Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q2 2020 Earnings Presentation
22 slides from Raketech's earnings presentation, August 2020
Slide 1: Q2 Report Presentation
RAKETECH Q2 Report Presentation
Slide 2: Presenters
2 Presenters Oskar Mühlbach Måns Svalborn Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
3 Agenda 01. Quarterly highlights 02. Financials q2 2020 03. Key takeaways 04. Q&A
Slide 4: Q2 Financial Highlights
4 Q2 Financial Highlights REVENUE EBITDA ORGANIC NDC EUR 7.0m EUR 2.8m GROWTH 40,847 YoY +24.1% YoY -2.3% YoY -1.2% YoY +63.6% QoQ. +7.4% QoQ. +7.5% QoQ. -2.5% QoQ +26.5% • Strong growth primarily driven by acquisitions • Stable EBITDA despite changed product mix and more investments in product deve
Slide 5: Q2 Market Highlights
5 Q2 Market Highlights Swedish market more and more 10-15% advanced lost to black • Legislation leaves open goal for black market market? • Operators hesitant towards investments due to legislative uncertainty • Important to diversify to meet competition from other channels Reduced sports revenues d
Slide 6: Q2 Market Highlights
6 Q2 Market Highlights 36% iGambling skyrockets globally • Shift from offline to digital gambling, just like in other industries, fuelled by Covid -19 • Global digital gambling has gone from appr. Digital gambling 13.2% to 17.9% so far growth jan-aug • Digital share estimated close to 70% in Sweden
Slide 7: Q2 Operational Highlights
7 Q2 Operational Highlights Automate and standardize everything Remote-ish working • Automated SEO audits implemented • Staff satisfaction all time high • AI top lists now implemented on 30 assets • More development and improvement deliveries than • Content bank for reuse of best performing ever con
Slide 8: Q2 Commercial Milestones
8 Q2 Commercial Milestones Howtobet.com (NEW!) Relaunch of esportsguide.com • A 360 sports wiki • Continuously growing e-sport audience • Primarily focusing on the US market • Traffic numbers have increased 10X since January • Expected first revenues Q4 • Large share from the USA • Significant reven
Slide 9: Q2 Commercial Milestones
9 Q2 Commercial Milestones Extended Audience (NEW!) Embedded services/VIP program • Bespoke programmatic marketing based on • Several market analysis sold Raketech user data • Industry and Rapidi index available for VIP • Test phase with one major operator partners/operators • Part of our core offer
Slide 10: Financials Q2 2020
RAKETECH Financials Q2 2020 10
Slide 11: Revenue development
11 Revenue development 9,000 +24.1 % • Revenue growth of 24.1% 8,000 + 8.7 % compared to Q2 of last year + 16.3 % +7.4 % 7,000 - 15.3 % +11.9 % + 5.2 % + 23.0 % - 1.8 % 6,000 - 12.3 % • Organic growth of -1.2% YoY + 15.5 % + 6.5 % 5,000 + 27.0 % - 6.6 % • Drop in Sports 4,000 + 21.4 %+ 6.8 % 7,009 7
Slide 12: Revenue split
12 Revenue split 3% 8% (Y5%) 19% 13% (Y28%) (Q5%) (Y3%) (Y20%) (Q17%) (Q14%) (Q14%) GEOGRAPHICAL REVENUE SPLIT VERTICAL SPLIT 44% SPLIT (Y45%) 43% (Q49%) (Y35%) 89% (Q37%( 81% (Y67%) (Y97%) (Q78%) (Q86%) REVENUE SHARE CPA FLAT FEE CASINO SPORTS OTHERS NORDICS OTHER MARKETS
Slide 13: EBITDA to net profit bridge Q2
13 EBITDA to net profit bridge Q2 • Only item below EBITDA with cash flow effect relate to loan facility interest expense, which amount to EUR 0.05m during the quarter 1,233 • Depreciation amounts to EUR 1.3m for the quarter • Reported net profit for the quarter amounted to EUR 1.2m EBITDA Q2 2020 I
Slide 14: Statement of financial position
14 Statement of financial position • Total assets amounted to EUR 82m, consisting BALANCE SHEET | 30 June 2020 mainly of Intangible assets primarily related to websites, domains, intellectual property and player databases Equity Fixed assets EUR 67.4m • Cash and Cash equivalents amounted to EUR EUR
Slide 15: Cash flow bridge Q1 vs Q2 2020
15 Cash flow bridge Q1 vs Q2 2020 3,247 2 3,284 1 3 4 4 1 2 3 4 Increased operational cash flow, 1.5m repayment on credit Investing activities relate to Interest and lease payments driven by higher profitability and facility earn-outs during the quarter during the quarter amounted to positive develo
Slide 16: EBITDA-margin Q2 2019 vs. Q2 2020
16 EBITDA-margin Q2 2019 vs. Q2 2020 40.2% -0.4% 1 2 3 Reported EBITDA Direct costs; New Other direct costs Employee benefit Other EBITDA Q2 2020 margin Q2 2019 product expenses categories 1 2 3 New product categories; Lead Higher costs with strengthened organization. Higher costs with added markets
Slide 17: EBITDA-margin Q1 vs. Q2 2020
17 EBITDA-margin Q1 vs. Q2 2020 40.2% 2 3 1 EBITDA margin Q1 Direct costs Employee benefit Other EBITDA margin Q2 2020 expenses 2020 1 2 3 Otherwise stable Direct costs increase Higher revenues with stable and Reduced Indirect costs through with new product category; Lead scalable Personnel costs im
Slide 18: Key takeaways
RAKETECH Key takeaways
Slide 19: Key takeaways
19 Delivery on strategic operational goals Presence on 3 continents Key takeaways 4-5 Flagship products 4-6 product categories <60% from single vertical Financials Outlook and way forward • 24.1% growth YoY and 7.4% QoQ • Volatility expected with regards to Covid-19 • Significant drop in sports miti
Slide 20: Q&A
RAKETECH Q&A 20
Slide 21: Thank you!
RAKETECH Thank you!
Slide 22: www.raketech.com
www.raketech.com
Raketech Group Holding — Q2 2020 Earnings Presentation on 6ix