iGaming affiliate Raketech has posted a 48 per cent drop in revenue to €9.8 million in the first quarter of 2025, following declines across all business segments.
Revenue from the company’s Affiliation Marketing segment declined by 32 per cent year-on-year to €6.0 million, with results impacted by a continued low performance from the Casumba assets.
Sub-affiliation revenue fell by 62 per cent to €3.4 million, while Betting tips and subscription income declined 75 per cent to €0.3 million.
Across all segments, casino revenue was down 50 per cent at €7.7 million, while sport revenue was down 51 per cent at €2.1 million. New depositing customers (NDCs) were 68 per cent lower at 19,277.
First Quarter of 2025 Revenue Comparison (€’ millions)
| Q1 2025 | Q1 2024 | % Change | |
| Affiliation Marketing | 6.0 | 8.8 | (31.6%) |
| Sub-Affiliation | 3.4 | 9.0 | (61.6%) |
| Betting Tips and Subscription Income | 0.3 | 1.2 | (74.9%) |
| TOTAL | 9.8 | 19.0 | (48.6%) |
The Nordics remain Raketech’s biggest geographical region despite revenue falling 35 per cent to €5.3 million. Rest of Europe revenue declined 52 per cent to €0.4 million, while US revenue decreased 65.5 per cent to €0.6 million. The Rest of World contributed the remaining $3.4 million in revenue, a decline of 58 per cent versus a year ago.
“Q1 2025 marked a period of strategic consolidation and operational focus for Raketech,” said CEO Johan Svensson. “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.”
First Quarter of 2025 Results Comparison (€’ millions)
| Q1 2025 | Q1 2024 | |
| Revenue | 9.8 | 19.0 |
| Publisher Costs | (2.7) | (6.9) |
| Other Direct Costs relating to Fixed Fees and Commission Revenue | (1.2) | (1.4) |
| Employee Benefit Expense | (2.1) | (3.2) |
| Depreciation and Amortization | (2.3) | (3.0) |
| Bad Debts Written Off | — | (0.1) |
| Other Operating Expenses | (1.7) | (3.2) |
| Operating Profit/(Loss) | (0.2) | 1.3 |
| Loan Finance Costs | (0.1) | (0.3) |
| Other Finance Costs | (0.4) | (0.6) |
| Current Tax Expense | (0.1) | (0.3) |
| Profit/(Loss) for the Period | (0.8) | 0.2 |
| EPS before Dilution (in EUR) | (0.02) | 0.004 |
Raketech reduced total operating expenses by 44 per cent to just under €10.0 million in the first quarter, benefiting from lower publisher costs of €2.7 million and a reduction in employee benefit expense to €2.1 million.
Despite this, the company posted an operating loss of €0.2 million, with a net loss for the quarter of €0.8 million, compared to a profit of €0.2 million in Q1 2024.
Yesterday, Raketech confirmed an agreement to extend the earnout payment period related to the acquisition of Casumba, with the final earnout payment of €20.6 million, originally due in September 2026, to be payable up until March 2028. The option to settle part of the remaining earnout in Raketech shares has been removed, with the remaining payments to be made in cash.
“The revised Casumba terms have improved our financial flexibility, enabling us to invest in areas with the highest long-term potential,” said Svensson. “By aligning commercial strength with operational efficiency across both internally managed assets and those run through entrepreneurial partnerships within Affiliation Marketing, we deliver measurable results and drive sustainable growth.
“With a growing base of trusted publishers and exclusive network commercial agreements with operators within SubAffiliation, we are well positioned to drive traffic, convert leads, and create long-term value for shareholders.”
At the end of March the company held cash and cash equivalents of €3.1 million compared to €7.1 million a year ago.
Shares in Raketech Group Holdings plc (STO:RAKE) slumped by 10.57 per cent to SEK3.22 per share in Stockholm Wednesday following the announcement.