Q1 2024: Sustained Revenue Growth Despite Unexpected Challenges

TRIQ I-IMSIDA IL-GZIRA, MALTA / ACCESSWIRE / May 15, 2024 / Raketech (STO:RAKE)

QUOTE FROM JOHAN SVENSSON, ACTING CEO
"In the first quarter of 2024, we delivered EUR 19.0 million in revenues, representing an organic increase of 20.1%, primarily driven by Sub-affiliation. Adjusted EBITDA came in at EUR 5.1 million, while EBITDA was EUR 4.3 million, consistent with our trading update published on 1 May. We remain confident in our market-leading product offerings and see promising growth opportunities through our strategic initiatives in sports offerings, exclusive partnerships, and media deals. These efforts will position us well for continued growth in the coming years, and we remain committed to maximizing shareholder value."

Q1 2024 FINANCIAL HIGHLIGHTS

• Revenues in Q1 of 2024 totaled EUR 19.0 million (EUR 15.8 million), reflecting an organic growth increase of 20.1% (24.4%), driven by continued strong performance from sub-affiliation partially offset by weaker-than-expected results within affiliation marketing.
• EBITDA, adjusted for restructuring costs, was EUR 5.1 million (EUR 6.1 million), impacted by a weaker performance in Sweden compared to the previous year and soft performance of the Casumba assets following the Google Core update during the quarter. Other regions and products performed well, with sub-affiliation delivering a strong quarter in terms of EBITDA contribution.
• Operating profit, adjusted for costs related to re-structuring, amounted to EUR 2.0 million (EUR 3.8 million).
• Free cash flow before earnouts increased to EUR 6.5 million (EUR 5.6 million) with a positive working capital development from trade receivables.
  • Earnouts settled during the quarter amounted to EUR 13.0 million.

OPERATIONAL REVIEW
We have concluded a thorough operational review, reaffirming our strategic priorities and aligning resources with our long-term growth objectives. Additionally, we have implemented efficiency measures and cost-cutting initiatives designed to optimize our operations and enhance profitability.

FULL-YEAR OUTLOOK
Current trading, including April, implies an adjusted EBITDA of around EUR 20.0 million for the full year. Free cash flow before earnouts for the full year is estimated to come in just below adjusted EBITDA.

SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD

WITHDRAWAL OF DIVIDEND PROPOSAL
On May 14, 2024, the board decided to withdraw its previously announced proposal to distribute dividends in 2024, in line with its commitment to maintaining financial flexibility and supporting the company's long term growth ambitions. The primary focus is delivering value to shareholders and continuing to evaluate opportunities to enhance shareholder returns in a way that aligns with the Company's long-term value-creation objectives.