Better Collective faces 300 redundancies, as market conditions toughen

The Action Network parent company Better Collective has posted its latest financial update for the third quarter of 2024, in which it outlined a buoyant three-month period ended on October 31 but has nevertheless cautioned that more challenging times lie ahead.

Job cuts are needed to meet the pressures of the US and Brazil

One of the announcements that the company made that immediately stood out was the fact that Better Collective is shedding 300 jobs, labeling them as redundancies.

This is a part of a broader restructuring effort which is intended to save the company around €50m while pressure in the United States and Brazil continues to mount amid cut-throat competition for superiority in a market that is increasingly difficult to navigate.

Few and in between can boast that they are bringing tidy Q3 results this year, without admitting a certain shakiness about the future. Catena Media, another similar business, previously said that it is cutting 29 positions across its content team, but the company confirmed that it does not expect any further staff reduction.

The job cuts in Better Collective at the same time represent 15% of its workforce, but the company is confident that it was all necessary as it allows it to optimize, streamline, and prepare for the future better. Better Collective carried out 35 acquisitions in recent years, said company CEO Jesper Søgaard.

Despite the temporary trimming of the sails, the chief executive remains optimistic about the future. "We operate in the sports media and sports betting industries which are sectors with bright futures and significant growth potential," he added

Better Collective is also not ruling out further acquisitions and deals. A recent buyout of an undisclosed social media asset saw the company pay €7m to acquire it. Better Collective has added that any current restructuring is designed to ensure that the company can scale up when the "timing is right."

In the meantime, restructuring has been rapid across a number of companies. Evoke and Entain have both considered their options and withdrawn from certain markets.

Companies cognizant of an increasingly competitive market

Betway confirmed that it would not seek to expand in the Brazilian sports betting and iGaming market, signaling that companies are becoming increasingly selective about how approach big markets – even if it is some of the largest and most promising ones worldwide.

Flutter Entertainment acknowledged in its recent financial update that the UK market is going to become increasingly challenging.

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