ABSI - RAS Technology Holdings (ASX:RTH): Behind the Odds

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RAS Technology Holdings (ASX: RTH) is a data, media content and SaaS solutions provider to racing authorities, wagering operators, media and digital organisations, as well as private and retail clients. Based in Canberra and with global presence, RTH operates a diversified business model, enabled by its proprietary platform and a comprehensive database of information. RTH offers investors exposure to a niche technology business at an attractive valuation, with recurring revenues and catalysts to support its continued growth.

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Investor Highlights

• Strong Underlying Metrics - FY25 Revenue saw a 31% increase from FY24, with positive earnings and an increase in cash from operations. FY25 saw the continuation of RTH’s increase in positive free cash flow from the prior corresponding period (pcp) and with annual recurring revenue (ARR) for the period increasing in FY25 to ~$21.8m from ~$18.9m the year prior.
  
  
• Diversified Technology Offering Impact - RTH’s combination of technology- based solutions enable new efficiencies, cost savings and reduction of labour input for its clients. Much of its product suite has been developed to provide tangible benefits in driving further participation, retention and turnover for its clients. RTH also provides premium data services, with access to billions of data points across multiple countries, races and events.
  
  
• Global Offering - RTH offers its technology-based products and services across Australia, U.K, U.S, Europe and Asia. There is strong demand for RTH’s offering globally, as reflected in its ~62% increase in ARR for the U.K market.
  
  
• Tier-1 B2B Client Base - RTH provides its proprietary technology to major sports and gaming companies, including (but not limited to) SportsBet, Bet365, BetFair, TabCorp and BlueBet. These clients have remained long-term with the business, with many of these current major clients gained prior to the Company’s listing on the ASX in 2021.
  
• Strong Register and Self-Sustaining Business Model - Top 20 shareholders hold ~69% of the Company. Shareholders include Entain PLC (LON: ENT), a major global sports and gaming group. RTH also operates with no debt and has not relied on major capital raises to fund operations since its IPO.
   
  • ENT is a member of the FTSE 100, generating over £5 billion in revenues for FY24.

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