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Affiliate Monitor Company-by-company Q3 results analysis
€ 11.3m in cash , was financed with a one-year € 15m revolving credit facility arranged with Avida Finans . The facility has an interest rate of 4.25 % as well as an unspecified commitment fee that was paid upfront .
Announced in early November , the deal for ATS transforms Raketech ’ s revenues both geographically and in terms of product split . Revenues derived from the US will rise by 20 % out of the gate in the first quarter of next year while Raketech ’ s revenues from sport will also be boosted to 35 % of total revenues . This compares with the 16 % from sport as of the third quarter .
The ATS deal comes on top of other recent acquisitions , including in the third quarter the deals for P & P Vegas and the assets of QM Media and Infinileads .
With the revenues from recent acquisitions starting to flow , Raketech said that October saw € 3.8m of revenues alone . Should that be matched or bettered in November and December , it could see the company breach € 10m for the fourth quarter .
Noting the contribution from Sweden , Mühlbach said on the call that with the full relaxation of the government-imposed pandemic measures due in November , it meant that the momentum in that jurisdiction would continue .
“ We have already seen an increased appetite from operators for investing in marketing in
Chart 14 : Raketech product split Q321 (%)
Sport 16 %
Source : Company reports
the fourth quarter ,” he said .
Other 0.5 %
“ Additionally , we think that some of the players that have been attracted offshore will come back into the regulated system .”
But he noted that Raketech ’ s partner operators were multinational , hence the more concerted move into other jurisdictions . This particularly applies to the US which remains only a fraction of what the company hopes it will be once the revenues from the recent acquisition kicks in .
Mühlbach went on to lay out the new metrics for Raketech for 2022 and beyond :
• 20 % revenues from the US
• 55 % non-Nordic
• € 50m + annual revenues
• 35 % sports share
• 40-45 % EBITDA margin
It will be of interest not just to Raketech as to whether these targets are met .
Casino 83.5 %
“ We have already seen an increased appetite from operators for investing in marketing in the fourth quarter ”
OSKAR MÜHLBACH , RAKETECH iGB Affiliate Monitor