Revenues at record high as sports revenue more than doubles
TRIQ I-IMSIDA IL-GZIRA, MT /ACCESSWIRE/February 16, 2022/ Raketech (STO:RAKE)
QUOTE FROM OSKAR MÜHLBACH, CEO
“The fourth and final quarter of 2021 was a strong quarter for Raketech, and I’m pleased to see that we continued to deliver on our strategic goals of increasing the diversification of our business. Revenues were $11.8 million euros, which is a new all-time record for the group, representing annual growth of 40%, of which 12.5 percentage points organic Thanks to scale effects, our EBITDA increased to 5.4 million euros, which corresponds to a growth of 50% and an EBITDA margin of 46%.”
Q4 2021 FINANCIAL HIGHLIGHTS
Turnover amounted to 11.8 million euros (8.5 million euros).
US acquisitions increase sports revenue to €2.6 million (€1.0 million), an increase of 149.5%.
Non-Nordic revenues increase by 154.6%, totaling 5.5 million euros (2.1 million euros).
Organic growth amounted to 12.5% (15.0%).
Adjusted EBITDA amounted to €5.4 million (€3.6 million), corresponding to a margin of 46.0% (43.1%).
Earnings per share after dilution amount to 0.07 EUR (0.05 EUR).
Q4 2021 OPERATIONAL HIGHLIGHTS
On December 9, Raketech completed the acquisition of a leading US tipster (ATS Consultants) providing personalized pre-game information for sports. The agreed purchase price was €13.7 million, of which €10.6 million was settled in cash. The additional purchase price will be settled by issuing Raketech shares for an amount of €2.2 million and deferred consideration of €0.9 million.
Foundation laid for future expansion in the United States by creating a business unit in the United States, led by a local managing director.
EVENTS AFTER THE CLOSING OF THE PERIOD
COMMENTS FROM CEO OSKAR MÜHLBACH ON THE QUARTER
The fourth and final quarter of 2021 was a strong quarter for Raketech, and I’m pleased to see that we continued to deliver on our strategic goals of increasing the diversification of our business.
Turnover amounted to 11.8 million euros, a new historic record for the group, representing annual growth of 40%, including 12.5 percentage points organically.
Thanks to scale effects, our EBITDA increased to 5.4 million euros, corresponding to a growth of 50% and an EBITDA margin of 46%.
Sports revenues continued to grow as a proportion of the total, primarily due to recent acquisitions. The sport grew by 10 percentage points to 22% of the group total, which in absolute terms corresponds to a 150% year-on-year growth. Revenue from outside the Nordics in the fourth quarter accounted for 46% of the total, compared to 25% in the same quarter of the previous year, corresponding to an absolute growth of 155%.
During the fourth quarter, our revenues in the United States represented almost 10% of the group total. It should be emphasized in this context that with the addition of key assets acquired in the US market, we now also have a significant share of the group total represented by end-user subscriptions. These revenues represent almost 6% of the group’s total and are expected to increase in the future, given that our latest acquisition in the United States was only accounted for from mid/early December.
During the last months of the year, we mainly focused on the integration of recent acquisitions. In addition to creating processes and procedures for global control, reporting, administration, technology and development, we also laid the foundation for future expansion in the United States by creating a true unit commercial in the United States. This means we now have a local Managing Director in the US along with other key management functions within sales and product needed to begin building our local presence. With the support of our core teams within Technology and Development, BI and Analytics, CRM and Marketing Technology, we aim to increase growth investments in the United States.
We expect this setup to give us a local business and product advantage, as well as scale advantages, as we use global standards, platforms and systems to maximize efficiency across the group. . On this theme, during the fourth quarter we continued to implement traditional affiliation on our subscription/pickster assets in the United States, in which we hope to further increase investments in 2022, as the results are encouraging. .
Sales from our network contributed significantly to our organic growth as before; although he was held back by the fact that the Dutch market was out of reach due to legislative changes.
January set a new record with revenues amounting to €4.5 million, with recent US acquisitions fully accounted for. We expect US revenues to already reach up to 20% of the total in the first quarter, which will further increase our footprint outside of our core Nordic markets, while also increasing the share of sports in the total.
That said, Raketech is geographically, organizationally and technically well positioned in the global iGaming Affiliate space and I look forward to using this opportunity to increase investment in growth in 2022. The strategically important goals, as set out in early 2020 regarding diversification within verticals, technology and geography are primarily provided and with local resources in place in the US, strong assets in growing markets such as Southern Europe, South America, Canada and India, I think we have a solid platform for growth on which to build.
In 2022, we expect our EBITDA margin to remain in line with 2021 levels for the full year, while EPS will stabilize at the new higher level as shown in the second half of 2021.
LINK TO THE REPORT
The full interim report is available at https://raketech.com/investors/
PRESENTATION OF THE REPORT
CEO Oskar Mühlbach and CFO Måns Svalborn will present the report on a conference call and webcast today, February 16 at 11:00 a.m. CET. The presentation will be in English and will end with a question-and-answer session.
Link to the presentation: https://tv.streamfabriken.com/raketech-q4-2021
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About Raketech Group
Raketech is a leading online affiliate and content marketing company, with expertise in providing comparison services for sports and games, online guides, communities and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while delivering high-quality traffic and leads to its partners. Raketech grows both organically and through acquisitions and operates under a clear framework for responsible affiliate marketing services. The company’s shares are listed on the Nasdaq First North Premier Growth Market under the symbol RAKE. Erik Penser Bank AB is the company’s certified adviser: +46 8 4638300 / Certifiedadviser@penser.se. For more information, visit www.raketech.com.
This information is information that Raketech is required to make public under the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons listed above, on 2022-02-16 08:00 CET.
Raketech 2021 Year End Report
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