Raketech reports 45% Q4 revenue rise despite demotion of key casino brand
December Google update de-ranks popular Swedish casino domain CasinoFeber as quarterly profit breaks €2m mark
Raketech has reported a 44.7% revenue rise in Q4 to €8.5m.
The casino vertical made up 85.4% of total revenue, while sport contributed 12.4%. The other segmented equalled 2.2%.
Three quarters (74.6%) of total revenue was derived from the Nordics as 25.4% came from other markets including the US and Japan.
Organic growth amounted to 15%, a stark increase on the -29.5% reported in Q4 2019. NDCs hit 46,389, up from 28,002 last year, representing a jump of 65.7%.
EBITDA reached €3.6m, corresponding to a margin of 43.1%, while operating profit amounted to €2.3m on a margin of 26.7%.
Overall profit for Q4 topped out at €2.1m compared to losses of €0.3m in 2019.
Significant events during the quarter saw Raketech acquire the American Gambler affiliate domain for $5m before offloading its consumer finance assets to ROI Media UK.
Q4 was not without headwinds however, after the latest Google update penalised Raketech’s major Swedish casino brand CasinoFeber.
This “dampened” revenue at the end of December and the intake of new customers from the website remains lower than before the update despite mitigating and stabilising actions.
After the reporting period, Raketech recorded January 2021 revenue of €2.7m.
Raketech CEO Oskar Mühlbach said: “All in all, we can look back at a year in Raketech’s history where we successfully executed several operational initiatives of strategic importance despite Covid-19.
“Confident by the strong Q4 results and our general achievements during 2020, we will continue our relentless efforts to widen our geographical footprint, our product offering and our asset portfolio.
“Raketech’s sound financial situation furthermore allows us to complement our organic growth strategy with continuous and potentially accelerated efforts within the area of M&A during 2021,” he added.