Malta-based online affiliate and content market provider Raketech reported strong financial performance in the first quarter of 2021, posting impressive growth driven mainly by US and Japan operations.
“The first quarter of 2021 was a solid quarter for Raketech.”Oskar Mühlbach, CEO, Raketech
Revenue Growth Year-Over-Year
Raketech generated revenues of €8.279 million, up 26.6% year-over-year to the first quarter of 2020 reading of €6.538 million, while organic growth was 5.4%.
Revenue from casino operations grew by 4.1% compared to the three-month period in the year prior, accounting for 82.5% of the total, while sports was marginally up to 17% and other sources of revenue posted a decline from 5% to 0.5%.
The first quarter of 2021 posted an amended geographical spread of revenues, with 64.9% of the total brought in from the Nordics and the remaining 35.1% from the other markets, while that ratio in Q1 2020 was much more tilted in favor of the Nordics, 85.8% to 14.2% for the other markets.
“Primary growth drivers in the quarter were our Japanese and US efforts, as well as continuously solid performance from our Network sales.”Oskar Mühlbach, CEO, Raketech
Diversification of revenue away from Raketech’s Swedish home markets was due to operations in Japan, where all key performance indicators (KPIs) delivered record numbers from traffic to monetization, on one hand, and a favorable combination of the Super Bowl and Virginia and Michigan entries, on the other. Japan accounted for 11% of revenue, while the US generated another 6%, company CEO Oskar Mühlbach outlined in his comments.
There were some adverse factors that affected performance, Oskar Mühlbach noted, singling out “low seasonality on other markets, increased gambling tax in Denmark, Casinofeber still being lower than previously and payment blocks in Norway”.
Growth in EBITDA and Operating Profit
Raketech posted earnings before interest, tax, depreciation and amortization (EBITDA) of €3.205 million, an increase of 22% from the first quarter EBITDA of €2.627 million, while operating profit at €1.561 million was 14.2% up to the Q1 2020 reading of €1.367 million and operating margin fell from 20.9% in the first quarter of the year prior to 18.9% for the reported quarter now.
“I am pleased to be able to conclude that the positive momentum we showed in Q4 continued into Q1 and resulted in yet another stable quarter.”Oskar Mühlbach, CEO, Raketech
Profit in Q1 2021 came out at €1.1 million, unchanged year-over-year, despite the growth in revenues and the increase in the total number of new depositing customers, from 32,278 in Q1 2020, to 39,874 in the first quarter of 2021, up 23.5%.
“The Raketech team is currently focusing on ensuring we maximize the potential from the European Championships in Football coming up in June in addition to our continuous efforts to ensure we deliver on strategic goals with regards to geographical expansion and commercial diversification, through R&D as well as M&A.”Oskar Mühlbach, CEO, Raketech
Raketech CEO ended his interim report comments by expressing his gratitude to leaving Chairman of the Board Christian Lundberg who declined re-election and is set to be replaced by Ulrik Bengtsson.