Raketech boosted by Swedish changes

Raketech boosted by Swedish changes

Raketech saw revenue and profits soar during Q1 as it was aided by growth in Sweden and new markets.

Published 22nd May 2019

Raketech saw revenue and profits soar during Q1 as it was aided by growth in Sweden and new markets.

The Stockholm-listed online affiliate and content marketing group saw a 78.2% increase in total revenues to €8.7m in the three months to March 31, which included a waived liability with an unnamed party of €2.2m. Revenues excluding that write-off were up by 31.6% to €6.5m.

Organic growth amounted to 21.5% thanks to higher traffic volumes for its casino products and TV sports guides, while profit for the period amounted to €4.7m.

Adjusted EBITDA increased by 38.3% to €3.5m, corresponding to a margin of 54.1%. Adjusted operating profit was €2.8m, corresponding to a margin of 43.4%.

The group, which has 20 flagship brands, said new depositing customers in the three-month period increased by 76.1% to 28,607.

“The beginning of the year has been characterised by the ongoing stabilisation phase in the Swedish gaming market, following the introduction of the new gambling legislation in January 2019,” said Raketech CEO Michael Holmberg.

“I am therefore happy to announce that we are delivering a good quarter and that we maintain our focus on organic growth and geographical expansion.

“While maintaining our position as a market leader in Sweden, we are simultaneously increasing our focus on geographical expansion.

“We have global ambitions and prioritise markets that are important to our partners, the gaming operators. As such, we are further strengthening our organisation for future expansion, both in terms of employees and technical platforms.”

Holmberg added: “We are committed to creating sustainable growth across all of our markets – current as well as future markets. I am confident in our ability to continue strengthening Raketech’s position as a leading affiliate with innovative and responsible services high on the agenda.”

Since the end of the period Raketech has appointed Oskar Mühlbach as chief operating officer and acquired the assets of the leading Finnish sport listing website TVmatsit.com for an initial purchase price of €1.6m.