Raketech shares slip despite revenue rocketing 65% in Q3 2023
As part of the operator’s virtual investor day, CEO Jason Robins paints a bullish picture as he claims the operator is in control of its destiny
Raketech has posted record revenue of €21.5m as the group’s sub-affiliation division continues to see increased demand.
Total group revenue shot up 65.8% year on year (YoY) from Q3 2022’s €13m, with the sub-affiliation segment reporting a revenue surge of 264.2%.
The division’s revenue increased from €3.1m to €11.1m, representing 51.6% of the business’ overall revenue.
The firm’s affiliation marketing arm saw revenue rise slightly by 9.6% YoY from €8.6m to €9.5m.
Elsewhere, Raketech’s betting tips and subscription revenue dropped 27.8% to €933,000.
Group EBITDA increased 16.5% to €5.6m, driven by strong development in Casumba and the positive growth within sub-affiliation.
Looking at revenue from a vertical point of view, casino continued to be the dominant arm with €18.4m in revenue, corresponding to 85.7% of total group revenue.
Sports accounted for 14.3% of revenue after returning €3.1m in Q3.
Elsewhere, first time depositors (FTDs) soared by 91%, from 39,552 to 75,552 for the affiliate.
Following the Q3 update, Raketech confirmed that it is expecting to hit its full-year guidance of EBITDA between €23m and €25m as well as net cash flow of between €13m and €15m.
The affiliate added that it expects to beat its target revenue of between €65m and €70m.
Additionally, revenue in October alone reached €7.7m in the first month of Q4, surpassing the €5m hit in the same period last year.
Oskar Mühlbach, Raketech CEO, commented: “We are pleased to report another strong quarter, in line with the updated trading guidance for 2023.
“The team reached an all-time high in revenue performance and organic growth and a solid EBITDA, supported by the strong demand for our infrastructure solutions in sub-affiliation and complemented by stable growth at higher margins in our core segment affiliation marketing.
“We are operating in one of the most competitive and fast-moving global marketing environments, and I am proud of our committed teams spread across various locations.
“Working tirelessly for Raketech, our clients, partners, and shareholders, we have achieved another strong quarter that aligns with market expectations. Thank you to everyone who played a part in this success.”
Despite the record financial results, Raketech’s share price was down 4.5% at the time of writing to SEK16.96.