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Raketech Interim report Q1 2019

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Raketech Interim report Q1 2019

 

FIRST QUARTER 2019

  • Total revenues amounted to EUR 8.7 million (EUR 4.9 million) representing an increase of 78.2%. Total revenues include other non-operating income of EUR 2.3 million (nil) related to a waived liability regarding one related party during the quarter which is recognised as other income.
  • Revenues excluding other income increased by 31.6% to EUR 6.5 million (EUR 4.9 million).
  • Organic growth amounted to 21.5% (10.2%).
  • Adjusted EBITDA increased by 38.3% to EUR 3.5 million (EUR 2.5 million), corresponding to a margin of 54.1% (51.5%).
  • Adjusted operating profit amounted to EUR 2.8 million (EUR 2.3 million), corresponding to a margin of 43.4% (47.5%).
  • Profit for the period amounted to EUR 4.7 million (EUR 0.9 million).
  • Earnings per share amounted to EUR 0.12 (EUR 0.04).
  • NDCs (New Depositing Customers) increased by 76.1% to 28,607 (16,243).

EVENTS DURING Q1 2019

  • On 4 March, the outstanding debt of EUR 7.7 million from the previous loan facility was repaid as a final step in optimising the Group’s capital structure post-IPO.
  • On 31 March, an agreement with one related party was reached to waive the amount of EUR 2,281,714. This amount is recognised as other income within the consolidated statement of comprehensive income.

SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD

  • On 24 April, Oskar Mühlbach was appointed as Chief Operating Officer.
  • On 26 April, Raketech acquired the assets of the leading Finnish sport listing website TVmatsit.com for an initial purchase price of EUR 1.6 million plus an additional EUR 0.3 million payment over the next 24 months based on agreed performance targets.

CEO MICHAEL HOLMBERG COMMENTS THE QUARTER

”The beginning of the year has been characterised by the ongoing stabilisation phase in the Swedish gaming market, following the introduction of the new gambling legislation in January 2019. I am therefore happy to announce that we are delivering a good quarter and that we maintain our focus on organic growth and geographical expansion.

Revenues increased by 32 per cent compared to the first quarter of 2018, amounting to EUR 6.5 million. Adjusted EBITDA increased by 38 per cent to EUR 3.5 million, corresponding to a margin of 54 per cent. Organic growth amounted to 22 per cent of the revenues, and the key driver for this growth is higher traffic volumes, especially for our casino products and our TV sports guides.

While maintaining our position as a market leader in Sweden, we are simultaneously increasing our focus on geographical expansion. We have global ambitions and prioritise markets that are important to our partners, the gaming operators. As such, we are further strengthening our organisation for future expansion, both in terms of employees and technical platforms.

We are committed to creating sustainable growth across all of our markets – current as well as future markets. I am confident in our ability to continue strengthening Raketech’s position as a leading affiliate with innovative and responsible services high on the agenda.”

PRESENTATION FOR INVESTORS, ANALYSTS AND THE MEDIA

CEO Michael Holmberg and CFO Andreas Kovacs will present the report and answer questions in an audiocast at 9.00 a.m. CET on 22 May. The presentation will be held in English and can be followed online via https://tv.streamfabriken.com/raketech-q1-2019. To participate by phone, please dial +46 8 505 583 51 (SE) or +44 333 300 92 67 (UK).

 

About Raketech Group:

Raketech is a leading online affiliate and content marketing company, with expertise in delivering comparison services for sports and gaming, online guides, communities and social media products in primarily the Nordic region and the UK. Through some 20 flagship brands, Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company’s shares are listed in Nasdaq First North Premier with ticker RAKE. Erik Penser Bank AB is the company’s Certified Adviser ([email protected] / +46 8 463 83 00). For more information, visit www.raketech.com.

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N1 Product Voices How Brands Win in Tier-1

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How to choose a product for Tier-1 GEOs and work with these markets specifics? What really affects revenue and how to avoid mistakes and losses when launching a campaign at early stages? Which payment models actually work?

In the first N1 Product Voices article, you will be able to look at the product from the inside: Anastasiya Bakhantsova, N1 Chief Revenue Officer, answers these and other relevant questions in as much detail as possible. 

In this series of materials, product experts share their experience in the first person: N1 Partners raises important topics, while partners receive practical benefits and insights from the inside.

Role of the CRO as a product decision-maker

Products choice for Tier-1

In Tier-1, a good offer does not guarantee anything. The main question is whether the product is able to retain the player after the first deposit and scale without drawdown in the economy.

