Raketech Q1 Revenue Up, Profits Fall

Raketech's first-quarter revenue increased, but their profits decreased.

Raketech, a company that creates digital marketing content, had its revenue go up to €19.0 million in the first quarter, which is 20.1% more than the same time last year. However, the company made less profit than before and is facing some difficulties ahead.

Financial Highlights

Raketech had a varied performance in the first quarter. Key financial numbers are summarized below.

• Sub-affiliation revenue soared by 149.8% to €9.0m.
• Affiliation marketing fell 18.5% to €8.8m.
• Revenue from betting tips and subscriptions dropped 14.9% to €1.2m.
• Casino revenue increased by 28.8% to €15.5m.
• Sports betting revenue decreased by 7.5% to €3.5m.
• Total operating expenses went up 47.5% to €17.7m.
• Net profit dropped to €174,000, down 93.8% from Q1 last year.

Operational Developments

Johan Svensson, the temporary CEO, said the company's lower profit was because they spent more money. He still thinks the company will grow by focusing on sports and making deals with media companies.

Raketech finished checking its work and decided to rely less on SEO. They're now working on growing naturally over time. By being more efficient and spending less, they aim to make more money.

Market Performances

The company's sales in the Nordic countries rose 42% to €8.2 million. In contrast, sales in the US fell by 8.1%. However, sales in other parts of Europe and in the rest of the world grew by 50.1% and 8.4%, respectively.

Google Update Effects

Raketech's Casumba websites performed worse after a change in Google's search rules. The company is changing its approach to how it appears in search results to improve this situation.

Sub-Affiliation Stands Out

Raketech's performance is doing particularly well in its sub-affiliation area, including its services Raketech Network and AffiliationCloud. These parts of the business have grown a lot and are likely to keep improving.

Increasing customer base despite obstacles.

The company saw the number of new customers who made deposits grow by 8.8%. This suggests that the company could keep growing, despite facing a challenging quarter.

Conclusion

Raketech made more money in the first few months of the year. Although its profits went down a bit, the company has plans to do better, and things are looking up.