Better Collective A/S (BETCO) Earnings Call Transcript & Summary

Good day and thank you for standing by. Welcome to the Better Collective Second Quarter 2024 Presentation and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mikkel Munch Jacobsgaard. Please go ahead.

Good morning, everyone, and thank you for joining us today for our Q2 webcast. My name is Mikkel Jacobsgaard and I'm the Vice President of Investor Relations, Group Strategy and Corporate Communications here at Better Collective. And as always, I'm joined by our Co-Founder and CEO, Jesper Sogaard; and CFO, Flemming Pedersen, who will help me walk you through our Q2 performance. Please follow me to the next slide. 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 slide. Here you see today's agenda. Jesper will start by taking you through the highlights of Q2. Thereafter, Flemming will take you through the financial performance before handing the word back to Jesper for a business review and then we'll of course end the call with a Q&A session. Let's get going. Please turn to the next page as I hand over the word to Jesper.

Thanks a lot, Mikkel. I want to start out by expressing my gratitude to the entire Better Collective group. Your relentless efforts play a vital role in our growth and the successes we have celebrated. Our testaments to your hard work. Specifically for this quarter, our group has come together to deliver great results in a time with changing market conditions in the search landscape. We have managed to navigate big changes and come out on top with continued strong performance in our global media partnership business as well as improved rankings from our owned and operated sports media network and increasing interest in our paid media business. I'm very proud of our team. Our existing business is back to organic growth despite the exceptional performance during the first half of 2023 and the addition of significant new revenue growth from 2 major acquisitions. On the back of that, we delivered a considerable increase in recurring revenue stemming from both organic and acquired growth while continuing our North American transition to revenue share. The 3 major acquisitions of Playmaker Capital, Playmaker HQ and AceOdds have substantially enriched our group and provided us with a much stronger foundation for the future. Despite the delay in performance from Playmaker HQ, something I'll come back to; we have negotiated a much better deal, generated a fast turnaround and have yet to harvest all the synergies. Overall, a deal that makes me very pleased as a large shareholder myself. While making large strategic acquisitions and investing in our business, we still maintained a low debt ratio and improved our capital reserves remaining a robust financial position with a significant level of preparedness compared to the start of the year. Furthermore, we have made significant investments in establishing our in-house adtech platform, AdVantage, and secured proof of concept and first operational success along with AI technology investments while also establishing a commercial organization focusing on nonendemic sales. We continue our projected path and will now delve into these developments in greater detail. Please turn to the next page where Flemming will dive into the financials.

Thank you, Jesper, and good morning, all. Please follow me to the next slide where we'll dive deeper into the group's financial performance during Q2. During the second quarter, we saw a strong revenue growth development of 27% with organic growth of 5%. This organic growth came on top of exceptional growth last year where we, as a reminder, saw 29% organic growth. In the light of this, we really believe that the performance is highly satisfactory. The expected flat development in EBITDA is the result of last year's exceptional performance as well as the recent acquisitions of Playmaker Capital and Playmaker HQ that have only limited contribution to the Q2 earnings and are of course margin dilutive in percentages. You can see that the acquisitions are performing well now and we expect to have the best yet to come. As Jesper mentioned, we have for some time been investing in new technologies such as AdVantage, both tech and commercial, and AI. Just noting that as usual, we are taking the conservative approach by charging all of these costs to the P&L with no capitalization. Please follow me to the next slide. Our recurring revenue grew by 26% to EUR 62 million, which was driven by good growth in recurring revenue share income as well as advertising revenue from Playmaker Capital. Recurring revenue growth is a key metric for us as it signals another quarter with revenue and earnings of higher quality. Recurring revenue made up 62% of total group revenue, really an impressive performance for Better Collective's sustainable future growth. Please follow me to the next slide. As announced with the Q1 report, we lifted our 2024 financial targets following the AceOdds acquisition in the beginning of Q2. Recent acquisitions like Playmaker Capital, AceOdds and Playmaker HQ have significantly enriched our group's foundation and while doing this, I'm pleased to note we have still managed to maintain a debt ratio below our guidance currently sitting at 2x net debt to EBITDA. Furthermore, after the close of Q2, we reestablished our 3-year financing agreement a club bank deal with a total committed facility of EUR 319 million and adding a new EUR 100 million accordion option. Please turn to the next page as I hand back the word to Jesper for our Q2 business update.

