Revenue for the three months to 31 March amounted to €8.3m (£7.1m/$10.1m), up 26.6% from €6.5m in the corresponding quarter last year.
Raketech said this was driven by its acquisitions of igaming affiliate network Lead Republik in March last year, as well as US-facing affiliate website American Gambler in November. However, the affiliate said this was partially offset by a reduction in revenue following the disposal of the consumer finance assets to ROI Media UK in Q4 of 2020.
Casino revenue accounted for 82.5% of total revenue in the quarter, compared to 78.3% last year. Sports betting revenue represented 17.0% of the quarterly total, while other revenue was responsible for just 0.5% of all revenue in Q1.
Upfront payments contributed 42.8% of overall revenue in the quarter, ahead of revenue-share agreements on 40.5% and flat fees with 16.7% of total share.
In terms of geographical performance, the Nordics remain Raketech’s core operating area, accounting for 64.9% of all revenue in Q1. Revenue from other markets made up 35.1% of the quarterly total.
“The first quarter of 2021 was a solid quarter for Raketech,” Raketech’s chief executive Oskar Mühlbach said. “Despite Q1 traditionally being a slower quarter, revenues came in in line with Q4, totalling €8.3m. This equals an annual growth rate of 27%, whereof 5% was organic.”
Looking at costs for the quarter, operating expenses were up 23.1% to €6.4m. This was mainly due to higher direct costs – up 81.3% to €2.9m – which Raketech said was driven by paid media via its new product offering following the acquisitions of Lead Republik and American Gambler.
Operating profit amounted to €1.6m, up 14.3% year-on-year, while earnings before interest, tax, depreciation and amortisation (EBITDA) also increased 22.0% to €3.2m.
After taking into account €307,000 in finance costs and also €61,000 from the revaluation of financial liabilities, this left a €1.2m profit before tax, up 5.3% on last year. Raketech paid €61,000 in income tax during Q1, meaning it ended the period with €1.1m in comprehensive profit, an increase of 6.6% on Q1 of 2020.
“I am pleased to be able to conclude that the positive momentum we showed in Q4 continued into Q1 and resulted in yet another stable quarter,” Mühlbach said.
Publication of the results comes after Raketech last month proposed appointing William Hill chief executive Ulrik Bengtsson as its new chairman, after Christian Lundberg declined re-election to the role.