Raketech stands by elevated 2023 targets as media is refreshed by Casumba M&A

Raketech Plc remains on track to deliver its best year in business to investors, underscored by its enlarged media network integrating the new assets of Casumba Media.

Publishing its Q3 trading results, Nasdaq OMX-listed Raketech achieved its elevated target, generating corporate revenues of €21.5m, up 66% on 2022 comparatives of €13m.

Headline growth was achieved despite Raketech countering a ‘slower than anticipated performance in the Nordics’ for the flagship properties of its media portfolio.

Nordic adjustments were offset by the ‘commercially robust’ structure of Raketech’s media network, which accounted for a revenue makeup of 44% in Affiliate Marketing, 52% in Sub-Affiliation, and 4.5% in Subscription Fees.

A breakdown of income by segment saw Raketech generate casino revenues of €18m, up 89% on 2022 results of €9.7m, while sports betting revenues were maintained at €3.1m.

The growth of its media network is attributed to a focus on ‘fewer well-established brands,’ such as the newly-acquired Casumba Media properties, expanding Raketech into Japan.

Group revenue in the Nordics surged by 58.8%, while revenue from the rest of the world more than doubled to €9.25m. Both Europe and the US recorded revenues of €1.11m each, although the US faced a 25.4% decline.

An advisory notice detailed ‘US declines’ as Raketech will refocus its US properties on efficiency to help execute its growth plan.

Period trading saw Raketech’s adjusted EBITDA stand at €5.6m, up 16% on 2022 results of €4.8m. The increase in earnings is attributed to the robust performance of Casumba under the company’s network strategy and significant gains in sub-affiliation.

Q3 bottom-line results saw Raketech register a 24% decline in operating profits to €2.2m (Q3 2022: €2.9m) as period trading accounted for costs related to the acquisition of Casumba properties.

Group CEO Oskar Mühlbach reaffirmed the 2023 targets, explaining: ‘With three solid quarters behind us, we expect to comfortably close 2023 in line with our previously increased guidance with regards to EBITDA at €23-25 millon as well as free cash flow in the interval of €13-15 million, while beating the €65-70 million revenue guidance. Within our high-margin business area, Affiliation Marketing, we remain committed to our flagship strategy, focusing on fewer and better-established brands.