QUOTE FROM OSKAR MÜHLBACH, CEO
“The fourth and final quarter of 2021 was a strong quarter for Raketech, and I am happy to see that we have continued to deliver on our strategic goals of increasing the diversification of our business. Revenues amounted to EUR 11.8m, which is a new all-time high for the group, representing an annual growth of 40% whereof 12.5 percentage points were organic. Thanks to benefits of scale, our EBITDA increased to EUR 5.4m, corresponding to a growth of 50% and an EBITDA margin of 46%.”
Q4 2021 FINANCIAL HIGHLIGHTS
- Revenues totalled EUR 11.8 million (EUR 8.5 million).
- US acquisitions increase sport revenues to EUR 2.6m (EUR 1.0m), representing an increase of 149.5%.
- Non-Nordic revenues increase with 154.6%, totalling EUR 5.5 million (EUR 2.1 million).
- Organic growth amounted to 12.5% (15.0%).
- Adjusted EBITDA amounted to EUR 5.4 million (EUR 3.6 million), corresponding to a margin of 46.0% (43.1%).
- Earnings per share after dilution amounted to EUR 0.07 (EUR 0.05).
Q4 2021 OPERATIONAL HIGHLIGHTS
- On December 9, Raketech completed the acquisition of a leading US tipster asset (A.T.S. Consultants) providing tailored pre-game insights for sports. The agreed purchase price amounted to EUR 13.7 million, of which EUR 10.6 million has been settled in cash. The additional purchase price will be settled through issuance of Raketech shares amounting to EUR 2.2 million and a deferred consideration of EUR 0.9 million.
- Foundation laid for future US expansion by establishing a US business unit, led by a local Managing Director.
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
- Revenues in January 2022 amounted to EUR 4.5 million (EUR 2.7 million).
CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER
The fourth and final quarter of 2021 was a strong quarter for Raketech, and I am happy to see that we have continued to deliver on our strategic goals of increasing the diversification of our business.
Revenues amounted to EUR 11.8m, which is a new all-time high for the group, representing an annual growth of 40% whereof 12.5 percentage points were organic.
Thanks to benefits of scale, our EBITDA increased to EUR 5.4m, corresponding to a growth of 50% and an EBITDA margin of 46%.
Sports revenues continued to increase as share of total, primarily driven by recent acquisitions. Sports increased by 10 percentage points to 22 % of the group total, which in absolute terms corresponds to a growth of 150% year over year. Revenues from outside of the Nordics during Q4 represented 46% of total, compared to 25% same quarter previous year, corresponding to an absolute growth of 155%.
During Q4, our US revenues came in close to 10% of group total. Worth pointing out in this context is that with the addition of acquired key assets on the US market, we now also have a significant share of group total represented by end-user subscriptions. These revenues represented close to 6% of the group’s total and is expected to increase going forward, considering that our latest US acquisition was only accounted for as from mid/early December.
During the last months of the year, much of our focus was directed towards integration of recent acquisitions. Besides creating processes and procedures for global controlling, reporting, administration, technology, and development, we also laid the foundation for future US expansion by establishing a proper US business unit. This means that we now have a local US Managing Director as well as other key management functions within Sales and Product needed to start building a stronger local presence. With support from our central teams within tech and development, BI and analytics, CRM and marketing tech, we aim to increase US growth investments.
We expect this setup to give us local commercial and product edge, as well as benefits of scale as we use global standards, platforms and systems to maximize efficiency across the group. On this theme we have, during Q4 continued to implement traditional affiliation on our subscription/pickster assets in the US, which we look forward to increasing investments into even further during 2022, as the results are encouraging.
Our Network sales contributed as before significantly to our organic growth; despite being dampened by the Dutch market being out of reach due to changes in legislation.
OUTLOOK
January set yet another record with revenues amounting to EUR 4.5m with recent US acquisitions fully accounted for. We expect US revenues to reach up to 20% of total already in Q1, consequently increasing our footprint outside of our Nordic core markets even further, while also increasing sports share of total.
With that said, Raketech is geographically, organizationally and technically well positioned in the global iGaming affiliation space and I look forward to using this opportunity to increase investments into growth in 2022. The strategically important goals, as set in early 2020 relating to diversification within verticals, technology and geography are essentially delivered and with local resources in place in the US, strong assets on growth markets such as in southern Europe, South America, Canada and India I believe we have a solid growth platform to build on.
During 2022 we expect our EBITDA margin to stay in line with 2021 levels for the full year, while the EPS to stabilize on the new and higher level, as shown in the latter half of 2021.
LINK TO REPORT
The full Interim Report is available on https://raketech.com/investors/
REPORT PRESENTATION
CEO Oskar Mühlbach and CFO Måns Svalborn will present the report in a conference call and webcast today 16 February at 11:00 CET. The presentation will be held in English and will be concluded with a Q&A session.
Link to the presentation: https://tv.streamfabriken.com/raketech-q4-2021
Sweden: +46 8 5055 8355
UK: +44 3333 009 265
US: +1 63 1913 1422
PIN only for US: 97970278#
