Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q1 2021 Earnings Presentation
22 slides from Raketech's earnings presentation, May 2021
Slide 1: Q1 Report Presentation
RAKETECH QI Report Presentation
Slide 2: Presenters
Presenters Oskar Mühlbach Måns Svalborn Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
3 Agenda 01. Highlights 02. Financials Q1 2021 03. Key takeaways 04. Q&A
Slide 4: Q1 Financial highlights
4 Q1 Financial highlights • • Q4 momentum continued into Q1 Network, Japan and US strong performance 8.3m 3.2m • Weak seasonality, Norwegian payment REVENUE EBITDA blocks and increased gambling tax in Denmark dampened numbers slightly Y +26.6% Y +22% Q – 2.1% Q - 12% • Continuously stable margin des
Slide 5: Q1 Operational highlights
5 Q1 Operational highlights • Licenses obtained in Virginia and Michigan • • US revenues peaking during Superbowl First quarter without Finance vertical revenues +2 and margin, affecting comparison US LICENCES • Casinofeber back to growth but still behind Virginia and Michigan expectations. • Europe
Slide 6: Geographical split
6 Geographical split • Sweden stable and highly profitable, but black market taking share 35% and alternative marketing sources competing over marketing budgets • Solid position on the Rest of the Nordics, but somehow volatile in terms of legislate environment and long term commitments from operator
Slide 7: Tactics and goals for 2021
7 Tactics and goals for 2021 Wide and solid M&A as growth • Accelerated M&A geo footprint accelerator • Capital structure optimization • Roll out Raketech ecosystem • Monetize on widened offering • Aggressive geo expansion, existing assets • Add new channels and content types Significant Full servic
Slide 8: Financials Q1 2021
8 Financials Q1 2021
Slide 9: Revenue development
9 Revenue development • Revenues essentially in line with +27% seasonally strong Q4 9,000 • Even bigger in Japan 8,000 15% -2% • Sporting events drive US revenues 7,000 9% 5% • Network sales continued strong (just 16% 7% above 20% of total revenues) 6,000 -15% 12% 23% 5% -2% • Somewhat offset by sea
Slide 10: Q1 2020 vs. Q1 2021
10 Q1 2020 vs. Q1 2021 mEUR 9.0 8.3 • Revenues increase with acquisitions 8.0 +27% as primary driver as well as organic 7.0 growth 6.5 6.0 • Improved EBITDA with wider product 5.0 mix and geo footprint 4.0 • Net profit impacted by non-cash 3.2 affecting amortization 3.0 2.6 +22% • prudent approach t
Slide 11: NDC development
11 NDC development • Effects from Swedish re- regulation stabilizing • Google core update • Growth outside of Nordics 60,000 Largely an effect of the • Disposal Finance Vertical Swedish re-regulation • Seasonality and google core update effects • Fewer but higher value FTDs 50,000 in US and Japan ND
Slide 12: Revenue split
12 Revenue split 1% 17% (Y5%) 17% (Q2%) (Y17%) (Y14%) 35% (Q13%) (Q17%) (Y14%) (Q25%) GEOGRAPHICAL REVENUE SPLIT VERTICAL SPLIT 40% (Y49%) SPLIT (Q41%) 65% 43% 82% (Y86%) (Y37%) (Y78%) (Q75%) (Q42%) (Q85%) REVENUE SHARE CPA FLAT FEE CASINO SPORTS OTHERS NORDICS OTHER MARKETS
Slide 13: EBITDA to net profit bridge Q1
13 EBITDA to net profit bridge Q1 • The only item affecting cash flow relate to interest expense of EUR 0.1m • Depreciation amounts to EUR 1,132 1.6m for the quarter • Revaluation of earnout of Lead Republik, EUR 0.1m
Slide 14: Statement of financial position
14 Statement of financial position BALANCE SHEET | 31 Mar 2021 • Total assets amounted to EUR 93m, consisting mainly of Intangible assets • Adjustment of earnouts, EUR 4.0m • Amortizations, EUR 1.6m Equity Fixed assets EUR 72.0m EUR 83.5m • Cash and Cash equivalents amounted to EUR 4.0m at the end o
Slide 15: Cash flow bridge Q4 2020 vs Q1 2021
15 Cash flow bridge Q4 2020 vs Q1 2021 4,966 2 4,024 1 3 1 2 3 Strong operational cash flow Earnouts relating to Repayment of credit facility driven by higher profitability partly CasinoFeber and Casumba and to some extent by timing effects from other receivables and payables
Slide 16: EBITDA-margin Q1 2020 vs. Q1 2021
16 EBITDA-margin Q1 2020 vs. Q1 2021 38.7% 3 3 2 1 2 3 1 New product categories; Somewhat scalable and Scalable but primarily representing Network EBITDA margin improves a shift from employees to with increased revenues contractors
Slide 17: EBITDA-margin Q4 2020 vs. Q1 2021
17 EBITDA-margin Q4 2020 vs. Q1 2021 38.7% 2 2 1 1 2 Growth in lower margin Network sales Very much in line with Q4 through Lead Republik
Slide 18: Key takeaways
RAKETECH Key takeaways 18
Slide 19: Key takeaways
19 Strategic goals ◉ Presence on 3 continents Key takeaways ◉ 4-5 Flagship assets ◉ 4-6 product categories ◉ <60% from single vertical Financials • Revenues of EUR 8.4m, in line with record Q4 • 27% growth YoY and -2% QoQ • Organic growth 5% YoY Outlook and way forward • EBITDA of EUR, 3.2m • Margin
Slide 20: Q&A
RAKETECH Q&A 20
Slide 21: www.raketech.com
www.raketech.com
Slide 22: Thank you!
RAKETECH Thank you!
Raketech Group Holding — Q1 2021 Earnings Presentation on 6ix