Raketech sets revenue record in Q3 as acquisitions continue to drive growth

| By Robert Fletcher
Affiliate business Raketech set a new revenue record during the third quarter of its 2021 financial year, helped by the impact of recent acquisitions.

Revenue for the three months to 30 September reached €9.6m (£8.2m/$11.1m), up 30.4% from €7.4m last year.

Raketech put this rise down to organic growth of 25.6% within its network sales, as well continued strong growth through its previous acquisition of Casumba in September 2019 and progress in Sweden. 

The business also praised the impact acquisitions announced during the quarter, including QM Media AB’s assets in the US and Spanish organic casino affiliation marketing company Infinileads.

Raketech also noted its most recent acquisition, that of US-facing tipster ATS Consultants, which it purchased earlier this week in a deal worth $15.5m.

Casino activity accounted for 83.5% of total revenue, with 16.0% from sports betting and the remaining 0.5% from other operations, while 60.5% of revenue was drawn from the Nordics and 39.5% other markets around the world.

Looking at spending in Q3 and operating expenses amounted to €7.2m, up 22.0% year-on-year, while finance costs were also up 119.8% to €356,000. 

However, such was the impact of the revenue increase that pre-tax profit was 56.7% higher at €2.0m, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also increased 51.0% to €4.4m.

Raketech paid €151,000 in tax, leaving a net profit of €1.9m for the quarter, up 58.3% year-on-year.

“Q3 of 2021 was another operationally and financially strong quarter for Raketech,” group chief executive Oskar Mühlbach said. “Total revenues amounted to €9.6m which is a new all-time high, corresponding to just over 30% annual growth of which the majority was organic at 26%.”

In terms of the year to date, revenue for the nine months to the end of September amounted to €26.7m, an increase of 27.4% from €20.9m at the same point last year.

Operating costs were 27.1% higher at €21.1m and financial expenses also climbed 56.0% to €958,000, but revenue growth meant pre-tax profit was up 21.6% to €4.5m and adjusted EBITDA 31.5% to €11.0m.

After accounting for €227,000 in tax payments, this left a net profit of €4.3m, up 22.9% year-on-year.

“The world of igaming is potentially facing its most exciting time ever during which affiliation and performance marketing will play an absolute key role,” Mühlbach said.

“With this in mind, and with confidence from our strong organic growth, recent acquisitions, our operational efficiency, scalable tech and our geographically well- positioned asset portfolio, I am very much looking forward to accelerating growth investments to ensure we maximise the opportunity.”

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