Raketech records 12% rise in H1 2020 revenue
Affiliate details US expansion plans as Swedish regulations tighten and profits plunge 64%
Raketech has seen H1 2020 revenue rise 12% year-on-year (YoY) to €13.6m (€12.1m) as the affiliate lauded a “stable performance”.
The Malta-based affiliate secured revenue of €2.4m in July alone as Q2 total revenue jumped 24.1% YoY to €7m (€5.7m).
H1 2020 EBITDA fell by nearly €1m YoY to €5.5m from €6.4m, while profit plummeted to €2.3m from €6.4m last year.
Raketech noted a 36.5% uptick in NDCs to 73,125 in the first six months of 2020, up from 53,582 in 2019.
The group also saw its revenue stream from outside the Nordics jump to 15.9% for H1 as it continues to look towards the expanding US market.
Raketech detailed that it plans to target the US with its Howtobet.com product and has secured its third licence in the States from the regulator in Colorado.
The group also noted that it has had positive preliminary decisions from both Pennsylvania and West Virginia, with a final verdict set to be announced soon and the plan to “shift the US from a strategic target to a strategic market in 2020” coming to fruition.
Raketech CEO Oskar Mühlbach said despite the promising growth in alternative markets, the regulatory stranglehold on the Swedish market could result in a negative short-term outlook.
Mühlbach said: “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.
“The unpredictability mentioned in the previous report is still very much present even though our dependency on this market is lower. And depending on the market development on our existing markets, it is worth mentioning that our US organic investments could have a slightly negative effect on our margins in the short to midterm,” he added.
Mühlbach noted that even with these mitigating factors, he remains positive about the future.
He said: “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,” he concluded.