Raketech shares plummet on “unsatisfactory” Q3 performance
Malta-based affiliate seeks uptick in Japan, Germany, Canada and New Zealand revenues fall 15%
Raketech today reported a Q3 revenue decrease of 15% to €6m due to continued struggles in Sweden and lower income from Pay-N-Play casinos.
Adjusted EBITDA fell by 34% to €2.7m, down from €4.1m in the same period last year, while profit for the third quarter also dropped by €500,000 to €1.2m.
Growth in new depositing customers (NDCs) decreased by 0.2% to 26,782, although this number marked a 7% increase from Q2 2019.
Revenue excluding the Nordics accounted for 10% mix for the first time in Raketech’s history, and the affiliate has pledged to focus on international expansion to lower its exposure in Sweden.
The affiliate’s share price was down 16% this morning following the update.
Raketech CEO Michael Holmberg
Raketech CEO Michael Holmberg said: “We have a positive underlying revenue development with an increased focus on revenue share, which drives recurring revenues – however, this will come into full effect during the upcoming years.
“During the quarter, we continued to focus on global expansion, with concrete progress in both Japan and Germany.
“All in all, this gives us confidence for the future, even though the result for the third quarter is unsatisfactory,” he added.
Raketech sealed the €2m acquisition of Japan-focused affiliate portfolio Casumba Media in August and will also look to Germany, Canada and New Zealand to inspire an uptick in revenues.
“The expansion strategy means that we will operate in at least three continents, and each continent will represent at least 10% of the company’s revenues over time,” said Holmberg.
“This is a clear strategy that we are executing. I am certain that we will be successful in building a global company, with products in sports and gaming that serves operators, media companies and other businesses with a focus on responsible and user-focused services.”