Raketech Group Holding’s revenue declined by almost 50% year-on-year in Q1 results published last week. Revenues totalled €9.8 million, a 48.8% decrease year-over-year from €19.0 million in Q1 2024.
A company statement confirmed this led to adjusted EBITDA to fall by over 50%, down to €2.4 million, from €5.1 million in Q1 2024. Net EBITDA fell to €2.1 million, a 50.8% decline from €4.3 million in the same period last year. The company then made a net loss of €0.842 million, compared to a net income of €0.174 million in Q1 2024.
The drop was partially due to poor performance by digital marketing brand Casumba in Japan. Raketech acquired Casumba in 2020 for an initial €2.3 million, with a potential €20.6 million earnout based on performance over several years.
A payment of €6 million was made in Q1, with a further €2 million due in Q2, but the remaining balance has now been delayed to March 2028 to give the company a chance to recover. Free cash flow before earnouts totalled €1.7 million in Q1 2025, so the ability to put off the payment could be a lifesaver for the company.
Shift in focus for Raketech
Additionally, Raketech’s US sports betting tips and subscription services incurred a negative EBITDA impact of €0.3 million. The company is now reviewing the services and shifting away from SEO-heavy marketing to form partnerships in other areas.
The company is focusing on AffiliationCloud and has formed four new partnerships in Q1. Total affiliate marketing revenue was at €6 million, with about 50% of this coming from entrepreneurial partnerships. The company stated that “a strategic focus for us is to grow this further during 2025.”
Cost-saving measures have also been taken, with the number of employees and contractors reduced by 41% year-over-year. Operating expenses were down 34% from Q1 last year.
CEO says it is a transitional period
CEO Johan Svensson attempted to put a positive spin on the results, framing the period as transitional for the company. Svensson commented, “Q1 2025 marked a period of strategic consolidation and operational focus for Raketech.
“Despite a year-on-year revenue decrease we have made good progress in aligning the business around our platform-first model and long-term growth priorities.
“With AffiliationCloud now at the core of how we operate, and a strengthened financial position following key decisions, we are confident in our ability to scale efficiently and deliver sustainable value.”
While the company is now in a “strengthened financial position” following the delay of the Casumba payment, the next period will be crucial to see if earnings can recover.
In the company statement, it was reported that April figures look much the same. The statement read, “Revenues for our Affiliation Marketing assets in April 2025 remains consistent with Q1 2025. However, the lower margin Paid Network (SubAffiliation) continues to face headwinds.”
Time will tell whether the headwinds continue to push the company’s growth back.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
