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Chart 13 : Raketech EBITDA Q321-Q223 (€ m )
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SUB STRENGTH
The other key area of success is the sub-affiliation business , which Mühlbach said was a “ super interesting area ”.
He explained : “ We add value both to the operator by granting access to great affiliates on markets with high demand , and to affiliates , we make sure they get paid as well as provide access to a large portfolio of great commercials from the world ’ s leading operators . This is also a great way for us to monetise markets or segments where our own presence is not as big .”
He noted that within the sub-affiliation area , Raketech operated the Affiliation Cloud , which essentially is long-term partnerships with other affiliates running digital assets similar to Raketech ’ s own .
The other element is what the company calls its network , which Mühlbach said is “ more opportunistic ”, targeting primarily affiliates running campaign-based marketing originating primarily from paid sources .
“ The latter part is where we ’ ve had the greatest success ,” he told the analysts .
QUALITY STREET
With its view of the market as a whole , via its owned properties as well as the sub-affiliation viewpoint , Mühlbach said the gaming affiliate space is “ turning towards more quality ”.
He added : “ Therefore , we focus on fewer but better products now than we did a few years ago ”.
Chief financial officer Måns Svalborn chipped in that it was “ worth pointing out that all growth is also organic growth , which is positive to see ”.
Another benefit of the ending of the earnout agreements with CasinoFeber and also some other smaller deals is the benefit in terms of cash flowing through to the bottom line . With only the Casumba earnout now outstanding , Svalborn noted that of the € 5.5m EBITDA figure in Q2 , almost € 4.8m flowed through to net cash .
“ We expect to see a similar cash generation as we head into Q3 and Q4 ,” he added .
On the Casumba earnout , Svalborn added that it has been a “ very successful acquisition ”, targeting the high-growth , highmargin market of Japan . He said that Raketech would be able to settle the earnout with existing projected cash flow , though he noted that there was also the option of settling part of it with shares .
October 2023