US acquisitions drive record Raketech revenue of €11.8m in Q4 2021
Sports betting revenue climbed by 149.5% year-on-year to €2.6m to account for 22.1% of total revenue in Q4, compared to just 12.4% in the prior corresponding period.
The increase was a result of Raketech acquiring US sports media affiliate P&P Vegas Group for €16m in 2021 and the $15.5m purchase of tipster portal provider ATS Consultants.
Q4 casino revenue rose by 27.7% to €9.2m and contributed 77.9% of overall revenue during the reporting period, compared to 85.4% in Q4 of 2020.
The acquisitions saw growth from markets outside the Nordics explode by 154.6% to €5.5m to provide 46.2% of total, while Nordic revenue came in flat year-on-year at €6.4m to make up the remainder.
Raketech said the last months of the year were focused on the integration of these acquisitions. It has also established a proper business unit in the US to be led by US MD and former GAN executive Danielle Parsons.
The company now expects the US to account for 20% of overall revenue in Q2 2022.EBITDA jumped by 49.5% to reach €5.4m in Q4 on an EBITDA margin of 46%.
Despite the EBITDA and revenue growth, new depositing customers (NDCs) fell by 11.7% to 40,964, which Raketech said was due to the company targeting fewer – but higher value – leads.
The M&A activity also saw direct expenses, employee benefit expenses and other expenses increase during the quarter, while full-time employees grew to 93, up from 78 last year.
After the close of the reporting period, Raketech revenue amounted to €4.5m in January, up 66.6% year-on-year to mark another all-time high for monthly revenue.
“The strategically important goals, as set in early 2020 relating to diversification within verticals, technology and geography, are essentially delivered and with local resources in place in the US, strong assets on growth markets such as in southern Europe, South America, Canada and India, I believe we have a solid growth platform to build on,” he added.
Looking at full-year 2021, Raketech reported a 31% annual increase in total revenue to €38.5m.
Raketech’s share price was unmoved in early trading on Nasdaq Stockholm. It currently stands at SEK25.55 per share.