by Mateusz Mazur

Raketech Group Posts Strong 2023 Results and Optimistic 2024 Outlook

Raketech Group unveiled its Q4 report for 2023, showcasing remarkable performance in line with the recently enhanced guidance.

The quarter witnessed a total revenue of EUR 22.8 million, marking an impressive organic growth of 45.3% Y/Y. The entire 2023 fiscal year saw the company achieving a revenue of EUR 77.7 million, with an organic growth rate of 47.6%. Looking forward, Raketech has set an ambitious EBITDA target for 2024, projected to be between EUR 24-26 million.

Q4 2023: A Quarter of Significant Growth

The final quarter of 2023 was significant for Raketech, as revenues soared to EUR 22.8 million from EUR 15.7 million in the same period the previous year. This growth was primarily fueled by the expansion within sub-affiliation sectors. EBITDA for the quarter was reported at EUR 6.0 million, slightly impacted by softer performance in Sweden, contrasting a strong Q4 in 2022, buoyed by the FIFA World Cup. However, other regions and sub-affiliation segments showed promising performance.

Operating profit was recorded at EUR 2.8 million, a decrease from the previous year’s EUR 4.3 million, mainly due to increased non-cash affecting amortisation and depreciation on intangible assets related to the acquisition of Casumba. The quarter also saw an uplift in free cash flow to EUR 4.8 million, thanks to minimal earnout settlements.

Dividend Proposal and 2024 Outlook

Reflecting confidence in the company’s robust financial health and future prospects, Raketech’s Board of Directors has proposed a dividend of EUR 0.10 per share for the 2024 Annual General Meeting, marking a 6% increase from the previous year. The company’s guidance for 2024 includes an EBITDA forecast of EUR 24-26 million and an anticipated free cash flow of EUR 22-24 million, prior to the settlement of the Casumba earnout amounting to EUR 18.3 million.

January 2024 kicked off strongly with revenues reaching EUR 7.3 million, supported by the thriving sub-affiliation segment. In a significant leadership transition, Johan Svensson was appointed Acting CEO on January 11, 2024, taking over from Oskar Mühlbach, with a commitment to driving further value and exploring new market opportunities.

Our Comment on Raketech’s Performance and Future Plans

Raketech’s impressive performance in 2023 and the optimistic outlook for 2024 underscore the company’s resilience and strategic acumen in navigating the dynamic iGaming landscape.

The focused expansion into new markets, coupled with strategic partnerships and leadership foresight, positions Raketech for sustained growth and innovation. As the company embarks on this ambitious journey, stakeholders and the wider industry will keenly watch its progress, anticipating new milestones in iGaming excellence.

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