Affiliate Industry

Raketech Announces Second Quarter 2023 Results

Published

4 months ago

August 18, 2023

Niji Narayan

Raketech Announces Second Quarter 2023 Results

Reading Time: 3 minutes

Raketech has announced its financial results for the second quarter of 2023.

Q2 2023 Financial Highlights

Q2 of 2023 reached an all-time high in terms of revenues, totaling EUR 17.6 million (EUR 11.3 million) with an organic growth of 56.0% (-4.0%).
- A particularly strong development within Sub-affiliation/Network was complemented by continued stable growth within high-margin Affiliation Marketing, primarily driven by continued strong contributions from Casumba.
Revenues from Betting Tips & Subscriptions were down by 6%, essentially in line with last year, somewhat impacted by currency effects.
EBITDA, which grew by 45% Y/Y to EUR 5.5 million during the quarter, was positively impacted by the strong development in Casumba.
The AGM approved a dividend to shareholders corresponding to EUR 0.094 per share. The first of two installments was distributed to the shareholders in May.

Subsequent Events After the End of the Period

Revenues in July 2023 amounted to EUR 6.9 million (EUR 3.9 million).

CEO Oskar Mühlbach Comments on the Quarter

Raketech continued to deliver strong growth during the second quarter of 2023, with total revenues of EUR 17.6 million, another all-time high for the group, corresponding to an organic growth of 56% Y/Y. A particularly strong development within Sub-affiliation/Network was complemented by continued stable growth within high-margin Affiliation Marketing, resulting in an EBITDA of 5.5 million, up by 45% from the same period last year. Based on the strong first half of the year, we remain confident about our recently upgraded full-year guidance for 2023. Whereof revenues are expected to amount to EUR 65-70 million, excluding acquisitions, EBITDA is expected to come in between EUR 23-25 million and free cash flow is expected to increase to EUR 13-15 million.

Revenues from Affiliation Marketing, our largest business area, accounting for 59% of total revenue, grew by 28%, primarily driven by continued strong contributions from Casumba. Furthermore, the Sub-Affiliation business area, providing SaaS solutions and club commercials to affiliates, had an exceptionally strong quarter, driven by favourable market development, with Latin America and the Nordics leading the way. Revenues from Betting Tips & Subscriptions were essentially in line with last year, somewhat impacted by currency effects.

EBITDA, which grew by 45% Y/Y to EUR 5.5 million during the quarter, was positively impacted by the strong development in Casumba. The EBITDA margin was 31.1%, compared to 33.6% in the corresponding quarter of last year, as an effect of the increased contributions from Sub-affiliation/Network, to the groups’ market and product mix.

During the quarter, AffiliationCloud, our affiliation infrastructure solutions as a service (SaaS) offering, continued to deliver according to our long-term operational plan even though revenue growth was somewhat soft and the business area still is small in absolute numbers, compared to our other business areas. We aim to accelerate growth during the last part of the year.

Our geographical position within Affiliation Marketing remained stable compared to last quarter. But as an effect of our Network business being particularly successful in Latin America and the Nordics our revenues from these markets increased more than others on group level.

The calculation period for the majority of the contingent considerations relating to the acquisition of Casumba is coming to an end in December. The calculation period is 18 months in total and considering there are only 5 months remaining, only exceptional events would lead us to change the provisioned amount for this part of the earnout significantly.

July revenues amounted to EUR 6.9 million (EUR 3.9 million), mainly driven by continued strong growth in Casumba and Sub-affiliation/Network.

Strengthened by the recent successful development in Casumba and Sub-affiliation/Network, I look forward to driving progress within our strategic growth initiatives, focusing on our flagship products, accelerated US growth and AffiliationCloud.

In conclusion, I would like to thank our strong dedicated teams across the globe, helping our clients to stay ahead of the game. I am confident that we are well-placed to leverage the opportunities ahead and position ourselves as the first choice in the growing iGaming affiliation market.

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Affiliate Industry

Aspire Global Facing Pair of Legal Battles

Published

4 days ago

December 5, 2023

Alan Campbell

Reading Time: 2 minutes

Prominent online gaming software and platform provider Aspire Global has been named as the defendant in a pair of court cases that could potentially result in it being ordered to pay compensation totaling up to €101 million ($109 million).

In the first complaint, Aspire Global is being sued in the United Kingdom by the founders of sports betting software, solutions and services provider BtoBet, Alessandro Fried and Igor Lestar, for €36 million ($39 million). This pair inked a deal in 2020 to sell their company to the Malta-based defendant in exchange for an upfront payment of some €20 million ($21.6 million) as well as an earn-out consideration tied to future earnings before tax.

However, Fried and Lestar through their Sousa Enterprises Limited and Eltsar Limited entities are alleging Aspire Global, which was last year acquired by NeoGames as part of a deal worth some €402.3 million ($423.5 million), violated the terms of this share purchase agreement by spending too little and not charging enough so as to deliberately decrease revenues and the subsequent earn-out sum.

