Raketech, a Malta-based iGaming affiliate group, has reported a steep year-on-year revenue decline in the first quarter of 2025, bringing in €9.8 million compared to €19 million during the same period last year.
The Q1 2024 figure included €0.8 million from a consulting division the company has since sold. The downturn reflects Raketech’s ongoing shift away from its historic dependence on SEO.
Adjusted EBITDA fell to €2.4 million from €5.1 million, while net EBITDA came in at €2.1 million, down from €4.3 million a year ago.
The slump was largely driven by
- continued underperformance in its Japanese Casumba business
- struggles within its Paid Publisher Network
- losses from unprofitable U.S. affiliate sites offering paid tips and subscriptions.
In response, the company
- completed a restructuring process
- reduced operating costs (excluding traffic) by 34% year-on-year
- generated €1.7 million in free cash flow before liability payments
Strategic focus on platform-based growth
Raketech is doubling down on its AffiliationCloud platform, which merges its own content sites, affiliate projects, and a SubAffiliation network of publishers. Currently, around half of the revenue from its core Affiliation Marketing segment comes from collaborations with external SEO teams and content creators. Many of these partnerships were launched in March, and the company expects them to play a bigger role in upcoming quarters.
Casumba agreement revised
On May 6, Raketech renegotiated the terms of its acquisition of Casumba, pushing back the final €20.6 million earn-out payment to March 2028 and removing the option of paying with shares. The company has already paid €6 million in Q1 and plans to pay an additional €2 million in Q2.
Organic traffic strengthens, paid sources struggle
The SubAffiliation network brought in €3.4 million, though the paid traffic side saw a sharp decline in March due to external factors such as algorithm changes. A fast recovery in that area is unlikely, the company said. On a more positive note, the organic side of the network is growing, with 80 active publishers (up from 50 a year ago) and four new exclusive deals signed with operators.
Johan Svensson, the CEO at Raketech, 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.
Raketech is focused on building long-term, reliable traffic through strategic partnerships and organic channels. The company is also expanding into content formats like sports event TV guides to reduce its exposure to volatile SEO trends.
And despite current situation, Raketech remains confident in its ability to recover and grow through platform innovation and strengthened affiliate relationships.
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