“The first quarter of 2020 can be summarised as a stable operational and financial quarter for Raketech. In general, our product portfolio performed as expected and we continued to deliver on our strategic operational goals. Q1 revenues amounted to EUR 6.5m and EBITDA to EUR 2.6m. Compared to the previous quarter this equals a growth in revenues of 11.9% and compared to last year revenues increased with 1.4%.”
FIRST QUARTER 2020
- Revenues increased by 1.4%, totalling EUR 6.5 million (EUR 6.5 million).
- NDCs (New Depositing Customers) increased by 12.8%, to 32,278 (28,607).
- EBITDA amounted to EUR 2.6 million (EUR 3.5 million), corresponding to a margin of 40.2% (54.1%).
- Operating profit amounted to EUR 1.4 million (EUR 2.8 million), corresponding to a margin of 20.9% (43.4%).
- Adjusted profit for the period amounted to EUR 1.1 million (EUR 2.4 million).
- Profit for the period amounted to EUR 1.1 million (EUR 4.7 million).
- Earnings per share amounted to EUR 0.03 (EUR 0.12).
EVENTS DURING FIRST QUARTER 2020
- On March 11, 2020 all assets of the performance marketing company Lead Republik Limited were acquired for the agreed purchase price of EUR 1.4 million with the possibility of additional earnouts based on certain performance measures. Lead Republic Limited is a Maltese registered media company with global revenues, with a particular focus on Canada, New Zealand and Germany.
- Raketech provided a trading update and announced information about the covid-19 impact for the business on March 27.
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
- Revenues in April, 2020 of EUR 2.4 million (1.7 million).
CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER
“During the quarter we saw particularly strong performance in Norway and Sweden on our casino dominated comparison products. At the same time, our sports focused products such as our Danish communities, Finnish sports sites, Paid media and our Flagship product; TV-matchen experienced lowered revenues due to the cancelled sport events. With the acquisition of Lead Republik, we added a new product category with substantial revenues from outside the Nordics. The integration is evolving according to plan and the team is so far performing as expected.
To accelerate our geographical expansion even further we have also taken many smaller initiatives such as the acquisition of Indian casino comparison assets that we intend to grow in our Lab. We have furthermore acquired additional assets from our Norwegian and Danish partners with the purpose of growing these to become multi-market products with the help of our central operations.
I am particularly happy to announce that we during the quarter developed and implemented automatically distributed top lists from our central hub, based on Artificial Intelligence (machine learning). This in combination with granular and automated data analysis on everything from individual operator performance to specific campaigns now allows us to continuously optimise our products in a unique way, benefitting both Raketech as well as our customers, the operators. Our data driven approach to digital marketing is key in our transformation from “affiliation only” to becoming the iGaming performance marketing partner.
To ensure we keep a high and intense focus on these things I am also thrilled to announce that we during the quarter managed to secure Oscar Karlsten as our new COO.
Preliminary revenue numbers for April amounts to EUR 2.4m. With the turbulence caused, not only by the Covid-19 but also by the suggestions on new, temporary gambling restrictions on the Swedish market we are experiencing a slightly more hesitant attitude from operators investing into, in particular the Swedish market. The market situation is currently volatile and unpredictable. We are and will therefore continue to be extra careful with guiding on the upcoming quarter or year in terms of expected revenues. What we do know is that our operational performance is more stable than ever and that we continue to deliver on our operational goals.”
PRESENTATION FOR INVESTORS, ANALYSTS AND THE MEDIA
CEO Oskar Mühlbach and CFO Måns Svalborn will present the report and answer questions in an audiocast at 9.00 a.m. CEST on 13 May. The presentation will be held in English and can be followed online via https://tv.streamfabriken.com/raketech-q1-2020. To participate by phone, please dial +46 8 5055 8369 (SE) or +44 3333 009 035 (UK).
The report is attached to this press release and also available at https://raketech.com/investor/
FOR MORE INFORMATION
This information is such that Raketech Group Holding P.L.C. is required to publish under the EU Market Abuse Regulation. The information was submitted under the auspices of the CEO for publication at 8.00 a.m. CEST on 13 May 2020.
About Raketech Group
Raketech is a leading online affiliate and content marketing company, with expertise in delivering comparison services for sports and gaming, online guides, communities and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company’s shares are listed in Nasdaq First North Premier Growth Market with ticker RAKE. Erik Penser Bank AB is the company’s Certified Adviser: +46 8 4638300 / firstname.lastname@example.org. For more information, visit www.raketech.com.