Thank you, Flemming. Let's continue and please turn to the next page. I'm pleased to share the overview of our Q2 performance, a period that saw good growth and progress across different fronts. Our business performed well returning to organic growth despite last year's comparison. The quarterly performance was mainly driven by our Europe and Rest of World business. Europe and Rest of World saw good developments with 16% organic growth helped by the Men's European Championship in soccer as well as a small boost from Copa America. However, with clubs taking an earlier break ahead of the tournament and the 2022 World Cup shifting games into early 2023, more than 20% fewer matches were played in major leagues during Q2 this year making the performance even stronger. Our North American operations were impacted by high comparisons from last year as well as 1 specific media partnership being impacted by the search landscape changes. However, the overall number of new depositing customers increased compared to the second quarter last year even excluding M&A hence posting a good organic underlying business growth. Our NDC mix this quarter prioritized partners with more lucrative and longer-term revenue share contracts rather than those with higher initial upfront revenue share payments. This combination of investing in more revenue share partners plus tilting our new NDCs more towards the partners that have the largest long-term upside for Better Collective led to a decrease in revenue share earnings versus Q2 2023. However, it lays a solid foundation for future growth by long-term recurring revenue share income. Better Collective has been working with revenue share for decades in Europe and Rest of World and remains confident in this strategy to maximize revenue per NDC and continue to win in North America for the long haul. Please turn to the next slide. When it comes to M&A, we are very comfortable with our position in the market. As buyers, we are not forced to act, but can rather strategically evaluate potential targets to identify the most promising opportunities aligning with our strategy. Additionally, we are 1 of the preferred buyers within the sports media industry, which is a great position to be in. We have a strong financial position with a growing recurring cash flow and high profitability. In this position, we must continue to carefully evaluate targets and be diligent on when to deploy our capital and more importantly, when not to. I want to highlight that not all our acquisitions require the same efforts. For instance, an acquisition like AceOdds is familiar territory, seamlessly blending into our business structure without much integration work needed. Others like Playmaker Capital count multiple sports media brands across 2 continents as well as several hundred employees, making it more complex in nature and requiring more work in terms of integration into our operations. If we start with the integration of AceOdds. This has been seamless and swift with performance exceeding expectations. Here we have been sending more NDCs than forecasted, which was aided by good uplift in search rankings because of the recent changes to the search landscape. Turning our attention to Playmaker Capital. The integration process is going according to plan with some developments being ahead of schedule. We already now see strong synergies between the businesses. And in South America, NDCs are ramping up faster than expected leading the performance marketing revenues to perform well. The key revenue synergy for this acquisition is the performance marketing development. Hence it is very comforting to be ahead of our schedule. For Playmaker HQ, our commercial development fell short of our expectations and impacted our North American performance this year. Consequently, we have reached a mutual earnout settlement agreement with Playmaker HQ's founders and former owners. The initial large earnout blueprint aimed to align the seller's high anticipations for the future ensuring we would only compensate for tangible achievements and not mere projections. It goes without saying that we expected more of the performance since day 1. However, given the circumstances, settling on a reduced acquisition price below half of the initial agreement is a positive note given the future potential. After replacing the commercial team, we as a group have been through a steep learning curve and our optimism for Playmaker HQ remains high as we still expect the original investment case to materialize, however, approximately with a 1-year delay. We have noted significant synergistic interest in Playmaker HQ's media products from our endemic partners and are now geared to nurture the nonendemic aspects. Lastly, I'm pleased to see that the commercial pipeline for the second half of the year already looks promising. Please follow me to the next slide. Our overall performance this year is in line with our initial expectations although with a different revenue mix. As many of you are aware, Google's policy revisions in early Q2 affected some of our media partnerships, content rankings and consequently, the scale of audience and NDCs. Despite an initial impact on our business, I'm pleased to report that our diversified strategy has performed as envisioned. I'm extremely proud to see how our organization has come together to deliver an agile performance that has made it possible to deliver this result. As a group, media partnerships continue to deliver good performance. Our North American business has been impacted by 1 specific partnership seeing decreasing rankings. However, in Europe and Rest of the World, the overall media partnership portfolio has seen increased rankings and thereby performance. Outside of our media partnerships business, our owned and operated global sports media network has recorded an uplifting trend in search rankings and audience growth. Further, our sportsbook partners are actively seeking alternative customer acquisition channels resulting in increased budgets and new partner inquiries for our paid media business. We remain confident that our media partnership business has a promising future, however, likely in a slightly moderated format. This course of events reinforces and proves the value of operating a diversified asset portfolio and as such when we encounter challenges in 1 area, we thrive in others. To deliver on our forecast for revenue, EBITDA and NDCs even before these changes took place; hence we remain on track to deliver on our financial targets and our robust diversified strategy equips us to navigate through changing industry landscapes while remaining focused on sustainable profitable growth. Please turn to the next slide. I'm pleased to report that the technical development of AdVantage has been progressing successfully and it is now being gradually rolled out across the Better Collective network with a dedicated commercial team to support this initiative. Further, we have delivered the first proof of concept on a small brand making us confident to continue to roll out AdVantage on larger brands in the coming quarters. We started this project in the beginning of 2023 and I'm extremely proud to see that we have been able to make this happen in such a short period. We have proven that AdVantage works and we have already seen incremental revenue growth although small on a brand that historically only did performance marketing. As such, I'll remind you that the financial impact for 2024 remains to be insignificant. We have developed and innovated our business continuously during the past 6 years as a listed company. Our audience has grown from 7 million monthly visits to north of 400 million monthly visits bringing us into the big league of global sports media. More than ever we are now ready to diversify our revenue streams even further by maximizing the yield on our audience. I look forward to seeing how far we can take AdVantage in the coming years as it remains clear that we have a unique value proposition to become a preferred partner for any business seeking strong brand activation within the sports industry. Please follow me to the last slide of today. So to summarize the quarter. During Q2, we saw good performance across the group with great recurring revenue growth. EBITDA was expected flat at EUR 29 million due to recent acquisitions. Recent major acquisitions of Playmaker Capital, Playmaker HQ and AceOdds have provided a stronger foundation for our group. AdVantage has seen proof of concept and its first operational success. We have successfully navigated major shifts in the search landscape and have a net 0 impact from the recent changes. Q2 was in line with expectations and financial targets were upgraded post the AceOdds acquisition. Now we look forward with full steam ahead. This concludes our webcast presentation. I'll now pass the word back to the operator and open for questions from the audience. Thank you for listening in.

