Raketech has admitted that achieving its full-year adjusted EBITDA guidance “will be difficult” after the figures released in the company’s Q3 report.
Third-quarter adjusted EBITDA fell 44.6 per cent year-on-year to €3.1m, pushing nine-month adjusted EBITDA for the financial year to €12.5m – down 27.1 per cent.
Raketech was therefore somewhat downbeat about the prospects of reaching FY24 adjusted EBITDA of between €17m and €19m.
“Visibility is limited due to the ongoing operational challenges for our publishers within Raketech Network, and around the expectation of a usually stronger second half of Q4 for both casino and US sports,” the affiliate said.
Revenue at Raketech fell 39.9 per cent to €12.9m in Q3 and was down 11 per cent to €48.8m over the first nine months of the year.
CEO Johan Svensson said affiliation marketing revenues fell 28 per cent, with Casumba assets particularly affected by the Google Core update earlier this year.
What’s more, in Sweden, the gambling tax rise to 22 per cent that came into force in July affected Swedish casino assets.
“Despite the substantial decline year on year, affiliation marketing revenues were stable between the months during Q3 and into October,” Svensson said.
“SubAffiliation revenues declined by 51 per cent, impacted by the operational challenges within Raketech Network, which has been consistent for the entire industry throughout the quarter. Raketech Network began to stabilise after the quarter in October. AffiliationCloud continued to grow sequentially.
“We have continued our evaluation of all products and business areas to better position ourselves for sustainable, long-term growth and operational efficiency. These initiatives have resulted in the successful sale of ATS Advisory on July 31 and the formation of two strategic partnerships within affiliation marketing, as well as realising cost savings following the review of our operating model.”
Raketech said revenues in October reached €4m, down from €7.7m last year, although a “sequential improvement” so far in November means the company’s adjusted EBITDA is tracking “slightly ahead” of Q3 2024.