Q2 2022: Solid performance since
TRIQ I-IMSIDA IL-GZIRA, MT /ACCESSWIRE/August 17, 2022/ Raketech (STO: RAKE, Financial)
QUOTE FROM OSKAR MÜHLBACH, CEO
“The second quarter of 2022 was another stable quarter for the Raketech Group. Our core portfolio of affiliate marketing assets delivered results in line with the first quarter, despite challenging market conditions and low seasonality. This again proves the strength of Raketech’s well-diversified portfolio of assets, as well as our well-balanced vertical and geographic spread.Total revenue for the quarter was €11.3 million, representing a growth of 29%.
Q2 2022 FINANCIAL HIGHLIGHTS
- The core Affiliate Marketing asset portfolio delivered strong results, despite challenging market conditions. Revenues amounted to 11.3 million euros (8.8 million euros).
- Organic growth amounted to -4.0% (25.7%), effect of the change in regulations in the Finnish market as well as the elimination of Network sales in the German and Dutch markets due to the re -regulations.
- Revenue in the United States was €1.3 million (€0.3 million) as American sport entered its low season of the year.
- Sports revenue amounted to €3.5 million (€1.3 million), corresponding to 31.0% (15.2%) of total revenue.
- Revenue from the recently launched Affiliation Cloud was €0.2 million (€0 million).
- Adjusted EBITDA amounted to €4.0 million (€3.4 million), corresponding to a margin of 35.0% (38.7%). Seasonality effects expected mainly from the US market affecting the margin.
Q2 2022 OPERATIONAL HIGHLIGHTS
- Strong performance of most assets following recent Google core update.
- Continued investments in US organization and technology development such as the Affiliate Cloud to further solidify the growth platform.
- The company announced that it has extended its €15 million revolving credit facility with Avida Finans AB until September 2023. When drawn down, interest on the facility is EURIBOR plus 4.25% with additional initial extension fee. The credit facility includes an extension option and can therefore be renewed annually under certain conditions.
EVENTS AFTER THE CLOSING OF THE PERIOD
- Revenues in July 2022 amounted to €3.9 million (€2.9 million).
COMMENTS FROM CEO OSKAR MÜHLBACH ON THE QUARTER
The second quarter of 2022 was another stable quarter for Raketech Group. Our core portfolio of affiliate marketing assets produced results in line with the first quarter, despite challenging market conditions and low seasonality. Again, this proves the strength of Raketech’s well-diversified asset portfolio, as well as our well-balanced vertical and geographic spread. Total revenue for the quarter amounted to €11.3 million, an increase of 29%.
Year-on-year we declined organically with 4%, fully related to the Finnish market as expected, stabilizing at lower levels due to changes in legislation, and our network is no longer offered on the German and Dutch markets due to new regulations.
Considering these factors and the fact that the second quarter of last year included both a digitalization push due to Covid and UEFA EURO, I am therefore very pleased with our performance in the second quarter of this year. It gives me confidence to see that our assets are holding up well despite such tough comparison numbers and generally negative iGaming sentiment in the second quarter.
Furthermore, as the second quarter is a seasonally weaker period for sports in the United States, revenues from this market were, as expected, lower than those of the first quarter, representing 12% of the Group’s total. At the same time, revenues from the Nordics accounted for 47% of the group total thanks to the strong performance of our core portfolio.
Adjusted EBITDA for the quarter was €4 million, representing a margin of 35%, mainly related to the low sports season in the United States where our fixed cost base is stable, in combination with the pace continuous high investment in product development in the United States. organization and Affiliate Cloud.
During the quarter, Google rolled out one of its “major updates” that moved us in a positive direction, which is further proof that we’re doing it right. It is worth mentioning in this context that several of our flagship assets in the Swedish market, which is so important to us, have seen increased organic visibility. And when it comes to our latest product innovation, the Affiliate Cloud, we’ve had more interest in the product than expected, which is exciting given that it’s currently only in beta. We have therefore increased our investments in this area to ensure that we maximize our ability to onboard new customers while ensuring an excellent user experience for affiliates and operators. Affiliate Cloud revenue for the second quarter was approximately EUR 200,000.
And when it comes to other investments, one of the most interesting and exciting current projects involves our flagship asset Casinofeber. From February 2023, Casinofeber will be fully operated by Raketech Core Team as it is transferred from the original team. I’m very excited about this, not only from a product development perspective, but also from a cash flow perspective, as the full operating cash flow from this asset will be made available to Raketech in its entirety once the final price supplement has been paid at the end of Q1 2023.
As a final highlight of the quarter, I am pleased to report that we have extended our €15 million revolving credit facility for another year on attractive commercial terms, with the possibility of further extension depending on of certain criteria. The credit facility allows us to continue to invest in organic growth while leaving the door open for further mergers and acquisitions.
July revenue was €3.9 million, driven by the continued strong performance of core assets as well as the promising results of Affiliation Cloud.
The second half of the year is generally stronger than the first half. And with the good performance of our core product portfolio, the American football season just getting underway and the FIFA World Cup to be looked forward to in November and December, we are reiterating our full year target of be in the range of 50 to 55 million euros in revenue. with an EBITDA margin between 40 and 44%. I am very happy to see that our diversification strategy and our strong focus on operational delivery are bearing fruit. Raketech is in a position where we are, perhaps not immune, but very resilient to sudden changes in the world around us. And not only are we resilient, but also well positioned for growth when it comes to products, markets and various revenue streams in the ever-changing and growing global iGaming industry. That said, I’m looking forward to the final part of this year.
LINK TO THE REPORT
The full interim report is available at https://raketech.com/investors/
PRESENTATION OF THE REPORT
CEO Oskar Mühlbach and CFO Måns Svalborn will present the report on a conference call and webcast today August 17 at 09:00 CEST. The presentation will be in English and will end with a question-and-answer session.
Link to presentation: https://tv.streamfabriken.com/raketech-q2-2022
Sweden: +46 8 5055 8374
UK: +44 3333 009 274
USA: +1 646 722 4903
For more information please contact:
Group CEO Oskar Mühlbach: [email protected]
Måns Svalborn, Group CFO: [email protected]
Andreas Kovacs, Head of Investor Relations: [email protected]
About Raketech Group
Raketech is a leading online content and affiliate marketing company specializing in providing comparison services for sports and games, online guides, communities and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while delivering high-quality traffic and leads to its partners. Raketech grows both organically and through acquisitions and operates under a clear framework for responsible affiliate marketing services. The company’s shares are listed on the Nasdaq First North Premier Growth Market under the symbol RAKE. Erik Penser Bank AB is the authorized adviser of the company: +46 8 4638300 / [email protected]. For more information, visit www.raketech.com.
This information is information that Raketech is required to make public under the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons listed above, on 2022-08-17 08:00 CEST.
THE SOURCE: Raketech
See the source version on accesswire.com: