Q1 2025 Raketech Group Holding PLC Earnings Call Transcript
Key Points
- Raketech Group Holding PLC (OSTO:RAKE) reported a significant cost reduction, with expenses decreasing by 34% compared to Q1 2024, excluding publisher costs.
- The company has launched four new entrepreneurial partnerships, which accounted for approximately 50% of the total affiliation marketing revenue in Q1.
- Raketech's proprietary platform, AffiliationCloud, is being developed to streamline operations and improve data quality, with plans to introduce new features like automated reporting and a flexible withdrawal solution.
- The organic SubAffiliation network showed growth, with over 80 active revenue-generating publishers during the quarter.
- The company has extended the earnout payment period for Casumba assets, providing financial flexibility and headroom for strategic initiatives.
- Raketech Group Holding PLC (OSTO:RAKE) experienced a 48.8% organic decrease in revenues year-on-year, with Q1 revenues at EUR9.8 million.
- Adjusted EBITDA decreased by 52.6% year-on-year, with a negative impact from the US betting tips and subscription business.
- The Casumba assets continue to decline, and turning these assets from decline to growth remains a key focus.
- The paid publisher network faced a marked decline in March due to operational challenges with Google ad campaigns, with no meaningful recovery expected in the near future.
- The option to settle part of the earnout payment in shares has been removed, potentially impacting liquidity management.
Good morning, and Welcome to Raketech Q1 2025 presentation. My name is Johan Svensson, and I'm the CEO of Raketech. Today, CFO Mans Svalborn and I are here, to present Raketech Q1 report.
I will as well share an update around the new strategic direction with Platform-First approach and our new entrepreneurial partnerships.
We'll start to look at our financial highlights. We came in at EUR9.8 million in revenues in Q1, an organic decrease of 48.8% year on year and 46.6% decrease for the divestment of advisory tips to business.
Adjusted EBITDA of EUR2.4 million a decrease of 52.6% year on year with an EBITDA of EUR2.1 million. The free cash flow was EUR1.7 million which supports the EUR8 million in H1 earnout payments, of which EUR6 million was settled during the first quarter.
We have agreed on an extension of the remaining earnout of EUR20.6 million original due in September 2026. It will now be payable up until March 2028. The option to settle part of amount in
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
