Q2 2024 Raketech Group Holding PLC Earnings Call Transcript
Key Points
- Raketech Group Holding PLC (OSTO:RAKE) reported EUR17 million in revenues for Q2 2024, showing resilience despite a slight decline.
- Sub-affiliation revenues increased by 29.7% year-on-year, indicating strong growth in this segment.
- The company successfully divested its non-core manual high-touch tipster advisory operations for USD2.25 million, aligning with its strategic vision.
- US flagship assets like Winners and Whiners, Statsalt, and Pick and Parlays continue to rank strongly, generating over 50 million sessions annually.
- Raketech Group Holding PLC (OSTO:RAKE) has financial flexibility to settle the current Casumba earnout, ensuring long-term growth and value creation.
- Organic revenues decreased by 3.7% in Q2 2024, reflecting challenges in the market.
- EBITDA decreased by 20.3% year-on-year, indicating a decline in profitability.
- Affiliation marketing revenues dropped by 25.9% compared to Q2 last year, mainly due to weak performance from Casumba assets and softer Sweden casino performance.
- Operational challenges faced by some larger publishers impacted revenues in July, leading to a weaker performance in the lower margin sub-affiliation business.
- The company had to take a one-time non-cash impairment charge of EUR10 million related to the divestment of the tipster advisory business.
Good morning, and welcome. My name is Johan Svensson and I'm the CEO of Raketech. Today, CFO, MÃ¥ns Svalborn and I are here to present RakeTech's Q2-2024 report. We will start with our Q2 financials.
Raketech delivered EUR17 million in revenues in Q2, an organic decrease of 3.7 percentage. EBITDA of EUR4.4 million, a decrease with 20.3% year on year, resulting in EUR9.4 million in adjusted EBITDA for the first half of the year. Revenues for the month of July were EUR4.6 million, mainly impacted by weak performance from the lower margin sub-affiliation business. Some of our larger publishers had operational challenges in July, but we expect the revenue to pick up during the rest of the quarter.
Considering the first half of the year and the current trading for July, we can now more accurately forecast our outlook for the full year. This means we are now able to further specify the full year guidance of around EUR20 million into a range of EUR17 million to EUR19 million in adjusted EBITDA. Free cash flow before earn out is estimated to come
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