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Raketech announced its financial results of the second quarter 2023.
Q2 2023 Financial Highlights
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The Q2 2023 revenue reached a record high of EUR 17,6 million (EUR 11,3 million), with a 56.0% organic growth (-4.0%).
- A particularly strong development within Sub-affiliation/Network was complemented by continued stable growth within high-margin Affiliation Marketing, primarily driven by continued strong contributions from Casumba.
- The revenue from betting tips & subscriptions was down by 6% compared to last year. Currency effects had a slight impact.
- The strong performance of Casumba was a positive factor in the EBITDA growth, which increased by 45% year-on-year to EUR 5.5 millions during the quarter.
- The AGM approved the distribution of a dividend per share equal to EUR 0.094. The first of the two installments were distributed to shareholders in May.
Subsequent events after the end of the period
- In July 2023, revenues were EUR 6,9 million (EUR 3,9 million).
Oskar Mühlbach, CEO of comments on the quarter
Raketech has continued to grow strongly during the second quarter 2023. Total revenues reached EUR 17.6 millions, which is another record high for the company. This represents a 56% organic growth Y/Y. A particularly strong development within Sub-affiliation/Network was complemented by continued stable growth within high-margin Affiliation Marketing, resulting in an EBITDA of 5.5 million, up by 45% from the same period last year. We remain confident in our newly upgraded 2023 full-year guidance based on the first half of this year. EBITDA will be between EUR 23-25 millions and free cash flow EUR 13-15million.
The growth in revenue from Affiliation Marketing – our largest business unit, which accounts for 59% total revenue – grew by 28.8%. This was primarily due to the continued contribution of Casumba. The Sub-Affiliation Business Area, which provides SaaS Solutions and club commercials for affiliates, also had a strong quarter. This was due to the favorable market development in Latin America and Scandinavia. The revenues from Betting Tips & Subscriptions remained largely the same as last year. However, currency effects had a slight impact.
Casumba’s strong performance during the quarter had a positive impact on EBITDA. It grew by 45% year-on-year to EUR 5.5 millions. The EBITDA margin was 31.1%, compared to 33.6% in the corresponding quarter of last year, as an effect of the increased contributions from Sub-affiliation/Network, to the groups’ market and product mix.
AffiliationCloud (our SaaS offering for affiliation infrastructure solutions) continued to perform according to the long-term plan, even though the revenue growth was a bit soft. The business area is still small relative to the other areas of our business. During the final part of the year, we aim to accelerate our growth.
In Affiliation Marketing, our geographical position remained the same as it was in the previous quarter. Our revenues in Latin America and Scandinavia increased the most, but this is due to our Network business’s success.
In December, the calculation period for most of the contingent considerations related to the acquisition Casumba will come to an end. The total calculation period is 18-months and with only 5 months left, we would only be able to make significant changes in the amount provisioned for this portion of the earnout if there were exceptional circumstances.
July revenues amounted to EUR 6.9 million (EUR 3.9 million), mainly driven by continued strong growth in Casumba and Sub-affiliation/Network.
Strengthened by the recent successful development in Casumba and Sub-affiliation/Network, I look forward to driving progress within our strategic growth initiatives, focusing on our flagship products, accelerated US growth and AffiliationCloud.
In closing, I want to thank all of our dedicated teams around the world for helping our clients stay on top of their game. I am confident we will be able to take advantage of the opportunities that lie ahead and become the leading choice in the iGaming affiliate market.
