Raketech Group Holding PLC (RAKE) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

in at 12.9 million euro in revenues in Q3, an organic decrease of 39.9% and 38.8% adjusted for the divestment of the advisory business. Adjusted EBITDA of 3.1 million euro, a decrease of 44.6% year-on-year and EBITDA of 3 million euro. Total adjusted EBITDA for the first three quarters 12.5 million euro. October revenue was €4 million compared to €7.7 million in October last year, of which €0.4 million from the divested advisory business. We expect Q4 to be slightly stronger than Q3 in terms of adjusted EBITDA. At the moment, it looks difficult to reach the lower end of the previous communicated full-year guidance of €17-19 million in adjusted EBITDA. However, visibility is limited due to the ongoing operational challenges for our publishers within Raytech Network and around the expectation of a usually stronger second half of Q4 for both casino and US sports. Our previously communicated review of our operating model that started during the first quarter of this year has led to realized cost savings of 18% compared to Q1 this year. Publisher costs excluded. Free cash flow before earnout increased to 3.8 million euro, positively impacted by timing of settlement and trade receivables and payables. This allows us to meet our upcoming earnout commitment of 9.9 million euro, payable up until the first half of next year. The remaining earnout obligation of 20.6 million euro can be settled at any point in time at our discretion. up until September 2026. Next slide. Now let's look at our different business areas more in detail and we will start with affiliation marketing. Affiliation marketing, our in-house operated assets and strategic partnerships had a weak quarter with revenues of 6.8 million euro, a decline with 28.3% compared to Q3 last year. The affiliation marketing ...