Raketech’s CEO, Oskar Mühlbach, has stated that the company will not slow down, with increased mergers and acquisitions activities a clear possibility in the coming months.
In addition to recognising “a solid year” amid the disruption, the online partner and content marketing agency has grown for four quarters in a row due to increased digital demand. The company’s revenues increased by 23 percent to €29.4 million.
With this in view, Mühlbach writes in the company’s annual report for 2020: “Strengthened by the achievements made during this turbulent year, where, despite COVID-19, we successfully executed several operational initiatives of strategic importance and we remain committed to grow together with our customers. This we will do by continuing to create the best commercial offering while strengthening our global position.
“Raketech’s sound financial position furthermore allows us to complement our organic growth strategy with continuous and potentially accelerated efforts within the area of M&A during 2021.”
Set of organisational priorities
Raketech claims that its approach for achieving its goals and vision is underpinned by a set of organisational priorities, which it claims act as a guide for ensuring that the company profits from current market developments while still limiting risk exposure.
These include competing on at least three continents, ensuring that no one vertical accounts for more than 60 percent of total sales, having four or five corporate flagship properties, and planning for a broader product portfolio of four or six distinct categories.
Mühlbach added: “We believe in growing together with our partners through expanded geographical presence and a variety in verticals and categories.”
Reduce Nordic dependency
Raketech’s success over the past year was also outlined in the paper, with international growth beyond its home market of Sweden and beyond a core target as it aims to make progress on an aim to “reduce the dependency on the Nordics.”
One key goal was to transform the United States from a strategic destination to a strategic market, which Raketech claims it accomplished thanks to the purchase of AmericanGambler.com in Q4 and the receipt of the required licences and permits to operate casino affiliation in ten states.
“This is important, not only from a risk mitigation perspective but maybe more so from an opportunity perspective where markets like Japan and the US are showing – and expected to continue to show – strong growth in the years to come.
“In Q4 of 2020 we reached 25 per cent non-Nordic revenue share, which compared to only 10 per cent last year is a milestone for us,” Mühlbach notes.
The board of directors has decided to a series of financial goals to ensure that the company follows its agenda. These targets are designed to act as a midterm reference in forecasting and budgeting processes.
This involves aiming for an adjusted EBITDA margin of more than 50 percent (2020: 40.9 percent) and annual net sales growth of more than 30 percent on average.