Discussion on Q1 Results and Market Strategies

Q1 Overview

• Revenue: Strongest ever in a quarter.
• Earnings: Year-on-year up by 44% on EBITDA.
• Key Markets: North America
  • 19% growth despite tough comps from the previous year.
  • Notable factors: Ohio State launch, Massachusetts launch, good performance from existing states.
• Paid Media Business
  • Record high margin at 27%.

North American Market

• Position & Strategy
  • Market-leading position gives significant advantages with new state launches and partnerships with sportsbooks.
  • Acquisitions in 2019 and Action Network in 2021 were strategic to gain critical market size.
  • Achieved over $100 million in revenue, emphasizing importance in the American sports media landscape.
  • Focus on the scale of traffic for user retention.
• Challenges in Massachusetts
  • Regulatory clarity issues, especially regarding revenue share.
  • Prefer working with revenue share models, but had to adapt to state-specific regulations.

Latin American Market

• Potential & Strategy
  • High growth potential with evolving regulatory landscape.
  • Aim to make Latin America a significant part of the business portfolio.
  • Strategy includes acquisitions and establishing a local presence (e.g., office in Rio de Janeiro).
  • Plan to mirror the North American playbook: acquisitions and organizational growth.

Long-term Vision

• Transitioning to a leading digital sports media group, incorporating affiliate sites and sports media brands.
• Emphasis on creating engaging content and leveraging various monetization models (affiliation, subscriptions, CPM, direct ad sales).
• Anticipates a shift where traditional sports betting affiliate model will remain core but reduce in percentage of total revenue over time.

U.S. Market Landscape

• Operator Dynamics
  • Concentration around major operators like FanDuel, DraftKings, but expect new players like Fanatics to disrupt markets.
  • Bet365 is increasing its efforts with a strong background in the industry.
  • The market is still evolving with many states yet to regulate.
  • Expect continuous innovation and changes in the operator landscape.

Katina Media Investment

• Investment Perspective
  • Better Collective holds a >5% position in Katina Media.
  • No detailed comments provided on strategic intentions behind the investment.

Conclusion

• Q1 marked by significant success and strategic growth across various markets.
• Continued focus on leveraging critical market positions and expanding globally.
• Vision towards becoming a comprehensive digital sports media group.

End of Notes