Enhanced Collaborative Reports Surge in Q1 Earnings Despite COVID-19 Impact

Enhanced Collaborative, a sports wagering information organization, declared a 40% surge in earnings for the initial quarter of 2020, driven by robust results in its sports wagering division – that is, until the COVID-19 outbreak brought a majority of live sports to a sudden stop in mid-March.

During the three months concluding March 31st, earnings reached €20.9 million (or $22.6 million USD), with natural expansion in revenue from alliances registering at 21%. The firm witnessed a profit (prior to interest, taxes, depreciation, and amortization) of €8.6 million, a 32% upswing. Significantly, Enhanced Collaborative possesses a substantial cash reserve of €70.4 million.

Nevertheless, the enterprise is already experiencing the repercussions of the global health crisis. While the organization secured 116,000 new funding clients in the first quarter – comparable to the corresponding timeframe last year – April earnings plummeted 17% to €4.6 million. Predictably, the organization is projecting stagnant or even unfavorable expansion for the second quarter of 2020.

In an attempt to bolster investor faith, Enhanced Collaborative additionally revealed a share repurchase initiative.

Notwithstanding the obstacles ahead, Chief Executive Jesper Søgaard conveyed a hopeful message: “The Group achieved a very robust first quarter, establishing new record highs until mid-March before the COVID-19 circumstance transformed the world as we are familiar with it.”

“The emergence of the COVID-19 pandemic, which prompted a suspension of most sporting events, will have a substantial adverse effect on the business in the second quarter,” he conceded. “However, we are modifying our operations and maintain confidence that a normalized sports wagering activity level will resume during the latter half of 2020.”