Raketech Q3 revenue climbs 35% as acquisitions drive uptick across US business
Malta-based affiliate Raketech has generated €13m in revenue in Q3 2022, representing a nearly 35% increase year-on-year and 15% growth compared to the previous quarter.
Revenue growth was primarily achieved on the back of improved activity in the sports betting segment, as well through recent acquisitions focusing on US sports.
US revenue amounted to €1.5m in the reporting period, up from €300,000 in Q3 2021, and accounted for 11.5% of the company’s total revenue.
However, the Nordics remains Raketech’s most important market, where it generated €6.3m, while revenue from Rest of the World totalled €4.5m.
Sports revenue came in at €3.2m, making up nearly 25% of the company’s total revenue, while casino accounted for €9.7m, or 74.8%, of total revenue.
However, organic growth declined from 25.6% in Q3 2021 to 14.2% in Q3 of this year.
Raketech said the annual comparison was still being affected by regulatory headwinds in the Finnish and Dutch markets, as well as by tough comparisons with Covid-boosted numbers last year.
Adjusted EBITDA amounted to €4.8m, which is slightly stronger than the €4.4.m reported in Q3 2021, but the adjusted EBITDA margin of 37.1% (46.0%) was lower than last year. This, Raketech said, was the result of changes in its market mix, in combination with continued investments.
Raketech strengthened its sports betting portfolio and US footprint by acquiring P&P Vegas Group and ATS Consultants at the end of last year.
Raketech CEO Oskar Mühlbach: “The main uplift started to show at the end of the quarter which is promising for the rest of the US sports season but potentially less significant for Q3.”
Raketech CEO Oskar Mühlbach commented: “Traffic and engagement on our products were in many markets showing record levels, with the US standing out positively.
“As expected though, the main uplift started to show at the end of the quarter which is promising for the rest of the US sports season but potentially less significant for Q3.”
During Q3, Raketech onboarded several new sub-affiliates onto its AffiliationCloud, Raketech’s new proprietary portal that allows partners to track all links.
Raketech said it planned to increase its investment in the portal to shorten the time to full launch. Currently in the testing phase, 20 partners had signed up to it by the end of the quarter.
October revenue amounted to €5m, “demonstrating a continuation of the strong momentum at the end of Q3”, Mühlbach said.
“With the FIFA World Cup around the corner, casino approaching its high season and a busy sports schedule in the US, all factors are pointing at a strong end of the year,” he added.
Raketech reaffirmed its previous revenue guidance and expects full year revenue to come in between €50m and €55m.