Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q2 2018 Earnings Presentation
23 slides from Raketech's earnings presentation, Aug 23, 2018
Slide 1: Q2 Presentation August 23rd 2018
Q2 Presentation August 23rd 2018
Slide 2: Presenters
PRESENTERS Michael Holmberg Andreas Kovacs CEO CFO 2
Slide 3: Raketech — One of Europe's Leading Affiliate Companies
RAKETECH — ONE OF EUROPE’S LEADING AFFILIATE COMPANIES Founded Nordics is our 100+ 20 +60% 300+ Proven +41% in 2010 core market, employees key products of traffic partners, track-record revenue growing share nth Fane of successful growth in Q2 inothermarkets — jationalities M&A 2018 with high such a
Slide 4: Raketech's Mission and Vision
RAKETECH’S MISSION “To guide and inspire people to informed decisions.” RAKETECH’S VISION “To always be the first choice by driving the industry with users and partners at our core.” 4
Slide 5: Business Model Built on Three Pillars
INTRODUCTION BUSINESS MODEL BUILT ON THREE PILLARS M&A – acquired growth Core – development of current products Lab – new innovations Drives traffic to High ranking sites Raketech’s providing NDCs to Acquisition capability other products partner sites New technology and media Continuous screening fo
Slide 6: M&A Strategy
INTRODUCTION M&A STRATEGY M&A targets Example – Tvmatchen • Primarily new technology, expanding the lead generation and media offering M&A approach • Founders with extensive • Focus on companies with know- experience of building high- how and skilled management quality technological platforms teams
Slide 7: Q2 2018 Highlights
Q2 2018 HIGHLIGHTS
Slide 8: Quarter Highlights
Q2 2018 HIGHLIGHTS QUARTER HIGHLIGHTS Q2 revenues Q2 EBITDA (adj.) EUR 6.0m EUR 3.2m QoQ growth: QoQ growth: 23.0% 28.2% YoY: 41.3% YoY: 25.4% Organic growth: 24.5% Adj. EBITDA margin: 53.7% New Depositing Customers 20,519 NDCs during the quarter; an increase by 8% QoQ 8
Slide 9: Quarter Events
Q2 2018 HIGHLIGHTS QUARTER EVENTS • Successful IPO on Nasdaq First North Premier • High activity levels from FIFA World Cup • Expanded cooperations with Svenska Spel and ATG • Acquisitions of Shogun Media and Mediaclever, providing both attractive products and additional expertise in PPC and SEO • T
Slide 10: Responsibility Update
Q2 2018 HIGHLIGHTS RESPONSIBILITY UPDATE • We work closely with our partners to discuss our compliance strategy and share knowledge in the markets where we operate • Revamp of product design and content strategy to ensure that GDPR and regulatory compliance is always integrated • GDPR – updated priv
Slide 11: Q2 2018 Financials
Q2 2018 FINANCIALS
Slide 12: Strong Quarterly Revenue Growth
Q2 2018 FINANCIALS STRONG QUARTERLY REVENUE GROWTH Revenue growth of 23 % between Q1 and Q2 CAGR last 24 months: 64.2% 2018 driven by good performance and synergies between the casino platforms together with strong organic growth in Raketech’s media platforms. + 23.0 % + 15.5 % + 6.5 % 6,024 - 6.6 %
Slide 13: Strong Revenue Growth
Q2 2018 FINANCIALS STRONG REVENUE GROWTH Revenue growth • All time high revenues in Q2 of EUR 6.0m 41.3% • Strong revenue growth within the casino vertical partly driven by the recent acquisitions • Boosted Cost per acquisition, partly driven by the FIFA Organic growth Acquired growth World Cup 24.5
Slide 14: EBITDA Development
Q2 2018 FINANCIALS EBITDA DEVELOPMENT Adjusted EBITDA margin increased by 2.2 % from Q1 to Q2 51.5% 3. 2. 1. Adjusted EBITDA Q1 Direct costs relating to fixed Employee benefit expenses Other operating expenses Adjusted EBITDA Q2 fees and commission revenue 1. Increased direct costs in line with the
Slide 15: Statement of Financial Position
Q2 2018 FINANCIALS STATEMENT OF FINANCIAL POSITION BALANCE SHEET | 30 JUNE 2018 Goodwill Equity • Total assets amounted to EUR 106m and consist mainly of EUR 1.1m EUR 55.0m Intangible assets including Goodwill, post the acquisition of Shogun Media Ltd during Q2. Fixed assets EUR 58.7m • Borrowings r
Slide 16: Cash Flow
Q2 2018 FINANCIALS CASH FLOW Strong cash conversion of 1.8x EBITDA (Cash conversion = Net cash flow from operations / EBITDA) 1. 2. 3. 4. Cash and cash Net cash from Acquisition of Transaction costs Paid interest Other Cash and cash equivalents Q1 operating activities intangible assets equivalents Q
Slide 17: Financial Targets
Q2 2018 FINANCIALS FINANCIAL TARGETS Financial target Q2 Performance ✓ In the short1 to medium term Raketech targets annual total revenue growth in excess of 30 per cent on average, including acquisitions and organic growth in excess of 10 per 41% Growth Revenue growth of cent. The total revenue gro
Slide 18: Regulation Update
Aecujon Jon UPDATE ® oe | ~ ie
Slide 19: Raketech's Strategy for the Upcoming Re-regulation in Sweden
REGULATION UPDATE RAKETECH’S STRATEGY FOR THE UPCOMING RE-REGULATION IN SWEDEN Pre regulation strategy Choice of partners Choice of revenue model Post regulation strategy Securing continued beneficial terms for Choice of revenue model revenue share contracts 19
Slide 20: Illustrative Overview of Regulation Effects on New Rev-Share Deals
REGULATION UPDATE ILLUSTRATIVE OVERVIEW OF REGULATION EFFECTS ON NEW REV-SHARE DEALS Illustrative breakdown of revenue share contracts on an Illustrative breakdown of revenue share contracts on a regulated market 18% tax on GGR proposed un-regulated market in Sweden Regulatory net effect VS. Raketec
Slide 21: Summary
SUMMARY
Slide 22: Key Takeaways
SUMMARY KEY TAKEAWAYS • Strong quarterly revenue and EBITDA growth • Continued good delivery from business model with new achievements in Core, Lab and M&A Social Media SEO • Focus on product compliance Guides Communities • Continued preparations for Swedish regulation • Start of Q3 in line with exp
Slide 23: Q&A
Q&A
Raketech Group Holding — Q2 2018 Earnings Presentation on 6ix