We look not only at the conversion rate but also at the user behaviour: their return, repeated deposits, and the cohorts’ stability. It is important to keep in mind the main risk — scaling fast cash flow that can lead to audience quality decrease.

Therefore, we evaluate not only the initial payback but also the player’s behaviour at a distance: retention, ARPU dynamics and LTV stability after 30/60/90 days. If a product lacks trust, fast payments, or a seamless user journey, marketing alone won’t be able to sustain results for long.

Product solutions with the highest revenue growth

The most noticeable growth usually comes from working on audience retention, not from changing the product.

In practice, the strongest growth is seen in brands where the product, analytics, and CRM are  connected with each other. When users are guided through a clear post-registration journey, receive personalized offers, and experience smooth interactions, the results tend to be more stable than with aggressive traffic acquisition alone.

The maximum effect is achieved when the product, CRM, and segmentation are synchronised.

Tier-1 markets specifics

Tier-1 audience behaviour

A Tier-1 user is used to a high level of digital services.

Here, speed, a clear interface, convenient payments, and a sense of reliability are extremely important.

Short list of important factors for Tier-1 users:

  • speed and stability
  • simple onboarding
  • terms transparency
  • payments reliability
  • trust in the brand

Mistakes in Tier-1 GEO

From my experience, the main mistake is trying to “buy” Tier-1 users with bonuses.

Partners underestimate UX, the product itself, and retention, relying on aggressive bonus policies and short-term ROI. This leads to high traffic costs and weak user return rates.

Changes in Tier-1 economics

It is important to note that Tier-1 means more expensive traffic, longer payback periods, and higher LTV.

It is harder to see quick results here, which is why decisions cannot be made based only on the first week’s data. The quality of cohorts, retention stability, and long-term profitability are much more important.

Products choice

How to evaluate a product’s potential: CRO insights

I look at a product as a system, not just a set of metrics.

What matters is not only the amount of users that make the first deposit but also what happens next: how often the player returns, their activity changes over time, and the economic sustainability during scaling.

Products with the best ROI 

The most effective products are those that are convenient to use every day. First of all, these are mobile-first solutions, strong sportsbook products, and platforms with good CRM and personalization.

If the user experience remains convenient and clear over the long term, the product wins.

Signals to change the product

The main signal is when growth is sustained only by increasing traffic volumes or bonus expenses.

If there are no audience engagement mechanics and the economics worsen during scaling, the model reaches its ceiling. Sometimes changing the product earlier is far more profitable than continuing to scale a weak product.

Revenue losses

How to recognize revenue losses and where they start

The main losses usually occur during the first days after the deposit. This is exactly the moment when the product-using habit is formed.

If the user does not understand what to do next, does not receive clear communication, or encounters difficulties in the interface, the probability of churn increases sharply. Another alarming signal is when bonus expenses grow, but users do not become more valuable to the business.

This means that the product either retains the audience poorly or attracts the wrong traffic.

Mistakes that hurt the revenue most 

The most common mistake is investing only in acquiring new users while doing almost nothing with retention.

If the product does not build long-term interaction with the player, bonuses begin to work only for the first deposit. As a result, the company spends more and more money on acquisition, while profitability does not grow.

Monetization models: CPA / RevShare / Hybrid

Choosing a monetization model for a specific product and market

The choice of model always depends on traffic quality, product maturity, and how effectively the product is able to bring the player back over time.

  • CPA works well where fast return on investment, clear unit economics, and aggressive scaling are important. But if the user remains active for a long time, a fixed payout begins to limit the partner’s earning potential.

  • RevShare is more profitable in products with strong retention and high audience engagement. Yes, this model requires more time to pay off, but it allows partners to earn from the player’s entire lifecycle.

  • Hybrid model is especially effective in Tier-1 markets, where traffic is expensive and ROI takes more time. The CPA component helps recover investments faster, while RevShare maintains stable long-term earnings.

As a result, the key question is always the same — if the product is able to engage the user and turn traffic into a stable income.

 

Work with N1 Partners — scale under top-tier conditions:

  • 14+ casino and sportsbook brands with high Reg2Dep
  • 10+ Tier-1 GEOs
  • CPA up to €700 and RevShare up to 55% + NNCO for top partners

Be number one with N1!