[Operator Instructions] Our first question comes from the line of Oscar Ronnkvist from ABG Sundal Collier.

So my first one would be on the NDC development. I think NDCs on revenue share is down 6% in total. We have around 100,000 in total that could obviously include some CPA on the Euros. We have some M&A in Copa America while also U.S. NDCs grew organically you say in the report. So I think that Europe and Rest of World looks pretty soft under the hood. Can you just explain the reason behind this and what trends you see going forward?

On the NDCs, overall we are happy with the development of NDCs. We did flag sort of uncertainty just on the back of Q1 from the changed search landscape so pleased to see the development. As you also mentioned, we delivered 100,000 during the Euros, which we think is a great delivery during a championship. And then we have seen like a 20% decrease in games in major leagues in Europe so also affecting this for the quarter. And finally, which we actually did flag during Q1 is that for Brazil specifically, momentum has come down a bit heading into the potential regulation and this also continue for Q2.

Got it. So Brazil, also the negative momentum is kept despite the Copa America so we will still see sort of a decline in NDCs year-over-year in Brazil?

Well, for the remainder of the year I cannot comment. But just to explain sort of your specific question to the NDCs for Q2.

Got it. Just the next one on Playmaker Capital. Can you say anything about the contribution for the first 5 months now? I think it was 0 in EBITDA or close to 0 at least in the first 2 months and I think that you have some comments that it's a limited contribution. And also just if you're still on track for EUR 15 million in EBITDA for the full first 12 months of integration?

Oscar, Flemming here. I can perhaps take that one. Now we are 5 months since we acquired the company and just reminding you that the business case here is really to apply affiliate marketing on top of the existing business. Clearly that takes some time and hence, the early contribution is as expected limited as we also write in the report and when we acquired the company. Integration and performance is going as planned and also reflected in our unchanged guidance. So we cannot really comment on specific brands. This is not a segment by itself, but we are so far very pleased with Playmaker Capital.

Okay. And just with the revenue share transition, I think that you sometimes allude to around 12 months or 12 to 18 months before you can see the acceleration. So if you do a transition towards affiliation and the revenue share contracts, should we expect the majority of the ramp-up may be coming in 2025 or how has the transition gone so far?

Just commenting on the specifics for sort of changing a business that has basically been media sales based as Playmaker Capital. So for us, it's about first off starting to create the content, secure the ranks that attract the audience that they will convert into NDCs. So that's sort of the work that is ongoing and where we are ahead of expectations and see good progress. But then you have the other factor. As we deliver these NDCs rightfully to your point, then there's another delay before they would really contribute to a net positive performance for the business. So you are right, it will take some time. But we've tried it before so we're not concerned about that in particular, but it will take some time.

