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Raketech Plc seeks to stabilise its financial performance, following a ‘challenging period’ for its business impacted by Google changes and a downturn in the performance of its Casumba media assets.
Publishing its Q2 accounts, the Nordic Nasdaq igaming media publisher reported a 3% decline in corporate revenues to €17m.
The decline in income was attributed to Raketech registering a 25% drop in ‘organic revenues’ generated from its Affiliate Marketing business to €7.6m, versus €10.3m reported by 2023 comparatives.
A slowdown in affiliate marketing sales wiped out revenue gains of 29% recorded by Raketech’s sub-affiliation business, which generated revenues of €8.2m (Q2 2023: €6.3m).
Leadership outlined key priorities to return its Affiliate Marketing unit to growth, including implementing a swift response to Google algorithmic changes for Casumba assets, a reduction on SEO dependencies, and a renewed focus on growing its sports betting vertical.
Q2 challenges saw Raketech’s adjusted EBITDA decline by 20% to €4.4m (Q2 2023: €5.5m), as operating profits stood at €1.6m, with corporate accounts booking a €10.5m impairment related to the sale of the non-core US business.
Raketech CEO, Johan Svensson commented: “Revenues in Q2 of 2024 totalled EUR 17.0 million (EUR 17.6 million). Strong growth in sub-affiliation were offset by a decline in affiliation marketing. EBITDA was EUR 4.4 million compared to adjusted EBITDA of EUR 5.5 million of last year, in line with expectations.
“The impact of the Google update was most evident for our Casumba assets in Q2, and we have acted swiftly by mobilising resources from across the company to strengthen the team.”
In light of the current challenges, Raketech has revised its full-year guidance, now anticipating adjusted EBITDA to fall between €17m and €19m, a reduction from the previously expected €20m. This adjustment reflects the ongoing difficulties faced by the company in stabilising its revenue streams.
Of significance, Raketech reported a significant revenue decline in July 2024, with income totalling €4.6m. This represents a 33% decrease compared to previous months, largely attributed to weaker performance within the sub-affiliation segment. Leadership continues to address these issues as it seeks to regain momentum in the latter half of the year.
