QUOTE FROM OSKAR MÜHLBACH, CEO
“The strong operational development for Raketech continued during the second quarter of 2020 with several initiatives launched and improved, resulting in a stable product portfolio performance for the quarter. Q2 revenues amounted to 7.0m EUR compared to 5.7m EUR the same quarter previous year, representing a growth of 24.1%. EBITDA margin amounted to 40.2% compared to 51.1% previous year as an expected effect of the Lead Republik revenues having slightly lower margin as well as our efforts within geographical expansion – in line with our strategic goals.”
SECOND QUARTER 2020
- Revenues totalled EUR 7.0 million (EUR 5.7 million) representing an increase of 24.1%
- NDCs (New Depositing Customers) amounted to 40,847 (24,974), representing an increase of 63.6%
- EBITDA amounted to EUR 2.8 million (EUR 2.9 million), corresponding to a margin of 40.2% (51.1%)
- Operating profit amounted to EUR 1.5 million (EUR 2.0 million), corresponding to a margin of 21.8% (35.1%)
- Profit for the period amounted to EUR 1.2 million (EUR 1.7 million)
- Earnings per share amounted to EUR 0.03 (EUR 0.04)
FIRST SIX MONTHS 2020
- Revenues totalled EUR 13.6 million (EUR 12.1 million) representing an increase of 12.0%
- NDCs (New Depositing Customers) amounted to 73,125 (53,582), representing an increase of 36.5%
- EBITDA amounted to EUR 5.5 million (EUR 6.4 million), corresponding to a margin of 40.2% (52.7%)
- Operating profit amounted to EUR 2.9 million (EUR 4.8 million), corresponding to a margin of 21.4% (39.5%)
- Profit for the period amounted to EUR 2.3 million (EUR 6.4 million, adjusted EUR 4.1 million)
- Earnings per share amounted to EUR 0.06 (EUR 0.17)
EVENTS DURING SECOND QUARTER 2020
- No significant events during the second quarter
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
- Revenues of EUR 2.4 million in July 2020
CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER
“As expected, we witnessed a significant drop within our sports related products due to Covid-19 and the decreased traffic to these assets as an effect of cancelled sport events. This is something we expect, and to some extent already are able to witness, will regain traction again once sports return back to normal. Organic growth was -1.2% which considering the challenging sports market conditions was made possible thanks to strong performance from our portfolio of casino assets, with Norway and Sweden leading the way.
Working remotely during Covid-19 has in contrast to what one might believe, proven to be very efficient for us and we have been able to notice improvements with regards to cooperation, communication as well as performance management. We have therefore decided to permanently move into a flexible working setup in which we replace the traditional office with a dynamic interaction hub combined with remote work. In addition to spending less on office related costs and administration the concept allows us to quickly scale up and down according to what is best at every given situation.
I wish to mention a few examples of initiatives developed and delivered by the remote organization during the quarter: Howtobet.com – a full sports wiki for nerds and beginners, with global potential in line with our strategic operational goals of adding Flagship products to our portfolio as well as to gradually increase our presence within other gambling verticals than casino – such as sports betting. We have also launched a completely new product line called “Extended Audience” which is an important milestone with regards to our strategic goal to diversify our offering. So far, we have sold the Extended Audience product to one of the major operators on the Swedish market, but we are in dialogue with several more.
We have furthermore secured our 3rd license in the US, in the state of Colorado. We have also received preliminary positive decisions from both Pennsylvania and West Virginia which we expect to receive the final approval from soon.
Revenues for July amount to 2.4m EUR, despite sports still trailing behind due to Covid-19. Activity was high, following the temporary re-regulations on the Swedish market. Despite us significantly increasing our revenues from outside the Nordics to close to 20%, the volatility on the Swedish market due to the re regulations makes it challenging to navigate. Although volatility might be high, I am excited by the combination of Raketech being both debt free and operationally stronger than ever. This allows us to continue our efforts to deliver on our strategic goals within product development and diversification as well as geographical expansion, organically and through M&A.
PRESENTATION FOR INVESTORS, ANALYSTS AND THE MEDIA
CEO Oskar Mühlbach and CFO Måns Svalborn will present the report and answer questions in an audiocast at 10.00 a.m. CEST on 19 August. The presentation will be held in English and can be followed online via https://tv.streamfabriken.com/raketech-q2-2020. To participate by phone, please dial +46 8 5055 8357 (SE) or +44 3333 009 263 (UK).