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Raketech, the Stockholm-listed company, has lauded its “operationally and financially strong” Q3 results as the firm reported new “all-time high” revenues. 

Amounting to €9.2m (2020: €4.2m), the results revealed that of the total revenue, 25.6 per cent of it was organic, compared to 3.2 per cent in the year previous, pinpointing the main contributor was its Swedish portfolio of assets and continued growth in markets outside of Europe through Casumba, as well as its network/sub-affiliation sales. 

Additionally, Raketech’s Q3 results showed its adjusted EBITDA amounted to €4.4m (2020: €2.9m), corresponding to a margin of 46 per cent, up from 39.8 per cent the year previous, highlighting a “strong operational efficiency,” along with higher revenues through organic growth in new product categories, within its existing portfolio, as a result of geographical expansion, as well as added revenues through recent acquisitions.

Moreover, earnings per share after dilution amounted to €0.05, representing an increase of 50.6 per cent. 

Commenting on the Q3 results, Oskar Mühlbach, CEO at Raketech, explained: “Q3 of 2021 was another operationally and financially strong quarter for Raketech. Total revenues amounted to €9.6m which is a new all-time high, corresponding to just over 30 per cent annual growth of which the majority was organic at 26 per cent. 

“As a result of strong operational efficiency in combination with a favourable sales mix, adjusted EBITDA grew by 51 per cent, totalling €4.4m and adjusted EBITDA margin increased to 46 per cent, where the recently acquired high margin assets contributed positively to the margin increase.”

Raketech’s Q3 period saw the company complete two acquisitions – P&P Vegas Group and all assets from QM Media, as well as Infinileads, moves which it said strengthened its presence in the US, Spain, Italy and India. 

In December 2018, Raketech entered into an agreement with Swedbank for a revolving credit facility of €10m. In March 2021, the utilised amount of the credit facility amounting to €2m was repaid in full. 

On September 2, 2021, Raketech requested an early cancellation of the credit facility with Swedbank and the release of the pledged shares. Furthermore, in July 2021, the company entered into an agreement with Avida Finans for a one-year revolving credit facility of €15m with an interest rate of 4.25 per cent. 

The credit facility with Avida Finans replaced the existing facility with Swedbank and includes an extension option and can be renewed annually from its first date of utilisation subject to certain conditions. 

As of September 30, 2021, the utilised credit amounts to €7.5m. The contractual terms of the new revolving credit facility with Avida Finans AB require Raketech Holding PLC to pledge its entire shareholding in Raketech Group Limited to the lender as collateral.

Another area of growth for the group is its strategical operational goals which saw its non-Nordic share of revenues double year-on-year, up by 40 per cent compared to 20 per cent in 2020, along with a total increase of 16 per cent in sport shares (2020: 11 per cent).

Following the end of the Q3 reporting period, Raketech reported October revenues amounting to €3.8m (2020: €2.6m). Additionally, on November 9, the company announced the acquisition of US tipster assets, providing tailored pre-game insights for sports, for €13.4m, of which €11.3m will be settled in cash. 

The additional purchase price will be settled through the issuance of Raketech shares amounting to €2.1m. 

On its US acquisitions, Mühlbach stated: With the US sports calendar filling up during Q4 and Q1, in combination with our recent US acquisitions with assets such as picks&parlays and winnersandwhiners, we furthermore expect our US share of total to increase and for the US to be added to the list of substantial growth markets already during next quarter.

“Winnersandwhiners is a selected asset within the portfolio of pickster assets in the latest acquisition as finalised just before this report. With these assets added to the Raketech portfolio, US revenues are expected to reach up to 20 per cent of the group total already in Q1 of 2022.

“In addition to giving us a strong position within the US pickster market, we also aim to add the full power of Raketech’s SEO and tech expertise as well as Raketech’s commercials such as affiliation, CRM and media to further accelerate growth.”

Looking towards the Q4 trading period, Raketech predicts a “traditionally strong quarter” within the igaming industry, with eyes set on the lifting of gambling restrictions in Sweden from November 14.