RAKETECH Q1 REVIEW
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Affiliate Monitor Company-by-company Q1 results analysis
RAKETECH Q1 REVIEW
CONTINUING THE THEME of positive first quarter reports , Raketech didn ’ t buck the trend , producing what chief executive Oskar Mühlbach said were “ pleasing ” numbers . He noted that the 24 % revenue growth to € 15.8m also flowed through to the adjusted EBITDA level which rose 20 % to € 6.1m .
The “ perhaps somewhat ” stronger than expected margin relates , he said , to benefits of scale coming with increased volumes but also to a favourable market and product mix .
“ On this note , it is also worth highlighting that our high-margin affiliation marketing in the rest of the world as well as the Nordics stood out positively ,” he added . Consequently , Raketech ’ s non-Nordic share increased to an all-time high on time , up close to 64 %, while the Nordics at the same time , in fact , grew almost 7 %.
Raketech now reports across three segments of affiliation , sub-affiliation and betting tips and subscriptions . The main drivers of the business are the first two where growth for each segment stood at 32 % and 46 % respectively , with only the tips and advice section showing negative growth , down 30 %.
Mühlbach was keen on the call to stress the success of the sub-affiliation network model , which accounts for 23 % of total revenues . “ By nature , this product is a bit opportunistic and variations between quarters is expected to be higher than within affiliation marketing ,” he said .
Since being acquired in 2021 , the network business has seen revenues increase fivefold . Mühlbach said the Affiliation Cloud expansion is “ progressing according to plan ”. “ We are continuously onboarding new partners and launching new features and functions ,” he added .
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Mühlbach suggested that something of a change has taken place within the affiliate sector in recent years with a switch towards concentrating on fewer flagship branded websites . “ Fundamentally , we believe that long term it is essential to invest in fewer but better brands , which we then call ‘ flagships ’,” he said .
“ Simply put , this means that we are in parallel narrowing down and increasing our investments into fewer but stronger products to ensure our user offering also iGB Affiliate Monitor