‘Cautious Swedish market’ impacts Raketech revenue growth for Q2

Online affiliate and content marketing company Raketech has described the first six months of 2019 as being ‘characterized by high activity’ despite reporting a drop in its total revenues for the quarter as a result of a ‘cautious Swedish market’.

Releasing its interim report for the period April – June 31 2019, Raketech has reported that the group’s total revenues had decreased by 6.1 per cent in comparison to the same period last year, falling from €6.0m down to €5.7m. 

However, for the first six months of the year, Raketech has highlighted an 11 per cent increase in revenues compared to last year’s corresponding period, with revenues amounting to €12.1m. 

Commenting on the results, Raketech CEO Michael Holmberg stated: “The second quarter has been characterized by high activity with well-performing products and high levels of traffic sent to gaming operators. 

“I am particularly pleased that we have delivered high profitability and a strong operational cash flow, which proves the scalability of our business model and our ability to navigate and adapt Raketech’s business to the current conditions.”

According to Holmberg, the Swedish market – which is still in ‘a transition phase’ – has meant that both overall market growth and organic growth for Raketech ‘has stalled’. 

The report explained that ‘it is likely to become clearer later this year as several appeals will be raised in high court. In the long term, we expect that Sweden will have fewer licensed operators than today, and that Raketech as a partner to the largest operators will potentially play a more important role in the market.’

But despite navigating challenges in Sweden, Raketech explained that NDCs (New Depositing Customers) have jumped by 45.8 per cent up to 53,582 compared to the 36,762 reported in the same period last year. 

Holberg continued: “In 2019, no major sporting events on par with the 2018 FIFA World Cup will take place, and with half of the year now behind us we can see that player values remain at the lower levels we noted during the first quarter. However, based on the development so far in the third quarter, our assessment is that player values will not decrease any further. 

“We focus on driving traffic to the larger well-established operators, with whom we have strong and successful relationships. Through our scalable business model, we continue to focus on profitability going forward, in combination with the before-mentioned geographical expansion and selective acquisition strategy. I look confidently towards our future and strongly believe in our long-term strategy.”

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