Raketech has agreed a deal to divest its non-core US tipster and subscription business following a strategic review of its operations.
According to the affiliate, the total consideration for the deal is €1.25m (£1.06m), broken down into three payments – €450,000 upon closing of the deal, expected to be by the end of June 2025, €350,000 after nine months and a final €450,000 after 18 months.
The decision to offload its remaining US tipster and subscription assets follows Raketech’s divestment of its US offline advisory sales operations for a total fee of €2.1m in July 2024.
Johan Svensson, CEO of Raketech, commented: “This divestment supports our strategic focus on the company’s platform-first approach and our commitment to financial discipline by discontinuing operations in areas outside our key commercial strengths.”
The assets divested in the latest cull include brands such as Winnersandwhiners.com, Picksandparlays.net and Statsalt.com. Cost savings are forecast to be €150,000 per month.
Svensson added that Raketech’s focus will now be on driving growth through its AffiliationCloud platform, as well as the expansion of its publisher networks and commercial operator deals within SubAffiliation.
Optimism despite Q1 revenue dip
Pressure to cut costs at Raketech follows a difficult opening to 2025, as the company reported a near 50% drop in revenue during the first quarter of the year.
Revenue fell from €19m in Q1 2024 to €9.8m in Q1 this year, meanwhile adjusted EBITDA also fell by 52.6% from €5m to €2.4m.
The drop in revenue was attributed to a 48% drop in new depositing customer numbers, particularly among its SubAffiliation business unit, seeing a 61.6% YoY drop from €9m to €3.5m.
However, the now divested US tipster and subscriptions assets, alongside other related US operations, also had a negative EBITDA impact of €300,000 in Q1.
Despite the pressure, Svensson remained positive, asserting that Raketech’s organic publisher network made ‘solid progress’ during Q1. This included onboarding new publishers and expanding the number of commercial network agreements with operators.
“The number of active revenue-generating publishers increased to over 80, up from around 50 last year, demonstrating strong interest,” said Svensson. “As of today, we have four exclusive network commercial operator agreements in place, and expanding this base remains a top priority.”
