Raketech’s elevated targets for 2023 have been achieved following the company’s successful expansion of its media network and partnerships.
Interim CEO, Johan Svensson, hailed the firm’s latest financial results as a “solid platform” to build further growth across 2024, stating he is “fully committed to driving additional value.”
Q4 performance
Publishing its Q4 2023 financial results, the igaming media group recorded period revenues of €22.7m, an increase of 45 per cent on Q4 2022’s figure of €15.8m.
The firm’s robust performance was attributed to a significant jump in sub-affiliate income, which came in at €11.4m to represent just over half of the company’s revenues for Q4, as well as a threefold increase year-over-year. .
Sub-affiliate growth for Raketech was supported by the company’s expansion of its partner network and contracts for its primary igaming platforms, the Raketech Network and AffiliationCloud.
The sub-affiliate uptick offsetted a drop in Raketech’s Q4 marketing revenue share to €9.6m (Q4 2022: €10.3m), reflecting a period of adjustments in Sweden, impacting the performance of Swedish online casino assets.
For North America, Raketech maintained revenues of €2.2m, although the company highlighted that a new strategy is required for its Tipster business, as it is failing to progress “in line with expectations”.
Raketech gained a considerable boost across its primary networks across the quarter as new depositing customers rose to 76,000, an increase of 45 per cent.
The company’s EBITDA for Q4 stood at €6.6m, a jump of 10 per cent from Q4 2023’s €6m, while the firm registered direct expenses of €11.3m (Q4 2022: €4.4m), “largely driven by increased activity of sub-affiliation contracts”.
Full year 2023 results
For its FY2023 results, Raketech’s revenues stood at €77m (FY2022: €52m), in line with the updated guidance from July as Raketech hit FY2023 EBITDA of €23m (FY2022: €20m).
The firm concluded its year trading by booking a special items expense of €18m, related to the earn-out of its 2019 acquisition of all Casumba Media properties.
This contributed to direct expenses for FY2023 more than doubling when compared to the year before, coming in at €33m (FY2022: €15m).
Meanwhile, Raketech declared operating profits of €11.6m, a decline of 6 per cent on FY2022 results of €12.4m.
Looking at 2024, Raketech’s board expects a corporate EBITDA of €24m-€26m – as “free cash flow is estimated to amount to €22m-€24m before cash settlements of the Casumba earn-out of €18.3m this year”.
The company is also set to continue its search for a new Chief Executive, following Oskar Mühlbach’s departure as 2023 trading closed.
On the firm’s latest financial results, Interim CEO Svensson commented: “This result serves as a solid platform for the coming year, where we will focus on identifying new markets, evaluating expansion options, assessing new partnerships, and focusing on business growth. I am fully committed to driving additional value for our company.”
