Raketech has posted revenues of €7.8m for the second quarter of 2025, a decline when compared to figures from Q1 2024 and the corresponding quarter last year – but leadership remains confident in its ‘platform first’ strategy and internal restructures.
The figure sees a drop from €17m in the same period of last year, a decline the affiliate marketing company attributed to weaker performance in its Paid Publisher segment, ongoing challenges with the Casumba asset, as well as the sale of its US advisory business.
Casumba is a Malta-registered company that operates affiliate websites in Japan. Raketech acquired the firm in 2020 to expand its operations into the Japanese market in a deal which cost €2m upfront.
Despite pressures, the latest report shows signs of momentum in its core business. The group’s Affiliation Marketing portfolio, excluding Casumba, delivered 5% revenue growth quarter-over-quarter. EBITDA stood at €2.0m, while Adjusted EBITDA was €2.1m.
Excluding a 500,000m operating loss tied to now-divested US tipster and subscription assets, Adjusted EBITDA would have reached €2.6m. Free cash flow before earnouts stood at €1.8m, broadly in line with earnings.
The affiliate media group’s CEO, Johan Svensson, reaffirmed its focus on scaling AffiliationCloud and strengthening its core platform approach. “We will continue to explore new entrepreneurial partnerships in key markets and additional assets,” he stated.
“By deepening our exclusive commercial operator agreements, diversifying beyond traditional SEO channels, and expanding our publisher network, we are well-positioned to drive efficiency, reach, and long-term value.”
It was only in May that Raketech announced it had experienced a tough start to the year, with revenue falling sharply in the first quarter of 2025.
At the time, the firm reported Q1 revenues of €9.8m, down 48.6% from €19m in the same period last year. Despite the decline, Raketech’s leadership again remained confident in the company’s long-term direction.
Model-driving growth
Raketech’s entrepreneurial partnership model now accounts for around 63% of revenues in the Affiliation Marketing segment. The company also signed a new deal with a major Nordic TV and streaming provider during the quarter, which helped boost growth.
Performance in SubAffiliation was mixed. The Organic Publisher Network remained steady with a strong portfolio of partners, particularly in America where Raketech has continued to form several operator deals.
On the other hand, the group’s Paid Publisher Network saw further pressure due to industry-wide disruptions caused by changes in Google’s ad framework.
A key highlight in Q2 was Raketech’s decision to exit its non-core US tipster and subscription business, a sale that closed at the end of June. The divestment generated a €200,000 net gain, offsetting a €500,000 operating loss, and is expected to save around €150,000 per month in costs going forward.
Cost efficiency was also a theme for the quarter, with the company reporting a 35% reduction in expenses (excluding publisher costs) compared to Q1 2024.
Looking ahead
With the summer period typically slower due to fewer major sporting events, Raketech expects a seasonally softer performance in early Q3. Given the difficult trading it encountered in Q1 and Q2, it seems that 2025 may be shaping up to be an overall challenging year for the company.
“We continued to make progress on both our platform-first strategy and efforts to streamline our organisation,” Svensson concluded. “Our entrepreneurial partnership model is proving resilient, and with the divestment of non-core assets, we’re now better positioned to focus on what we do best.”