Okay. Got it. And just last question, pretty long one maybe but on North America. Sales down 18% organically. We also see revenue share down 44% in the U.S., which I believe is due to a lower share of hybrid contracts. So if you could just maybe first comment on if you're seeing any U.S. operators pulling back on affiliate spending like for instance looking at the [indiscernible] comments about pulling back in sports betting states? And also if you could allude to like the revenue share number that you put out. How much of that is sort of in the hybrid contracts like CPA and revenue? Is it still like what's the sort of revenue share base in that if you can say something?

Yes. Maybe just starting sort of on the North American market sort of as a whole. It has been volatile and as I think we have mentioned before, it's a different animal compared to what we're used to given the fewer market participants. But with that said, we work with all major players and thereby, plenty of competition, which is basically what will enable us to thrive in such a landscape. And on the spend from the marketplace, we know that the performance marketing channel is really the one that is the easiest to calculate a return on. So we really expect that that is just still a go-to place for the players in the market to get efficient spend. And as I think we have also said before, now we're entering the phase with the launch of the NFL and there are always big negotiations ongoing. So we're actually experiencing very much the similar development as we have experienced in prior years. And maybe specifically to the mix and the revenue share, I think maybe Flemming can comment on that.

Yes. Also reflecting the different market conditions, we basically have as many contracts as there are partners and contract types and clearly what we are focused on is really to drive the maximum long-term value. So we have been pushing for revenue share and has landed in a mix of partners where we operate fully on revenue share as we know it from Rest of World and some where we have different kinds of hybrids, some with bigger upfronts, some with smaller upfronts. And hence it is I admit difficult to track our revenue share performance per quarter. But rest assured that we are looking at a fairly big bank of recurring revenue sitting beneath the surface that we will harvest in the coming years and that's what really is in our focus and clearly maximizes the value.

And maybe just the last comment to that is that 2023 was really the first big transition year for this development and you know the time it will take before this turns profitable and we are basically still underwater. So we know there's a lot of value in the databases, but it will take time before we realize the value in the P&L.

Understood. Just a quick one, if I may. Just you said that you have got increased spending budgets on paid media from your customers. So just on the sort of incremental margins here, initially paid media margins are pretty low at least for most of your affiliates across the world. So just can we expect that to push down the margin or like is the mix still going to be pretty similar in terms of publishing versus paid?

I'm happy about that question, Oscar, because if you look at our paid media margin, it's actually around 30% and has been for some time and that really reflects that since we got into this business just 4 years ago, we have managed to build up significant revenue share databases and it really underlines the whole tactic around revenue share that this now has been the so-called snowball effect that we have piled up. It allows us to basically go deeper into bidding for customers and really drive this business as a whole different market than you see other players in the market. So back to the revenue share element, it is really a strong hold here also.

Yes, I got that and I mean your paid media margin is fantastic. But just if you're accelerating NBCs on paid media on revenue share because obviously I mean the cost should be sort of upfront and then the revenue share comes, I don't know, in like 6 or 12 or 18 months. So is it fair to assume that in the short term the margin will come down?

I think in all fairness in this part of the business, we are also having customers where we work on CPA and the team tries to balance things. So we steer the margins. And I think it has just proven in recent quarters that we can drive significant growth in that business and also in NDCs while at the same time protecting this high margin. Whether it will per quarter go up or down a bit, that's basically due to specific campaigns in markets. But the good thing is that they are getting more budgets and we can then steer the business and contracts accordingly.

And the next question comes from the line of Hjalmar Ahlberg from Redeye.

Maybe just a question on endemic, if you can give some flavor maybe on I mean this quarter will be the new media partnership landscape. Did you see a big change in mix in terms of media partnership versus on an operated NDC contribution?

No, we didn't see a big change. I think what I mentioned in the webcast is that in North America we have seen 1 media partnership being affected. So that's probably where we have seen sort of the biggest change. But for Europe and Rest of the World, we have several media partnership performing well. And also like on the owned and operated, they have benefited, but it's not like a radical shift change in the mix.

And you said that you still see growth potential from this business model? Do you think that is mainly from kind of existing partnerships or do you see potential to do new partnerships as well?

I think it's both and what we have learned since we experienced this is probably that there's an element of doing this in the right manner and right way. So now we are really confident that, yes, media partnerships will continue. It's more a matter of doing it right and obviously that has been very comforting for us to learn during the quarter.

