Higher spending pushes profit down at Raketech in first half

Higher spending pushes profit down at Raketech in first half

Online affiliate and content marketing provider Raketech has reported a 64.0% year-on-year decline in net profit for the first half of the year, after an increase in revenue was offset by a rise in operating costs.

Published 20th August 2020

Revenue in the six months to 30 June amounted to £13.6m (€15.1m/$18.0m), up 12.0% from €12.1m in the same period last year.

Raketech put this increase down partly to the performance of its Casumba online casino brand – purchased in September 2019 – as well as the impact of the newly acquired Lead Republik, the data-driven igaming affiliate network bought in March this year.

Revenue share agreements accounted for 46.4% of total revenue in the first half, ahead of upfront payments on 39.9% and fixed fees at 13.7%.

Casino was by far the main source of income, accounting for 83.8% of revenue, up from 69.9% last year. Sports betting share fell from 26.2% to 12.1% as Raketech felt the impact of the cancellation of sports fixtures due to the novel coronavirus (Covid-19) pandemic, while other revenue made up the remaining 4.1%.

Read the full story on iGB.

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