Malta-headquartered Raketech Group registered record revenues of €21.5 million during the third quarter of 2023, the iGaming affiliate company announced on Wednesday.

This figure represents a 65.8 per cent increase from the €13 million that was registered in the same period last year. Revenue largely came from sub-affiliation services, with it making up 51.7 per cent (€11.1 million) of total revenue, an increase of 28.2 per cent from the 2022’s third quarter.

Raketech Group is a marketing tech company that combines performance marketing and traditional performance-based affiliation by providing a portfolio of advertising space and data analysis tools.

The majority of the company’s revenue over the third quarter came from the Nordics (46.6 per cent). Revenue from the rest of Europe (5.2 per cent) and the US (5.2 per cent) lagged behind, with the remaining 43 per cent coming from its operations in the rest of the world.

Direct expenses increased to €10.5 million, largely driven by increased activity in sub-affiliation.

Employee benefit expenses amounted to €2.5 million, a 19 per cent rise from the last year’s figure (€2.1 million), primarily due to an increase in full-time employees from 105 to 129 at the end of the period. Other expenses, mainly related to product investments and consultancy fees, went up to €2.8 million.

Raketech Group’s earnings before interest, taxes, deprecation, and amortisation (EBITDA) for 2023’s third quarter amounted to €5.6 million, an improvement of 16.5 per cent from the performance in the same period last year (€4.8 million). Taking the full first nine months of the year, EBITDA rose sharply from 2022’s €13.7 million to €17.6 million, having experienced organic growth within its affiliation marketing assets as well as sub-affiliation.

The company also confirmed that revenue for October 2023 amounted to €7.7 million, €2.7 million higher than that of October 2022 (€5 million).

Commenting on the performance, CEO Oskar Mühlbach said: “With three solid quarters behind us, we expect to comfortably close 2023 in line with our previously increased guidance with regards to EBITDA at €23-25 million, as well as free cash flow in the interval of €13-15 million, while beating the €65-70 million revenue guidance.”

He noted that Raketech Group remains committed to its strategy of focusing on “fewer and better-established brands” in affiliation marketing, and the Board of Directors is particularly pleased with the development of Casumba, “an important part” of the company’s strategy.

“The market dynamics in the Nordic market, in which we have several flagships, were during Q3 slightly slower than expected. We however continued to invest and during the quarter we initiated our first-ever radio advertising campaign for Casinofeber.se on the Swedish market. Initial results look promising with a more than 50 per cent increase in direct traffic, and in the long term, we hope the branding effect will also spill over to organic rankings,” Mr Mühlbach continued.

Despite this, he remarked that the “most significant success” during the reporting period was within paid sub-affiliation, where the company uses its commercial network and relationships to “help operators and paid affiliates grow”.

He explained that even though revenues picked up towards the end of the third quarter, the US market started “slower than expected” and there was negative growth year over year, mainly due to underperformance in the company’s advisory business area. “The US organisation is now prioritising efficiency and execution on the outlined business plan,” Mr Mühlbach added.

Looking ahead, he said that following the release of the October revenues, Raketech remains “confident” about its previously increased full-year guidance for 2023.

“We are operating in one of the most competitive and fast-moving global marketing environments, and I am proud of our committed teams spread across various locations. Working tirelessly for Raketech, our clients, partners, and shareholders, we have achieved another strong quarter that aligns with market expectations,” he affirmed.

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