Malta-headquartered iGaming affiliate company Raketech on Thursday revealed that it registered €15.8 million in revenue during the opening three months of 2023, an ‘all-time high’ for the firm.

This was announced in the company’s first quarter Interim Report for 2023, in which earnings before interest, taxes, depreciation and amortisation (EBITDA) surged by 20.1 per cent from the figures at the start of 2022 (€5.1 million) to €6.1 million.

The improved performance was largely a result of the aforementioned record start to the year in terms of revenue, representing a 24.4 per cent increase from the figures in 2022’s first three months (€12.7 million). The core portfolio of affiliation marketing increased to €10.8 million from €8.2 million during the period, with especially “exceptional” results from its Rest of World segment, together with a solid performance from flagship assets in the Nordics.

Additionally, the quarter also indicated significant growth from its expanding sub-affiliation offering, totalling €3.6 million (Q1 2022: €2.5 million).

Revenues from its United States (US) operations decreased to €1.9 million (Q1 2022: €2.4 million), an effect of a “somewhat unfavourable outcome” in sport betting predictions related to its US-focused subscription offering.

Additionally, the company also revealed that revenues in April 2023 amounted to €5.9 million, €2.1 million or 55.3 per cent more than in the same month in 2022. This was primarily driven by “continued strong growth” in sub-affiliation.

Commenting on the performance in the first quarter, CEO Oskar Mühlbach stated that 2023 started on a “strong note” for the company, particularly through its revenue numbers, which is a “new all-time high”. He remarked that this was primarily generated within its “core, high margin segment” of affiliation marketing.

Raketech CEO Oskar Mühlbach / Raketech

“During the first quarter, we continued to pursue our strategy for profitable growth, leveraging on our diversified portfolio within affiliation marketing, sub-affiliation, and betting tips and subscriptions,” he explained.

The company’s revenue from affiliation marketing, grew by 32 per cent, with Mr Mühlbach adding that it recorded “exceptional” results from its Rest of World segment, with its brands Casumba and OnlineCricketbetting “leading the way”. “Additionally, our flagship assets in the Nordics continued to deliver according to plan, which is comforting considering that Casinofeber since March is being operated entirely by Raketech’s central team, post earn out,” he added.

He remarked that Affiliation Cloud, Raketech’s affiliation infrastructure solutions service, “continued to deliver progress” according to expectations, yet the majority of the growth was attributed to “strong results” from network sub-affiliation in South America.

Mr Mühlbach added that revenues from the company’s smallest business area, betting tips and subscriptions, were down by 31 per cent, primarily due to its “win-share component” which is based on sport betting predictions.

Turning to Raketech’s United States (US) operations, he added that efforts, particularly when it comes to adding affiliation offerings to the existing Pickster assets, are “progressing well”, but “somewhat at a slower pace than anticipated”. He noted that during the first quarter, the company “enforced” its team in the US with a Managing Director and are in the midst of launching “several initiatives to increase speed of delivery”, the effects of which are expected to be seen by “the end of the year and come into full effect as of 2024”.

He added that Raketech’s management is “very pleased” so far with the return on investment in its recently acquired Casumba, which is “well above” the company’s expectations in terms of growth and projected post earn out cash flow contributions.

Looking ahead towards the rest of the year, he noted that the company is “confident” of reiterating its previously communicated revenue guidance for the full year, excluding acquisitions, of €60-65 million in 2023 and an EBITDA of €20-24 million. Mr Mühlbach added that free cash flow is “in line with the guidance” and is “expected to increase substantially” to around €11-13 million.

Raketech, which was founded in 2010 and since 2016 has been headquartered in Malta, was built on its vision to “always be the first choice” by driving the industry users and partners at its “core”. It delivers relevant and simplified content within iGaming and helps connect consumers to the services that meet their needs.