The extraordinary items affecting EBITDA of EUR 0.4m relate to the total amount of the severance pay to the former CEO who was replaced by Oskar Mühlbach as of December 11, 2019, and with reallocation expenses for the move of the Company’s Danish office during the fourth quarter.
The revaluation of goodwill relates to the acquisition of Shogun Media predominantly attributable to know-how within paid media in Sweden, an acquisition completed in June 2018. The uncertainty regarding when Google’s paid media channel will open-up to advertisers taken into consideration, the Board of Directors has decided to write down the goodwill value of EUR 0.3m during the fourth quarter.
The loss allowance for trade receivables is a consequence of the management’s revaluation of the trade receivables portfolio, in line with IFRS 9.
Oskar Mühlbach, CEO at Raketech said: “Despite the continuously challenging Swedish market I am pleased to conclude that we are able to deliver revenues with only a minor drop compared to the third quarter, which is within expectations. This minor drop in combination with the extraordinary cost items including the loss allowance, however, results in an EBITDA which is less pleasing. The fourth quarter had a particularly slow start but finished off confidently with a generally good performance from our entire product portfolio.”
Raketech's year-end and fourth quarter report for 2019 will be published on February 19th. In addition to what is stated herein, the company will not comment on the results before the quarterly report for the fourth quarter is published. In connection with the presentation the same day at 9:00 CET there will be an opportunity to ask questions.
The financial figures presented above are preliminary. The report for the fourth quarter and full year 2019 will be released as planned on February 19th, 2019 at 7.00 a.m. (CET).
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 4:00 p.m. CET on 8 January 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 in primarily the Nordic region and the UK. Through some 20 flagship brands, 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 / [email protected]. For more information, visit www.raketech.com.