Raketech describes Q2 as “yet another stable quarter” as revenue jumps 29%

Raketech has reported a 29% year-on-year YoY rise in revenue to €11.3m (£9.5m) for the second quarter.

The Malta-based affiliate confirmed adjusted EBITDA of €4m, corresponding to an EBITDA margin of 35%. Both figures were an increase on the corresponding period in 2021, but affected by US seasonality.

Raketech reported a 4% hit on its organic growth during the latest quarter, with the firm affected by changed regulations in Finland and re-regulations in the German and Dutch markets forcing a closure of its operations there.

US revenue increased by triple digits YoY during Q2 to €1.3m, despite US sports entering the traditional low season.

Raketech’s sports division was the big winner, with revenue rocketing 169% YoY to €3.5m, corresponding to 31% of the total revenue generated by the affiliate.

Revenue from Raketech’s newly launched Affiliation Cloud amounted to €200,000 during the Q2 period.

In respect of operational highlights, Raketech cited strong performance from most of its core assets following a recent ‘core’ update by Google.

The firm also pointed to continuous investment in its US business as well as ongoing technology development, encapsulated in the Affiliation Cloud launch as providing a platform for consolidation.

After considering these circumstances and the fact that the company’s Q2 results from the previous year included both a digitalisation boost due to COVID-19 and increased numbers thanks to the re-scheduled Euro 2020 tournament, Raketech CEO Oskar Mühlbach was upbeat about Raketech’s Q2 performance.

Describing it as “yet another stable quarter”, he said: “It gives me confidence to see that our assets are holding up strong despite such tough comparison numbers and a generally negative reported Q2 iGaming sentiment,” Mühlbach said.

“Our core portfolio of affiliation marketing assets delivered results in line with Q1, despite challenging market conditions and low seasonality. Again, proving the strength of Raketech’s well diversified asset portfolio, as well as our well balanced vertical and geographical split.

Mühlbach continued: “During the quarter Google rolled out one of their ‘core updates’ that affected us in a positive direction, which is an additional testament that we are doing things right. Worth mentioning in this context is that several of our flagship assets on the, for us so important Swedish market, experienced increased organic visibility.

Mühlbach also highlighted current projects relating to Raketech’s flagship Casinofeber brand, which as of February 2023 will be operated solely by Raketech’s central operational team after being handed over from its original group.

“I am very excited about this, not only from a product development perspective but also very much from a cash flow perspective as the full operating cash flow from this asset will be made available for Raketech in its whole once the final earn out is settled at the end Q1 2023,” he added.

With the NFL season coming to a start and the World Cup also on the horizon in November/December, Raketech has since re-iterated its full-year aim of 2022 revenue of between €50m-€55m with an estimated EBITDA margin within 40-44%.

At the time of writing, Raketech shares were flat at SEK17.50 (£1.39) after making some initial gains.