Raketech has lowered FY estimates after its Japan-facing Casumba assets suffered a “net negative impact” from the latest Google core update which completed on 19 April.
Based on current trading, the affiliate now projects EBITDA for 2024 to come in around €20m, down from the previous guidance of €24-26m.
Raketech is due this year to pay €18.3m of the total €46.m consideration for Casumba, with all cashflow from the Japan-facing business directing to Raketech from 1 August.
In a trading update, Raketech assured the market that: “The Casumba team is intact, with the original founders onboard, dedicated to continuing to run and oversee the strategy for these products.”
Revenue of €19m is expected in Q1, up from €16m in the same period last year. EBITDA is however expected to dip to €4.3m from €6.1m, announced the company ahead of publication of its full interim results on 15 May.
The company also revealed its Swedish assets suffered a softer Q1 performance compared to last year. Other in-house assets however performed well, led by sports products.
Revenues from sub-affiliation, consisting of its lower-margin network and SaaS products, decreased on the previous quarter, but EBITDA contribution held up with an increased margin during the quarter and continued demand from partners.
Following a review of its operating model, efficiency measures were implemented during the quarter “to ensure execution power with a better focus on prioritized products and markets and to optimize cash flow”, it said.