Raketech, the affiliate company, has agreed to divest its non-core US tipster and subscription business. This decision follows a strategic review of its operations, as the company sharpens its focus on core strengths and financial discipline.

The total consideration for the deal is €1.25 million (approximately £1.06 million). This will be paid in three instalments: €450,000 upon the closing of the deal, expected by the end of June 2025; €350,000 after nine months; and a final €450,000 after 18 months. This latest divestment follows Raketech’s previous sale of its US offline advisory sales operations for a total fee of €2.1 million in July 2024.

Johan Svensson, CEO of Raketech, commented on the divestment. As reported by iGaming Times, Svensson stated that this move “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 being divested in this latest portfolio adjustment include brands such as Winnersandwhiners.com, Picksandparlays.net, and Statsalt.com. Raketech anticipates these divestments will result in cost savings of approximately €150,000 per month. Svensson further indicated, as reported by iGaming Times, 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

The pressure to implement cost-cutting measures at Raketech follows a difficult start to 2025. The company reported a nearly 50% drop in revenue during the first quarter of the year. Revenue fell from €19 million in Q1 2024 to €9.8 million in Q1 2025. Concurrently, adjusted EBITDA also saw a significant decline, falling by 52.6% from €5 million to €2.4 million.

The drop in revenue was attributed primarily to a 48% decline in new depositing customer numbers. This was particularly evident within its SubAffiliation business unit, which experienced a 61.6% year-on-year drop in revenue, falling from €9 million to €3.5 million. 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 these financial pressures, CEO Johan Svensson remained positive regarding certain aspects of the company’s performance. He asserted, as reported by iGaming Times, that Raketech’s organic publisher network made “solid progress” during Q1. This progress included onboarding new publishers and expanding the number of commercial network agreements with operators. Svensson highlighted, as reported by iGaming Times, that “The number of active revenue-generating publishers increased to over 80, up from around 50 last year, demonstrating strong interest.” He added that as of the date of the report, Raketech had four exclusive network commercial operator agreements in place, and expanding this base remains a top priority.

This divestment underscores Raketech’s commitment to streamlining its operations and focusing on its core growth areas, particularly its platform-first approach and publisher networks, as it seeks to rebuild profitability in a challenging market.