Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q4 2022 Earnings Presentation
18 slides from Raketech's earnings presentation, Feb 22, 2023
Slide 1: Q4 2022 Report Presentation
RAKETECH Q4 2022 Report Presentation
Slide 2: Q4 2022 agenda and presenters
Q4 2022 01. Highlights 02. Financials Q4 2022 03. Key takeaways 04. Q&A Oskar Mühlbach Måns Svalborn Chief Executive Officer Chief Financial Officer
Slide 3: Q4 Financial highlights
3 Q4 Financial highlights RECORD QUARTER WITH STRONG ORGANIC GROWTH • • Q4 32.5% growth Q4 23.1% organic growth → 2022 36.7% → 2022 10.8% 15.7m 6.3m • Q4 40.3% EBITDA margin → 2022 38% REVENUE EBITDA Y +32.5% Y +15.9% • Strong organic momentum, Sweden and ROW Q +20.9% Q +31.2% • FIFA World Cup boost
Slide 4: Q4 Operational highlights
4 Q4 Operational highlights Affiliation marketing Sub-affiliation Betting tips and advice 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. analytics, repor
Slide 5: 2023 Financial guidance
5 2023 Financial guidance New business areas and operational platform Previous targets • Organic growth 10% 60-65m 20-24m EUR Revenue EUR EBITDA • Acquired growth 20% 15-25% growth 0-20% growth • EBITDA 50% • Leverage 1.5-2.5x EBITDA → Replaced with near term financial guidance 11-13m EUR Free Cash
Slide 6: Organic growth drivers 2023 and onwards
6 Organic growth drivers 2023 and onwards FLAGSHIPS US AFFILIATION AFFILIATION CLOUD Stable and continuous high margin Accelerated US affiliation growth Significant share of revenues growth on the back of tipster assets coming from SaaS segment • Casinofeber overtake Bespoke affiliation content and
Slide 7: Financials Q4 2022
RAKETECH Financials Q4 2022
Slide 8: High-margin, highly cash generative business
8 High-margin, highly cash generative business EURm 26 24 20-24 22 20 17-20 Cash flow net of • The end of two earnouts impacts EBITDA 20 18 earnouts increase with approx. EUR 2m through operational 16 17 with 120-160% in 2023 costs as an effect of taking over the assets, 16 14 but free cash flow inc
Slide 9: Q4 performance overview
9 Q4 performance overview Revenue streams Product overview EUR million Q4 2022 % of total Growth Q Growth YoY Expected quarterly revenues vs. Q EBITDA % interval * 18.0 Affiliation marketing 66% +20% +16% 60-80% 16.0 Sub-affiliation 22% +13% +54% 10-20% +46% 14.0 Betting tips & 12% +46% +175% 5-40%
Slide 10: Geographic diversification
Geographic diversification Geographic diversification Region overview Q4 2022 % of total revenues Growth Q vs. Q Growth YoY EUR million 18.0 Nordics 41% +3% +2 Rest of World 39% +36% +61% 16.0 +60% Rest of Europe 4% - -5% 14.0 0% US 16% +60% +150% 12.0 +15% +233% +140% 0% -22% -46% 10.0 0% 0% +36% •
Slide 11: Vertical diversification
11 Vertical diversification Vertical split Vertical overview EUR million Q4 2022 % of total revenues Growth Q vs. Q Growth YoY 18.0 Casino 73% +19% +25% 16.0 Sport 27% +31% +60% 14.0 +31% 12.0 Casino revenues at 73% of total revenues -9% +73% +65% • An increase with +19% Q vs. Q 10.0 -19% • seasonal
Slide 12: NDC development
12 NDC development Q4 2021 vs. Q4 2022 Q3 2022 vs. Q4 2022 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000 10,000 10,000 0 0 Q4 2021 Q4 2022 Q3 2022 Q4 2022 • Strong performance and organic growth for affiliation • Growth as an effect of improved performance and marketing and sub-affiliation
Slide 13: High margin affiliation marketing drive EBITDA
13 High margin affiliation marketing drive EBITDA Betting tips & Subscr. Sub-affiliation Direct costs relating to 6,317 sub-affiliation and SEO related costs EBITDA margin 40% Aff. Marketing Increase relates to IFRS 9 provision, one-off increase in consultancy costs and currency effects Adj. EBITDA
Slide 14: Cash flow bridge Q3 vs. Q4 2022
14 Cash flow bridge Q3 vs. Q4 2022 Cash flow net of earnouts expected to increase in 2023 as CasinoFeber earnout comes to an end in Feb 2023 and majority of Infinileads settled 8,061 6,056
Slide 15: Key takeaways
15 Key takeaways ”A strong end to the year, thanks to continious solid operational momentum, high season and FIFA world cup” Financials Outlook and way forward • Revenues of EUR 15.7m • 2023 guidance • 32.5% revenue growth YoY • EUR 60-65m revenue • Organic growth 23.1% YoY • EUR 20-24m EBITDA • EBI
Slide 16: Q&A
RAKETECH Q&A 16
Slide 17: www.raketech.com
www.raketech.com
Slide 18: Thank you!
RAKETECH Thank you!
Raketech Group Holding — Q4 2022 Earnings Presentation on 6ix