Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q4 2020 Earnings Presentation
23 slides from Raketech's earnings presentation, February 2021
Slide 1: Q4 Report Presentation
RAKETECH Q4 Report Presentation
Slide 2: Presenters
2 Presenters Oskar Mühlbach Måns Svalborn Chief Executive Officer Chief Financial Officer
Slide 3: Agenda
3 Agenda 01. Highlights 02. Financials Q4 2020 03. Key takeaways 04. Q&A
Slide 4: Q4 Financial highlights
4 Q4 Financial highlights • • Total revenues ATH Network (Lead Republik) sales on ATH 8.5m 3.6m • Weak comparison quarter boosts numbers REVENUE EBITDA • Margin higher than anticipated despite YoY +44.7% YoY +133% product mix changes and investments in QoQ + 15% QoQ + 24% expansion revealing benefit
Slide 5: Q4 Operational highlights
5 Q4 Operational highlights • • Multiple inhouse initatives launched in the USA Tvsportsguide.com (US) launched and growing 20k • Paid efforts in the USA showing positive ROI ACTIVE USERS • Swedish temporary regulations prolonged 6 On the months – no material effect expected Tvsportsguide.com after
Slide 6: 2020 Milestones and deliveries
6 2020 Milestones and deliveries • AmericanGambler and Lead Republik acquired and the Finance vertical divested successully - without adding debt • Fully remote organization to mitigate Covid and to ensure we employ the best regardless of where they are, instead of “settling ✓ Global footprint for t
Slide 7: 2020 acquisition retrospect
7 2020 acquisition retrospect • Central sales optimization and ✓ Improved commercials Raketech negotiating power ✓ Accelerated growth • Access to new clients and markets ✓ Improved margins • Shared platforms, technology and ✓ Scalability administration, compliance etc ✓ Accelerated geographical expa
Slide 8: Tactics and goals for 2021
8 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 9: Financials Q4 2020
9 Financials Q4 2020
Slide 10: Revenue development
10 Revenue development +45 % 9,000 +15 % 8,000 +9% + 16 % +7 % +5 % • Revenues at all time high 7,000 - 15 % +12 % organic growth of 15% YoY + 23 % +5% -2% 6,000 - 12 % • Acquisition driven growth of 30% 5,000 + 16 % -7% +7% YoY + 27 % 4,000 • Revenues improve with 15% from 3,000 Q3, 2020 2,000 • Bi
Slide 11: Full year 2020 vs. 2019
11 Full year 2020 vs. 2019 35 • Revenues increase with acquisitions 29.4 30 as primary driver and organic +23% growth in Q3 and Q4 25 23.9 20 • Improved EBITDA with wider product mix and geo footprint 15 11.0 12.0 • Net profit impacted by amortization 10 • non-cash affecting items +9% 5.2 5.2 • prud
Slide 12: NDC development
12 NDC development • Effects from Swedish re- regulation stabilizing Largely an effect of the • Google core update 60,000 Swedish re-regulation • Growth outside of Nordics NDC increase 50,000 essentially related to Lead Republik • Effects from Swedish re- 40,000 regulation stabilized in Q4 30,000 •
Slide 13: Revenue split
13 Revenue split 2% 12% (Y6%) 17% (Y28%) (Q3%) 25% (Y18%) (Q11%) (Y10%) (Q18%) (Q20%) GEOGRAPHICAL REVENUE SPLIT VERTICAL SPLIT 41% SPLIT (Y49%) (Q42%) 42% 86% 75% (Y33%) (Y90%) (Y66%) (Q40%( (Q80%) (Q86%) REVENUE SHARE CPA FLAT FEE CASINO SPORTS OTHERS NORDICS OTHER MARKETS
Slide 14: EBITDA to net profit bridge Q4
14 EBITDA to net profit bridge Q4 • The only item affecting cash flow relate to interest expense of EUR 0.1m • Gain from sale of consumer 2,074 finance asset of EUR 0.4m • Depreciation amounts to EUR 1.4m for the quarter • Reported net profit for the quarter amounted to EUR 2.1m
Slide 15: Statement of financial position
15 Statement of financial position • Total assets amounted to EUR 91m, consisting mainly BALANCE SHEET | 31 Dec 2020 of Intangible assets • Acquisition of AmericanGambler, EUR 5m • Sale of finance consumer assets, EUR 3.8m Equity • Adjustment of earnouts, EUR 4.3m EUR 70.8m Fixed assets • Amortizati
Slide 16: Cash flow bridge Q3 vs Q4 2020
16 Cash flow bridge Q3 vs Q4 2020 2 5,343 4,966 1 3 1 2 3 Strong operational cash flow Acquisition of Upfront consideration received driven by higher profitability partly AmericanGambler from the sale of consumer offset by timing effects from other finance assets receivables and payables
Slide 17: EBITDA-margin Q4 2019 vs. Q4 2020
17 EBITDA-margin Q4 2019 vs. Q4 2020 43.1% 1 2 2 2 1 2 New product categories; Lead Republik Non-recurring costs in 2019 distorting and Paid Media comparison but current level is scalable and EBITDA margin improves with increased revenues
Slide 18: EBITDA-margin Q3 vs. Q4 2020
18 EBITDA-margin Q3 vs. Q4 2020 43.1% 2 1 2 1 2 Growth in lower margin Network sales Higher revenues with stable and through Lead Republik scalable Personnel costs and Other costs improve EBITDA
Slide 19: Key takeaways
RAKETECH Key takeaways i)
Slide 20: Key takeaways
20 Strategic goals ◉ Presence on 3 continents Key takeaways ◉ 4-5 Flagship assets ◉ 4-6 product categories ◉ <60% from single vertical Financials • Revenues at ATH • 44.7% growth YoY and 15% QoQ • Organic growth 15% YoY Outlook and way forward • Higher than anticipated EBITDA shows scalability • Jan
Slide 21: Q&A
RAKETECH Q&A 21
Slide 22: Thank you!
RAKETECH Thank you!
Slide 23: www.raketech.com
www.raketech.com
Raketech Group Holding — Q4 2020 Earnings Presentation on 6ix