Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q3 2024 Earnings Presentation
17 slides from Raketech's earnings presentation, Nov 14, 2024
Slide 1: Q3 2024 Report Presentation
RAKETECH Q3 2024 Report Presentation
Slide 2: Q3 2024 Agenda and Presenters
Q3 2024 01. Highlights 02. Financials Q3 2024 03. Key takeaways 04. Q&A Johan Svensson Måns Svalborn Chief Executive Officer Chief Financial Officer
Slide 3: Q3 Financial Highlights
3 Q3 Financial Highlights Challenging environment continues, solid free cash flow • Group revenue totalled EUR 12.9 million, an organic decrease of -39.9% Y/Y (-38.8% adjusted for divestment of Advisory business) • • EBITDA of EUR 3.0 million, a decrease of -46.5% Y/Y Adj. EBITDA of EUR 3.1 million,
Slide 4: Q3 Performance by business area
4 Q3 Performance by business area Betting tips and Affiliation Marketing SubAffiliation subscription Performance marketing and lead generation Saas and managed solutions for administration, data Consumer services, tailored sports data insights, provided for operators via Raketech owned assets. analy
Slide 5: Affiliation Marketing - Strategic partnerships
5 Affiliation Marketing - Strategic partnerships Affiliation Marketing Products Functions New Strategic Partnerships Enhance Growth Potential • Team up with experienced entrepreneurs with good track record SEO Content Sales Finance • Clear responsibilities between Raketech + + and the partner Produc
Slide 6: Business update – SubAffiliation & Exclusive partnerships
6 Business update – SubAffiliation & Exclusive partnerships SubAffiliation Strategic Partnerships and Traditional affiliate operations AffiliationCloud AffiliationCloud Drive 2025 Growth Operator Operator • Exclusive partnership with US operator signed and live Compliance Compliance Compliance Affil
Slide 7: Business update - Betting tips and Subscription
7 Business update - Betting tips and Subscription Betting tips and subscription Strategic Divestment & Focus on Core US Operations • July 31st, we completed the sale of the land- based betting tips advisory business to be able to focus on the digital tipster business Name Phone Number BETTING TIPS •
Slide 8: Financials Q3 2024
RAKETECH Financials Q3 2024
Slide 9: Stable throughout Q3 but at lower levels
9 Stable throughout Q3 but at lower levels Revenue streams Region split EUR Affiliation marketing Sub-affiliation Betting tips & Subscription Nordics Rest of world Rest of Europe US million 25 100% 1.3 1.1 2.1 1.8 1.4 0.9 1.5 2.4 1.9 1.1 1.7 90% 0.7 0.8 0.8 1.1 0.5 0.9 0.7 0.6 20 0.7 80% 1.2 1.0 70%
Slide 10: CPA variations from SubAffiliation, strong flat fees
CPA variations from SubAffiliation, strong flat fees Revenue mix Vertical split EUR Revenue share CPA Flat fee Betting subscr. million 25 100% 3.1 3.5 2.4 90% 3.4 4.3 3.4 1.7 3.2 4.2 3.8 0.9 80% 20 2.6 2.2 1.2 70% 1.0 2.4 1.1 15 1.9 1.4 2.7 60% Other 2.6 2.4 2.3 0.6 50% Sport 1.3 11.9 12.5 1.6 9.1 2
Slide 11: Realized cost savings
11 Realized cost savings -18% 7.0 1.3 1.4 6.0 1.2 1.1 5.0 1.1 • Headcount (employees and contractors) decreased with 25% from Q1 2024 4.0 2.9 • Overall decreased cost base (excluding publisher costs) of 18% 2.9 3.2 Other Direct Costs 2.7 from Q1 2024 2.5 Other Operating Costs • An effect of a review
Slide 12: Free cash flow positively impacted by timing effects
12 Free cash flow positively impacted by timing effects Free cash flow quarterly, before earnouts and EBITDA and margin quarterly acquisitions EUR million EUR million 6.5 6.3 6.1 6.0 5.5 5.6 Adjusted 5.6 5.2 5.1 5.0 5.0 4.8 4.3 4.4 3.8 3.8 3.1 3.2 2.7 37.1% 40.3% 38.7% 31.1% 26.1% 26.3% 22.6% 25.8%
Slide 13: Financial headroom for upcoming earnouts
13 Financial headroom for upcoming earnouts Earnout settlements EUR million 20 Cash/shares at Raketech discretion 15 • EUR 9.9m to be paid in cash in the next 12 months • Financial headroom with existing net cash position of EUR 3m at end of quarter, EUR 5m facility and 10 free cash flow for Q4 2024
Slide 14: Key takeaways and outlook
14 Key takeaways and outlook Financials Outlook and way forward • Revenues of EUR 12.9m • October revenues of EUR 4.0m (EUR 7.7 million of • Adjusted EBITDA of EUR 3.1m at 24.1% margin which EUR 0.4m from divested advisory • Realized cost savings of 18% (excluding publisher costs) business) compared
Slide 15: Q&A
RAKETECH Q&A
Slide 16: www.raketech.com
www.raketech.com
Slide 17: Thank you!
RAKETECH Thank you!
Raketech Group Holding — Q3 2024 Earnings Presentation on 6ix