, 2021. This was as expected and for more than a year, we have been preparing for the new regulatory framework together with the local authorities and our business partners. Despite there still being some remaining uncertainty that may cause fluctuations in the German market following the implementation of the new interstate treaty, we continue to see Germany as one of our most important and valuable markets.

Later in 2021 we expect the Netherlands to allow online sports betting and casino after several years of preparation. We are preparing for this new important market opening with full force and expect to be ready as soon as regulation allows.

The remainder of 2021

For the fourth consecutive year, Better Collective leads the prestigious EGR Global's Power Affiliates 2021 ranking. I especially value this EGR Power Ranking as it is one of the most recognised awards in the industry. For the remainder of 2021 we will continue pursuing our strategy to become the leading sports betting media group in the world. We have are well prepared for an exciting and profitable future for Better Collective, and I look forward to further knowledge sharing and joint effort with our new colleagues from Action Network.

Jesper Søgaard

Co-founder and CEO

47%

Organic revenue growth

in Q2 2021

179%

NDC growth

in Q2 2021

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

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Business review and financial performance Q2 2021

Better Collective Group

Key figures for the group:

tEUR	Q2 2021	Q2 2020	Growth
Revenue	40,009	15,253	162%
Cost	27,347	8,580	219%
Operating profit before depreciation, amortisations and special items	12,662	6,673	90%
EBITDA-Margin before special items	32%	44%
Organic Growth	47%	-24%
YTD 2021	YTD 2020	Growth
---	---	---
78,845	36,174	118%
52,990	20,457	159%
25,855	15,718	64%
33%	43%
32%	-2%

Growth in Q2 was strong, against a weak comparison due to the significant effect on Q2 2020 by the halt in sports during the COVID lockdown, yet it marks a record high revenue of 40 mEUR, >2,5x the revenue in Q2 2020 and Q2 2019. Sports wagering in our revenue share accounts was also at a record high continuing the trend from Q1, and sports betting margins were just above average. With operations earnings (EBITDA) of 12.7 mEUR in Q2 2021, the EBITDA margin was 32% compared to a margin of 44% in Q2 2020, however for 2021 the margin is affected by the addition of the lower-margin Paid Media business (the EBITDA-margin for the Publishing segment was 43% which is comparable to Q2 last year). The number of NDCs delivered to our customers continue the strong growth as seen since the end of 2020, and Q2 delivers at an all-time high of 197.000 NDCs.

Publishing

Key figures for the Publishing segment:

tEUR	Q2 2021	Q2 2020	Growth
Revenue	26,059	14,550	79%
Share of Group	65%	95%
Cost	14,944	7,931	88%
Share of Group	55%	92%
Operating profit before depreciation, amortisations and special items	11,115	6,619	68%
Share of Group	88%	99%
EBITDA-Margin before special items	43%	45%
Organic Growth	75%	-24%
YTD 2021	YTD 2020	Growth
---	---	---
49,936	33,781	48%
63%	93%
26,671	18,838	42%
50%	92%
23,265	14,942	56%
90%	95%
47%	44%
44%	-2%

The Publishing segment includes revenue from Better Collective's proprietary online platforms and media partnerships where the online traffic is coming either directly or through organic search results. Revenue grew 79% (75% organic growth) to 26,059 tEUR.

Q2 saw the expected strong performance including the biggest sports betting event, EURO2020, that took place with one year delay. The US business outperformed our expectations as NDCs and revenue performed on par with Q1, despite Q2 normally being low season for US sports. On top of this, the newly acquired Action Network was consolidated into the Group with approximately one month of P/L impact, including revenue of 1.8 mEUR and neutral EBITDA. This is in line with our expectations given the seasonality in US sports. The inclusion of Action Network reduced the EBITDA-margin in the Publishing segment by three %-points in the quarter.

Following the proof of concept for our media partnership strategy last year, we are now seeing very strong performance from this business area that includes partnerships with The Daily Telegraph, nj.com and three newly signed partnerships. The partnerships delivered >38,000 NDCs in Q2, which is 42 times over last year.

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

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Updates to search engines continue to favour branded assets with strong content and the trend is expected to continue. This trend supports our strategy of having a strong portfolio of media brands, including HLTV, Action Network, VegasInsider, RotoGrinders etc., and we are experiencing the value of investing in brand building through relevant content and strong technology that facilitates the best user journeys.

Cost increased 88% to 14,944 tEUR where Q2 2020 was impacted by cost savings due to the COVID-19 pandemic.

Paid Media

Key figures for the Paid Media segment:

tEUR	Q2 2021	Q2 2020	Growth
Revenue	13,950	703	1886%
Share of Group	35%	5%
Cost	12,403	649	1811%
Share of Group	45%	8%
Operating profit before depreciation, amortisations and special items	1,547	54	2789%
Share of Group	12%	1%
EBITDA-Margin before special items	11%	8%
Organic Growth	13%	-
YTD 2021	YTD 2020	Growth
---	---	---
28,909	2,393	1108%
37%	7%
26,319	1,618	1526%
50%	8%
2,590	775	234%
10%	5%
9%	32%
15%	-

The Paid Media segment includes lead generation through paid media (PPC) and social media advertising. The earnings margin within paid media is typically much lower than within organic traffic, due to direct payments to the companies providing platforms for online advertising such as Google and Facebook.

The revenue in the Paid Media segment was 13,950 tEUR in Q2 2021, with good growth following the acquisition of Atemi in Q4 2020. The organic growth for Q2 was 13%, where a very strong Q2 in 2020 for Atemi provided for a strong comparison. The Paid Media segment is currently impacted by our decision to switch more NDCs from pure CPA to revenue share contracts or hybrid revenue models (mix of CPA and revenue share). Whereas the switch is expected to have a positive impact in the longer run, the revenue and EBITDA margins are impacted negatively in the short term with EBITDA for Q2 of 1,547 tEUR and an EBITDA margin of 11%. Paid Media delivered 35% of the Group's revenue in Q2, and 12% of EBITDA. Costs in Q2 remain unchanged compared to Q1, 2021. In Q2 we continued our efforts with Paid Media in the US after having improved partner contracts following initial successful campaigns.

Geographical; US and Rest of World (RoW)

Better Collective's products cover more than 30 languages and attract millions of users worldwide - covering international brands with a global reach as well as regional brands with a local reach. Better Collective's regional brands are tailored according to the specific regions or countries and their respective regulations, sports, betting behaviours, user needs, and languages. From Q2 2021, and after the acquisition of Action Network, Better Collective reports on geographical segments, a split between the US and Rest of World (RoW), as the US market constitutes >20% of the group's revenue and >30% of revenue in Publishing on an annualised basis.

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

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Key figures for US and RoW segments:

tEUR	US
	Q2 2021	Q2 2020	Growth
Revenue	6,950	1,312	429%
Share of Group	17%	9%
Cost	5,076	774	556%
Share of Group	19%	9%
Operating profit before depreciation, amortisations and special items	1,873	539	248%
Share of Group	15%	8%
EBITDA-Margin before special items	27%	41%
tEUR	US
---	---	---	---
	YTD 2021	YTD 2020	Growth
Revenue	12,748	3,962	222%
Share of Group	16%	11%
Cost	8,589	3,292	161%
Share of Group	16%	16%
Operating profit before depreciation, amortisations and special items	4,159	670	521%
Share of Group	16%	4%
EBITDA-Margin before special items	33%	17%
tEUR	Rest of World
---	---	---	---
	Q2 2021	Q2 2020	Growth
Revenue	33,059	13,941	137%
Share of World	83%	91%
Cost	22,271	7,806	185%
Share of World	81%	91%
Operating profit before depreciation, amortisations and special items	10,789	6,134	76%
Share of World	85%	92%
Operating profit before depreciation, amortisations and special items	33%	44%
tEUR	Rest of World
---	---	---	---
	YTD 2021	YTD 2020	Growth
Revenue	66,097	32,212	105%
Share of World	84%	89%
Cost	44,401	17,165	159%
Share of World	84%	84%
Operating profit before depreciation, amortisations and special items	21,696	15,047	44%
Share of World	84%	96%
Operating profit before depreciation, amortisations and special items	33%	47%

The US market

Key US brands within sports betting include Action Network, VegasInsider, and Scores&Odds, whereas RotoGrinders is focused on Daily Fantasy Sport (DFS) and SportsHandle.

The acquisition of Action Network places Better Collective in a leading position within sports betting media in the US, and creates a strong foundation for benefitting from the continuous regulation of the US betting market. The performance of Action Network since the time of consolidation has been strong across KPIs including a significant audience growth. Overall, the US segment delivered a strong performance, even considering the low season, and was especially driven by VegasInsider and RotoGrinders.

