QUOTE FROM OSKAR MÜHLBACH, CEO
“Q2 of 2022 was yet another stable quarter for Raketech Group. Our core portfolio of affiliation marketing assets delivered results in line with Q1, despite challenging market conditions and low seasonality. Again, proving the strength of Raketech’s well diversified asset portfolio, as well as our well balanced vertical and geographical split. Total revenues for the quarter amounted to EUR 11.3m, equivalent to a growth of 29%.”
Q2 2022 FINANCIAL HIGHLIGHTS
- The core portfolio of affiliation marketing assets delivered solid results, despite challenging market conditions. Revenues totalled EUR 11.3 million (EUR 8.8 million).
- Organic growth amounted to -4.0% (25.7%), an effect of changed regulations on the Finnish market as well as Network sales no longer being offered on the German and Dutch markets due to re-regulations.
- US revenues amounted to EUR 1.3 million (EUR 0.3 million), as US sports entered its low season of the year.
- Sports revenues totalled EUR 3.5 million (EUR 1.3 million), corresponding to 31.0% (15.2%) of total revenues.
- Revenues from the recently launched Affiliation Cloud amounted to EUR 0.2 million (EUR 0 million).
- Adjusted EBITDA amounted to EUR 4.0 million (EUR 3.4 million), corresponding to a margin of 35.0% (38.7%). Expected seasonality effects from primarily the US market affecting the margin.
Q2 2022 OPERATIONAL HIGHLIGHTS
- Strong performance from most assets following the recent Google core update.
- Continuous investments in the US organisation and tech development such as the Affiliation Cloud to further consolidate the platform for growth.
- The company announced it has extended its revolving credit facility of EUR 15 million with Avida Finans AB up until September 2023. When utilized, the interest on the facility is EURIBOR plus 4.25% with an additional upfront extension fee. The credit facility includes an extension option and can thus be renewed annually subject to certain conditions.
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
- Revenues in July 2022 amounted to EUR 3.9 million (EUR 2.9 million).
CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER
Q2 of 2022 was yet another stable quarter for Raketech Group. Our core portfolio of affiliation marketing assets delivered results in line with Q1, despite challenging market conditions and low seasonality. Again, proving the strength of Raketech’s well diversified asset portfolio, as well as our well balanced vertical and geographical split. Total revenues for the quarter amounted to EUR 11.3m, equivalent to a growth of 29%.
Year over year we declined organically with 4%, entirely relating to the Finnish market as expected, stabilizing on lower levels due to changes in legislation, and our Network no longer being offered on the German and Dutch markets due to re-regulations.
Considering these factors and that Q2 of last year included both a digitalization boost due to Covid and the UEFA EURO I am therefore very happy with our Q2 performance of this year. It gives me confidence to see that our assets are holding up strong despite such tough comparison numbers and a generally negative reported Q2 iGaming sentiment.
Furthermore, as Q2 is a seasonally weaker period for sports in the US, revenues from this market were as expected lower than those in Q1, representing 12% of the Group’s total. At the same time, revenues from the Nordics were 47% of group total thanks to the strong performance from our core portfolio.
Adjusted EBITDA for the quarter came in at EUR 4m, representing a margin of 35% relating primarily to the low sports season in the US where our fixed cost base is stable, in combination with the continuously high investments pace with regards to product development, US organization and the Affiliation Cloud.
During the quarter Google rolled out one of their “core updates” that affected us in a positive direction, which is an additional testament that we are doing things right. Worth mentioning in this context is that several of our flagship assets on the, for us so important Swedish market, experienced increased organic visibility. And with regards to our latest product innovation, the Affiliation Cloud, we experienced more interest in the product than expected, which is exciting considering it is currently only in beta phase. We have therefore increased investments into this area to ensure we maximize our capacity to onboard new clients while ensuring a great user experience for both affiliates and operators. Affiliation Cloud revenues for Q2 was approximately EUR 200k.
And with regards to other investments, one of the more interesting and exciting current projects is relating to our Flagship asset Casinofeber. As of February 2023, Casinofeber will be completely operated by the central Raketech team as it is handed over from the original team. I am very excited about this, not only from a product development perspective but also very much from a cash flow perspective as the full operating cash flow from this asset will be made available for Raketech in its whole once the final earn out is settled at the end Q1 2023.
As a final quarterly highlight, I am happy to be able to mention that we have extended our revolving credit facility of EUR 15 million for yet another year on attractive commercial conditions, with the possibility of further extension based on certain criteria. The credit facility ensures we can continue to invest into organic growth while also keeping the door open for additional M&A.
July revenues came in at EUR 3.9m, relating to continuous strong performance from core assets as well promising results from Affiliation Cloud.
The second half of the year is typically stronger than the first half. And with our core products portfolio performing well, the American football season coming to a start and the FIFA World Cup to look forward to in November and December, we reiterate our full-year aim of being within the interval of EUR 50-55m in revenues with an EBITDA margin within 40-44%. I am very happy to see that our diversification strategy and strong operational delivery focus is paying off. Raketech is in a position where we are, not immune perhaps, but very resilient against sudden changes in the world around us. And not only are we resilient but also well positioned for growth with regards to products, markets, and different revenue stream on the ever changing and growing global iGaming industry. With that said I am very much looking forward to the last part of this year.
Gamegram Launches Affiliate Program with Income Access
Income Access is delighted to announce their partnership with Gamegram Casino, an innovative online platform that combines the thrill of gaming and gambling, in addition to the launch of their new affiliate program.
Income Access will be providing their industry-leading affiliate tracking platform solution to Gamegram, as well as launching and managing their new affiliate channel. The affiliate platform will offer affiliates a wide range of marketing and analytics tools, flexible commissions, detailed performance tracking and support from a knowledgeable team with over 20 years of experience in the industry.
