Rising costs hit Raketech bottom line in Q1
Published 13th May 2020
Total revenue during the three months to 31 March amounted to €6.5m (£5.7m/$7.0m), an increase of 1.4% on the corresponding quarter last year.
During the quarter, Raketech said that it saw a particularly strong performance in both Norway and Sweden within its casino-led comparison products.
However, at the same time, sports revenue declined due to event cancellations or suspensions as a result of the novel coronavirus (Covid-19) outbreak.
Outside of the Nordics, revenue was up 14.0% on a year-on-year basis in Q1, in comparison to a rise of 5.0% in the same quarter last year. Raketech said this was primarily down to growth within its Casumba business as well as the newly acquired Lead Republik.
Looking at spending for the quarter, total operating expenses were up 40.5% from €3.7m to €5.2m, with costs higher across several areas. Direct expenses climbed 60.0% to €1.6m, due to the acquisition of Lead Republik, the addition of new product categories, increased efforts in paid media and higher investments in its product portfolio.