Right. And also just a question on AdVantage here. I mean you did say that it's very early here, but you are starting to roll out, no real contribution this year. But how fast do you think this product can roll out? Is it like a 3-year rollout or could you see something already in 2025 in terms of revenue potential?

Well, we're not guiding specifically as to when we'll see an effect of AdVantage. But what have excited us this quarter is that we now see incremental revenue growth on a small brand where we're relying on performance-based marketing. So basically that is what we set out to do. Now we see that it's working. It's about going to bigger brands and also in some cases brands where we will have an existing media business where we are now confident we can actually improve that media business. But the delicate balance is of course to make sure we keep the demand high enough so we can immediately sort of overtake the spend that is already on the brand. And that's why we have been focused also in this quarter and starting in Q1 on building the sales organization internally in Better Collective to be able to deliver that demand from advertisers to our brands. So for AdVantage, we feel now we have the technology in place. It will be ongoing development so it's never going to be fully done, but it's ready. And at the same time we are building up the sales muscle, which is the other side of the coin.

Right. And regarding Playmaker HQ, I mean it did not do as well as expected, but you have pretty aggressive targets there I remember. But I mean was it that you couldn't monetize as expected or can you explain a bit more on what did not work out and why are you certain that you will find the synergies in future?

Yes. It's of course unfortunate that it has not met our expectations and sort of the forecast for Playmaker HQ. But having said that, we are truly excited about the content that is being produced. The podcast shows the short form video documentaries that they produce. They have a huge following. Really see a lot of interest from great talent that want to work with Playmaker HQ. So on the content side, we really feel they have been delivering well. The issue has been with the commercial sales of those content formats where there were back when we acquired the business high expectations on price from the seller, which obviously was based on high expectations on sales from the seller. So we use that in order to make a very big earnout so the seller could get the price they wanted, but also had to deliver on that sort of ambitious sales plans there and unfortunately, that has not been the case. And we have now changed the sales team, it's sort of steered by Better Collective. We have also inserted a director for the company coming from the Better Collective organization. And now we feel we do believe we can achieve that plan, but it's going to be with a year's delay. And from the perspective of me being a very big shareholder of Better Collective, that we have settled this acquisition about half of the original price I think is very attractive for Better Collective long term because we are not really concerned about the potential and quality of the content that is being built and the audience that they have in Playmaker HQ. And now, which I also stated in the webcast, our sales team have managed to secure quite a lot of the second half expected sales already. So we think we have now good momentum for Playmaker HQ, but obviously it was a hiccup that performance was not as expected in the first year.

All right. And then maybe a question on AceOdds maybe. You said that I mean this asset seems to be doing well, NDC growth strongly expected. Can you give any flavor on the terms of I mean revenue, EBITDA impact that you had in Q2 from that?

We have not specified the specifics of AceOdds. We stated basically we have it in for 1 month plus few days so it's limited contribution to Q2, but it is really a strong asset also on the back of the mentioned search changes.

[Operator Instructions] The next question comes from the line of Sebastian Grave from Nordea.

So just judging from the share reaction today, it seems like Playmaker HQ impairment is weighing somewhat on sentiment. So maybe, Jesper, could you talk around the nature of this acquisition compared to some of the other acquisitions sitting on your balance sheet? I mean to ask straightforward, what is the comfort in the remaining goodwill so to speak?

Yes, I think definitely a relevant question. We have high comfort in the goodwill on the balance sheet. And I just alluded to sort of the way we structured the deal with Playmaker HQ where there was a high asking price and the only way to sort of find common ground was through an earnout where you actually had the majority of the purchase price on that earnout. And it goes without saying that when you structure it like that, the targets are fairly ambitious for getting the full purchase price paid out in the end. And we have actually seen a few other examples of that. We had it with FUTBIN as an example where again we had a hard time agreeing on price with the seller and ultimately, we ended up putting it on an earnout with very aggressive targets in order to hit the maximum price for that business. We have also done a lot of other acquisitions where we are very comfortable with the performance of the business and there we just paid the full price or have a very small earnout. So we sort of built it into the way we structure acquisitions and therefore, we are very comfortable around the balance sheet because most of the acquisitions, they don't have the sort of very high growth targets in the near term as we had with Playmaker HQ.

Maybe perhaps adding here, Sebastian, just a comment I think for Playmaker HQ. It ends up being not a very big acquisition, just above EUR 20 million or something like that in the final phase. But I think it's the biggest relative earnout we have made for all acquisitions simply because it was a new business area for us and, as Jesper mentioned, we couldn't really settle on price. So it landed in a perfect place after all.

