Raketech Revenue Shoots Up in Q3 To Touch New Heights
Author:
Muhammad Gregory
Placed among the leading iGaming and online sportsbook solutions providers in the world, Raketech has reported record-high organic growth that has marked a 66 percent year-on-year (YoY) increase in revenue. The growth also contributed to the 48.5 percent YoY increase in revenue for the first nine months of the year, as the figures rose from €37 million between January 2022 and September 2022 to €54 million in the same period this year. More than half of the total revenue was generated from the Nordic nations and other European jurisdictions.
Raketech revenue in Q3 2023 has touched an all-time high.
?1981 Digital/Unsplash
Raketech was established in 2010 as an online poker affiliate primarily concentrating on lead generation for the Nordic nations. The Malta-based company has gained credibility and built its reputation in the international markets as it has entered many jurisdictions on the American, Asian, and European continents. Its constant expansion and promising growth have transformed the entity into one of the world’s leading online affiliate and content marketing companies. In a rampantly growing digital world, where individuals prefer iGaming and online sports betting over traditional gambling experiences in brick-and-mortar casinos or gambling halls, operators require a robust online presence, especially on social media platforms. Since Raketech offers services, including online guides and social media products, it attracts the attention of several iGaming and online sportsbook operators. The more operators jump on board with Raketech, the more organic revenue it attains. Simultaneously, the company also focuses on mergers and acquisitions (M&A), always scouting for promising prospects or established entities to acquire.
Four years after its launch, Raketech implemented the M&A strategy to expand and grow in different parts of the world. A year after the strategy was implemented, the company acquired CasinoGuide.se and Spelaspel.se. Raketech marked the start of the final quarter of 2016 with the inauguration of its new headquarters in the gambling-friendly jurisdiction of Malta. The favorable taxation system of the country boosted the company’s growth as it acquired TVMatchen.nu in April 2017. The acquisition of CasinoFeber.se was completed in the second quarter of 2018, a month before its first day of trading on the Nasdaq First North Premier stock market, followed by the acquisition of Shogun Media. Later that year, Raketech established a strategic partnership with the Swedish Gambling Association (Sper). The year ended with more positive news from Scandinavia after the Malta-based company acquired Norsk Kreditt. In the second quarter of 2019, Raketech completed the takeover of TV Matsit and, a year later, completed the acquisition of Lead Republik. In the final quarter of the pandemic-inflicted year of 2020, Raketech entered the US market after the American Gambler takeover.
Over the last three years, Raketech has kept its proactive approach consistent in the global gambling market and has grown steadily. The positive outcomes of all its operations are reflected in the financial reports. After publishing the latest report, the Maltese company confirmed a record-high revenue in the third quarter of this year. The revenue spiked 66 percent YoY, growing from €13 million in Q3 2022 to €21.5 million in Q3 2023. The revenue also recorded a 22 percent quarter-on-quarter (QoQ) increase. Revenue in the previous quarter of this year touched a record-high figure of €17.6 million. The Casino segment roped in 85.5 percent of the total revenue after reeling in €18.4 million, while the Sportsbook segment contributed €3.1 million. Almost 52 percent of the revenue was generated from European jurisdictions, of which over 46 percent came from the Nordics. The EBITDA increased 16.5 percent and touched €5.6 million, while the operating profit margin decreased by 24.7 percent YoY, from €2.9 million to €2.2 million. Raketech has recorded positive results in all three quarters this year and is expected to close the year with another record-high quarter.
The CEO of Raketech, Oskar Mühlbach, was content with his company’s performance in the third quarter of this year.
“We are pleased to report another strong quarter, in line with the updated trading guidance for 2023. The team reached an all-time high in revenue performance and organic growth and a solid EBITDA, supported by the strong demand for our infrastructure solutions in Sub-Affiliation, and complemented by stable growth at higher margins in our core segment Affiliation Marketing.”
Raketech Extended Its Credit Facility Last Month
In October this year, Raketech confirmed that it had extended its revolving credit facility with Avida Finans AB. The existing credit facility of €15 million has been extended till December 2024. The facility will drop to €10 million at the end of the first quarter and then reduce to €5 million at the start of the third quarter and remain the same till the end of the year. In the last month of the first quarter of 2024, the interest will increase by 0.25 percent per annum.
The credit facility plays a crucial role in Raketech’s growth in the global gambling market. It enables the Malta-based company to finance working capital, fund other necessary investments, and provide capital for acquisitions. It can also be utilized for general corporate purposes. The one-year revolving credit facility is expected to come into the picture soon as Raketech goes out on the prowl for acquisition prospects.
MGA’s Jurisdiction Has Helped Raketech Grow
Apart from the well-constructed operation framework of Raketech, the location of their primary operations also plays a big part in their success. Six years after its establishment, the company launched its new headquarters in Malta – a country known as the world’s gambling capital. Home to over ten percent of the world’s online gambling companies, Malta’s jurisdiction benefits all entities that provide gambling services or solutions, catering to the B2C and B2B verticals in the sector.
The Malta Gaming Authority (MGA) has subsidized tax for several gambling operators and solution providers under specific criteria, and several such entities have benefitted from it, including Raketech. In addition, the gambling laws are company-centric and also meet the strict European gambling standards, thereby following all necessary directives to maintain a clean gambling market. Despite being company-centric, the MGA is known to penalize any operator that violates Malta’s gambling code. Recently, the regulator revoked Arabmillionaire’s license after the operator breached multiple laws.
