Raketech has reported a 48.6% year-on-year (YoY) slump in Q1 revenue from €19m to €9.8m due to weaker performances for Casumba and its sub-affiliation arm.
The Malta-based affiliate also published a 52.6% slide for adjusted EBITDA, dropping from €5.1m to €2.4m for the opening three months of the year.
Additionally, Q1 2024’s operating profit of €1.3m flipped to a €219,000 operating loss for Q1 2025.
Looking at revenue breakdown by vertical, affiliation marketing fell 31.6% from €8.8m to €6m and sub-affiliation tanked 61.6% from €9m to €3.4m.
The business’ betting tips and subscription arm posted revenue of just €308,000, down 74.9% from Q1 2024’s return of €1.2m.
Raketech noted it was in the final stage of a strategic review of its non-core US tipster and subscription assets, which had a negative adjusted EBITDA impact of €300,000 in Q1.
Geographically, revenue from the Nordics was down 35.2% to €5.3m as other European revenue fell 52% to €409,000.
Revenue from the US was down 65.5% to €608,000 and RoW revenue suffered a 57.9% dip to €3.4m.
Alongside the revenue slides, new depositing customers declined 67.7% YoY to 19,277.
There was also a cut to the workforce, with headcount down from 148 to 102, representing a 31.1% reduction.
On that point, Raketech said it had achieved cost savings of 34% in the reporting period compared to Q1 2024.
Earlier this week, the firm also agreed with the Casumba sellers to extend the earnout period to March 2028, while removing the option for partial settlement via shares.
Johan Svensson, Raketech CEO, said: “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 [Raketech’s proprietary platform] 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.”
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Affiliate also reported 52.6% slump in adjusted EBITDA as profit flips to loss in tough start to the year
The post Raketech Q1 revenue slides as Casumba earnout period extended first appeared on EGR Intel.