Raktech has reported first-quarter revenues of EUR 12.7 million. US revenues amounted to EUR 2.4 million (EUR 0.5 million), representing an increase of 379.9%.

Sports revenues amounted to EUR 4.3 million (EUR 1.4 million), corresponding to 34.2% (17.0%) of total revenues.Organic growth amounted to 6.8% (5.4%).EBITDA amounted to EUR 5.1 million (EUR 3.2 million), corresponding to a margin of 40.1% (38.7%).

Total revenues amounted to EUR 12.7m, which corresponds to a 53% growth. EBITDA subsequently increased with 59% to EUR 5.1m in absolute terms. Sport revenues as share of total amounted to 34.2%, in line with our strategic goals. In absolute terms this corresponds to a growth of 208%, primarily driven by acquisitions.

Margins from our more mature and/or casino dominated markets continued to be comfortably strong, at 47%, but with the sports and investment heavy US market making up almost 20% of the group total we, as expected saw group margins, decline slightly from previous quarter, however increasing year over year, thanks to benefits of scale.

I am furthermore pleased to see that our previous 2021 acquisitions, QM media and Infinileads, targeting markets such as India, the South of Europe and the US continued to show growth in the span of 35-85%. Once again, a proof of our ability to grow acquisitions by exchanging best practices, optimizing commercials, and providing access to central BI/Analytics and tech resources and infrastructure.

During the quarter we have however also seen headwinds, particularly in Finland due to recently imposed regulations on gambling advertisement. Essentially all large operators have chosen to significantly lower or withdraw completely from this market which subsequently has led to a decline in marketing and affiliation investments. Additionally, our largest asset Casinofeber has seen a slight decline, however to a large extent offset by other Swedish assets growing confidently. However, considering it’s a large asset it dampened the Swedish growth slightly during the quarter.

Generally speaking Q1 of 2022, Finland and Casinofeber aside, was however a stable quarter in which we saw good performance across the line of affiliate assets. In the US we are continuing to build and invest in mechanisms to add affiliation to non-affiliation assets, and I am glad to conclude that we already have approximately 10% of PicksandParlays revenues coming from affiliation. We look forward to continuing to invest in this area and expect the affiliation share to increase over time as we improve the mechanisms and transfer the learnings to all other assets in the US.