Q3 2024 Raketech Group Holding PLC Earnings Call Transcript
Key Points
- Raketech Group Holding PLC (OSTO:RAKE) achieved cost savings of 18% in Q3 compared to Q1, excluding publisher costs.
- The company has successfully formed two strategic partnerships within affiliation marketing and several exclusive partnerships within subaffiliation.
- AffiliationCloud, Raketech's in-house developed subaffiliation platform, continued to deliver year-on-year organic growth.
- The digital tipster business experienced 24% organic growth year-on-year, adjusted for the divested assets.
- Raketech has a flexible approach to settling its remaining earnout obligations, with options to settle in cash or shares up until September 2026.
- Raketech Group Holding PLC (OSTO:RAKE) reported a 39.9% organic decrease in revenues for Q3.
- Adjusted EBITDA decreased by 44.6% year-on-year, indicating significant financial challenges.
- The company faces operational challenges with its publishers, particularly due to external factors like Google ad campaigns.
- The Swedish gambling tax increase from 18% to 22% has negatively impacted investment willingness and revenue share databases.
- Visibility remains limited for achieving the lower end of the full-year guidance for adjusted EBITDA due to ongoing operational challenges.
(audio in progress) came in at EUR12.9 million in revenues in Q3, an organic decrease of 39.9% and 38.8% adjusted for the divestment of the advisory business. Adjusted EBITDA of EUR3.1 million, a decrease of 44.6% year-on-year and EBITDA of EUR3 million. Total adjusted EBITDA for the first 3 quarters, EUR12.5 million. October revenue was EUR4 million compared to EUR7.7 million in October last year, of which EUR0.4 million from the divested advisory business. We expect Q4 to be slightly stronger than Q3 in terms of adjusted EBITDA.
At the moment, it looks difficult to reach the lower end of a previous communicated full year guidance of EUR17 million to EUR19 million in adjusted EBITDA. However, visibility is limited due to the ongoing operational challenges for our publishers within Raketech Network and around expectation of a usually stronger second half of Q4 for both casino and U.S. sports. Our previously communicated review of our operating model that started during the first quarter of this year has
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
