Raketech

Year-end Report 2019

STOCKHOLM, Feb. 19, 2020 /PRNewswire/ -- FOURTH QUARTER 2019

• Revenues totalled EUR 5.8 million (EUR 7.6 million) representing a decrease of 23.3%.
• NDCs (New Depositing Customers) amounted to 28,002 (35,948).
• Adjusted EBITDA amounted to EUR 2.0 million (EUR 4.5 million), corresponding to a margin of 33.6% (59.3%). 
• Adjusted operating profit amounted to EUR 0.3 million (EUR 3.8 million).
• Earnings for the period amounted to EUR -0.3 million (profit EUR 1.7 million).             

FULL-YEAR 2019

• Revenues totalled EUR 23.9 million (EUR 25.6 million) representing a decrease of 6.5%.
• NDCs amounted to 108,365 (99,599).
• Adjusted EBITDA amounted to EUR 11.0 million (EUR 14.4 million), corresponding to a margin of 46.0% (56.3%).
• Adjusted operating profit amounted to EUR 6.5 million (EUR 12.7 million).
• Earnings for the period amounted to EUR 7.2 million (EUR 4.6 million).             

CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER

"Looking back at 2019 it can easily be described as an eventful and challenging time. Not only for Raketech but also for the affiliation industry and the iGaming sector as a whole.

The Swedish gaming market has been particularly tough which with Raketech's heavy Swedish presence added to our challenge. On a positive note, 2019 was also a year where we made good progress in strengthening our product mix, expanding our geographical footprint as well as our operational capacity. This was achieved through strategic acquisitions, a series of key recruitments and relentless efforts within process improvements to ensure we are ready to grow and scale efficiently. We were also able to, for the first time in the company's history, reach over 100 000 NDCs in a full year.

STRONG REVENUE FINISH AND EXCEPTIONAL EVENTS

We experienced a slow start of the fourth quarter, which was both disappointing and somewhat surprising as it is normally seasonally strong. Especially since our product portfolio showed stable operational performance with increased NDC intake of 5 percent compared to the previous quarter.

Our response to the slow start was to launch a series of targeted paid media efforts, granular site audits, individually tailored operator campaigns, improvements to our top list algorithms and more. This, in combination with a slight general market upswing resulted in a confident finish landing the quarter as a whole just slightly lower than the previous quarter. Revenues in the fourth quarter amounted to EUR 5.8 million, representing a decrease of 23.3 percent compared to the corresponding period last year and 1.8 percent lower compared to previous quarter. Adjusted EBITDA amounted to EUR 2.0 million with a margin of 33.6 percent.