Raketech refined network nets record Q2 sales results
Raketech Plc has registered record trading results, lauding the growth of its publishing network, servicing multiple geographies and helping offset dependence on Nordic markets.
Publishing its Q2 2021 trading update, Raketech registered group revenues of €8.8 million, up 25% on corresponding 2019 results of €7 million.
Q2 revenue growth was maintained despite Raketech recording a 15% decrease in new depositing customers to 34,800 (Q2 2020: 40,800) – as Raketech adopted a new commercial strategy to work with fewer operators that deliver ‘best earnings effective performance’.
Despite the period’s NDC slowdown, Raketech detailed that its publishing network had benefitted from continued strong sales growth in Japan and the integration of a revenue effective AmericanGambler website added to its portfolio.
“The strong numbers from outside of the Nordics made our non-Nordic revenues increase as share of total. Total non-Nordic revenues amounted to 39%, compared to 35% previous quarter and 19% previous year. The development is in line with our ambition to increase our global footprint,” noted Raketech CEO Oskar Muhlbach.
Registering improved organic growth generated from its refined network strategy, Raketech increased its Q2 EBITDA results to €3.4 million (Q2 2020: €2.8m)
Supporting the expansion of its publishing network, Raketech registered period operating costs of €3.1 million, as Q2 operating profits were maintained at €1.2 million.
Entering H2 trading, Raketech has further enlarged its publishing network, having completed the July acquisitions of P&P Vegas for the North American market and Spanish/LatAm markets casino publisher Infinileads SL.
Raketech 2021 growth strategy will be supported by the company securing rights to a €15 million credit facility provided by Avida Finans AB.
“After the end of the quarter, several important milestones were passed,” Muhlbach continued. “A key activity was that we managed to secure access to additional funding to help us continue, and to some extent also accelerate our M&A efforts, in the form of a new and increased Revolving Credit Facility (RCF) from Avida Finans.”
“This new RCF will be replacing the existing one during the fourth quarter, but we will also continue to evaluate further long-term financing opportunities, in line with our growth strategy and M&A agenda.”