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Raketech: Year-end Report 2018

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Raketech: Year-end Report 2018
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FOURTH QUARTER 2018

 

  • Revenues increased by 65.6% to EUR 7.6 million (EUR 4.6 million)
  • Organic growth amounted to 50.2% (6.1%)
  • Adjusted EBITDA increased by 122.1% to EUR 4.5 million (EUR 2.0million), corresponding to a margin of 59.3% (44.2%)
  • Adjusted operating profit amounted to EUR 3.8 million (EUR 1.8 million), corresponding to a margin of 49.6% (39.9%)
  • Profit for the period amounted to EUR 1.7 million (EUR 0.8 million).
  • Earnings per share amounted to EUR 0.05 (EUR 0.03) before dilution
  • NDCs (New Depositing Customers) increased by 141.4% to 35,948 (14,891)

FULL-YEAR 2018

  • Revenues increased by 49.0% to EUR 25.6 million (EUR 17.1 million)
  • Organic growth amounted to 29.9% (16.6%)
  • Adjusted EBITDA increased by 48.9% to EUR 14.4 million (EUR 9.7 million), corresponding to a margin of 56.3% (56.4%)
  • Adjusted operating profit amounted to EUR 12.7 million (EUR 9.0 million), corresponding to a margin of 49.7% (52.5%)
  • Profit for the period amounted to EUR 4.6 million (EUR 5.8 million)
  • Earnings per share amounted to EUR 0.15 (EUR 0.24) before dilution
  • NDCs (New Depositing Customers) increased by 48.2% to 99,599 (67,193)

EVENTS DURING Q4 2018

  • With an effective date of 3 October 2018, Raketech repaid EUR 15.5 million of the current loan facility.
  • On 5 October 2018, Raketech launched Urheiluveikkaus.com as its flagship sports betting product for Finland.
  • Raketech launched esportsguide.com on 16 November 2018, to target the global esports community.
  • On 7 December 2018, Raketech acquired a number of Norwegian affiliate assets within consumer finance, including the flagship product Norskkredit.no.
  • Raketech entered into an agreement with Swedbank for a revolving credit facility of EUR 10 million on 20 December 2018.
  • The Board of Directors proposes that no dividend is to be paid for the 2018 financial year as Raketech operates in a growing market.
  • In order to capitalise on this and the ongoing consolidation in the market Raketech intends to prioritise growth activities which include further acquisitions.

CEO MICHAEL HOLMBERG COMMENTS THE QUARTER

“I am pleased to announce a strong end to 2018, which was a record-breaking year for Raketech. We strengthened both financially and strategically over the past twelve months, and our focus on creating organic growth has continued.

Revenues for the fourth quarter amounted to EUR 7.6 million, an increase of 66 percent compared to the corresponding quarter last year. The organic revenue growth amounted to 50 percent. Adjusted EBITDA amounted to EUR 4.5 million, corresponding to a margin of 59 percent. For the 2018 full year, revenue growth was 49 percent and the adjusted EBITDA margin amounted to 56 percent, well above our financial targets.

Our TV sports guides performed particularly well in the quarter and supported revenue growth. During 2018 we enhanced the guides with new features and dedicated sections for specific sporting events, which have turned out to be very popular among the users. We have also exhibited steady growth for our latest products targeting the UK and Germany, and see traffic increasing for recently launched Esportsguide.com which targets the growing global esports market. The latter is yet another example of scalability within our product strategy – entering new markets or verticals with existing platforms.

The regulation of the Swedish gaming market came into effect on 1 January 2019, and we put a big focus on activating a new Swedish compliance strategy at the end of 2018 to ensure our sites follow robust compliance criteria. With a clear compliance strategy executed, we can now focus resources on driving traffic to our new and existing regulated partners in Sweden with which we have established long-term deals. It is still early days and the operators and players are adapting to the new setting, but we believe the market will normalise over time and we see many opportunities ahead.

All in all, I am very proud of the progress and achievements made by the team in 2018, and look forward to the company’s continued growth journey in 2019.”

PRESENTATION FOR INVESTORS, ANALYSTS AND THE MEDIA

CEO Michael Holmberg and CFO Andreas Kovacs will present the report and answer questions in an audiocast at 9.00 a.m. CET on 21 February. The presentation will be held in English and can be followed online via https://tv.streamfabriken.com/raketech-q4-2018. To participate by phone, please dial +46 8 566 42 705 (SE) or +44 333 300 9034 (UK).

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SKS365 keeps investing in people: GROW People Management Program took the next level

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11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.

Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.

Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.

GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.

 

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Kindred’s Share of Revenue from High-risk Players Shows Slight Increase

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Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.

“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.

“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.

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PENN Entertainment Names Aaron LaBerge as Chief Technology Officer

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PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.

In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.

Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.

“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.

“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.

Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.

Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.

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