Raketech Post Strong Q1 Growth Across Core Metrics

Raketech posted strong growth across all core metrics in Q1 2021, with an annual growth rate of 27 percent, citing market performance in the United States and Japan as main drivers.

Overall group sales rose to €8.3 million (Q1 2020: €6.5 million), with sports earnings accounting for 17 percent of total group trading – a year-on-year rise of 27 percent.

The casino remained the group’s most profitable asset, accounting for 82.5 percent of total sales, up from 78.5 percent a year ago, while profits from other sources dropped from 5 percent to 0.5 percent.

Operating profits were €1.6 million (2020: €1.4 million), up 14.2 percent year on year, while EBITDA was €3.2 million, up 22 percent (2020: 2.6 million).

Non-Nordic sales increased by 35 percent, with Japan standing out as a bright spot, delivering record numbers across the board, from traffic and sessions to monetisation.

Profitable US operations

Furthermore, Raketech’s operations in the United States were profitable, as the Super Bowl and the company’s entry into the states of Virginia and Michigan following the successful awarding of gaming licenses’significantly moved the needle’ in the mid-quarter period.

Raketech continues to diversify its sales mix away from its Swedish home market dependence, with profits from Sweden now accounting for 38 percent of total group revenue, down from 55 percent in Q1 2020.

The publisher outlined business growth in the Japanese and US betting and gaming industries as the key methods for breaking the Swedish reliance and acquiring additional sources of revenue.

Japan leading the way

Japan was listed as ‘leading the way,’ accounting for 11percent of global sales, while US operations accounted for 6 percent – a statistic Raketech interpreted as a sign of the company’s ‘high ambitions on the American market.’

Despite the fact that the acquisitions of AmericanGambler and Lead Republik increased direct company expenditure to €2.9 million (2020: €1.6 million), these acquisitions were described as key revenue growth drivers for the company.

However, the company acknowledged that the higher profits from the mergers were partly offset by a drop in revenue from the sale of consumer finance properties in the fourth quarter of 2020.

Furthermore, low seasonality on other markets, as well as increased gambling tax in Denmark and payment blocks in Norway, ‘slightly moved back’ the aforementioned ‘needle,’ while Casinofeber posted lower revenue than previously.

Continued positive momentum

Oskar Mühlbach, Raketech Group CEO said: “I am pleased to be able to conclude that the positive momentum we showed in Q4 continued into Q1 and resulted in yet another stable quarter. Furthermore, April revenues amounted to EUR 2.8m, despite the US slowing down slightly after the Superbowl peak. 

“The Raketech team is currently focusing on ensuring we maximise the potential from the European Championships in Football coming up in June in addition to our continuous efforts to ensure we deliver on strategic goals with regards to geographical expansion and commercial diversification, through R&D as well as M&A.”

Mühlbach concluded his remarks by thanking outgoing Chairman of the Board Christian Lundberg, who declined re-election at Raketech’s annual general meeting in May, and welcoming in new Chairman Ulrik Bengtsson, the current CEO of William Hill.