CEO Oskar Mühlbach on Thursday stated that Raketech is “confident” going into the rest of 2023, having already recorded a “successful” start to the year.
This came after the Malta-headquartered iGaming affiliate company shared its first quarter Interim Report for 2023, in which it announced €6.1 million in earnings before interest, taxes, depreciation and amortisation (EBITDA), a 20.1 per cent increase from the figures in the corresponding period in 2022 (€5.1 million). These improved results were largely brought about by a record performance in terms of revenue, with it standing at €15.8 million for the first three months of 2023. This represents a 24.4 per cent surge from the figures in 2022’s opening three months (€12.7 million). The quarter indicated an improvement in the company’s core portfolio of affiliation marketing, growing from €8.2 million to €10.8 million, with particularly notable results from its Rest of World segment.
Additionally, the company also revealed that revenues in April 2023 amounted to €5.9 million, €2.1 million or 55.3 per cent more than in the same month in 2022. This was primarily driven by “continued strong growth” in sub-affiliation.
Commenting on the performance, Mr Mühlbach stated that 2023 started on a “strong note” for the company, particularly through its revenue numbers, which is a “new all-time high”. He remarked that this was primarily generated within its “core, high margin segment” of affiliation marketing.
“During the first quarter, we continued to pursue our strategy for profitable growth, leveraging on our diversified portfolio within affiliation marketing, sub-affiliation, and betting tips and subscriptions,” he explained.
The company’s revenue from affiliation marketing, grew by 32 per cent, with Mr Mühlbach adding that it recorded “exceptional” results from its Rest of World segment, with its brands Casumba and OnlineCricketbetting “leading the way”. “Additionally, our flagship assets in the Nordics continued to deliver according to plan, which is comforting considering that Casinofeber since March is being operated entirely by Raketech’s central team, post earn out,” he added.
He remarked that Affiliation Cloud, Raketech’s affiliation infrastructure solutions service, “continued to deliver progress” according to expectations, yet the majority of the growth was attributed to “strong results” from network sub-affiliation in South America.
Mr Mühlbach added that revenues from the company’s smallest business area, betting tips and subscriptions, were down by 31 per cent, primarily due to its “win-share component” which is based on sport betting predictions.
Turning to Raketech’s United States (US) operations, he added that efforts, particularly when it comes to adding affiliation offerings to the existing Pickster assets, are “progressing well”, but “somewhat at a slower pace than anticipated”. He noted that during the first quarter, the company “enforced” its team in the US with a Managing Director and are in the midst of launching “several initiatives to increase speed of delivery”, the effects of which are expected to be seen by “the end of the year and come into full effect as of 2024”.
He added that Raketech’s management is “very pleased” so far with the return on investment in its recently acquired Casumba, which is “well above” the company’s expectations in terms of growth and projected post earn out cash flow contributions.
Looking ahead towards the rest of the year, he noted that the company is “confident” of reiterating its previously communicated revenue guidance for the full year, excluding acquisitions, of €60-65 million in 2023 and an EBITDA of €20-24 million. Mr Mühlbach added that free cash flow is “in line with the guidance” and is “expected to increase substantially” to around €11-13 million.
Raketech, which was founded in 2010 and since 2016 has been headquartered in Malta, was built on its vision to “always be the first choice” by driving the industry users and partners at its “core”. It delivers relevant and simplified content within iGaming and helps connect consumers to the services that meet their needs.
Raketech CEO Oskar Mühlbach / LinkedIn
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