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Raketech Hit by 50% Revenue Drop in Q1 2025
Raketech reports €9.8M in Q1 revenue, down 50% YoY, as it shifts focus from SEO reliance to a scalable affiliate platform and stronger organic partnerships.
Raketech Group Holding has reported its Q1 2025 financial results, signaling a key shift in its business strategy as a result of a significant year-on-year revenue decline. The iGaming affiliate and media company generated €9.8 million in revenue for the quarter, down nearly 50% from €19 million in Q1 2024, driven by underperformance in key markets and discontinued operations.
The drop was partially because of the continued downturn in the Japanese Casumba division, challenges within the Paid Publisher Network, and negative EBITDA contributions from loss-making U.S. gambling affiliate assets tied to subscription and tipster services. Adjusted EBITDA stood at €2.4 million, compared to €5.1 million in the same period last year, with net EBITDA falling to €2.1 million.
In response, Raketech focused on restructuring, cutting operating expenses (excluding traffic acquisition) by 34% year-on-year. Free cash flow before debt servicing remained positive at €1.7 million.
Despite short-term setbacks, Raketech is doubling down on long-term, scalable growth by transitioning away from SEO-heavy strategies. The company is prioritizing its AffiliationCloud platform, which integrates Raketech’s owned sites, affiliate ventures, and the SubAffiliation publisher network. As of Q1, approximately 50% of revenue in its core Affiliation Marketing segment was generated through partnerships with external SEO teams and content providers. Raketech expects this share to increase, following new partnerships launched in March 2025.
Raketech CEO commented on the issue:
“Q1 2025 marked a period of strategic consolidation and operational focus for Raketech. 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.”
Raketech also announced a revised agreement with the sellers of Casumba, postponing the remaining earn-out payment of €20.6 million to March 2028, with the option to repay earlier. €6 million was paid during Q1, and another €2 million is scheduled for Q2 2025.
In its SubAffiliation section, revenue reached €3.4 million. While paid traffic saw a sharp post-March decline due to external algorithm changes, the organic segment demonstrated growth. The number of active publishers grew from 50 to 80 year-over-year, alongside four new exclusive operator deals.
Looking ahead, Raketech is focused on stabilizing and growing traffic sources that offer long-term value – namely, partnerships, organic reach, and new verticals like interactive sports media products. The company anticipates gradual recovery and enhanced profitability as its platform-centric strategy matures throughout 2025.
For more insights into affiliate performance across the industry, check out the iGaming Quarterly Report: Top Affiliates Q4 Revealed.
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