Raketech profit falls 77% in Q1 2020
Malta-based affiliate reports revenue growth outside of Nordics as profit drops to €1.1m
Raketech has seen post-tax profit plummet by 77% to €1.1m for Q1 2020 year-on-year, citing “higher operating costs” in January to March as the core reason for the losses.
The Malta-based affiliate also recorded flat revenue of €6.53m after a 1.4% increase for Q1 2020, compared to €6.45m in Q1 2019.
Casino accounted for 78% of total Q1 revenue, which marked a year-on-year increase of 5.6%
Concurrent with the coronavirus outbreak and the dearth of sporting events, sports accounted for just 16.7% of total revenue – a fall of 8.1% year-on-year.
Elsewhere, Raketech’s revenue derived from outside of the Nordics grew by nearly 10% year-on-year to 14.2%, up from 5%. Nordic revenue subsequently fell from 95% in Q1 2019 to 85.8% in Q1 2020.
EBITDA dropped by nearly a quarter (24.7%) to €2.6m in Q1 2020 from €3.5m in Q1 2019, while operating profit in Q1 2020 (€1.4m) marked a 51.2% decrease from Q1 2019 (€2.8m).
The affiliate saw NDCs increase 12.8% to 32,278 for Q1 2020, while the coronavirus outbreak has not had a negative impact on employee headcount, with it growing by 5%.
Raketech CEO Oskar Mühlbach said: “Q1 2020 can be summarised as a stable operational and financial quarter for Raketech. In general, our product portfolio performed as expected and we continued to deliver on our strategic operational goals.”
On coronavirus, Mühlbach noted that there could be potential long-term effects.
He continued: “If the situation continues for a long time, we expect to see a slightly negative impact on our sports revenues which might not be fully compensated for by an increase in casino.”
In conclusion, Mühlbach added: “The market situation is currently volatile and unpredictable. We are and will therefore continue to be extra careful with guiding on the upcoming quarter or year in terms of expected revenues.”
Raketech recently ranked third in EGR’s Power Affiliates rankings for 2020.