Revenue in the US segment was 6,950 tEUR in Q2 2021, more than five times the revenue in Q2 2020. The Acquisition of Action Network is included as of May 28, 2021 and contributed with revenue of 1.8 mEUR and neutral EBITDA for the period until June 30, 2021. Excluding Action Network, the EBITDA-margin for the quarter was 36%.

Regulatory updates US

Better Collective became a licensed vendor in New Jersey in 2014, and since then our presence in the US has grown tremendously. Better Collective is currently live in 11 states Colorado, Illinois, Indiana, Iowa, Michigan, Nevada, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia, while a launch in Washington D.C is in preparation. Arizona is expected to launch mobile/online wagering on sports events in 2021. With its regulatory structure, Arizona opens for a user-friendly market, and because of this liberal legislation, we see Arizona as an important state moving forward. Retail-only states led by New York, North Carolina and Mississippi will be looking to authorise mobile wagering, while Illinois is expected to permanently eliminate in-person registration in 2022. Given the continued pace of new states regulating, Better Collective expects the US market to continue growing fast and its US revenues to surpass 100 mUSD by 2022, with positive and increasing operational earnings. Market analysts expect the total US sports betting market to expand >4x until 2025 and >20x in the next decade.

Interim report Q2 2021 Copenhagen, August 24, 2021

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39

The RoW markets

The Rest of World segment includes all other markets of which the European market is a historically strong but also more mature market. New opportunities in focus include LATAM, Canada and the Netherlands, as upcoming regulation of these markets offer new opportunities.

Revenue in the Rest of World markets more than doubled in Q2 to 33 mEUR.

Regulatory updates RoW

Germany

Following an interim regime to govern gambling in Germany implemented in October 2020, the new Interstate Treaty on Gambling, Der Glücksspielstaatsverag (GlüStV 2021), came into force on July 1, 2021, which runs in line with Better Collective's expectations. Better Collective has for more than a year prepared for the new regulatory framework in Germany and has been adapting its business models in collaboration with its partners to comply with the new regulations. While some market adjustments are to be expected in the short term following the new Interstate Treaty, the overall commercial outlook for Better Collective is slightly better than anticipated.

The new treaty implies the following main items:

Online sports betting is now regulated and allowed in all German states. So far 30+ operators have obtained licenses, and expectations are that this will increase.
Poker and slots games are now regulated on a federal level. Online casino can now be regulated on a state-by-state level. As the first state - besides the already regulated market in Schleswig-Holstein, North Rhine-Westphalia recently submitted a draft law to regulate online casino games by issuing a limited number of five licenses to private operators
A uniform tax rate of 5.3% on turnover will apply to poker, slots, and sports betting, equivalent to the current tax rate on sports betting. The objective of the regulation is to make sure to protect players from depositing, playing for or losing too much money. Therefore, advertisers may no longer be remunerated based on commercial models directly tied to those three risk factors. Consequently, Better Collective has in due time negotiated and implemented new business models with its German partners.

Advertisers may no longer be remunerated on commercial models directly tied to betting activity. As a consequence Better Collective has in due time negotiated and implemented new business models with its German partners.

The Netherlands

The Remote Gambling Act of the Netherlands legalised online gambling in the country and entered officially into effect on April 1, 2021. The online gambling market in the Netherlands is expected to officially go live on October 1, 2021. Better Collective is in dialogue with relevant operators and is preparing of a number of products for launch

Spain

In Spain, Royal Decree 958/2020 came into effect on November 5, 2020, imposing limitations on the advertising of gambling activities, including a ban on customer acquisition promotions (sign up bonuses). Some aspects of the decree have different implementation timing. For instance a ban on sign up bonuses came into force in May 2021, meaning that our future advertising activities on the Spanish market will be evaluated and implemented in the coming months.

Sweden

Similarly, Swedish legislators are restricting bonuses to 100 SEK and applying weekly deposit limits for casino-games at 5 tSEK (-500 EUR). The duration of these restrictions is currently under debate, but it is expected to be lifted in November 2021.

Canada

Following the approval of the new legislation legalising single-game wagering, Canada's first provinces and territories are expected to allow online betting from the end of year 2021. Better Collective is preparing to roll out key US and international brands in Canada as soon as regulation allows.

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Financial review first half 2021

Revenue: Growth of 118% to 78.8 mEUR - organic growth of 32%

Revenue YTD showed strong growth vs. 2021 with 118% and amounted to 78,845 tEUR (YTD 2020: 36,174 tEUR). The organic growth YTD was 32%.

Revenue share accounted for 47% of the revenue (51% of player-related revenue) with 40% coming from CPA, 5% from subscription sales, and 8% from other income.

The acquisition of Action Network increases the revenue coming from subscription sales.

Cost: 53.8 mEUR - up from 21.2 mEUR

Overall, the cost base is impacted by increases following the 2020 acquisitions of HLTV and Atemi, as well as the addition of Mindway as of January 1, 2021, and Action Network as of May 2021. The cost base excluding depreciation and amortisation grew 32,595 tEUR, up to 53,838 tEUR YTD vs. 2020 with the majority coming from the acquisitions.

Total direct cost relating to revenue increased due to the addition of Atemi to 29,317 tEUR (YTD 2020: 4,617 tEUR). Beyond the cost of paid traffic, this includes hosting fees of websites, content generation, and external development.

Personnel cost YTD increased 48% from YTD 2020 to 17,247 tEUR (YTD 2020: 11,653 tEUR). The average number of employees increased 30% to 541 (YTD 2020: 415). Personnel costs include costs of warrants of 509 tEUR (YTD 2020: 504 tEUR).

Other external cost increased 2,239 tEUR or 53% to 6,426 tEUR (YTD 2020: 4,187 tEUR). Depreciation and amortisation amounted to 3,920 tEUR (YTD 2020: 4,002 tEUR). The decrease is primarily due to lower amortisation on acquired intangible assets.

Special Items

YTD Special Items amounted to a cost of 5,417 tEUR (YTD 2020 +208 tEUR). The net cost of 5,417 is primarily related to M&A activities where cost related to the acquisition of Action Network amounts to 5.3 mEUR. The net cost also includes gain of 272 tEUR related to divestiture of apartment in Copenhagen. M&A cost are primarily cost for advisors used in connection with the potential M&A transactions for negotiations, due diligence, legal advice, etc.

Earnings

Operational earnings (EBITDA) before special items grew 64% to 25,855 tEUR (YTD 2020: 15,718 tEUR). The EBITDA-margin before special items was 33% (YTD 2020: 43%). The margin is significantly impacted by the acquisition of the Paid Media business in Q4 2020.

Including special items, the reported EBITDA was 20,438 tEUR. (YTD 2020: 15,925 tEUR)

YTD EBIT before special items increased 87% to 21,935 tEUR (YTD 2020: 11,716 tEUR). Including special items, the reported EBIT was 16,518 tEUR (YTD 2020: 11,924 tEUR).

Net financial items

Net financial costs amounted to 1,581 tEUR (YTD 2020: 768 tEUR) and included net interest, fees relating to bank credit lines and exchange rate adjustments. Interest expenses amounted to 1.0 mEUR and include non-payable, calculated interest expenses on certain balance sheet items, whereas financial fees and net exchange rate gain amounted to 1.4 mEUR and 0.8 mEUR respectively. The financial fees included fees related to financing obtained in connection with the acquisition of Action Network.

Income tax

Better Collective has a tax-presence in the places where the company is incorporated, which are Denmark (where the parent company is incorporated), Austria, France, Greece, Romania, UK, US, Poland, Serbia, and Sweden.

Income tax YTD amounted to 4,937 tEUR (YTD 2020: 2,556 tEUR). The Effective Tax Rate was (ETR) 33.1% (YTD 2020: 22.9%).

Net profit

Net profit after tax was 10,000 tEUR (YTD 2020: 8,600 tEUR).

Interim report Q2 2021 Copenhagen, August 24, 2021

The equity increased to 333,282 tEUR as per June 30, 2021, from 162,542 tEUR on December 31, 2020. Besides the YTD profit of 10.0 mEUR, the equity has been impacted by capital increases and related transaction costs, treasury share transactions, and warrant-related transactions.

Balance sheet

Total assets amounted to 538,066 tEUR (FY 2020: 315,065 tEUR), with an equity of 333,282 tEUR (FY 2020: 162,542 tEUR). This corresponds to an Equity to assets ratio of 62% (FY 2020: 52%). The liquidity ratio was 1.18 resulting from current assets of 65,617 tEUR and current liabilities of 55,827 tEUR.

