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Affiliate group Raketech delivered revenue of €21.5m in Q3 2023, an increase of 65.8% year-on-year.

Meanwhile, adjusted EBITDA for the quarter grew by 16.5% to €5.6m, while adjusted operating profit dropped by 20.6% from €2.9m to €2.3m.

Overall adjusted profit came in at €997,000, down from €2.2m in the prior-year period.

Revenue breakdown

The business reports revenue separately for its two core business segments, its affiliate marketing division and the sub-affiliation division, which provides services to other affiliates and operators.

Revenue from the affiliate marketing division totalled €9.5m, or some 44% of the total, amid a year-on-year increase of 10.5%.

“However,” the firm said, “the most significant success during Q3 has been within paid sub-affiliation,” where revenue shot up by 264% year-on-year to €11.1m.

Within the sub-affiliation business segment, Raketech saw a “significant uptick” of newly onboarded clients, as well as double the number of new depositing customers compared to Q2, it said.

The business also generated a further €933,000 in revenue from its much smaller betting tips and subscription segment, representing a 27.8% reduction year-on-year.

The majority of Raketech’s revenue (€18.4m or 85.5%) came from the online casino sector, while €3.1m or 14.5% of the total came from sports betting.

By geography, the Nordics were the company’s best performing region, generating €10m in revenue amid year-on-year growth of 58.8%.

The rest of Europe generated just €1.1m, albeit amid year-on-year growth of 73.6%.

Revenue from the US also totalled €1.1m, but that figure came amid a year-on-year drop of 25.4%.

Revenue from the rest of the world more than doubled from €4.5m to €9.3m.

Final results and outlook

The company’s overall growth in adjusted EBITDA was driven by “strong development in [Japan-facing affiliate brand] Casumba,” Raketech said, alongside “significant growth” within sub-affiliation.

The drop in adjusted operating profit, however, was the result of “increased non-cash affecting amortisation following adjustments attributable to amounts committed on acquisitions relating to Casumba,” the company added.

“We are pleased to report another strong quarter, in line with the updated trading guidance for 2023,” said Raketech CEO Oskar Mühlbach. 

“The team reached an all-time high in revenue performance and organic growth and a solid EBITDA, supported by the strong demand for our infrastructure solutions in sub-affiliation, and complemented by stable growth at higher margins in our core segment affiliation marketing.”

Raktech has reiterated previously increased earnings guidance for the full-year 2023, pointing to EBITDA of between €23m and €25m and net cash flow between €13m and €15m.

Full-year revenue is expected to outstrip previous expectations, meanwhile, coming in at between €65m and €70m.

Following the end of the reporting period, Raketech said it generated €7.7m in revenue during the month of October, up from €5m in October 2022.