Affiliate Industry
Raketech: Interim report Q2 2021
QUOTE FROM OSKAR MÜHLBACH, CEO
“The second quarter of 2021 was a record quarter for Raketech with general solid performance across most assets and regions, in particular from our Network sales and from our efforts in Japan. Total revenue amounted to an all-time high of EUR 8.8M, corresponding to a growth rate of 25% whereof 25.7% was organic. The EBITDA margin was stable at 38.7%, in line with previous quarter.”
SECOND QUARTER 2021
- Revenues totalled EUR 8.8 million (EUR 7.0 million) representing an increase of 25.0%
- Organic growth amounted to 25.7% (-1.2%)
- NDCs (New Depositing Customers) amounted to 34,839 (40,847), representing a decrease of 14.7%
- EBITDA amounted to EUR 3.4 million (EUR 2.8 million), corresponding to a margin of 38.7% (40.2%)
- Operating profit amounted to EUR 1.6 million (EUR 1.5 million), corresponding to a margin of 18.2% (21.8%)
- Profit for the period amounted to EUR 1.2 million (EUR 1.2 million)
- Earnings per share amounted to EUR 0.03 (EUR 0.03)
FIRST SIX MONTHS 2021
- Revenues totalled EUR 17.1 million (EUR 13.6 million) representing an increase of 25.8%
- Organic growth amounted to 16.0% (-7.1%)
- NDCs (New Depositing Customers) amounted to 74,713 (73,125), representing an increase of 2.2%
- EBITDA amounted to EUR 6.6 million (EUR 5.5 million), corresponding to a margin of 38.7% (40.2%)
- Operating profit amounted to EUR 3.2 million (EUR 2.9 million), corresponding to a margin of 18.5% (21.4%)
- Profit for the period amounted to EUR 2.4 million (EUR 2.3 million)
- Earnings per share amounted to EUR 0.06 (EUR 0.06)
EVENTS DURING SECOND QUARTER 2021
- There were no significant events during the quarter.
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
- On July 7, 2021, Raketech announced the acquisition of P&P Vegas Group Inc and all assets from QM Media AB, a sports focused acquisition, delivering growth in primarily the US and Indian markets. The total purchase price amounts to EUR 16 million, payable in cash and through the issuance of new shares as at closing as per 15 September 2021.
- On July 9, 2021, Raketech announced that the Company has signed a one-year revolving credit facility of EUR 15 million with Avida Finans AB. The credit facility includes an extension option and can thus be renewed annually from its first date of utilization subject to certain conditions.
- On July 19, 2021, Raketech announced the acquisition of the organic casino affiliation marketing company, Infinileads S.L. Through the acquisition, Raketech takes a position in several Latin American emerging markets in addition to Spain, Italy and Portugal. The agreed purchase price amounts to EUR 4.5 million of which EUR 2.5 million was settled as per Closing (31 July 2021) and EUR 2 million will be payable as per 31 January 2022. A possible additional earnout payment will be measured over a period of 24 months post-Closing.
- Revenues in July 2021 amounted to EUR 2.9 million (EUR 2.4 million).
CEO OSKAR MÜHLBACH COMMENTS ON THE QUARTER
“The strong numbers from outside of the Nordics made our non-Nordic revenues increase as share of total. Total non-Nordic revenues amounted to 39%, compared to 35% previous quarter and 19% previous year. The development is in line with our ambition to increase our global footprint.
In June we experienced an uplift in terms of traffic and users on our sports related assets in connection with the European Championships in Football (the Euros). In time for the Euros, it is also worth mentioning that we launched our very first Free-to-Play product with which we offered a 100,000 EUR prize pool for the championships as well as several daily game tipping competitions, embedded on our popular TV-sportsguide asset on multiple markets. Being our first, but not our last, Free-to-Play offering, this is a major milestone on our quest of adding even more user-friendly, engaging, and sticky assets to our portfolio.
