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Affiliate Monitor Company-by-company Q1 results analysis
Raketech Battling on
Things are not going well for Raketech. Across both affiliate activity and its sub-affiliation services business, revenues are heading in the wrong direction. In the fourth quarter, revenues of € 12.3 million were down 46 % yearon-year, or down 43 % when the divested tips business is excluded. Full-year 2024 revenue fell 21 % to € 61.2 million.
Adjusted EBITDA suffered in line with the fourth quarter number falling by half to a mere € 3 million while the full-year figure dropped by 32 % to € 15.7 million. Free cash flow for the year was down 22 % to € 4.7 million.
In response to the disheartening backdrop the company has engaged upon a process of seeking cost efficiencies, with operational costs falling 29 % from the first quarter to the fourth after an internal review.
On an actual level, the company also took a non-cash impairment charge of € 48.5 million against the value of what it said were pre-IPO non-core assets.
CASUMBA WOES
The affiliate business saw revenue drop 32 % year-on-year to € 6.5 million with the Casumba business seeing a continued decline. CEO Johan Svensson added that they had seen traffic stabilising at lower levels with old rev-share databases continuing to decline, but that turning that asset around“ from decline to growth is a key focus.” In comparison the other affiliate assets grew 3 % sequentially.
Revenue from Sweden declined slightly due to increased local taxes from 1 July 2024. In Denmark, it saw increasing casino and sports traffic. Italy was positive, while generally the sports assets saw sequential growth which the company hopes to build on in 2025.
“ We have had a good momentum for our sport assets, and we plan to launch a handful of new sport products during the first half of 2025,” said Svensson.
Chart 5: Raketech revenue and adjusted EBITDA Q123- Q424(€ m)
26 24 22 20 18 16 14 12 10 8 6 4 2 0
15.8
6.1
17.6
5.5
21.5
5.6
22.8
6.0
19.0
4.3
17.0
4.4
12.9
3.1
12.3
3.2
Q123 Q223 Q323 Q423 Q124 Q224 Q324 Q424
Source: company reports
iGB Affiliate Monitor