Profit up at Raketech despite revenue decline in 2019
Published 21st February 2020
Total revenue at Raketech for the 12 months to 31 December 2019 amounted to €23.9m (£19.9m/$25.8m), down 6.5% from €25.6m in the previous year.
Raketech said despite an 8.8% increase in new depositing customers for the year – climbing to 108,365 – revenue was negatively impacted by a decline in player value in Sweden during the year.
Total operating expenses in 2019 jumped 23.6% year-on-year to €17.8m, with Raketech seeing costs climb across several areas of the business. Staff costs were the main outgoing, with employee benefit expenses up 7.4% to €5.2m, due in part to a €400,000 severance payment to former chief executive Michael Holmberg.
Direct costs related to fixed fees and commission revenue were up by 71.4% to €3.6m, which Raketech said was a result of increased investment on its product portfolio, as well as higher marketing spend.
Other expenses were up from €4.2m to €4.6m, while Raketech said depreciation and amortisation costs rocketed by 170.6% to €4.6m mainly due to its purchase of Casumba Media and costs related to the acquisition of CasinoFebe. However, Raketech was slightly helped by not having any expenses for its IPO, which last year set it back €1.5m.