The complex case with its many intricacies is not expected to go to trial before 2025 but could well result in Aspire Global being ordered to pay more than the €36 million headline figure. The financial implications are even more concerning as the defendant’s NeoGames parent is currently in the process of being acquired by Aristocrat in an arrangement valued at north of €1 billion.

In the United States and Aspire Global has also been separately named as the offender in an action brought by Ebet Incorporated, which is the operator of the Karamba, Griffon Casino, Hopa, Generation VIP, Scratch2Cash, Gogawi, Dansk 777 and Bet Target iGaming brands. This Nevada action is seeking some €65 million ($70 million) embracing compensatory damages, punitive fines and other financial penalties to be proven at trial and moreover names AG Communications and other affiliated entities as defendants.

Ebet Incorporated acquired specific business-to-consumer (B2C) assets and associated websites from Aspire Global in 2021 and simultaneously entered into a ‘white-label’ operator agreement embracing collaborative efforts on the future running of the purchased assets. The plaintiff is claiming the defendants breached these deals by manipulating their books to falsify and overstate active player data and exaggerate the health of the acquired properties.

As if this wasn’t bad enough, Aspire Global is furthermore being accused by Ebet Incorporated of violating the terms of the agreements by materially failing to maintain necessary operations in Germany, falsifying records and violating industry regulations. The allegations could potentially shape the future trajectories of these companies as they also run to reputational harm, fraud, breach of contract and other unnamed violations due to be proven during the course of the trial.

Affiliate Industry

Calling All Gamblers: Scatters Club to Host First-Ever Gambling Streamers Awards

Published

5 days ago

December 4, 2023

Zoltan Tundik

Reading Time: 2 minutes

Scatters Club, a global community of passionate gambling streamers and players, announces the first-ever online Streamers Awards. This online event was created to spotlight the brightest stars in gambling streaming.

Scatters Club rolls out the red carpet online for top streamers. The event will celebrate the creative achievements of gambling streamers, and awards and global recognition will go to the best performers.

Nominees will vie for the ultimate prize: the audience’s love and the Scatters Crown Trophy. Everyone is welcome to nominate their favorite streamer on this website, or streamers can self-nominate in a category that highlights their flair and creativity.

Nominations are open from December 4 to December 30 for international applications:

Most Hilarious Reaction to a Win
Most bright Reaction to a Lose
Coolest Background
Craziest Outfit
Best Streamer Collaboration
Community Champion
Rising Star in Gambling Streaming
Most Responsible Streamer
Everyone’s Favorite Gambling Streamer
The Best Female Streamer

All submitted and approved applications are placed on the long list for their respective nominations, and the vote-casting period begins. Every fan of gambling can vote for their favorite streamer on a dedicated page.

After that, the TOP-5 streamers in each category will be shortlisted, and public votes will determine the leaders in various nominations.

As gambling fans cast their votes for the shortlist, the jury voting begins. The jury choice will remain under wraps and will only be revealed during live air on February 1, when the winners will be crowned as streaming legends.

The voting period wouldn’t be complete without the audience’s favorite bets. Top Five Streamers will be chosen for the Legend of the Year title based on the stats provided by Casinolytics, a Scatters Club’s partner. Everybody is invited to place bets on who they think will be crowned with the title. Predictions can be submitted from December 8, 2023, to January 30, 2024. The winners will be announced online on February 1, 2024.

To make the award night genuine and thrilling, Scatters Club will invite a secret host. Amping up the fun, famous gambling streamers will make guest appearances to announce the nominations and winners chosen by a special jury. The names of the jury and guests will be revealed soon along with many more mind-blowing features of this event.

Stay tuned for the Streamers Awards updates while spinning your reels!

Affiliate Industry

2rbo Affiliates Shortlisted for Best Newcomer at iGB Affiliate Awards 2024

Published

1 week ago

December 1, 2023

Zoltan Tundik

Reading Time: < 1 minute

2rbo Affiliates, a standout casino and sportsbook affiliate program, is thrilled to announce that it has been shortlisted for the Best Newcomer category at the iGB Affiliate Awards 2024. This recognition is a testament to the hard work, dedication, and strong partnerships that the team at 2rbo Affiliates has built since its launch in 2023.

Jonjo Walsh, Affiliate Manager at 2rbo Affiliates, said, “Being shortlisted for the Best Newcomer category is an incredible achievement for our team. We’ve put in a lot of effort, built strong connections with our partners, and it’s gratifying to see recognition for all our hard work. A big thank you to everyone involved, and to iGB Affiliate for shortlisting us.”

2rbo Affiliates, launched in 2023, operates under four licenses (SGA, MGA, DE) and manages seven licensed brands. The company offers a range of pricing models, flexible commissions, and no negative carryover, providing a reliable return on affiliates’ efforts. A stellar ReferOn platform ensures easy and efficient affiliate management.

The iGB Affiliate Awards 2024 are part of the iGB Affiliate London 2024 event, designed to celebrate individuals and teams in affiliate marketing and iGaming. The awards will take place following the second day of iGB Affiliate London on 8 February 2024.