Story
Better Collective Plummets 24%, Slashes Outlook on Unexpected Brazil Betting Ban
Summary
The sports-media company's stock fell to its lowest point since early 2020 after a surprise regulatory measure in Brazil forced it to cut its 2026 financial guidance and suspend its share buyback program.
Shares of sports-media firm Better Collective (ST:BETCO) plunged on Monday after Brazil's government abruptly banned fixed-odds betting and online gaming nationwide. The regulatory shock prompted the company to slash its 2026 financial outlook, suspend longer-term targets, and halt its share buyback program, sending its stock to a multi-year low.
Market Reaction
Better Collective's stock slumped 24% to approximately DKK 53.5, a level not seen since early 2020, according to Investing.com data. The selloff represents a significant drop from Friday's closing price of DKK 70.30.
In response to the ban, the company announced several immediate actions:
- It suspended its €40 million share-buyback program.
- It withdrew its financial targets for 2027-2028, citing regulatory uncertainty.
- It significantly revised its financial guidance for 2026.
Brazil's Regulatory Crackdown
The move stems from a provisional measure introduced by the Brazilian government on Friday, which took effect immediately. The measure bans the operation, offering, and advertising of all fixed-odds betting, including sports betting and online gaming.
AdLicensed platforms have been given a 10-day transition period to cease operations. The measure's initial validity runs until November 23 and requires approval from Brazil's Congress to become permanent law. Congress has the power to approve, amend, or reject the measure.
Financial Impact
Better Collective's revised 2026 outlook assumes it will generate no further revenue from Brazil. The company stated its Brazilian operations were on track to generate about €45 million in revenue in 2026, or roughly 12% of the analyst consensus for group revenue.
The company now projects:
- Organic revenue growth of 3%-8%, down from a previous forecast of 7%-12%.
- EBITDA before special items to range from a 7% decline to 3% growth, a sharp downgrade from prior guidance of 8%-18% growth.
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