Raketech’s US Revenue Drops 59.5% in Q4
Raketech faced a difficult fourth quarter in 2024, with significant revenue declines across multiple segments. The company reported €12.3 million in total revenue, a 45.9% year-over-year decrease, with EBITDA dropping nearly 50% to €3 million.
Revenue Drops and Strategic Review Underway
The US market played a limited but notable role in Raketech’s Q4 performance. Revenue from the US declined by 59.5% to €846,000, making up just 6.9% of total company earnings.
For the full year, US revenue totaled €4.99 million, marking a 21.7% drop from 2023. This decline follows the company’s decision to sell its land-based advisory assets in the US for $2.25 million, shifting focus entirely to digital conversion and user acquisition.
Despite maintaining high traffic volumes, Raketech has struggled to achieve expected revenue levels in the US. As a result, in January 2025, the company launched a strategic review of its US Tipster & Subscription business, with a final decision expected by the end of Q1 2025.
CEO Johan Svensson acknowledged the difficulties, stating: “We recognize the challenges in the current environment but remain fully committed to strategic clarity as we execute our objective of delivering sustainable long-term growth and value creation. Our priority is delivering results, and we look forward to providing a strategic update in connection with the Q1 Report, which will include insights into our growth strategy, financial outlook, and key milestones. Additionally, we will finalize our decision on the US Tipster & Subscription business by the end of Q1.”
Financial Setbacks and Cost-Saving Measures
Raketech implemented cost-cutting initiatives, including a 29% reduction in operational expenses compared to Q1 2024.
The company also recorded a €48.5 million non-cash impairment charge, primarily related to pre-IPO acquisitions of non-core intangible assets.
In the Sub-Affiliation segment, which includes revenue-sharing agreements and referrals, Raketech saw a 54% decline to €5.2 million in Q4.
Affiliation marketing revenues, which make up the core of Raketech’s business, also fell 32% to €6.5 million.
Strategic Adjustments and Growth Plans
Despite setbacks, Raketech is actively refining its affiliate marketing strategy. In Q4, the company established four strategic partnerships, with 50% of its affiliation revenue now coming from these agreements.
CEO Svensson emphasized that these deals will allow Raketech to prioritize high-value partnerships and exclusive commercial agreements.
“Following a challenging year, we have thoroughly evaluated our Affiliation Marketing assets and their alignment with Raketech’s established commercial and operational strengths. This will enable the company to concentrate more on strategic partnerships, exclusive commercial agreements with operators, and the development of AffiliationCloud,” said Svensson.
Raketech is expected to finalize the future of its US Tipster & Subscription business by the end of Q1 2025.
Recommended