Raketech has released its statistics for Q3 2019. The affiliate and content marketing company’s revenue stood at €6 million, compared to €7 million the same period in 2018. This was a year-on-year decrease of 15.1%.
Organic growth also declined by 17.9%, while profit went down from €1.7m to €1.2m. New depositing customers (NDCs) also slightly went down by 0.2%.
Raketech remaining optimistic
Michael Holmberg, CEO at Raketech, said: “In the third quarter, both revenues and the number of NDCs increased compared to the previous one. This was despite a continued challenge in the Swedish gaming market.
“We have a positive underlying revenue development with an increased revenue share, which drives recurring revenues. However, this will come into full effect during the upcoming years.
“During the quarter, we continued to focus on global expansion. Concrete progress was made in both Japan and Germany. All-in-all, this gives us confidence for the future – even though the result for the third quarter is unsatisfactory.”
Ongoing efforts to expand worldwide led to Raketech’s revenue mix outside of the Nordic region accounting for over 10%. In addition to Japan and Germany, progress was made in New Zealand and Canada.
From December 2019 onwards, Raketech will have changes at the top. The current Chief Financial Officer, Andreas Kovacs, will begin a new role as Director of Business Development. In his place, Måns Svalborn shall take over as CFO.
Raketech in 2019: the full picture
The company’s overall statistics for this year aren’t as gloomy as its Q3 revelations. In 2019, total revenue so far has increased by 0.7% to €18.1m. NDCs have also gone up by over 26%, surmounting to 26,782 (compared to 26,837 in the first three quarters of 2018).
During the third quarter of 2019, an acquisition was also made. The Maltese-registered media company Casumba, which offers various affiliate websites throughout Japan, was bought by Raketen for €2m. Based on certain performance measures, extra earnouts could occur.