Raketech, a prominent name in the affiliate marketing industry, has officially appointed Johan Svensson as its permanent CEO. Svensson had been serving as the acting CEO since January, following the departure of Oskar Mühlbach.
As one of the co-founders of Raketech, Svensson brings a wealth of experience and a deep understanding of the company to his leadership role. He previously held the CEO position before stepping aside in 2017. After leaving the CEO role, Svensson took on the responsibility of chief commercial officer, where he oversaw partnerships, mergers and acquisitions, and business integrations within the group.
Svensson expressed his enthusiasm about returning to the CEO role, stating, “I am excited to return to the role of CEO at Raketech. I look forward to working with our talented team to build on our strong foundation and drive further innovation and growth. Our focus will remain on delivering exceptional value to our customers, employees, and shareholders.”
Raketech’s Chairman, Ulrik Bengtsson, also expressed his approval of Svensson’s appointment. “We are excited to officially name Johan as our permanent CEO. His deep connection and commitment to Raketech and proven leadership abilities make him the ideal choice to steer the company into its next phase of growth,” Bengtsson remarked.
This significant leadership change comes shortly after Raketech released its financial results for the first quarter of 2023. Despite a notable 20.1% increase in revenue, rising to €19.0 million ($20.6 million), the adjusted EBITDA and net profit figures reveal some underlying challenges the company now faces.
Delving into the first quarter financials, revenue from sub-affiliation—which encompasses Raketech Network and AffiliationCloud—rose dramatically by 149.8%, reaching €9.0 million. However, this surge was contrasted by a decline in other segments of the business. Affiliation marketing revenue fell by 18.5% to €8.8 million, while revenue from betting tips and subscription income dropped by 14.9% to €1.2 million.
Additionally, total sports betting revenue experienced a year-on-year decline of 7.
.5%, coming in at €3.5 million and accounting for 18.4% of all Q1 revenue. Nonetheless, the company saw a more than compensatory growth in its casino segment, with revenue soaring to €15.5 million, marking a 28.8% increase and contributing to 81.6% of the total revenue.
Perhaps more concerning for Raketech is the rise in costs that overshadowed its revenue growth. Total operating expenses for the quarter were up by a significant 47.5% year-on-year, totaling €17.7 million. When factoring in finance-related costs and taxes, the net profit plummeted by a staggering 93.8%, falling to just €174,000.
The adjusted EBITDA also reflected the challenging quarter, decreasing by 17.2% to €5.1 million. This decline emphasizes the need for strategic alterations and innovations to counterbalance rising costs and diminishing profits in certain sectors. For Raketech, the immediate financial ramifications are clear, but the appointment of Svensson aims to steer the company through these turbulent waters toward a more sustainable and prosperous future.
Svensson’s return is marked by both optimism and a realistic understanding of the challenges ahead. The experience he brings from his previous tenure as CEO and his recent roles within Raketech is expected to be instrumental in navigating these issues. The company’s strategy under Svensson’s leadership likely will focus on leveraging its strengths while addressing its financial and operational hurdles.
Raketech’s core mission remains the delivery of exceptional value across its stakeholder groups. Under Svensson’s stewardship, the company aims to build upon its existing strong foundation to drive further innovation and growth, ensuring a steadier path forward despite recent financial setbacks.
As the company looks toward its next chapter, the focus will undoubtedly be on stabilizing and then enhancing its financial performance. Stakeholders, including customers, employees, and shareholders, all look forward to the implementation of Svensson’s vision and the strategic initiatives he plans to introduce. The future of Raketech under his leadership, while challenging, holds the promise of returning to robust growth and greater market impact.
