Raketech Group is an award-winning iGaming affiliate company.
Raketech Group reported that its revenue for the second quarter of 2024 declined by 3.4% year-over-year, totaling €17 million ($18.7 million). The company's EBITDA also fell to €4.4 million, a decrease of 20%.
It is reported that the affiliate anticipated these results, which are primarily related to the major impact of Google algorithm updates on its Casumba assets.
According to reports, the decline in revenue was partially offset by growth in affiliate revenue and an increase in betting tips and subscription income. However, a reduction in affiliate marketing revenue and a downturn in the performance of the company's Swedish casino assets led to an overall decrease in revenue.
Despite these setbacks, Raketech's sports assets continued to perform well, reportedly benefiting from close cooperation with the 2024 European Championship and the Indian Super League.
In response to the challenges posed by the Google updates, Raketech conducted a comprehensive business review and implemented various initiatives aimed at enhancing content, improving technical product features, optimizing SEO, and focusing on user experience. Although these measures helped stabilize performance, it remains below pre-update levels.
In July 2024, Raketech completed the sale of its non-core U.S. consulting business, resulting in a one-time non-cash impairment charge of €10.5 million. Additionally, on July 15, Raketech issued 1,437,913 new shares as part of the earnout payment related to the acquisition of Casumba.
Looking ahead, Raketech has revised its full-year performance expectations, now anticipating adjusted EBITDA to be between €17 million and €19 million, below the previously expected €20 million.
Revenue for July 2024 was reported at €4.6 million, a decline of 33%, primarily due to weaker performance in the subsidiary sector.
These developments occurred following changes in Raketech's leadership, including the appointment of Dalia Turner as Chief Talent Officer in December 2023.