Investments

On May 28, 2021, the acquisition of Action Network was completed at a price of 240 mUSD at a cash and debt-free basis. The net cashflow impact in connection with the acquisition was 179 mEUR, taking into account deferred payments and seller's re-investment in Better Collective shares.

On January 1, 2021, Better Collective increased its ownership to 90% of the shares in Mindway AI that specialises in software solutions based on artificial intelligence and neuroscience for identifying, preventing, and intervening in at-risk and problem gambling. The price for the additional 70% was 2.3 mEUR (17 mDKK) paid in cash.

In addition to the investment in Action Network and Mindway AI, the second and third instalments (of six) of 2.9 mEUR (corresponding to booked amount of 2.5 mGBP) was paid on the deferred payment related to the acquisition of Atemi, and a payment of 1.2 mEUR was made related to earn-out and adjustment of closing net working capital related to the acquisition of HLTV.

In March 2021, Better Collective completed the asset acquisition of online sports betting media platform, Rekatochklart.com for 3.8 mEUR.

The total cashflow impact YTD from investments in business combinations and intangible assets was -188.0 mEUR and -4.5 mEUR respectively.

Investments in tangible assets were 368 tEUR.

Cash flow and financing

Cash Flow from operations before special items YTD 2021 was 27,171 tEUR (YTD 2020: 19,814 tEUR). Acquisitions and other investments reduced cash flow with 191,984 tEUR in YTD (YTD 2020: 34,341 tEUR).

Better Collective has bank credit facilities of a total 134 mEUR including financing of 50 mEUR established in connection with the acquisition of Action Network. At the end of March 2021, 105 mEUR was drawn up, and cash and unused credit facilities amounted to 69 mEUR.

The parent company

Better Collective A/S, Denmark, is the parent company of the Group.

Revenue YTD grew by 42% to 17,843 tEUR (YTD 2020: 12,533 tEUR).

Total costs including depreciation and amortisation was 16,998 tEUR (YTD 2020: 13,099 tEUR).

Profit after tax was 32,602 tEUR (YTD 2020: 11,776 tEUR). The difference is primarily due to differences in dividend payments from subsidiaries and exchange rate adjustments.

Total equity ended at 344,360 tEUR by June 31, 2021 (2020: 154,923 tEUR). The equity in the parent company was impacted by capital increases (158,528 tEUR) and related transaction costs (2,287 tEUR), treasury share transactions (-13 tEUR), and cost of warrants of 509 tEUR.

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Financial targets for 2021

The Board of Directors have decided on targets for the financial year 2021 as announced in the full year report and updated in the Q1 report following the acquisition of Action Network.

Financial Targets for 2021

	Target Total	Actual 2020	Target Publishing	Target Paid Media
Revenue / revenue growth	>180 mEUR	91 mEUR	>40%	Full year effect + organic growth
Organic growth	>25%	8%	>25%	>30%
EBITDA / EBITDA margin	>55 mEUR	38 mEUR	>40%	>10%
Net interest bearing debt/EBITDA	<3.0	1.66	-	-

The revenue targets are based on continued high growth with an implied growth rate >80% and revenue exceeding 180 mEUR in 2021. While M&A remains a key focus for Better Collective, potential new M&A transactions are not included and serve as an additional growth driver.

The earnings target maintains the focus on high earnings with an implied combined margin of >30% and an EBITDA exceeding 55 mEUR in 2021. It is a reflection on continued high earnings margin in the Publishing segment, as seen throughout 2018-2020, and generally lower margins in the Paid Media segment. In 2021, the earnings margin in Paid Media will expectedly be affected by changing the business model more towards revenue share than CPA and new market openings. After 2021, we expect the earnings margin in Paid Media to increase.

The debt leverage target allows for an increased financing capacity compared to previous years in alignment with the continued M&A focus.

Disclaimer

This report contains forward-looking statements which are based on the current expectations of the management of Better Collective. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.

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BETTER COLLECTIVE

Other

Shares and share capital

Better Collective A/S is listed on Nasdaq Stockholm main market. The shares are traded under the ticker “BETCO”. As per June 30, 2021, the share capital amounted to 542,829.29 EUR, and the total number of issued shares was 54,282,929. The company has one (1) class of shares. Each share entitles the holder to one vote at the general meetings.

On May 26, 2021, the Board of Directors resolved to issue 6,880,734 new ordinary shares in Better Collective A/S, equal to shares with a nominal value of EUR 68,807.34 to increase financial flexibility.

On May 28, 2021, the Board of Directors resolved to issue 412,923 new ordinary shares in Better Collective A/S, equal to shares with a nominal value of EUR 4,129.23. The new shares have been subscribed for by Action Network's management and certain key employees. The share price in the issuance of 231.35 SEK was determined as a weighted average over 5 trading days prior to May 3, 2021.

On May 31, 2021, the Board of Directors resolved to issue 5,200 new ordinary shares in Better Collective A/S, equal to shares with a nominal value of EUR 52 related to the exercise of warrants.

Shareholder structure

As of June 30, 2021, the total number of shareholders was 4,257. A list of top 10 shareholders in Better Collective A/S can be found on the company's website.

Annual general meeting

The annual general meeting 2021 took place on April 26, 2021. All items on the agenda were carried including the election of a new board member, Therese Hillmann, CEO of NOD and recent Group CEO of NetEnt, a premium game supplier to online casino operators and listed on Nasdaq Stockholm.

Incentive programs

In order to attract and retain key competences, the company has established a warrant program for key employees. The 2017 warrant program was established ahead of the IPO and as of June 30, 2021, 659,682 warrants are outstanding, all with rights to subscribe for 1 ordinary share. The vesting periods range from 2018-2022. The exercise price is 12.96 DKK (1.74 EUR) (rounded) per share. In September 2019 a new warrant program was established for certain key employees and members of management and as of June 30, 2021, 1,017,431 warrants are outstanding, all with the right to subscribe for 1 ordinary share. The vesting periods range from 2020-2023 and the exercise periods range from 2022 to 2024. The exercise price is 64.78 DKK (8.68 EUR) (rounded) per share.

In November 2020, a new grant from the 2019 warrant program was made to certain key employees. As of June 30, 2021, 260,000 warrants are outstanding, all with the right to subscribe for one ordinary share. The vesting periods range from 2021-2023 and the exercise periods range from 2023 to 2025. The exercise price is 106.35 DKK (14.29 EUR) (rounded) per share.

Following the AGM on April 22, 2020, 25,000 warrants were issued to the new board member, Todd Dunlap. The warrants will vest annually over a period of 3 years, starting from the annual general meeting in 2020. The exercise price is 61.49 DKK (8.2 EUR) per share.

If all outstanding warrants are subscribed, then the maximum shareholders dilution will be approximately 3.5%.

Risk management

Through an Enterprise Risk Management process, a number of gross risks in Better Collective are identified. Each risk is described, including current risk mitigation in place, or planned mitigating actions. The subsequent analysis of the identified risks includes an inherent risk evaluation based on two main parameters: probability of occurrence and impact on future Earnings and Cash Flow. Better Collective's management continuously monitors risk development in the Better Collective Group. The Risk Evaluation is presented to the Board of Directors annually, for discussion of and any further mitigating actions required. The Board evaluates risk dynamically to cater for this variation in risk impact. The policies and guidelines in place stipulate how Better Collective management must work with risk management. Better Collective's compliance with these policies and guidelines is also monitored by the management on an ongoing basis. Better Collective seeks to identify and understand risks and mitigate them accordingly. Also, the company's close and longstanding relationships with customers allow Better Collective to anticipate and respond to market move

BC BETTER COLLECTIVE
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ments and new regulations including compliance requirements from authorities and operators (customers). With the acquisitions in the US, the overall risk profile of Better Collective has changed, and regulatory/compliance as well as financial risk has increased. Better Collective has mitigated the additional risks in US in a number of ways, regulatory and compliance risk through involvement of regulatory bodies in our licensing process for newly established entities, financial risk through a performance based valuation of the acquired entities), and organisational risk through establishment of local governance/management, and finance, HR, and Legal organisation dedicated to the US operations.

The coronavirus outbreak, COVID-19, is having a growing impact on the global economy. If major sports events are cancelled or significantly postponed, it is likely to impact our revenue as we to a large extent rely on the operators' user activity. Additionally, the health and safety of our employees may be at risk. We continue to prepare for sports events up until the point that they may be cancelled. For internal purposes, we have set up a response team to ensure that we follow government guidelines as a minimum. Our first priority is to protect the health and safety of our employees. We have the technological setup to operate the business while our employees work remotely.

