Raketech cuts Casumba earnout burden as it expands into Italy

CEO Johan Svensson attributed the decline mainly to the ongoing phase-out of the paid publisher network within the company’s subaffiliation division and softer performance in non-core affiliate marketing markets.

Commenting on the results, Svensson said Q3 “marked another quarter of stable adjusted EBITDA from continuing operations”, highlighting that the company’s focus on “cost control operational execution kept adjusted EBITDA at a stable level and further strengthened the adjusted EBITDA margin”.

Casumba settlement cuts liabilities

The biggest development, according to Svensson, came after the reporting period, when Raketech agreed to settle its remaining earnout obligation to the sellers of Casumba Media Ltd for €8.2 million. This compares with approximately €20.3 million that would have been payable under the existing terms, including accrued interest.

The settlement will be financed through €5.2 million in new funding from Bank of Valletta and €3.0 million in existing cash. Once completed, net interest-bearing debt is expected to fall from €18.1 million to roughly €5.6 million, reducing leverage from 3.8x adjusted EBITDA to about 1.2x.

Svensson described the agreement as “an important milestone for Raketech”.

“Until now, a large share of our cash flow has gone towards paying for assets we no longer own. Going forward, the cash we generate will go towards reducing our own bank debt and investing in growth,” he said.

The company also expects annual net finance costs to decrease by just over €1 million following completion of the agreement.

From the Nordics to Italy

Revenue from Raketech’s affiliate marketing segment totalled €3.7 million in Q3, down from €4.3 million a year earlier. However, the company said its core regulated markets remained resilient, with Sweden posting both year-on-year and sequential growth, while Denmark delivered strong annual growth.

The company highlighted the improved commercial performance of its Casinofeber brand in Sweden. It also launched BetXpert Media in Denmark during the quarter and debuted Italian iGaming media brand Corriere del Gioco on 6 October, marking the first rollout of its media-led model outside the Nordics.

Svensson said Raketech “will continue to invest in Casinofeber Media while applying the same model in our other markets.”

Subaffiliation transition continues

Subaffiliation revenue fell 28.5% year-on-year to €1.4 million as the paid publisher network continued to contract through natural player churn, including in Brazil following regulatory changes. Svensson said the segment “is expected to be a progressively smaller share of the business area going forward”.

However, the affiliate highlighted progress in its organic publisher network on AffiliationCloud, which delivered sequential growth and performed strongly across Nordic markets. Exclusive publisher agreements signed during Q2 also contributed to growth during the quarter.

The company said it is increasingly bundling traffic and commercial sales across owned and external publishers, helping to strengthen its position with operators in core regulated markets. Nevertheless, the US market remains challenging.

Looking ahead

Preliminary data for October showed affiliate marketing revenue was above September levels but slightly below the Q3 average, while the organic publisher network continued to expand.

Svensson highlighted that the group has launched six media products so far this year, with two local industry media launches planned for Q4.

Looking ahead, Svensson said Raketech will continue adjusting its cost base, with investment directed towards core markets where the company sees opportunities for expansion and strengthening its position.

“With the earnout settlement agreed, adjusted EBITDA stable at a stronger margin and our media-led model, established in Sweden, now being rolled out across our markets, we believe Raketech is entering 2027 on a stronger foundation for gradual improvement,” he said.