Raketech, the Malta-based affiliate business, has announced a third consecutive record revenue total of €21.5m for Q3 2023, along with an all-time high organic growth rate of 66%. This record Q3 revenue also led to a 16.5% year-on-year increase in EBITDA for the company.
The growth in revenue and EBITDA was attributed to the development of Raketech’s Japan-facing Casumba brand and the growth within its network offering, especially in the Nordics and RoW. Revenue from Raketech’s sub-affiliation saw a remarkable 264% year-on-year growth to €11.1m, driven by an increase in new client onboarding and a twofold month-over-month increase in NDCs. However, the lower margin nature of this segment had a dampening effect on the group EBITDA in Q3.
Raketech’s CEO, Oskar Muhlbach, emphasized that the company’s record Q3 revenue had been underpinned by stable growth in its higher-margin core segment of conventional affiliate markets. The company’s flagship strategy of refocusing on fewer, more-established brands was credited with helping generate increased Q3 revenues of €9.5m versus €8.6m in the comparable quarter last year.
Despite the record Q3 revenue, adjusted operating profit saw a decline to €2.3m from €2.9m, impacted by non-cash amortization associated with adjustments to earnout commitments on the Casumba deal. Raketech also faced challenges in the Nordic market as market dynamics proved slower than expected.
However, the company remains optimistic about its outlook for the year, reiterating earlier guidance that they expected to close 2023 with EBITDA in the range of €23-25m and net cash of €13-15m. This would see Raketech exceed previous guidance on revenue, which is expected to come in at between €65-70m.