Other key risk factors are described in the Annual Report 2020.

Contact

Co-founder and CEO: Jesper Søgaard

CFO: Flemming Pedersen

Investor Relations: Christina Bastius Thomsen +45 2363 8844, [email protected]

This information is such information as Better Collective A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above on August 24, 2021 at 08:00 CET.

About

Better Collective is a global sports betting media group providing platforms that empower and enhance the betting experience for sports fans and iGamers. Aiming to make betting and gambling more entertaining, transparent and fair, Better Collective offers a range of editorial content, bookmaker information, data insights, betting tips, iGaming communities and educational tools. Its portfolio of platforms include bettingexpert.com, VegasInsider.com, HLTV.org and Action Network. Better Collective is headquartered in Copenhagen, Denmark, and listed on Nasdaq Stockholm (BETCO). More information at bettercollective.com

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荣

Statement by the Board of Directors and the Executive Management

Statement by the Board of Directors and the Executive Management on the condensed consolidated interim financial statements and the parent company condensed interim financial statements for the period January 1 – June 30, 2021.

Today, the Board of Directors and the Executive Management have discussed and approved the condensed consolidated interim financial statements and the parent company condensed interim financial statements of Better Collective A/S for the period January 1 – June 30, 2021.

The condensed consolidated interim financial statements for the period January 1 – June 30, 2021 are prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and additional requirements of the Danish Financial Statements Act. The parent company condensed interim financial statements has been included according to the Danish Executive Order on the Preparation of Interim Financial Reports.

In our opinion, the condensed consolidated interim financial statements and the parent company condensed interim financial statements give a true and fair view of the Group's and Parent Company's assets, liabilities and financial position at June 30, 2021 and of the results of the Group's and Parent Company's operations and the Group's cash flows for the period January 1 – June 30, 2021.

Further, in our opinion, the Management's review gives a fair review of the development in the Group's and the Parent Company's operations and financial matters and the results of the Group's and the Parent Company's operations and financial position, as well as a description of the major risks and uncertainties, the Group and the Parent Company are facing. The Interim Report has not been audited nor reviewed by the Company's auditor.

Copenhagen, August 24, 2021

Executive Management

Jesper Søgaard
CEO & Co-founder

Christian Kirk Rasmussen
COO & Co-founder
Executive Vice President

Flemming Pedersen
CFO
Executive Vice President

Board of Directors

Jens Bager
Chairman

Todd Dunlap

Therese Hillman

Klaus Holse

Leif Nørgaard

Petra von Rohr

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Copenhagen, August 24, 2021

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COLLECTIVE

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Financial statements for the period January 1 – June 30

Condensed interim consolidated income statement

Note	tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
3	Revenue	40,009	15,253	78,845	36,174	91,186
4	Direct costs related to revenue	14,216	1,896	29,317	4,617	20,471
	Staff costs	9,460	4,920	17,247	11,653	24,156
	Depreciation	419	368	849	786	1,548
	Other external expenses	3,670	1,765	6,426	4,187	8,407
	Operating profit before amortisations (EBITA) and special items	12,243	6,305	25,007	14,931	36,604
7	Amortisation	1,536	1,575	3,072	3,215	6,235
	Operating profit (EBIT) before special items	10,707	4,730	21,935	11,716	30,369
5	Special items, net	-5,591	608	-5,417	208	120
	Operating profit	5,116	5,338	16,518	11,924	30,489
	Financial income	2,134	645	2,928	1,320	1,965
	Financial expenses	3,249	1,191	4,509	2,088	3,743
	Profit before tax	4,001	4,793	14,936	11,156	28,712
6	Tax on profit for the period	2,309	873	4,937	2,556	6,785
	Profit for the period	1,693	3,919	10,000	8,600	21,927
	Earnings per share attributable to equity holders of the company
	Average number of shares	50,614,127	46,474,960	50,593,490	46,326,058	44,664,615
	Average number of warrants - converted to number of shares	1,963,810	1,958,029	2,000,251	2,015,549	2,043,366
	Earnings per share (in EUR)	0,03	0,08	0,20	0,19	0,47
	Diluted earnings per share (in EUR)	0,03	0,08	0,19	0,18	0,45

Condensed interim consolidated statement of other comprehensive income

Note	tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
	Profit for the period	1,693	3,919	10,000	8,600	21,927
	Other comprehensive income
	Other comprehensive income to be reclassified to profit or loss in subsequent periods:
	Currency translation to presentation currency	7,074	-735	5,107	-142	-3,346
6	Income tax	-1,514	195	-1,130	25	751
	Net other comprehensive income/loss	5,560	-541	3,978	-116	-2,595
	Total other comprehensive income/(loss) for the period, net of tax	7,253	3,379	13,977	8,484	19,332
	Attributable to:
	Shareholders of the parent	7,253	3,379	13,977	8,484	19,332

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

CONTENTS

Financial statements for the period January 1 – June 30

Condensed interim consolidated balance sheet

Note	tEUR	Q2 2021	Q2 2020	2020
	Assets
	Non-current assets
7	Intangible assets
	Goodwill	139,666	59,731	99,315
	Domains and websites	319,559	153,346	150,274
	Accounts and other intangible assets	7,430	8,755	9,378
		466,655	221,833	258,967
	Property, plant and equipment
	Land and buildings	47	725	721
	Right of use assets	2,850	3,451	3,225
	Fixtures and fittings, other plant and equipment	1,627	1,456	1,448
		4,524	5,632	5,395
	Other non-current assets
	Other non-current financial assets	0	1,457	1,093
	Deposits	609	311	434
	Deferred tax asset	662	278	621
		1,271	2,046	2,149
	Total non-current assets	472,449	229,511	266,510
	Current assets
	Trade and other receivables	21,770	8,924	18,248
	Corporation tax receivable	1,745	614	788
	Prepayments	1,776	1,125	1,465
	Restricted Cash	4,438	0	6,926
	Cash	35,887	19,475	21,127
	Total current assets	65,617	30,138	48,555

	TOTAL ASSETS	538,066	259,649	315,065

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

CONTENTS

Financial statements for the period January 1 – June 30

Condensed interim consolidated balance sheet

Note	tEUR	Q2 2021	Q2 2020	2020
	Equity and liabilities
	Equity
	Share Capital	543	467	469
	Share Premium	267,280	108,534	108,825
	Currency Translation Reserve	2,208	709	-1,770
	Treasury Shares	0	-3,982	-2
	Retained Earnings	63,252	39,555	55,019
	Proposed Dividends	0	0	0
	Total equity	333,282	145,282	162,542
	Non-current Liabilities
8	Debt to mortgage credit institutions	0	516	507
8	Debt to credit institutions	105,275	38,204	68,770
8	Lease liabilities	1,788	2,511	2,124
8	Deferred tax liabilities	24,935	24,722	25,207
8	Other long-term financial liabilities	6,075	9,301	8,796
8	Contingent Consideration	10,885	24,689	20,807
	Total non-current liabilities	148,957	99,942	126,212
	Current Liabilities
	Prepayments received from customers	2,761	321	450
	Trade and other payables	19,952	4,449	10,247
	Corporation tax payable	5,317	2,836	1,985
8	Other financial liabilities	15,293	4,431	9,850
8	Contingent Consideration	11,274	1,296	2,498
	Debt to mortgage credit institutions	0	20	20
8	Lease liabilities	1,230	1,073	1,262
	Total current liabilities	55,827	14,425	26,312
	Total liabilities	204,784	114,366	152,523

	TOTAL EQUITY AND LIABILITIES	538,066	259,649	315,065

Interim report Q2 2021 Copenhagen, August 24, 2021

BETTER COLLECTIVE

CONTENTS

Financial statements for the period January 1 – June 30

Condensed interim consolidated statement of changes in equity

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2021	469	108,825	-1,770	-2	55,019	0	162,542
Result for the period	0	0	0	0	10,000	0	10,000
Other comprehensive income
Currency translation to presentation currency	0	0	5,107	0	0	0	5,107
Tax on other comprehensive income	0	0	-1,130	0	0	0	-1,130
Total other comprehensive income	0	0	3,978	0	0	0	3,978
Total comprehensive income for the year	0	0	3,978	0	10,000	0	13,977
Transactions with owners
Capital Increase	74	158,455	0	0	0	0	158,528
Acquisition of treasury shares	0	0	0	-69	0	0	-69
Disposal of treasury shares	0	0	0	71	11	0	82
Share based payments	0	0	0	0	509	0	509
Transaction cost	0	0	0	0	-2,287	0	-2,287
Total transactions with owners	74	158,455	0	2	-1,767	0	156,763
At June 30, 2021	543	267,280	2,208	0	63,252	0	33,282

During the period no dividend was paid.