Following a very strong Q1, our US sport revenues, as expected, declined slightly due to seasonality, landing the overall sports share at 15% of the group’s total compared to 17% during Q1. As highlighted before, the US is expected to be more volatile, not only due to the nature of the market but also due to the fact that the vast majority of revenues is CPA driven.
After the end of the quarter, several important milestones were passed. A key activity was that we managed to secure access to additional funding to help us continue, and to some extent also accelerate our M&A efforts, in the form of a new and increased Revolving Credit Facility (RCF) from Avida Finance. This new RCF will be replacing the existing one during the fourth quarter, but we will also continue to evaluate further long-term financing opportunities, in line with our growth strategy and M&A agenda.
And with regards to M&A, we also announced two acquisitions in July: Infinileads and QM Media. Both are ticking several strategic boxes; giving us new and increased presence on strategically important markets, as well as technical and operational competence in addition to new types of revenue streams. These acquisitions are expected to add approximately EUR 6m in revenue and increase the group’s overall margin by as much as up to 4 percentages after integration. They are furthermore expected to generate additional positive cash flow to the group from day one, including potential future performance based earn-outs.
OUTLOOK
Our focus in the short term is to integrate our latest acquisitions. This to ensure we reap all potential positive synergy effects we possibly can. Mid-term to long-term our focus is however unchanged; we will continue to deliver on our growth strategy which includes product diversification, geographical expansion, increased monetization though R&D as well as M&A, with a specific focus on the US.
In July we saw a somewhat different composition in our overall product mix between Network and traditional affiliation and marketing revenues. This due to slightly reduced Network revenues from Germany as an effect of the Interstate Treaty implemented on July 1st, and strong performance from our other high margin assets, such as Casinofeber which has regained ground again after it’s temporary setback in December of last year. With that said, July revenues amounted to EUR 2.9m with an adjusted margin of 43%, where the increased margin primarily relates to the product mix composition. And for clarity, this does not include recent acquisitions.
Lastly, I wish to highlight that our stable performance and continuous strategic delivery is the result of a true team effort. It is therefore extra rewarding to be able to announce that Raketech has been crowned the EGR Affiliate Employer of the year for 2021.”
Link to report
The full Interim Report is available on https://raketech.com/investors/
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Affiliate Industry
The Danish Gambling Authority Warns of Money Laundering Risks When Using Affiliates
The Danish Gambling Authority has become aware that money laundering can occur through affiliates who market for gambling operators. Gambling operators that use affiliates should therefore consider whether this gives rise to updating their risk assessment.
An affiliate is a marketing channel where a person or company makes money by marketing for, for example, a gambling operator. The general consumer protection and marketing rules and the Gambling Act’s rules on marketing and communication also apply to affiliates. An affiliate earns money from the agreement by, for example, attracting new customers via their own website or through their own social network to the gambling operator’s website with a link. The link is generated specifically for the affiliate. The affiliate receives payment for the referral (pay per click), or a certain percentage of the amount the new customer deposits into their account.
How criminals can exploit affiliate agreements with gambling operators
In affiliate agreements with an individual or a company, there is an inherent risk that a gambling operator will be misused for money laundering. Particularly organized criminal networks can exploit an affiliate agreement. Networks of organized criminals can refer a large number of people within their criminal network as customers using the link to a gambling operator. A larger amount of illegal funds can be deposited into customers’ gambling accounts, which will not initially look suspicious, as the amount is distributed among several people in the criminal’s network. The deposited funds can subsequently be paid out to customers, possibly after play-through from their gambling accounts. This approach will make it look like legitimate winnings from gambling, and at the same time the affiliate increases its profit by having brought more new customers to the gambling operator, who according to the affiliate agreement is usually paid per additional new customer.
