iGB-Affiliate-Monitor_OCTOBER-2021 - Page 20

RAKETECH SECOND QUARTER REVIEW

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Affiliate Monitor Company-by-company review : Raketech
RAKETECH SECOND QUARTER REVIEW
“ The integration of Infinileads will give Raketech a bigger footprint in LatAm , though at present its revenues are mainly Portuguese , Spanish and Italian ”
THE WIDER WORLD
Raketech appears to be a business that is enjoying itself currently . Revenues for the second quarter once again came in at an all-time high of € 8.8m , up 25 % on the prior year period and also 6 % up sequentially . EBITDA , meanwhile , rose 21.4 % year-on-year and was also up 6.2 % sequentially .
The only slight concern would be that NDCs of 34,839 were down both year-on-year and sequentially by 12.6 %. Chief executive Oskar Mühlbach said on the earnings call that NDCs were “ becoming less indicative as a metric ,” without truly explaining how or why .
“ We managed to beat the alltime high from the fourth quarter 2020 ,” he added . “ On a general level our operation performance was stable and organic growth slightly above overall growth .”
Notable was the geographic statistics which showed that Raketech ’ s non-Nordic revenues also hit an all-time high as the company continued its diversification away from its core Nordic revenues . In fact , following the acquisitions of Infinileads and QM Media , Raketech saw non- Nordic revenues rise to 39 % of total revenues .
The integration of Infinileads will give Raketech a bigger footprint in Latin America , though at present its revenues are mainly Portuguese , Spanish and Italian while the deal for P & P Vegas Group and QM Media added US and Indian exposure . Japan also remains a solid performer for the company .
“ We strongly believe in the Nordics , but it ’ s important to have a wide geographic spread of revenues ,” added Mühlbach .
One area of success has been in the rollout of free-to-play games which the company launched just before the Euros in the summer . The games offered prizes worth € 100,000 and included various daily tipping competitions . “ We are still experimenting and testing user appetite and ( our ) ability to monetise ,” Mühlbach said . “ The results were encouraging .”
MORE M & A
More acquisitions are on the agenda given Raketech has recently agreed a new revolving credit facility with Avida Finans worth up to € 15m . As per the earnings presentation , Raketech put the case for why acquisitions are good for the company .
The deals recently announced mean margins have increased by 4 %, the share of revenue now accrued from sports betting has risen by 25 % and the levels of US iGB Market Monitor