Raketech Group Holding PLC (RAKE) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Raketech's Q1 2025 presentation. My name is Johan Svensson and I'm the CEO of Raketech, today's CFO Mal Svalborn and I am here to present Raketech's 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 9.8 million euro 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 2.4 million euro, a decrease of 52.6% year on year with an EBITDA of 2.1 million euro. The free cash flow was 1.7 million euro which supports the 8 million euro in H1 earn out payment of which 6 million was settled during the first quarter. We have agreed on an extension of the remaining earn out of 20.6 million euro original due in September 2026. It will now be payable up until March 2028. The option to settle part of the amount in shares has been removed. We saw a significant decline in our US betting tips and subscription business in Q1 compared to Q4. And this business area had a negative EBITDA impact of 0.3 million euro compared to essentially flat EBITDA in the fourth quarter. We are in the final stage of a strategic review of these assets. The outcome of a new operating model has resulted in further cost savings. Our costs were 34% lower compared to Q1 last year. Direct publisher costs excluded. Now let's look at the performance of each business area during the quarter. Starting with affiliation marketing. Affiliation marketing came in at 6 million in revenue in Q1. Q1 is in general a seasonal slower quarter compared to the strong Q4. And we had a somewhat slower start, but activity and revenue picked up in the latter part of the qu...