24
Affiliate Monitor Company by company Q4 results analysis
during the quarter . “ The initial strategy to add affiliate marketing on our Tipster asset has not delivered in line with expectations , but we have started to see some positive indications during the fourth quarter ,” he said .
Svensson added that the plan for sub-affiliation going forward was to “ continue to build on the good momentum ” within the network business . “ We will expand to new markets , including the US , and we will onboard more publishers ,” he promised .
With the cloud platform , he said the company would continue to seek to add more partners and increase the sales volume . But he noted that the previously communicated revenue target of € 10m in run rate by the end of 2024 has now been pushed back to the first half of next year .
THE AFFILIATION STRATEGY
Svensson did suggest the affiliation business was undergoing a strategic review , which may hint at where the disagreements with the previous CEO emanated from .
“ This strategic exercise will include an analysis of our operating model of markets to prioritise and how we best allocate the capital ,” he told the analysts . “ Furthermore , we have started with a performance exercise of the entire product portfolio to optimise cash flow and to improve operational efficiency .”
“ While the initial fee for Casumba was only € 2m , Raketech CFO Svalborn said the earnout now totalled € 46m ”
JOHAN SVENSSON , RAKETECH ACTING CEO
Chief financial officer Måns Svalborn said the issues with the affiliation business , where revenues were down on the prior year period , were largely caused by “ softer ” revenues at the Swedish business . “ We do see somewhat of a decreased activity from operators , which can vary over time ,” he added .
Svalborn also spoke about the
Japanese-facing Casumba , which Raketech bought in 2019 , as having been a “ very successful acquisition for us with high margin and high growth .” He also noted this was the company ’ s last remaining “ material ” earnout .
It is worth mentioning that while the initial fee for Casumba was only € 2m , Svalborn said the earnout now totalled € 46m in total of which € 41m was fixed while the remaining portion that runs up to July this year is a profit share . He noted that the founders of Casumba were still with the business and were “ committed to staying on board , overseeing the portfolio of sites , but more importantly , assisting Raketech in other growth projects ”. iGB Affiliate Monitor