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Affiliate Announcements

Casumo Renews its Partnership with NetRefer for its Affiliate Marketing Platform

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Casumo Renews its Partnership with NetRefer for its Affiliate Marketing Platform

Casumo, the award-winning online casino and sportsbook operator, has renewed its longstanding partnership with NetRefer, the industry’s leading data-driven, AI-powered affiliate marketing platform, extending a collaboration that has supported the operator’s affiliate programme for over a decade.

Founded in 2012, Casumo has established itself as a recognised name in the global iGaming industry, operating across multiple regulated markets, including the UK, Canada, New Zealand, and key European markets, with a strong presence across the Nordics. With a strong focus on user experience, innovation, and player engagement, the brand has built a reputation for delivering a dynamic and high-quality gaming environment tailored to a diverse international audience.

Casumo’s offering spans both casino and sportsbook, supported by a broad portfolio of over 3,500 games, live casino experiences, and a continually evolving product ecosystem. The operator’s approach combines engaging gameplay with a structured and intuitive user journey, underpinned by a commitment to fairness, security, and responsible gaming across all markets in which it operates.

Affiliate marketing has played a central role in supporting Casumo’s growth over the past decade. Through its continued partnership with NetRefer, the operator benefits from a platform designed to deliver performance clarity, reliable tracking, and efficient partner management, enabling the team to optimise affiliate activity and maintain strong relationships across its global partner network.

Alongside these core capabilities, NetRefer continues to evolve its platform with a broader set of technologies that support affiliate programme performance at scale. This includes enhanced reporting through NetRefer’s BI Analytics solution, the Report Builder, deeper visibility into traffic quality via Enhanced Tracking, intelligent assistance through NetRefer CoPilot AI, and flexible integration through its API technology, all forming part of a scalable ecosystem designed to support operators as their requirements grow.

Reflecting on the renewal, Madeline Liautaud, Head of Affiliates at Casumo, said, “Over the years, NetRefer has consistently provided the reliability and flexibility we need to manage affiliate performance across multiple markets. Having confidence in the accuracy of our tracking and reporting is essential, not only for our internal teams but also for maintaining trust with our affiliate partners. Tools like NetRefer CoPilot AI and the Report Builder have also helped streamline day-to-day operations by making data more accessible and easier to work with, allowing our team to focus more on optimisation and strategic decision-making.”

Amanda Camenzuli, NetRefer’s Manager of Account Management, commented, “A 14-year partnership is a strong reflection of the trust and collaboration built between our teams. Casumo is a well-established and forward-thinking operator with a clear focus on user experience and long-term growth. We are proud to continue supporting their affiliate programme with scalable technology and the data visibility needed to manage performance with confidence across multiple markets.”

As Casumo continues to strengthen its presence across international markets, the renewed partnership with NetRefer reinforces a long-standing collaboration built on performance, transparency, and trust. With a shared focus on long-term growth and continuous optimisation, both teams look ahead to the next phase of their partnership.

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News

N1 Partners’ Knowledge Base keep up with iGaming Trends

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How do you choose the right affiliate program? Which GEOs currently offer the strongest potential? What should you focus on when scaling traffic? And how do you cut through the constant stream of news to find insights that actually matter for your work?

N1 Partners is launching Knowledge Base – a new hub of content for webmasters, affiliate teams, and everyone working with iGaming traffic.

Over the years in the industry, the N1 Partners team has developed deep expertise in affiliate marketing, products, GEOs, traffic acquisition, and partner management. Now, all that knowledge is gathered in one place to share experience, support the community, and help partners navigate the market faster and more effectively.

What’s inside the Knowledge Base?

The N1 Partners Knowledge Base will feature content for both beginner webmasters looking to better understand the affiliate industry and experienced affiliates searching for fresh strategies, trends, and scaling opportunities.

The focus isn’t on short-lived news but on evergreen insights and practical knowledge that stay relevant over time.

Inside the Knowledge Base, you’ll find:

  • market analysis;
  • industry trend reports;
  • guides for affiliates;
  • articles on choosing affiliate programs;
  • answers to the most common questions;
  • practical tips and educational content.

The new section is designed to help affiliates better understand the market, stay ahead of industry changes, assess risks in advance, and spot new growth opportunities early.

Explore the N1 Partners Knowledge Base — and stay one step ahead in the iGaming industry!

Why N1 Partners?

  • 14+ casino and betting brands with high Reg2Dep rates;
  • 10+ Tier-1 GEOs;
  • CPA up to €700 and RevShare up to 55% + NNCO for top partners.

Be number one with N1!

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