Raketech in line with expectations despite encountering US headwinds


Raketech is expecting to close the year in line with previously expressed financial expectations after putting “three solid quarters behind us”, despite progress across the US being “slower than expected” during the quarter.

Revenue increased 65.8 per cent to €21.5m (2022: €12.97m) while new depositing customers swelled 91 per cent to 75,552 (2022: 39,552), which is aligned to a strong performance within sub-affiliation and affiliation marketing. 

These categories each saw revenue increase to €11.1m (2022: €3m) and €9.46m (2022: €8.63m), while betting tips and subscription income slipped 27.8 per cent to €933,000 (2022: €1.92m).

Continued affiliation marketing success is aligned to success of a commitment to a “flagship strategy” of “focusing on fewer and better-established brands”. Casumba, acquired over four years ago, was singled out as Raketech stressed that it is “particularly pleased” with its development.

However, it is the group’s sub-affiliation network that is highlighted as boasting “the most significant success during Q3”, with an “extensive commercial network and strong relationships” aligned to the uptick in performance. 

“The strong demand for our infrastructure solutions in sub-affiliation continued, both in the Nordics and RoW, and was complemented by stable growth at higher margins in our core segment affiliation marketing,” noted Oskar Mühlbach, Group CEO.

Per segment, casino comprised the lion’s share of revenue via a 89.3 per cent uptick to €18.37m (2022: €9.7m), with sports down 2.9 per cent to €3.12m (2022: €3.21m). 

On a geographical basis, the Nordics leapfrogged to the top of the tree as revenue secured a 58.8 per cent uptick, with the rest of the world slipping into silver despite more than doubling to €9.25m (2022: €4.52m).

The rest of Europe closed at €1.11m (2022: €642,000), with the US recording the same figure after dropping 25.4 per cent from the previous year’s from €1.49m

The latter is aligned to an underperformance in the company’s advisory business segment, with a priority now placed on “efficiency and execution” of the group’s business plan

Through the third quarter, group-wide operating profit slipped 24.7 per cent to €2.2m (2022: €2.93m), while adjusted EBITDA reached €5.61m, up 16.5 per cent from €4.81m, year-on-year. 

For the year-to-date, revenue, operating profit and AEBITDA each tracked increases of 48.5 per cent, 10.1 per cent and 27.1 per cent to €54.89m (2022: €36.95m), €8.91m (2022: €8.09m) and €17.6m (2022: €13.84m), respectively. NDCs swelled 73 per cent to 188,303 (2022: 108,851).

Revenue through October came in at €7.7m (2022: €5m), driven by continued strong growth in Casumba and sub-affiliation, with this bringing confidence in reaching full-year guidance.

An expectation has previously been expressed that revenue would fall between €65m-€70m, excluding the impacts of acquisitions, while EBITDA and fresh cash flow should fall in the regions of €23-€25m and €13-€15m.

“We are operating in one of the most competitive and fast-moving global marketing environments, and I am proud of our committed teams spread across various locations,” concluded Mühlbach. 

“Working tirelessly for Raketech, our clients, partners, and shareholders, we have achieved another strong quarter that aligns with market expectations.”