Raketech Q2 revenues drop 6% on rev-share focus in Sweden
Organic growth falls 8.8% at the Malta-headquartered despite double-digit increase in NDCs
Raketech today reported a Q2 revenue decrease of 6.1% to €5.7m due to low Swedish player values and a strategic shift in revenue streams.
Organic growth at the Malta affiliate was -8.8%, while adjusted EBITDA dropped 10.7% to €2.9m, down from €3.2m in the same period last year.
However, Q2 profit increased by €1.5m to €1.7m in total, while new depositing customers (NDCs) also rose by 21.7% to 24,974.
Raketech said the decrease in revenue was down to a temporary shift in revenue streams, meaning a larger proportion of revenue share deals over CPA, as well as its well-documented struggles in Sweden.
Raketech CEO Michael Holmberg
Raketech CEO Michael Holmberg said: “The Swedish gaming market is still in a transition phase, and we can see that the overall market growth in Sweden has stalled.
“We generally have high traffic levels on our sites, but player values remain at the lower levels which we have noted since the beginning of the year.
“The operators continue to explore how to run their operations successfully in the long term and are also affected by the lack of a common practice in assessing parts of the new gambling legislation.”
Significant events during the quarter included Raketech’s launch in Canada via the Casinofever.ca domain and the acquisition of Finnish TV sports listing website Tvmatsit.com.