Yes. Because I would like to stress that I would definitely do this acquisition again. We are really excited about the potential of Playmaker HQ and something which is nonfinancial that we have had as an effect since the acquisition is our endemic partners. They are quite excited about what we produce in terms of podcast formats and YouTube shows from Playmaker HQ. So it has been supportive to our overall deal making with these partners in sort of the global deals we make. But of course it's not direct financial contribution, but it's a group contribution we have seen from Playmaker HQ on the endemic side.

Okay. Then a question on the media partnerships here. So you say you can see continued good performance for most media partnerships during the quarter. So just to understand this. Does that mean that sort of say you saw an initial negative impact and you've been able to sort of tweak the setup and regain ground in the search landscape or is it the fact that you have just simply not seen an effect yet on these partnerships?

Well, it does vary because there's an element of learning about those that have been impacted and sort of seeing the way forward for those and how we can structure such media partnerships so they will be relevant in the future and perform. Then there's the part of existing ones not being affected and then there's the owned and operated basically taking over and gaining ground from this. And it's sort of the combination of that that has led to a good outcome of Q2. And for me, the most important part of this is what I also said earlier is we sort of know now that it's about doing it right. So even though there may be a hiccup or a challenge to 1, we also know there's a way forward and that we can manage this and do it right. So I think that's probably the most important part of the development.

Okay. But does that mean that you have sort of new information from Google that this is going to be the final form of the policy going forward and you sort of have increased visibility and feel comfortable that you are able to navigate in this or how should I interpret what you say?

Well, I think it's a stretch saying that Google gives such answers. That's not how they work. But it's more based on testing and working with the search landscape and looking at what happens overall in the search landscape where we have gotten this comfort. And then back to Google's communication is that it's indirect and again through indirect communication, we also sense that is the way forward.

Okay. And then just last question on AdVantage and maybe talk about sort of the actual cost impact that you are running through the P&L here upfront. I mean what should we think of these costs going forward and sort of when should we see a, so to say, better balance between revenue and costs stemming from the AdVantage initiatives?

Flemming here again. I can say last year when we started the project, we basically set aside EUR 5 million that we spent last year and we have continued the tech development and then we have actually added a fairly big commercial team after we got comfort with that this was really commercially viable. So now we are basically having, as you indicate, of course a cost base saving fairly significant in lot of things, but also with now a commercial proof of concept that we are happy with. So yes, we are taking some costs right now that are not directly rewarded. So I would expect that from next year we will see that balance come back while we roll this out over the network as Jesper said. But it is adding to the initial tech investment. We have actually now gotten so comfortable so we have deployed a dedicated commercial team of some size. So that's where we are.

Thank you. There are no further questions on audio lines at this moment and I would now like to hand over to our speakers for any written questions.

So we have a first question here regarding the Google changes on the media rankings, I guess the search rankings. As you see it today and if you were given the choice, would you then prefer to be able to roll back the changes or would you prefer to keep them as is?

Well, first off, it's a very hypothetical question because it's in the nature of the search landscape to change over time. The search companies constantly update their algorithms. And we have just as a fun anecdote. When we started out in Better Collective, the search landscape where we were focused was Yahoo. So things have changed quite a bit since and for us, it's more about being sort of on top of those changes. And I think the message today is that we're quite comfortable now with the changes we have seen. We think we are in a strong position to do well over time on the back of these changes. And I think it's worth mentioning that we will likely at some point in the future experience new changes where we need to manage. And with the team we have in Better Collective, I have high confidence in us being able to manage that. And we have also deployed a diversified strategy over the years where if we weaken it in 1 part of the business, often case another part will experience tailwind. So we have really built the business for managing this and I think we've gotten confirmation yet again that it's proving to work.

And then we have a couple of questions regarding North America and the other revenue, which was of EUR 8.4 million during this quarter. And what was other and whether it was a oneoff.

I think here we have also added businesses. Now we discussed Playmaker HQ and even though they didn't meet the expectations, they are part of others. They are selling sponsorships and advertising. So what lies within others is basically sponsorships and advertising and that is definitely not oneoff. That is a significant part of the business going forward. Also with the parts of Playmaker Capital that are based in North America and Canada -- U.S. and Canada also heavy on advertising revenue. So that goes in there.

Thank you. That concludes the webcast. Thank you so much for showing interest in Better Collective. Bye.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.