3.4% decline in revenue year-on-year for the second year of this year, as reported by Raketech Group. Earnings total to €17.0 million or $18.7 million. The EBITDA of the company also fell to €4.4 million. It represents a 20% decrease.
The affiliate anticipated challenges with the results, mainly due to the impact of a significant Google algorithm update on its Casumba assets.
It was reported that the decline in revenue partly offset by growth in sub-affiliation revenue, as well as gains in betting tips and subscription income. Nonetheless, a decrease in affiliation marketing revenue and a decline in the performance of the Swedish casino assets of the company contributed to the overall revenue reduction.
Raketech’s sports assets continued to perform well in spite of these setbacks. Strong engagement with the UEFA Euro 2024 and the Indian Premier League reportedly drove this success.
Raketech conducted a comprehensive business audit and implemented a lot of initiatives targeted at enhancing content, improvement technical product features, optimizing SEO and focusing on user experience. This is in response to the challenges posed by the Google update. These measures remain at a lower level than before the update, while these have helped stabilize performance.
Raketech completed the sale of its non-core US advisory business in July of this year. It results in a one-off non-cash impairment charge of €10.5 million. Moreover, Raketech issued 1,437,913 new shares on July 15. This is as a part of an earnout consideration payment related to the Casumba acquisition.
Raketech has adjusted its full-year guidance looking ahead. Now, expecting adjusted EBITDA to fall between €17 million and €19 million. This is down from the last anticipated €20 million.
They reported revenue at €4.6 million in July of this year. It is a 33% decrease and largely due to weaker performance in the sub-affiliation segment.
These developments follow the leadership changes at Raketech. This includes the appointment of Dalia Turner as Chief People Officer in December of the past year.
