Raketech Group Holding

Country:
Sector:
Market cap (m):
Sweden
Media
SEK 664.18
Bloomberg:
Reuters:
Website:
RAKE SS
RAKE.ST
Share price (close):
SEK 17.30

Latest Reports

Commissioned Research: A solid start to 2019 with 22% organic growth
Online gambling affiliate Raketech reported a solid start to 2019 with no major deviations from our or consensus' estimates for Q1. Revenues grew by 32% y/y, 22 pp of which was organic. The Swedish market, Raketech's largest by far, has yet to stabilise fully after the reregulation. With Q1 now behind us, however, the company has demonstrated that it can generate >50% EBITDA margins even with more than 50% of revenues from regulated markets. We make relatively small estimate changes and keep our DCF-based fair value of SEK 36-45 per share intact after the Q1 report. Marketing material commissioned by Raketech Group Holding

Commissioned Research: Temporary headwind turning to tailwind
Raketech is a fast-growing online gambling affiliate with a strong Nordic presence. It generates most of its revenue by funnelling new players to online casinos and sharing the profit. Because operators are determined to grow, this has become a lucrative business. Raketech takes an active part in consolidating the fragmented affiliation market, completing 22 deals since 2015. In 2018, it grew revenues by ~50% y/y, 30 pp of which was organic. There is some uncertainty about the net impact of re-regulation in its key market Sweden this year, but more established affiliates like Raketech will likely be the relative winners. Its trading update for January (+30% growth y/y), presented with the Q4 report, gave a comforting view. Marketing material commissioned by Raketech Group Holding

Equity analysts

Key persons

CEO: Michael Holmberg

CFO: Andreas Kovacs

Chairman: Christian Lundberg

Numbers
Nordea
EURm
2015
2016
2017
2018
2019E
2020E
2021E
Total revenues
2.1
10.4
17.1
25.6
28.9
32.3
34.6
Ebitda (adj.)
0.08
8.08
9.67
14.40
15.31
16.64
17.84
Ebitda - margin
3.8%
77.4%
56.4%
56.3%
53.0%
51.6%
51.6%
EBIT (adj.)
0.1
8.0
9.0
12.7
12.4
13.4
14.5
EBIT (adj.) margin
3.6%
76.9%
52.5%
49.7%
42.9%
41.6%
41.9%
PTP (adj.)
0.1
8.0
6.3
6.3
11.8
12.9
13.9
Net profit from cont oper (adj)
0.05
7.64
5.95
6.06
11.24
12.21
13.22
Shareholders´ Equity
0.3
8.9
15.7
58.7
69.9
82.1
95.3
Net interest bearing debt
0.0
-0.1
25.0
0.4
-9.3
-22.5
-36.6
Net gearing
n.a.
n.a.
n.a.
0.6%
-13.2%
-27.4%
-38.4%
Net debt/EBITDA
-0.3
0.0
2.6
0.0
-0.6
-1.4
-2.0
Free cash flow to equity
-0.2
0.0
-23.1
-5.1
9.7
13.2
14.1
Diluted number of shares in issue, year-end (m)
0.0
23.6
23.9
38.4
38.4
38.4
38.4
Nordea Markets estimates published on May 23, 2019
Source: Company data, Nordea estimates
Per share data and multiples
Nordea
EUR and %
2015
2016
2017
2018
2019E
2020E
2021E
EPS (adj.)
n.a.
0.33
0.25
0.20
0.29
0.32
0.34
EPS (adj.) growth
n.a.
n.a.
-24.5%
-21.3%
48.5%
8.7%
8.3%
DPS
n.a.
0.00
0.00
0.00
0.00
0.00
0.00
BVPS
n.a.
0.4
0.7
1.5
1.8
2.1
2.5
P/E (adj.)
n.a.
n.a.
n.a.
9.6
5.5
5.1
4.7
EV/Sales
n.a.
n.a.
n.a.
2.87
1.83
1.23
0.74
EV/EBITDA (adj.)
n.a.
n.a.
n.a.
5.09
3.45
2.38
1.43
EV/EBIT (adj.)
n.a.
n.a.
n.a.
5.77
4.26
2.95
1.76
P/BV
n.a.
n.a.
n.a.
1.24
0.89
0.76
0.65
Dividend yield
n.a.
n.a.
n.a.
0.0%
0.0%
0.0%
0.0%
FCF yield
n.a.
n.a.
n.a.
-7.0%
15.6%
21.3%
22.7%
RoE
38.1%
n.a.
47.0%
12.7%
17.5%
16.1%
14.9%
ROIC
61.5%
n.a.
33.3%
22.7%
17.9%
19.2%
20.8%
Nordea Markets estimates published on May 23, 2019
Source: Company data, Nordea estimates

Source: Thomson Reuters