Gamegram is an online crypto casino with a Player vs Player (PvP) twist. It bridges the gap between traditional casino experiences and the desires of digital-native Generation Z players, building an online community unlike any other. It also offers a unique experience of playing games against other real players. No tricks, no bots, and no skill needed – pure battle of luck between two players.
What Makes Gamegram Stand Out?
- PvP Gaming Innovation: Gamegram brings competitive betting to life with engaging games like Rock Paper Scissors and Russian Roulette.
- Rich Social Engagement: With global and private chats, and systems, Gamegram fosters a community where players connect and thrive.
- Crypto-Friendly Platform: Gamegram simplifies crypto transactions – deposit and play using our popular crypto options such as Bitcoin, Ethereum, and Tether.
- Honest Approach: Gamegram says NO to misleading wagering requirements, creating an environment of trust and loyalty.
Gamegram’s strategic combination of immersive PvP games, social engagement, crypto accessibility, and absolute transparency makes them a pioneering force in the online gambling space.
OlyBet Launches Affiliate Program in Spain and Slovakia with Income Access
Income Access is excited to announce that OlyBet has recently launched its affiliate program in Spain and Slovakia with Income Access.
This expansion builds upon the successful partnership between the two companies, which began in 2016 when Income Access started providing its industry-leading platform to OlyBet in the Baltic countries. The new program will allow affiliates to promote to players in these new markets, with the support of Income Access’s advanced marketing and analytics tools, flexible commissions, detailed performance tracking, and a knowledgeable team with over 20 years of experience in the industry.
Breaking the Affiliate Marketing Ground – New Affter Affiliate Program Features
On August 24th, the affiliate environment welcomed new members. The release of the Affter affiliate program caused a media storm, bringing together the public and professional spheres. The enigmatic question “What’s beyond that?” hinting at the revolutionary nature of the program was a key trigger among many others in this eye-catching video.
Features of the Affter Brand
Affter’s appeal lies in its unparalleled combination of intelligence and style, which is a beacon in the affiliate marketing industry. The emergence of Affter, created by a team with over 6 years of successful iGaming experience, marks a transformational change. Drawing on their experience and proven track record, the team behind Affter has built partnerships with renowned niche brands, elevating affiliates to the upper ranks. Affiliate network is now the exclusive reseller of cutting-edge iGaming offerings available for immediate exploration by select teams.
Embrace the Evolution
A multifaceted range of offers distinguishes the Affter affiliate program, making it an attractive option to consider. A variety of betting and gambling offers, both popular and exclusive ones, shape the portfolio of the network. The affiliate program covers various GEOs – CIS, Tier 1 and Tier 2 countries – and is designed for a global affiliate community. Effective and flexible payment models include CPA, RevShare (25% to 45%) and Hybrid (CPA + RS) options.
Affter boasts a proprietary platform that features an intuitive interface enriched with advanced features. S2S Postback, ads, banners, creatives and full statistics are integral components. Providing maximum convenience, supports preferred payment methods: cryptocurrencies (Bitcoin) and bank cards, with a minimum withdrawal threshold of $100. An in-house media buying ensures the optimization performance of the affiliate network.
Access to the closed Affter community is limited, with specially designed promo codes. To enter the Affter affiliate platform, you must receive a secret promo code from managers or brand ambassadors. Alternatively, an invitation can be obtained through the recommendation of trusted referrals or opinion leaders. Networking events and conferences can also serve as additional access channels.
What sets Affter apart is its professional approach to operations, backed by knowledgeable affiliate managers. Affiliates who come to Affter gain access to lucrative prospects, including exclusive gambling and betting offers, diverse GEO coverage, and extended caps for high-performing ones. Affter’s willingness to take on all the risks that affiliates face in their operations underscores the company’s value proposition. The key managers of Julia Donska, Head of Resale, and Kristina Storozhyk, Marketing Director, epitomize the essence of Affter. The video release, a synthesis of style and content, reinforces their strategic message. The exclusivity of the video extends to affiliates who have yet to be in the «spotlight». Notably, the top affiliate teams have already received their elite invitations before the launch of the affiliate network.
While iGaming is still a thriving industry, the arduous journey shows its volatility, reinforcing the need for companies to adapt to changing conditions. Affter’s genesis was set in the crucible of experience and innovation, heralding its remarkable journey. To succeed in iGaming, strategies need to be realigned to the changing marketplace, corresponding to the affiliate community’s need to adapt.
Maxim Makovetskyi, Head of affiliates at Affter, explains:
«For many years, our team has provided affiliate marketing services for the Parimatch franchise, our client. However, the success of our affiliate programe has not only been due to the strength of the major brand but the team. With the current market turbulence, there were some concerns about further scaling and development. Maurizio Aschero, partner of the independent affiliate programe
Affter, made a deal with a part of the PMA team, thus opening for himself another business vector in the form of affiliate marketing. Our team developed the Affter brand and all further management processes on our side».
«As of the current date, PMAffiliates will cease its active presence in the market and transfer part of its activities and obligations to the Affter. As fulfilment of obligations to affiliates is our fundamental principle, all payments on RevShare and Hybrid deals concluded by the PMAffiliates team will be made as standard».
Maurizio Aschero, seasoned CEO with a long history of management in the marketing industry. Terms of the deal were not disclosed by the parties involved.
Pre-moderation Process AAA
Access to the Affter sphere with the receipt of the promo code “GA_001” from Gambling Affiliate Voice. Entering this code on affter.com starts the pre-moderation process. Final approval is given by the affiliate program manager and the code is only available for the first 10 registrations in the affiliate program.
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