Raketech reports record 53% Q1 2022 revenue rise as US growth hits triple-digits

Raketech has reported a 53.3% year-on-year rise in its Q1 2022 revenue to €12.7m (£13.2m).

Releasing its latest financial update for the first three months of the year, the affiliate confirmed growth in all sectors, most notably from the US market where revenue skyrocketed 380% to €2.4m ($2.5m).

Raketech’s sports revenue also rose by triple-digits in Q1, jumping 208% year-on-year to €4.3m from a prior Q1 2021 high of €1.4m, and corresponding to 34.2% of the firm’s total revenue, up from 17% from a year prior.

Raketech attributed this rise to growth afforded by its recent acquisitions, which include QM media and Infinileads. The affiliate’s reported EBITDA jumped 58% during Q1 to €5.1m, corresponding to an EBITDA margin of 40.1%.

Raketech has also confirmed that its April 2022 revenue is set to continue this upward trajectory, with reported April revenues up 36% year on year to €3.8m.

In his remarks about the Q1 period, Raketech CEO Oskar Mühlbach highlighted the growth of the twin 2021 acquisitions in targeted markets including India, the south of Europe and the US markets.

However, Mühlbach sounded a note of caution in the form of headwinds in Finland, where advertising regulations have been imposed affecting operator partners, as well as a slight decline in the fortunes of its largest platform, Casinofeber.

The impact, Mühlbach suggested, had “dampened” growth in another of Raketech’s key markets of Sweden, where growth had been reported during Q1.

“The first quarter of 2022 was yet another revenue record for Raketech Group, much thanks to our recent ATS acquisition that contributed with substantial and important US revenues,” Mühlbach said.

“Which, during the quarter was neck on neck with Sweden as Raketech’s largest market, showcasing a growth of 380% in absolute terms year over year,” he added.

Alluding to the affiliate’s 2022 forecast, Mühlbach continued: “We are still aiming at a top line revenue in the span of €50-€55m and an EBITDA margin between 40% and 44%.

“We believe that it is likely that we land in the higher end of this interval with regards to revenue and in the lower end with regards to EBITDA margin. H2 is traditionally a stronger period and with the World Cup in Football in November we have no reasons to believe otherwise this year,” the Raketech CEO explained.

In addition to revealing the firm’s Q1 2022 results, Raketech has confirmed the launch of an in-house developed division, known as the “Affiliation Cloud”, which aims to serve as a one-stop-shop single access API for affiliates.

The Affiliation Cloud includes commercial services, data analytics and marketing information.

“To the operators, the Affiliation Cloud provides easy access to a world of vetted, compliant, and high quality affiliates, saving both time and money, while improving marketing efficiency,” Mühlbach said.

“Currently, we are beta testing the Affiliation Cloud and we expect to roll it out full scale during H2 2022, and we project it to add at least €10m worth of incremental revenues annually within two years from launch, at approximately 10%-15% margin,” he added.