Raketech Group Holding Plc · OMXSTO:RAKE
Raketech — Q3 2020 Earnings Presentation
24 slides from Raketech's earnings presentation, November 2020
Slide 1: Q3 Report Presentation
RAKETECH Q3 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 Q3 2020 03. Key takeaways 04. Q&A
Slide 4: Q3 Financial Highlights
4 Q3 Financial Highlights REVENUE EBITDA ORGANIC NDC EUR 7.4m EUR 2.9m GROWTH 52,344 YoY +23.9% YoY +8.3% YoY +3.2% YoY +95.4% QoQ +5.1% QoQ +3.8% QoQ +5.1% QoQ +28.1% • Strong overall growth primarily driven by acquisitions • Positive organic growth despite Swedish re regulations and reduced sports
Slide 5: Market Highlights
5 Market Highlights Strong position despite Swedish 70% regulations Problem gambling originates from • Black market is booming black market • Large operators struggling • Players hopping around • Raketech’s offering is considered as safe and strong Sports betting slowly returning • Revshare database
Slide 6: Business Highlights
6 Business Highlights Let’s make America Rake again! • 3 additional licences > 7 licences so far • HowToBet.com’s first NDCs generated • Several local campaign assets launched and NDCs generated 5-10% • • Experiments and fine-tuning of paid traffic efforts US version of Tvsportsguide.com launched Es
Slide 7: American Gambler – strategic rationale
7 American Gambler – strategic rationale The facts • Fast growing, high quality US sports asset • Current run rate appr. 150k per month • Current growth rate 30-50% The opportunity • Raketech commercials • Multi state roll out • Casino revenues to be added • Additional sales channels available The i
Slide 8: American Gambler – tactics and timeline
8 American Gambler – tactics and timeline Platforms and integration Full integration and + Tailored local continuous Commercialisation states assets improvements Multi-state roll out Year 1 Year 2 Year 3+ Accelerated growth Growth in line with financial Business development and improvements targets
Slide 9: American Gambler – deal basics
9 American Gambler 40% – deal basics Appr. EBITDA first 2 years EUR 5m paid upfront, taken from current cash EUR • • No earn out in balance sheet or non 5m performance based commitments • Costs for growth above EBITDA instead of below Upfront payment • Generous profit sharing first 2 years to maximi
Slide 10: Financials Q3 2020
RAKETECH Financials Q3 2020 10
Slide 11: Revenue development
11 Revenue development +24 % 9,000 • Largely acquisition driven 8,000 +9% +5 % revenue growth of 24% YoY + 16 % +7 % 7,000 - 15 % +12 % • Organic growth of 3% + 23 % 6,000 - 12 % +5% -2% despite cancelled sport 5,000 + 16 % +7% events -7% + 27 % 4,000 • Revenues improve with 5% from 3,000 Q2, 2020 •
Slide 12: NDC development
12 NDC development 60,000 Largely an effect of the Swedish re-regulation 50,000 NDC increase • Lead Republik driving increase in essentially related to Lead Republik NDCs as from Q2 40,000 • Lower margin NDCs 30,000 • Swedish re-regulation boosted NDC intake in Q3 20,000 • Increase in number of acti
Slide 13: Revenue split
13 Revenue split 3% 11% (Y5%) 18% 20% (Y28%) (Q3%) (Y10%) (Y12%) (Q8%) (Q19%) (Q13%) GEOGRAPHICAL REVENUE SPLIT VERTICAL SPLIT 42% SPLIT (Y56%) (Q44%) 40% 86% (Y32%) 80% (Y67%) (Y90%) (Q43%( (Q89%) (Q81%) REVENUE SHARE CPA FLAT FEE CASINO SPORTS OTHERS NORDICS OTHER MARKETS
Slide 14: EBITDA to net profit bridge Q3
14 EBITDA to net profit bridge Q3 • Only item below EBITDA with cash flow effect relate to loan facility interest expense, which amount to EUR 0.02m during the quarter 1,231 • Depreciation amounts to EUR 1.5m for the quarter • Reported net profit for the quarter amounted to EUR 1.2m
Slide 15: Depreciation & Amortisation
15 Depreciation & Amortisation Increased amortisation through revalution of CasinoFeber and Lead Republik acquisition 1,600 3,500 2,933 1,400 3,000 • Amortisation are non-cash 2,709 1,200 affecting transactions and ensures EBITDA increase 8.3% 2,500 a fair value of our intangible assets 1,000 2,000
Slide 16: Statement of financial position
16 Statement of financial position • Total assets amounted to EUR 86m, consisting mainly BALANCE SHEET | 30 Sept 2020 of Intangible assets primarily related to websites, domains, intellectual property and player databases Equity • Finance Vertical classified as Held for sale Fixed assets EUR 68.7m E
Slide 17: Cash flow bridge Q2 vs Q3 2020
17 Cash flow bridge Q2 vs Q3 2020 5,343 2 3 3 3,284 1 1 2 3 Increased operational cash flow, Investing activities relate to Interest and lease payments driven by higher profitability and to earn-outs during the quarter during the quarter amounted to some extent timing effect for trade EUR 0.1m payab
Slide 18: EBITDA-margin Q3 2019 vs. Q3 2020
18 EBITDA-margin Q3 2019 vs. Q3 2020 39.8% 3 3 2 1 1 2 3 New product categories; Lead Republik Current level is scalable and EBITDA margin Scalable costs and EBITDA margin and Paid Media improves with increased revenues improves with increased revenues
Slide 19: EBITDA-margin Q2 vs. Q3 2020
19 EBITDA-margin Q2 vs. Q3 2020 39.8% 1 2 3 1 2 3 Slightly higher Direct costs but Higher revenues with stable and Increased provision for trade scalable and EBITDA margin improves scalable Personnel costs improve receivables and development with higher revenues EBITDA costs
Slide 20: Key takeaways
RAKETECH Key takeaways 20
Slide 21: Key takeaways
Strategic goals 21 Presence on 3 continents Key takeaways 4-5 Flagship assets 4-6 product categories <60% from single vertical Financials Outlook and way forward • 23.9% growth YoY and 5.1% QoQ • October revenues 2.6m, EBITDA in line with Q3 • Organic growth 3.2% YoY • Volatility expected with regar
Slide 22: Q&A
RAKETECH Q&A 22
Slide 23: Thank you!
RAKETECH Thank you!
Slide 24: www.raketech.com
www.raketech.com
Raketech Group Holding — Q3 2020 Earnings Presentation on 6ix