Raketech reports 3.4% decline in Q2 2024 revenue amid Google update impact
Google update hits Raketech as Q2 revenue drops 3.4%, with affiliate saying this was expected to be a challenging quarter.
Raketech Group has reported a 3.4% decline in revenue year-on-year for the second quarter of 2024, with earnings totaling €17.0m ($18.7m). The company’s EBITDA also fell to €4.4m, representing a 20% decrease.
These results were said to be anticipated by the affiliate, which faced challenges primarily related to the impact of a significant Google algorithm update on its Casumba assets.
The decline in revenue was reportedly partly offset by growth in sub-affiliation revenue and gains in betting tips and subscription income. However, a decrease in affiliation marketing revenue and a decline in the performance of the company’s Swedish casino assets contributed to the overall revenue reduction.
Despite these setbacks, Raketech’s sports assets continued to perform well, reportedly driven by strong engagement with the UEFA Euro 2024 and the Indian Premier League.
In response to the challenges posed by the Google update, Raketech conducted a comprehensive business audit and implemented several initiatives aimed at enhancing content, improving technical product features, optimising SEO and focusing on user experience. While these measures have helped stabilise performance, it remains at a lower level than before the update.
In July 2024, Raketech completed the sale of its non-core US advisory business, resulting in a one-off non-cash impairment charge of €10.5m. Additionally, Raketech issued 1,437,913 new shares on 15 July as part of an earnout consideration payment related to the Casumba acquisition.
Looking ahead, Raketech has adjusted its full-year guidance, now expecting adjusted EBITDA to fall between €17m and €19m, down from the previously anticipated €20m.
Revenue in July 2024 was reported at €4.6m, a 33% decrease, largely due to weaker performance in the sub-affiliation segment.
These developments follow leadership changes at Raketech, including the appointment of Dalia Turner as Chief People Officer in December 2023.
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