Raketech Q4 revenues drop 23.3% as new depositing customer numbers fall
Affiliate marketer reveals “modified” strategic direction, targeting global performance
Affiliate marketing firm Raketech has revealed a 23.3% year-on-year drop in its Q4 2019 revenues, with revenues falling to €5.8m during the final three months of 2019.
Company adjusted EBITDA amounted to €2m during Q4 2019, corresponding to a margin of 33.6%, a substantial decline on the Q4 2018 adjusted EBITDA of €4.5m/59.3%.
Adjusted operating profits decreased sharply during Q4, falling to €0.3m from a previous Q4 2018 high of €3.8m, while company earnings for the period decreased to a loss of €0.3m.
The total number of new depositing customers fell by 22% from 35,948 NDCs in Q4 2018 to 28,002 in Q4 2019.
Oskar Muhlbach, Raketech CEO, described the whole of 2019 as an eventful and challenging time for the business, highlighting the “particularly tough” Swedish market, where the firm is heavily exposed.
Responding to the trend for local monopolies to be replaced by a limited number of global operators, Muhlbach confirmed that Raketech has initiated a “slightly modified” strategic direction.
“We therefore see an increased demand for large, global but granular co-operations and less of the traditional local single channel affiliation models that previously have been dominating our market,” Muhlbach said.
Muhlbach revealed the firm will transition from a local/regional affiliate provider into a “tech-driven and innovative global performance company”, pledging to target M&A as a top priority.
“We will, however, continue to be selective and therefore only target strategic opportunities that either accelerate our global expansion or add technology, knowledge or products that helps us expand our offering or operational efficiency on a larger scale,” he added.
Muhlbach replaced former president and CEO Michael Holmberg in December.
Overall Raketech 2019 revenues fell by 6.5% year-on-year to €23.9m, however NDC numbers rose to 108,365 from a 2018 high of 99,599.
Full year 2019 adjusted EBITDA fell to €11m from €14.4m in 2018, with a corresponding margin drop to 46%. Company adjusted operating profits halved in 2019 to €6.5m from a previous 2018 high of €12.7m.
However, company earnings for 2019 rose to €7.2m from a previous 2018 figure of €4.6m.
Raketech has confirmed that its revenues for January 2020 were €2m.