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2020	464	106,295	825	0	30,732	0	138,317
Result for the period	0	0	0	0	8,600	0	8,600
Other comprehensive income
Currency translation to presentation currency	0	0	-142	0	0	0	-142
Tax on other comprehensive income	0	0	25	0	0	0	25
Total other comprehensive income	0	0	-116	0	0	0	-116
Total comprehensive income for the year	0	0	-116	0	8,600	0	8,484
Transactions with owners
Capital Increase	3	2,238	0	0	0	0	2,242
Acquisition of treasury shares	0	0	0	-4,903	0	0	-4,903
Disposal of treasury shares	0	0	0	920	-271	0	649
Share based payments	0	0	0	0	504	0	504
Transaction cost	0	0	0	0	-10	0	-10
Total transactions with owners	3	2,238	0	-3,982	223	0	-1,518
At June 30, 2020	467	108,534	709	-3,982	39,555	0	145,282

During the period no dividend was paid.

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CONTENTS

Financial statements for the period January 1 – June 30

Condensed interim consolidated statement of changes in equity

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2020	464	106,295	825	0	30,732	0	138,317
Result for the period	0	0	0	0	21,927	0	21,927
Other comprehensive income
Currency translation to presentation currency	0	0	-3,346	0	0	0	-3,346
Tax on other comprehensive income	0	0	751	0	0	0	751
Total other comprehensive income	0	0	-2,595	0	0	0	-2,595
Total comprehensive income for the year	0	0	-2,595	0	21,927	0	19,332
Transactions with owners
Capital Increase	5	2,530	0	0	0	0	2,535
Acquisition of treasury shares	0	0	0	-4,903	0	0	-4,903
Disposal of treasury shares	0	0	0	4,901	1,437	0	6,338
Share based payments	0	0	0	0	955	0	955
Transaction cost	0	0	0	0	-33	0	-33
Total transactions with owners	5	2,530	0	-2	2,359	0	4,893
At December 31, 2020	469	108,825	-1,770	-2	55,019	0	162,542

During the period no dividend was paid,

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Financial statements for the period January 1 – June 30

Condensed interim consolidated statement of cash flows

Note	tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
	Profit before tax	4,001	4,793	14,936	11,156	28,712
	Adjustment for finance items	1,115	546	1,581	768	1,778
	Adjustment for special items	5,591	-608	5,417	-208	-120
	Operating Profit for the period before special items	10,707	4,730	21,935	11,716	30,369
	Depreciation and amortisation	1,954	1,943	3,920	4,002	7,783
	Other adjustments of non cash operating items	253	264	583	504	955
	Cash flow from operations before changes in working capital and special items	12,915	6,936	26,438	16,221	39,107
	Change in working capital	-1,846	3,426	733	3,593	-786
	Cash flow from operations before special items	11,069	10,363	27,171	19,814	38,321
	Special items, cash flow	-1,114	338	-1,221	137	-625
	Cash flow from operations	9,956	10,701	25,950	19,951	37,696
	Financial income, received	1,567	78	2,298	409	1,415
	Financial expenses, paid	-1,463	-660	-2,005	-1,110	-2,497
	Cash flow from activities before tax	10,059	10,119	26,243	19,249	36,614
	Income tax paid	-1,800	-2,398	-4,012	-4,580	-9,940
	Cash flow from operating activities	8,259	7,721	22,230	14,670	26,675
9	Acquisition of businesses	-183,668	-8,928	-188,095	-33,454,222	-65,792
7	Acquisition of intangible assets	-587	-172	-4,517	-219	-1,802
	Acquisition of property, plant and equipment	-227	-103	-368	-264	-460
	Sale of property, plant and equipment	971	0	971	0	1
	Change in other non-current assets	-21	-2	24	-404	-36
	Cash flow from investing activities	-183,532	-9,206	-191,984	-34,341	-68,090
	Repayment of borrowings	0	-5	-527	-16,740	-22,756
	Proceeds from borrowings	35,047	5,998	36,797	38,120	74,629
	Lease liabilities	-280	-236	-577	-543	-1,025
	Other non-current liabilities	0	186	0	403	484
	Capital increase	148,225	22	148,297	100	393
	Treasury shares	0	-3,966	-69	-4,903	-4,903
	Transaction cost	-2,284	-10	-2,287	-10	-33
	Warrant settlement, sale of warrants	0	0	0	0	0
	Cash flow from financing activities	180,708	1,990	181,635	16,427	46,790
	Cash flows for the period	5,435	505	11,881	-3,244	5,375
	Cash and cash equivalents at beginning	34,840	18,869	28,053	22,755	22,755
	Foreign currency translation of cash and cash equivalents	50	100	391	-37	-77
	Cash and cash equivalents period end*	40,325	19,475	40,325	19,475	28,053
	* Cash and cash equivalents period end
	Restricted cash	4,438	0	4,438	0	6,926
	Cash	35,887	19,475	35,887	19,475	21,127
	Cash and cash equivalents period end	40,325	19,475	40,325	19,475	28,053

Interim report Q2 2021

Copenhagen, August 24, 2021

Notes

1 General information

Better Collective A/S is a limited liability company and is incorporated in Denmark. The parent company and its subsidiaries (referred to as the “Group” or “Better Collective”) engage in online affiliate marketing. Better Collective's vision is to empower iGamers by leading the way in transparency and technology.

Basis of preparation

The Interim Report (condensed consolidated interim financial statements) for the period January 1 - June 30, 2021 has been prepared in accordance with IAS 34 “Interim financial statements” as adopted by the EU and additional requirements in the Danish Financial Statements Act. The parent company condensed interim financial statements has been included according to the Danish Execuive Order on the Preparation of Interim Financial Reports.

These condensed consolidated interim financial statements incorporate the results of Better Collective A/S and its subsidiaries.

The condensed consolidated interim financial statements refer to certain key performance indicators, which Better Collective and others use when evaluating the performance of Better Collective. These are referred to as alternative performance measures (APMs) and are not defined under IFRS. The figures and related subtotals give management and investors important information to enable them to fully analyse the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS.

New financial reporting standards

All new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which are effective for the financial year beginning on 1 January 2021 have been adopted. The implementation of these new or amended standards and interpretations had no material impact on the condensed consolidated interim financial statements.

Accounting policies

The condensed consolidated interim financial statements have been prepared using the same accounting policies as set out in note 1 of the 2020 annual report which contains a full description of the accounting policies for the Group and the parent company. The annual report for 2020 can be found on Better Collective's web-site:

https://bettercollective.com/wp-content/uploads/2021/03/BetterCollective_AR20_web.pdf

Significant accounting judgements, estimates, and assumptions

The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities.

The significant accounting judgements, estimates and assumptions applied in these consolidated interim financial statements are the same as disclosed in note 2 in the annual report for 2020 which contains a full description of significant accounting judgements, estimates and assumptions.

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Notes

2 Segments

The performance for each segment is presented in the below tables:

tEUR	Publishing		Paid Media		Total
	Q2 2021	Q2 2020	Q2 2021	Q2 2020	Q2 2021	Q2 2020
Revenue	26,059	14,550	13,950	703	40,009	15,253
Cost	14,944	7,931	12,403	649	27,347	8,580
Operating profit before depreciation, amortisations and special items	11,115	6,619	1,547	54	12,662	6,673
EBITDA-Margin before special items	43%	45%	11%	8%	32%	44%
tEUR	Publishing		Paid Media		Total
---	---	---	---	---	---	---
	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020
Revenue	49,936	33,781	28,909	2,393	78,845	36,174
Cost	26,671	18,838	26,319	1,618	52,990	20,457
Operating profit before depreciation, amortisations and special items	23,265	14,942	2,590	775	25,855	15,718
EBITDA-Margin before special items	47%	44%	9%	32%	33%	43%
tEUR	2020
---	---	---	---
	Publishing	Paid Media	Total
Revenue	74,184	17,002	91,186
Cost	38,820	14,214	53,034
Operating profit before depreciation, amortisations and special items	35,364	2,788	38,152
EBITDA-Margin before special items	48%	16%	42%

