Raketech endures challenging year as Q4 revenue and EBITDA plunge double-digits
CEO Johan Svensson says affiliate remains “fully committed to strategic clarity” as shares fall more than 8%
Raketech has reported its third consecutive quarter of double-digit slumps in revenue and EBITDA, with bosses labelling 2024 a “challenging year”.
Revenue stood at €12.3m (£10.2m) for the fourth quarter, a 45.9% year-on-year (YoY) drop from €22.8m in Q4 2023, while EBITDA slumped 49.7% YoY to €3m.
Adjusted EBITDA for the period between October and December 2024 was €3.2m, a 46.2% YoY fall.
The affiliate’s shares are down more than 8% at the time of writing to SEK3.28 (24p).
New depositing customers (NDCs) also plummeted YoY, falling 62.9% from 75,568 in Q4 2023 to 28,014 for Q4 2024.
Management said the drop in NDCs was primarily driven by the sub-affiliation arm’s performance, which despite showing quarter-on-quarter growth, was down significantly against Q4 2023.
Sub-affiliation revenue declined from €11.4m to €5.2m, or 54.5% YoY. Raketech said it would migrate its Raketech Network business to AffiliationCloud in Q1 2025 which it hopes will enhance efficiency.
Affiliation marketing revenue dipped from €9.7m to €6.5m, primarily due to the performance of Casumba assets.
It was noted that Casumba’s recovery remains an “in-house priority” for the Malta-based company.
Betting tips and subscriptions reached an all-time low of €600,000, leading to a strategic review last month.
Raketech said: “Given the relatively small scale and non-core nature of the US tipster and subscription business, we began a strategic review in January. A final decision on the future of this business area will be made by the end of Q1 [2025].”
Sport revenue slipped to €2.4m, from €4.3m, but remained flat from its Q3 figure, with casino revenue crashing to €9.9m from €18.4m the year prior.
Looking at revenue across multiple markets, Nordics revenue amounted to €6.4m, while rest of the world stood at €4.7m.
Both markets were down from their €10.6m and €9.3m figures, respectively, in Q4 2023, same with rest of Europe at €400,000 down from €800,000 and US revenue standing at €800,000 – a drop from €2.1m last year.
Raketech CEO Johan Svensson noted relationships with operators remained strong but that an evaluation of affiliation marketing assets has taken place to realign focus.
He said: “While short-term visibility within network remains somewhat uncertain, our relationships with operators and publishers remain strong.
“Following a challenging year, we have thoroughly evaluated our affiliation marketing assets and their alignment with Raketech’s established commercial and operational strengths.
“This will enable the company to concentrate more on strategic partnerships, exclusive commercial agreements with operators and the development of AffiliationCloud.”
On the affiliate’s next steps, Svensson added: “This update emphasises our ongoing efforts to optimise operations, strengthen strategic partnerships and capitalise on the growth opportunities in affiliation marketing and sub-affiliation.
“We recognise the challenges in the current environment but remain fully committed to strategic clarity as we execute our objective of delivering sustainable long-term growth and value creation.
“Our priority is delivering results, and we look forward to providing a strategic update in connection with the Q1 [2025] Report, which will include insights into our growth strategy, financial outlook and key milestones.
“Additionally, we will finalise our decision on the US tipster and subscription business by the end of Q1.”
Looking ahead, Raketech said financial reports will be announced earlier from now on, which will “adapt its trading update accordingly”.
A strategic update will also be released alongside the firm’s Q1 report on 7 May.