Raketech chief “remains confident” for 2024 despite 67% decline in Q1 operating profit
Affiliate also reveals results of operational review with plans to ramp up sports side of business ahead of Euro 2024 this summer
Raketech has posted a year-on-year (YoY) decrease of 67.1% in operating profit as part of a mixed Q1 2024 for the business.
The Malta-based affiliate generated an operating profit of €1.2m, a significant decline from Q1 2023’s return of €3.8m.
Raketech added that adjusted operating profit landed at €2m when accounting for costs related to the company’s restructuring.
The affiliate also posted EBITDA of $4.3m, a sharp 29% YoY decrease from the €6.1m recorded 12 months prior.
The decline was attributed to an underwhelming performance in Sweden in contrast to last year, as well as a Google Core update impacting the performance of the group’s Casumba assets.
It was a similar story in regard to the firm’s adjusted EBITDA, as Raketech recorded a 17.2% YoY decrease to €5.1m.
However, revenue did rise to €19m, representing a 20.1% YoY jump against the €15.8m reported this time last year. Bosses said this was inspired by a strong quarter for the sub-affiliation division.
In fact, sub-affiliation contributed to the slight majority of company revenue, attributable to 47.3% of that €19m total, with a figure of €9m. Affiliate marketing was a close second, with €8.8m, or 46.2% of total revenue.
Breaking Raketech revenue down by vertical, 81.6% of the KPI came from casino marketing, accumulating to a total of €15.5m. That dwarfed its sports equivalent, which generated €3.4m and 18.4% of the top-line figure.
Aside from financial performance, management also confirmed the completion of an operational review which included cost-cutting measuring, a renewed focus on core markets and a repositing of the affiliate marketing arm.
Raketech added that following the review it would aim to lower its dependency on SEO, grow the sports arm of the business ahead of Euro 2024, expand into new geographies and home in on customised relationships with operators.
Reflecting on Q1, Raketech acting CEO Johan Svensson issued an optimistic update for the remainder of 2024 as he vowed the firm would do all it can to maximise shareholder value.
He said: “In the first quarter of 2024, we delivered €19m in revenues, representing an organic increase of 20.1%, primarily driven by sub-affiliation. Adjusted EBITDA came in at €5.1m, while EBITDA was €4.3m, consistent with our trading update published on 1 May.
“We remain confident in our market-leading product offerings and see promising growth opportunities through our strategic initiatives in sports offerings, exclusive partnerships and media deals. These efforts will position us well for continued growth in the coming years, and we remain committed to maximising shareholder value.”
The year began in difficult circumstances for Raketech, with Oskar Mühlbach stepping down as CEO following a four-year reign. “Different views on the strategic considerations for the company going forward” were cited in January as the reason for his exit.