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Notes

2 Segments, continued

The performance for each segment is presented in the below tables:

tEUR	Rest of World		US		Total
	Q2 2021	Q2 2020	Q2 2021	Q2 2020	Q2 2021	Q2 2020
Revenue	33,059	13,941	6,950	1,312	40,009	15,253
Cost	22,271	7,806	5,076	774	27,347	8,580
Operating profit before depreciation, amortisations and special items	10,789	6,134	1,873	539	12,662	6,673
EBITDA-Margin before special items	33%	44%	27%	41%	32%	44%
tEUR	Rest of World		US		Total
---	---	---	---	---	---	---
	YTD 2021	YTD 2020	YTD 2021	YTD 2020	YTD 2021	YTD 2020
Revenue	66,097	32,212	12,748	3,962	78,845	36,174
Cost	44,401	17,165	8,589	3,292	52,990	20,457
Operating profit before depreciation, amortisations and special items	21,696	15,047	4,159	670	25,855	15,718
EBITDA-Margin before special items	33%	47%	33%	17%	33%	43%
tEUR	2020
---	---	---
	Rest of World	US
Revenue	81,181	10,005
Cost	45,182	7,853
Operating profit before depreciation, amortisations and special items	35,999	2,153
EBITDA-Margin before special items	44%	22%

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Notes

3 Revenue specification - affiliate model

In accordance with IFRS 15 disclosure requirements, total revenue is split on Revenue Share, Cost per Acquisition (CPA), Subscription Revenue and Other, as follows:

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Revenue
Revenue Share	19,432	10,138	36,719	24,273	53,697
CPA	14,978	2,406	31,730	5,921	22,251
Revenue - Subscription	2,234	718	3,986	2,036	5,645
Aff, Revenue Other	3,365	1,991	6,409	3,945	9,593
Total Revenue	40,009	15,253	78,845	36,174	91,186
%-split	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Revenue
Revenue Share	49	66	47	67	59
CPA	37	16	40	16	24
Revenue - Subscription	6	5	5	6	6
Aff, Revenue Other	8	13	8	11	11
Total Revenue	100	100	100	100	100

4 Share-based payment plans

2017 Warrant program:

During the first quarter of 2021 the company did not grant any warrants under this program.

During the quarter, employees have exercised warrants corresponding to 5,200 shares issued.

2019 Warrant programs:

During the second quarter of 2021 the company did not grant any warrants and no warrants were exercised under this program.

The total share based compensation expense recognised for Q2 2021 is 253 tEUR (Q2 2020: 263 tEUR).

The total share based compensation expense recognised for YTD 2021 is 509 tEUR (YTD 2020: 504 tEUR).

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Notes

5 Special items

Significant income and expenses, which Better Collective consider non-recurring are presented in the Income statement in a separate line item labelled 'Special items'. The impact of special items is specified as follows:

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Operating profit	5,116	5,338	16,518	11,924	30,489
Special items related to M&A	-5,581	-50	-5,682	-177	-676
Special items related to Earn-out	0	71	0	71	658
Special items related to Restructuring	0	-34	-6	-309	-493
Special items related to Divestiture of Assets	-10	622	272	622	632
Special items total	-5,591	608	-5,417	208	120
Operating profit (EBIT) before special items	10,707	4,730	21,935	11,716	30,369
Amortisations	1,536	1,575	3,072	3,215	6,235
Operating profit before amortisations and special items (EBITA before special items)	12,243	6,305	25,007	14,931	36,604
Depreciation	419	368	849	786	1,548
Operating profit before depreciation, amortisations, and special items (EBITDA before special items)	12,662	6,673	25,855	15,718	38,152

6 Income tax

Total tax for the period is specified as follows:

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Tax for the period	2,309	873	4,937	2,556	6,785
Tax on other comprehensive income	1,514	-195	1,130	-25	-751
Total	3,822	679	6,066	2,531	6,034

Income tax on profit for the period is specified as follows:

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Deferred tax	-136	-189	-313	-437	-1,036
Current tax	2,454	1,082	5,259	2,966	7,848
Adjustment from prior years	-9	-19	-9	28	-27
Total	2,309	873	4,937	2,556	6,785

Tax on the profit for the period can be explained as follows:

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Specification for the period:
Calculated 22% tax of the result before tax	880	1,054	3,286	2,454	6,317
Adjustment of the tax rates in foreign subsidiaries relative to the 22%	293	78	433	172	376
Tax effect of:
Non-taxable income	0	-259	0	-259	-388
Non-deductible costs	1,145	19	1,226	161	507
Tax deductible	0	0
Adjustment of tax relating to prior years	-9	-19	-9	28	-27
	2,309	873	4,937	2,556	6,785
Effective tax rate	57.7%	18.2%	33.1%	22.9%	23.6%

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Notes

7 Intangible assets

tEUR	Goodwill	Domains and websites	Accounts and other intangible assets	Total
Cost or valuation
As of January 1, 2021	99,315	150,274	25,175	274,764
Additions	0	2,982	1,118	4,101
Acquisitions through business combinations	39,801	164,947	0	204,748
Transfer	0	0	0	0
Disposals	0	0	0	0
Currency Translation	551	1,356	13	1,919
At June 30, 2021	139,666	319,559	26,306	485,531
Amortisation and impairment
As of January 1, 2021	0	0	15,797	15,797
Amortisation for the period	0	0	3,072	3,072
Amortisation on disposed assets	0	0	0	0
Currency translation	0	0	7	7
At June 30, 2021	0	0	18,876	18,876
Net book value at June 30, 2021	139,666	319,559	7,430	466,655
tEUR	Goodwill	Domains and websites	Accounts and other intangible assets	Total
---	---	---	---	---
Cost or valuation
As of January 1, 2020	41,968	132,848	20,963	195,779
Additions	0	761	309	1,070
Acquisitions through business combinations	58,955	20,551	3,900	83,406
Transfer	0	0	0	0
Disposals	0	0	0	0
Currency Translation	-1,609	-3,887	4	-5,492
At December 31, 2020	99,315	150,274	25,175	274,764
Amortisation and impairment
As of January 1, 2020	0	0	9,008	9,008
Amortisation for the period	0	0	6,235	6,235
Impairment included in Special items	0	0	558	558
Amortisation on disposed assets	0	0	0	0
Currency translation	0	0	-4	-4
At December 31, 2020	0	0	15,797	15,797
Net book value at December 31, 2020	99,315	150,274	9,378	258,967

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三

Notes

8 Non-current liabilities and other current financial liabilities

Debt to credit institutions:

As per June 30, 2021 Better Collective has drawn 105.3 mEUR on the credit facility established with Nordea.

Lease liabilities:

Non-current and current lease liabilities, of 1.7 mEUR and 1.2 mEUR respectively.

Deferred Tax:

Deferred tax as of June, 2021 amounted to 24.9 mEUR. The change from January 1, 2021 originates from changes in deferred tax related to acquisition made, amortisation of accounts from acquisitions, and deferred tax changes in Parent Company.

Contingent Consideration:

As per June 30, 2021 contingent consideration amounted to 22.2 mEUR (of which 11.3 mEUR current) due to the remaining purchase price related to the acquisition of RiCal LLC.

As stated in the Annual Report 2020 (note 22), the contingent liability relates to the remaining share purchase of 40% of the shares in Rical LLC, which will take place in the period 2022-2024. The remaining purchase price is dependent on the financial performance of Rical LLC and Better Collective's other US business.

The US market and Better Collective's US business has seen high volatility in the past year. Following the COVID-lockdown in 2020, where parts of the US business came to an almost complete halt, the recent two quarters have seen very strong performance. The exact timing of final valuation of the remaining share purchase price and the related remaining contingent liability is therefore yet highly uncertain.

Other financial liabilities:

As per June 30, 2021 other financial liabilities amounted to 21.4 mEUR due to deferred and variable payments related to acquisitions. The increase from January 1, 2021 relates to deferred payment for Action Network, countered by the earn-out payment for HLTV and the deferred payments for Atemi.

Fair value is measured based on level 3 - valuation techniques. In all material aspects the fair value of the financial assets and liabilities is considered equal to the booked value.

9 Business combinations

Acquisition of Action Network.

On May 3, 2021 Better Collective signed an agreement to acquire the leading US sports betting media platform, Action Network, for 240 mUSD, gaining market leadership within sports betting media in the US. The acquisition closed on May 28, 2021 and provides Better Collective with a strong foundation for profiting from the continuous expansion of the US sports betting market.

