Raketech Q4 2023 revenue grows 45% YoY as acting CEO eyes new markets and expansion
Johan Svensson says figures serve as solid platform for 2024 despite drop in EBITDA and operating profit in the last three months of the year
Raketech has reported Q4 2023 revenue of €22.8m, up from €15.7m for the same period last year – a 45.3% year-on-year (YoY) increase – on the back of “continued growth within sub-affiliation”.
EBIDTA stood at €6m, down 6% YoY from Q4 2022, which management said was due to the tough comparison of 2022’s World Cup and the “softer development in Sweden”.
Divisionally, sub-affiliation revenue shot up 227.7% YoY, from €3.5m to €11.4m, while there was a 6.6% decrease in affiliation marketing revenue – €9.7m from €10.3m.
Betting tips and subscription income revenue dropped 9.2% YoY, from €1.9m in Q4 2022 to €1.7m over the same period in 2023.
Revenue from the Nordics and rest of Europe both increased 63.2% and 24.4%, respectively, with figures standing at €10.6m in the Nordics and €801,000 across the rest of Europe.
While there was also an increase in revenue from the rest of the world division, a 52.3% YoY increase from €6.1m to €9.3m, revenue from the US fell 14.6% YoY to €2.1m.
Additionally, casino revenue increased 60.4% YoY to €18.4m while there was a 3.7% YoY rise in sport revenue, up to €4.3m.
Raketech’s operating profit for Q4 2023 was also down to €2.8m from €4.3m, with the firm attributing this to “increased non-cash affecting amortisation and depreciation on intangibles assets relating primarily to the prior acquisition of Casumba”.
However, free cash flow increased from €2.2m in Q4 2022 to €4.8m, a 121.2% rise. Likewise, new depositing customers (NDC) showed a 44.5% YoY increase from 52,295 in 2022 to 75,568 in 2023.
Johan Svensson, Raketech acting CEO, noted the rest of the year will be focused on identifying new markets and looking for possible expansions.
He said: “As acting CEO of Raketech, I am fully committed to driving additional value for our company.
“Since I co-founded Raketech, I have always been involved with sales and delivered upon the company’s commercial strategy.
“My goal is to leverage my experience as chief commercial officer and deliver organic growth by further developing our sales processes, evaluating products, maximising business opportunities and producing commercially stronger deals.
“The time is now to identify new markets, evaluate expansion options, assess new partnerships and focus on business growth.
“Together with the management team, I am committed to delivering further value to our shareholders and partners, our board of directors and colleagues across the globe,” Svensson added.
Elsewhere, full-year 2023 revenue came in at €77.7m, a 47.6% YoY rise, while there was further growth in EBITDA, standing at €23.6m, a 17.6% rise.
The affiliate also detailed guidance for 2024 on the back of the group’s performance.
EBIDTA for the year is expected to land between €24m-€26m while free cash flow is estimated to amount to between €22m-€26m, before cash settlements of Casumba earnout of €18.3m.
Key highlights for the affiliate after Q4 included Svensson’s appointment following Oskar Mühlbach’s stepping down at the start of January and revenue for the first month of the year standing at €7.3m, compared to €5m in January 2023.