Signs of money laundering through affiliates
The Danish Gambling Authority points out that gambling operators may risk being misused for money laundering through these affiliate agreements. It may indicate that a gambling operator is being misused for money laundering by its affiliate if a majority of the customers referred by the affiliate only use the gambling operator’s website once and then no longer use the gambling operator’s services. It may therefore be relevant to assess whether entering into an affiliate agreement gives rise to updating one’s risk assessment.
The post The Danish Gambling Authority Warns of Money Laundering Risks When Using Affiliates appeared first on European Gaming Industry News.
Affiliate Industry
SOFTSWISS Affiliate Software Platform Wins at IGA 2025
SOFTSWISS, an international tech company with over 15 years of experience in iGaming, announces that Affilka by SOFTSWISS wins Affiliate Company of the Year at the International Gaming Awards 2025. The comprehensive software platform helps manage, track, and analyse affiliate performance in the most convenient way.
The event recognises leading industry experts, both online and land-based. This achievement came as a well-deserved gift for the platform’s 7th anniversary. The award reflects the platform’s dedication to optimising affiliate program management and elevating the operational efficiency of its clients. By helping operators optimise affiliate partnerships, Affilka by SOFTSWISS has established itself as a technology-driven leader in the iGaming realm.
Powering over 440 iGaming brands, the platform currently has more than 360,000 affiliate accounts and 85 million registered players. One of its most impactful updates is the Geo-Distributed Redirect feature. This innovation accelerates redirects up to five times, reduces bounce rates and increases conversions by up to 7%. By enabling players to access casino sites faster, the feature drives higher registrations and deposits.
Other notable platform functionalities include built-in payment processing, which helps streamline financial operations with trusted payment systems and bank transfers. The flexible commission constructor and near real-time reporting features enable operators to tailor their strategies according to constantly evolving business needs.
“We are honoured to receive recognition at such a prestigious level,” said Anastasia Borovaya, Head of Affilka by SOFTSWISS. “This award reflects our unwavering dedication to delivering the best affiliate management solutions in the industry. With over seven years of expertise, a highly professional team, and a passion for innovation, we’ve built a platform that ensures exceptional service and continuous product enhancements for our clients. We’re committed to maintaining this momentum and supporting the growth of our partners worldwide.”
Now, Affilka by SOFTSWISS is showcasing its latest features and achievements at iGB Affiliate in Barcelona. On 21–22 January, the team welcomes partners and clients at stand C10.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience in developing innovative solutions for the iGaming industry. SOFTSWISS holds a number of gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 27,800 casino games, the Affilka Affiliate Platform, the Sportsbook Software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team, based in Malta, Poland, and Georgia, counts over 2,000 employees.
The post SOFTSWISS Affiliate Software Platform Wins at IGA 2025 appeared first on European Gaming Industry News.
Affiliate Industry
MetaBet inks Gentoo Media partnership to enhance flagship sites
MetaBet, the pioneering provider of sports betting engagement tools, has partnered with Gentoo Media, a leading affiliate, to integrate its cutting-edge sports betting widgets into two of Gentoo’s flagship websites, World Sports Network (WSN) and Time2play.
MetaBet’s proprietary widgets are designed to nurture engagement, increase sportsbook conversions, and maximize affiliate revenue, all through seamless integration with just one line of code. With market-setting load speed and contextual placements, MetaBet’s products will empower Gentoo to focus on what they do best.
WSN and Time2play are trusted platforms for sports betting and casino enthusiasts in the US and Canada. Between them, they have captured an audience of millions of sports fans on the back of expert reviews, exclusive offers, and accurate content. As Gentoo amplifies its presence in the US, MetaBet’s innovative technology will be a key element in their success.
MetaBet Founder, Mark Phillip, said: “Partnering with Gentoo Media, a data-driven company with a new name but long track record, is a testament to our market-leading status. Our technology, leveraged through their trusted platform will enhance engagement and conversions to accelerate Gentoo’s growth strategy within the US and beyond.”
The post MetaBet inks Gentoo Media partnership to enhance flagship sites appeared first on Gaming and Gambling Industry in the Americas.
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