The transferred consideration was paid with cash and shares, and a deferred payment payable in cash.

tEUR	Fair value determined at acquisition
Acquired net assets at the time of the acquisition
Sites	164,947
Equipment	90
Deposits	187
Prepayments	242
Trade receivables	2,187
Other receivables	150
Cash and cash equivalents	8,307
Trade payables	-1,005
Prepayments from customers	-2,347
Other payables	-1,611
Identified net assets	171,149
Goodwill	36,397
Total consideration	207,546

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Notes

9 Business combinations, continued

A goodwill of 36,397 tEUR emerged from the acquisition of Action Network as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong platform and growth expectations for the US market. The goodwill is not tax deductible.

Transaction costs related to the acquisition of Action Network amounts to 5,347 tEUR in 2021. Transaction costs are accounted for in the income statements under "special items".

The fair value of the trade receivables amounts to 2,187 tEUR. The gross amount of trade receivables is 2,187 tEUR and no provision has been recorded.

tEUR

Purchase amount	207,546
Regards to:
Cash and cash equivalents	8,307
Less exchange rate difference on Cashflow vs. balance	2,757
Less deferred payment	8,258
Less price paid in shares	9,374
Net cash outflow	178,850

The acquisition was completed on May 28, 2021. If the transaction had been completed on January 1, 2021 the Group's revenue YTD would have amounted to 91,035 tEUR and result after tax would have amounted to 8,252 tEUR.

The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets.

Acquisition of Mindway AI ApS

On January 1, 2021 Better Collective exercised its option to acquire a further 70% of the shares in Mindway AI for a total price of 2.3 mEUR (17 mDKK). The acquisition follows a preliminary investment made in 2019 where Better Collective acquired 19.99% of the company for 0.5 mEUR (4 mDKK). With the new investment, Better Collective now holds 90% of the shares in Mindway AI.

The transferred consideration was paid with cash.

tEUR	Fair value determined at acquisition
Acquired net assets at the time of the acquisition
Equipment	3
Deposits	5
Trade and other receivables	76
Cash and cash equivalents	89
Corporate tax payables	-2
Loans	-555
Trade and other payables	-197
Identified net assets	-581
Goodwill	3,404
Total consideration	2,823

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^{}[]

Notes

9 Business combinations, continued

A goodwill of 3,404 tEUR emerged from the acquisition of Mindway AI as an effect of the difference between the transferred consideration and the fair value of acquired net assets. Goodwill is connected to the future growth expectations given the strong competencies and platform acquired. The goodwill is not tax deductible.

Transaction costs related to the acquisition of Mindway AI amounts to 2 tEUR in 2021. Transaction costs are accounted for in the income statements under "special items".

The fair value of the trade receivables amounts to 76 tEUR. The gross amount of trade receivables is 76 tEUR and no provision has been recorded.

tEUR

Purchase amount	2,823
Regards to:
Cash and cash equivalents	89
Net cash outflow	2,734

The acquisition was completed on January 1, 2021 and Mindway AI has been fully consolidated from that date.

The purchase price allocation is provisional due to uncertainties regarding measurement of acquired intangible assets.

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Notes

10 Cash flow statement - specifications

Note	tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
9	Acquisition of business combinations:
	Net Cash outflow from business combinations at acquisition	-178,850	0	-181,584	-23,315	-53,429
	Business Combinations deferred payments from current period	-655	0	-655	0	-1,384
	Deferred payments - business combinations from prior periods	-4,163	-8,928	-5,856	-10,139	-10,979
	Total cash flow from business combinations	-183,668	-8,928	-188,095	-33,454	-65,792
7	Acquisition of intangible assets:
	Acquisitions through asset transactions	-191	0	-4,101	0	-1,070
	Other investments	-396	-172	-416	-219	-732
	Total cash flow from intangible assets	-587	-172	-4,517	-219	-1,802
tEUR	YTD 2021	YTD 2020	2020
---	---	---	---
Cashflow from Equity movements:
Equity movements with cashflow impact - from cash flow statement:
Capital increase	148,297	100	393
Treasury shares	-69	-4,903	-4,903
Transaction cost	-2,287	-10	-33
Total equity movements with cash flow impact	145,941	-4,812	-4,542
Non-cash flow movements on equity:
New shares for M&A payments	10,232	2,142	2,142
Treasury Shares used for payments	82	649	6,338
Share based payments - warrant expenses with no cash flow effect	509	504	955
Total equity movements with cash flow impact	10,822	3,294	9,435
Total Transactions with owners - Consolidated statement of changes in equity	156,763	-1,518	4,893

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Financial statements for the period January 1 – June 30

Condensed interim income statement – Parent company

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	20200
Revenue	10,659	5,466	17,843	12,533	26,940
Other operating income	3,267	2,094	6,373	3,728	8,878
Direct costs related to revenue	1,419	749	2,706	1,564	3,546
Staff costs	3,779	2,699	7,221	5,821	10,958
Depreciation	122	118	242	237	482
Other external expenses	3,359	1,914	6,105	4,438	9,129
Operating profit before amortisations (EBITA) and special items	5,246	2,079	7,942	4,201	11,702
Amortisation	362	516	724	1,039	1,974
Operating profit (EBIT) before special items	4,884	1,562	7,218	3,162	9,728
Special items, net	-213	147	-39	-161	266
Operating profit	4,671	1,710	7,179	3,001	9,994
Financial income	29,818	993	32,290	11,843	13,860
Financial expenses	3,024	1,623	4,084	2,360	6,573
Profit before tax	31,464	1,079	35,385	12,484	17,280
Tax on profit for the period	1,852	157	2,783	708	1,563
Profit for the period	29,612	922	32,602	11,776	15,717

Condensed interim statement of other comprehensive income

tEUR	Q2 2021	Q2 2020	YTD 2021	YTD 2020	2020
Profit for the period	29,612	922	32,602	11,776	15,717
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Currency translation to presentation currency	-245	290	71	337	601
Income tax	0	0	0	0	0
Net other comprehensive income/loss	-245	290	71	337	601
Total other comprehensive income/(loss) for the period, net of tax	29,368	1,212	32,673	12,114	16,319

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Financial statements for the period January 1 – June 30

Condensed interim balance sheet – Parent company

tEUR	Q2 2021	Q2 2020	2020
Assets
Non-current assets
Intangible assets
Goodwill	0	0	0
Domains and websites	18,174	14,352	15,185
Accounts and other intangible assets	3,751	4,536	3,355
	21,925	18,888	18,540
Property, plant and equipment
Land and building	0	711	704
Right of use assets	751	1,049	896
Fixtures and fittings, other plant and equipment	355	330	317
	1,106	2,090	1,917
Financial assets
Investments in subsidiaries	186,840	137,008	183,856
Receivables from subsidiaries	233,995	36,685	36,969
Other non-current financial assets	0	1,506	1,146
Deposits	163	160	160
	420,997	175,359	222,131
Total non-current assets	444,028	196,337	242,588
Current assets
Trade and other receivables	5,779	3,365	4,648
Receivables from subsidiaries	11,757	4,560	1,657
Tax receivable	0	0	653
Prepayments	901	763	736
Restricted Cash	4,438	0	6,926
Cash	9,798	4,165	2,560
Total current assets	32,673	12,853	17,180
Total assets	476,701	209,190	259,767

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三

Financial statements for the period January 1 – June 30

Condensed interim balance sheet – Parent company

tEUR	Q2 2021	Q2 2020	2020
Equity and liabilities
Equity
Share Capital	543	467	469
Share Premium	267,280	108,533	108,825
Currency Translation Reserve	565	230	494
Treasury shares	0	-3,982	-2
Retained Earnings	75,972	39,059	45,137
Proposed Dividends	0	0	0
Total equity	344,360	144,307	154,923
Non-current Liabilities
Debt to mortgage credit institutions	0	516	507
Debt to credit institutions	105,275	38,204	68,770
Lease liabilities	481	769	629
Deferred tax liabilities	1,393	984	1,163
Other non-current financial liabilities	6,075	9,301	8,796
Total non-current liabilities	113,223	49,773	79,864
Current Liabilities
Prepayments received from customers	0	0	0
Trade and other payables	7,705	2,554	2,127
Payables to subsidiaries	1,619	7,203	12,585
Corporation tax payable	1,767	595	70
Other current financial liabilities	7,700	4,411	9,850
Debt to mortgage credit institutions	0	20	20
Debt to credit institutions	0	0	0
Lease liabilities	328	327	328
Total current liabilities	19,118	15,110	24,980
Total liabilities	132,341	64,883	104,844
Total equity and liabilities	476,701	209,190	259,767

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Financial statements for the period January 1 – June 30

Condensed interim statement of changes in equity – Parent company

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2021	469	108,825	494	-2	45,137	0	154,923
Result for the period	0	0	0	0	32,602	0	32,602
Other comprehensive income
Currency translation to presentation currency	0	0	71	0	0	0	71
Tax on other comprehensive income	0	0	0	0	0	0	0
Total other comprehensive income	0	0	71	0	0	0	71
Total comprehensive income for the year	0	0	71	0	32,602	0	32,673
Transactions with owners
Capital Increase	74	158,455	0	0	0	0	158,528
Acquisition of treasury shares	0	0	0	-69	0	0	-69
Disposal of treasury shares	0	0	0	71	11	0	82
Share based payments	0	0	0	0	509	0	509
Transaction cost	0	0	0	0	-2,287	0	-2,287
Tax on settlement of warrants	0	0	0	0	0	0	0
Total transactions with owners	74	158,455	0	2	-1,767	0	156,763
At June 30, 2021	543	267,280	565	0	75,972	0	344,360

During the period no dividend was paid.

