Raketech posted its third record quarterly revenue of EUR21.5m in Q3 2023. This was driven by a 66% organic growth rate, the highest ever.
Raketech’s Q3 record revenue led to an increase in EBITDA of 16.5% on a year-over-year basis for the Malta-based Affiliate business. Raketech attributed this to its development of the Casumba Japan brand, and the growth in its network offering.
The star of the network
Raketech’s sub-affiliation revenues grew by 264% year over year to EUR11.1m. The increase was attributed to a surge in the number of new clients onboarding, and an almost two-fold monthly growth in NDCs. AffiliationCloud, the SaaS-based platform of its sub-affiliation, was named the Best Tech For Affiliates at the 2023 iGB Affiliate Award.
Oskar Mühlbach, CEO of the company said that this lower margin segment had a “slightly dampening” effect on group EBITDA in Q3.
Muhlbach said that Raketech’s Q3 record revenue was underpinned by stable, high-margin growth in its core segment.
Its flagship strategy, which focuses on less established brands and fewer products in general, was said to have helped generate Q3 revenue of EUR9.5m as opposed to EUR8.6m for the same quarter last year.
Casumba clarity
The adjusted operating income fell to EUR2.3m, down from EUR2.9m. The non-cash amortization associated with the adjustments of earnout commitments for Casumba was responsible.
Today, the Nasdaq First North listed company announced that the majority of contingent consideration due for Casumba would be calculated by December. The majority of the earnings could be determined “with high certainty” by the Nasdaq First North-listed company in December.
Geo Challenges
Geographically, the market in Scandinavia has been slower than anticipated. Muhlbach confirmed that the company continues to invest in this region. “During this quarter, we launched our first ever radio advertisement campaign on the Swedish Market for Casinofeber.se. The initial results are promising, with an increase of more than 50% in direct traffic. We hope that the brand effect will spillover to the organic ranking in the future.
Race for the Finish
Raketech has reiterated their earlier forecast that by 2023 they expect to have EBITDA of EUR23m – EUR25m and net cash between EUR13m – EUR15m. Raketech would be able to surpass previous revenue guidance of EUR65m-EUR70m.
