Raketech experiences a 50% decline in revenue during Q1 of 2025
Here's a zingier take on that iGaming affiliate biz news:
Raketech, the Maltese iGaming affiliate group, took a drastic hit in Q1 2025,with revenue plummeting to €9.8 million compared to €19 million in the same period last year.
Last year's figure included €0.8 million from a consulting division they've since sold. The drop-off signals Raketech's transformation out of its SEO-reliant past.
The adjusted EBITDA fell to €2.4 million, down from €5.1 million, while net EBITDA dwindled to €2.1 million, compared to €4.3 million a year ago.
What caused this slip?
- Continued disappointments with the Japanese Casumba biz
- Troubles in the Paid Publisher Network
- Losses from unprofitable US affiliate sites pushing tips and subscriptions
To counteract, they've:- Wrapped up a corporate shake-up- Slashed operating costs (excluding ad spend) by 34% year-on-year- Raked in €1.7 million in free cash flow before paying off liabilities
Platform-powered push
Raketech's betting on its AffiliationCloud platform, blending their content sites, affiliate projects, and a SubAffiliation network of publishers. At present, around half of the revenue from its core Affiliation Marketing segment stems from collaborations with SEO whizzes and content creators. Many of these alliances were launched in March, with the company expecting them to make a bigger splash in the coming quarters.
Casumba contract tweaked
On May 6, Raketech renegotiated their Casumba buyout terms, moving the final €20.6 million earn-out payment to March 2028 and eliminating the share payment option. They've already forked over €6 million in Q1, and plan to pay an additional €2 million in Q2.
Organic traffic gains, paid sources struggle
The SubAffiliation network nabbed €3.4 million, yet the paid side took a substantial hit in March due to external factors like algorithm shuffles. Recovery in that sector seems doubtful. On the flip side, organic traffic is on the rise, with 80 active publishers (up from 50 a year ago) and four fresh exclusivedeals with operators.
Johan Svensson, Raketech's CEO, drops a quote:
"Q1 2025 was all about strategic consolidation and operational focus for Raketech. Despite a revenue drop, we made headway in shifting the biz to our platform-first model and long-term growth strategies. With AffiliationCloud driving our operations now and our purse strings tighter, we're optimistic about scaling efficiently and generating sustainable value."
Raketech's eyes are on building trustworthy, lasting traffic through smart partnerships and natural channels. They're branching out into interactive sports media products to diversify their portfolio and insulate themselves from volatile SEO trends.
And despite current struggles, Raketech remains determined to bounce back and grow by innovating their platform and nurturing their affiliate relationships.
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- In the tech-driven business landscape, Raketech is leveraging its AffiliationCloud platform, integrating content sites, affiliate projects, and a SubAffiliation network of publishers, to strengthen its position in the iGaming industry.
- To maintain financial stability and fortify growth, Raketech has made strategic investments in technology, such as developing interactive sports media products, aiming to insulate its business from volatile SEO trends in the finance realm.