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2020	464	106,295	-107	0	27,060	0	133,712
Result for the period	0	0	0	0	11,776	0	11,776
Other comprehensive income
Currency translation to presentation currency	0	0	337	0	0	0	337
Tax on other comprehensive income	0	0	0	0	0	0	0
Total other comprehensive income	0	0	337	0	0	0	337
Total comprehensive income for the year	0	0	337	0	11,776	0	12,114
Transactions with owners
Capital Increase	3	2,238	0	0	0	0	2,242
Acquisition/disposal of treasury shares	0	0	0	-4,903	0	0	-4,903
Shared based payments	0	0	0	920	-271	0	649
Cash settlement of warrants	0	0	0	0	504	0	504
Tax on settlement of warrants	0	0	0	0	-10	0	-10
Tax on settlement of warrants	0	0	0	0	0	0	0
Total transactions with owners	3	2,238	0	-3,982	223	0	-1,518
At June 30, 2020	467	108,533	230	-3,982	39,059	0	144,307

During the period no dividend was paid.

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Financial statements for the period January 1 – June 30

Condensed interim statement of changes in equity – Parent company

tEUR	Share capital	Share premium	Currency translation reserve	Treasury shares	Retained earnings	Proposed dividend	Total equity
As of January 1, 2020	464	106,295	-107	0	27,060	0	133,712
Result for the period	0	0	0	0	15,717	0	15,717
Other comprehensive income
Currency translation to presentation currency	0	0	601	0	0	0	601
Tax on other comprehensive income	0	0	0	0	0	0	0
Total other comprehensive income	0	0	601	0	0	0	601
Total comprehensive income for the year	0	0	601	0	15,717	0	16,319
Transactions with owners
Capital Increase	5	2,530	0	0	0	0	2,535
Acquisition of treasury shares	0	0	0	-4,903	0	0	-4,903
Disposal of treasury shares	0	0	0	4,901	1,437	0	6,338
Share based payments	0	0	0	0	955	0	955
Transaction cost	0	0	0	0	-33	0	-33
Tax on settlement of warrants	0	0	0	0	0	0	0
Total transactions with owners	5	2,530	0	-2	2,359	0	4,893
At December 31, 2020	469	108,825	494	-2	45,137	0	154,923

During the period no dividend was paid.

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Alternative Performance Measures and Definitions

The group uses Alternative Performance Measures not defined under IFRS to give management and investors important information to enable them to fully analyse the Better Collective business and trends. The APMs are not meant to replace but to complement the performance measures defined under IFRS. Note 5 contains a bridge from the APMs to performance measures defined by IFRS.

Alternative Performance Measures

Alternative Performance Measure	Description	SCOPE
Earnings per share (EPS)	Net Profit for the period / (Average number of shares - Average number of treasury shares held by the company)	The Group reports this APM for users to monitor development in the net profit per share.
Diluted earnings per share	Net profit for the period / (Average number of shares + Average number of outstanding warrants - Average number of treasury shares held by the company)	The Group reports this APM for users to monitor development in the net profit per share, assuming full dilution from active warrant programs.
Operating profit before amortisations (EBITA)	Operating profit plus amortisations	Better Collective reports this APM to allow monitoring and evaluation of the Group's operational profitability.
Operating profit before amortisations margin (%)	Operating profit before amortisations / Revenue	This APM supports the assessment and monitoring of the Group's performance and profitability
EBITDA before special items	EBITDA adjusted for special items	This APM supports the assessment and monitoring of the Group's performance and profitability excluding special items that do no stem from ongoing operations, providing a more comparable measure over time.
Operating profit before amortisations and special items margin (%)	Operating profit before amortisations and special items / Revenue	This APM supports the assessment and monitoring of the Group's performance and profitability excluding special items that do no stem from ongoing operations, providing a more comparable measure over time.
Special items	Items that are considered not part of ongoing business	Items not part of ongoing business, e.g. Cost related to M&A and restructuring, adjustments of earn-out payments.
Net Debt / EBITDA before special items	(Interest bearing debt, including earn-outs from acquisitions, excl. contingent consideration, minus cash and cash equivalents)/ EBITDA before special items on rolling twelve months basis	This ratio is used to describe the horizon for pay back of the interest bearing debt, and measures the leverage of the funding.
Liquidity ratio	Current Assets / Current Liabilities	Measures the ability of the group to pay it's current liabilities using current assets.
Equity to assets ratio	Equity / Total Assets	Reported to show how much of the assets in the company is funded by equity
Cash conversion rate before special items	(Cash flow from operations before special items + Cash from CAPEX) / EBITDA before special items	This APM is reported to illustrate the Group's ability to convert profits to cash
NDC	New depositing customers	A key figure to reflect the Group's ability to fuel long-term revenue and organic growth
Organic Growth	Revenue growth compared to same period previous year. Organic growth from acquired companies or assets are calculated from the date of acquisition measured against historical baseline performance.	Reported to measure the ability to generate growth from existing business

Definitions

Term	Description
PPC	Pay-Per-Click
SEO	Search Engine Optimisation
Sports win margin	Sports net player winnings (operators) / sports wagering
Sports wagering	The value of bets placed by the players
Board	The Board of Directors of the company
Executive Management	Executives that are registered with the Danish Company register
Company	Better Collective A/S, a company registered under the laws of Denmark

Interim report Q2 2021

Copenhagen, August 24, 2021

BETTER COLLECTIVE

Better Collective A/S
Toldbodgade 12
1253 Copenhagen K
Denmark

CVR no 27 65 29 13
+45 29 91 99 65
[email protected]
bettercollective.com

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Better Collective A/S — Interim / Quarterly Report 2021

8641_rns_2021-08-24_33a80a78-ceab-4fde-bbde-61bdf62a05ef.pdf

Interim report

Highlights Q2 2021

Interim Report Q2 2021

Highlights second quarter 2021

Contents

Conference call

To participate, please dial:

Financial highlights first six months 2021

Significant events after the closure of the period

Financial targets

Financial calendar

Financial highlights and key ratios

CEO Comments

Better Collective reports record revenue; strong growth in US business and media partnerships

Acquisition of Action Network and financial flexibility

US performing better than expected

Breakthrough for our media partnerships

Jesper Søgaard

3

New media partnerships

Together at last

Momentous opportunities driven by new market regulations

The remainder of 2021

Jesper Søgaard

Business review and financial performance Q2 2021

Better Collective Group

Publishing

Paid Media

Geographical; US and Rest of World (RoW)

The US market

Regulatory updates US

The RoW markets

Regulatory updates RoW

Germany

The Netherlands

Spain

Sweden

Canada

Financial review first half 2021

Revenue: Growth of 118% to 78.8 mEUR - organic growth of 32%

Cost: 53.8 mEUR - up from 21.2 mEUR

Special Items

Earnings

Net financial items

Income tax

Net profit

Balance sheet

Investments

Cash flow and financing

The parent company

Financial targets for 2021

Financial Targets for 2021

Disclaimer

Other

Shares and share capital

Shareholder structure

Annual general meeting

Incentive programs

Risk management

Contact

About

Statement by the Board of Directors and the Executive Management

Executive Management

Board of Directors

Condensed interim consolidated income statement

Condensed interim consolidated statement of other comprehensive income

Condensed interim consolidated statement of changes in equity

1 General information

Basis of preparation

New financial reporting standards

Accounting policies

Significant accounting judgements, estimates, and assumptions

Notes

2 Segments

Notes

2 Segments, continued

Notes

Better Collective A/S Interim / Quarterly Report 2021