Online affiliate Acroud has posted a 3% rise in revenue of EUR €9.80 million for the first-quarter 2025.

The first quarter of 2025 presented mixed results, clearly illustrating both the resilience and adaptability of Acroud in the face of challenging market conditions reporting a €3.26 million loss for Q1 2025.

Revenue amounted to EUR 9.8 million, representing a modest increase of 3% compared to the same period last year. However, adjusted EBITDA significantly decreased by 64% year-on-year to EUR 0.4 million, reflecting substantial pressures primarily stemming from regulatory changes in Brazil.

The Brazilian market, historically significant for Acroud, implemented new licensing and registration requirements at the beginning of the year. This process led to a temporary but considerable disruption, as player activity notably declined, particularly in January and February.

Furthermore, the impact of harsher-than-expected tax conditions further suppressed our profitability within the iGaming Affiliation segment, where revenues decreased by 34% year-on-year to EUR 3.8 million, with EBITDA dropping sharply to EUR 0.2 million. While these impacts were substantial, we remain confident in the long-term potential of this market and have already seen encouraging recovery trends as compliance measures are increasingly embraced by users.

In contrast, our SaaS segment demonstrated strong resilience and encouraging performance, achieving a 62% increase in revenue year-on-year to EUR 6.0 million. EBITDA within this segment grew by 42% to EUR 0.5 million, driven by strong adoption of our Network model and other strategic shifts.

Despite the short-term operational challenges, strategic initiatives taken during this quarter have significantly strengthened Acroud’s financial structure.

The successful completion of our comprehensive restructuring process marks a pivotal milestone and transformative moment in Acroud’s history. This comprehensive initiative included the issuance of approximately SEK 65.3 million in Super Senior Bonds, which provided critical liquidity to bolster our balance sheet and pursue new growth opportunities. Additionally, we successfully converted around SEK 70 million of bond debt into equity, substantially reducing our financial leverage and creating a more sustainable financial framework.

A particularly significant achievement of our restructuring was the acquisition of the remaining 49% of Acroud Media Ltd from RAIE Media for EUR 12 million, paid through a combination of cash and newly issued shares.

This critical step has fully consolidated Acroud Media Ltd into our operations, further strengthening our market position and strategic alignment. Following the restructuring, RAIE Media Ltd now holds approximately 39% of Acroud shares, solidifying them as a major strategic partner and aligning stakeholder interests for long-term success. Additionally, PMG, representing SMD Group Ltd., PMG Group A/S, and other affiliates, now holds around 16.3% of our total outstanding shares, further emphasizing stakeholder confidence and the collective commitment to our long-term strategy.

These restructuring efforts have resulted in Acroud achieving full ownership of all subsidiaries, significantly simplifying our corporate structure and enhancing operational efficiency. With clearer governance and streamlined operations, we can now better focus on strategic initiatives aimed at innovation, market expansion, and delivering enhanced shareholder value.

Looking ahead, initial signs of recovery have emerged in April, aligning closely with our budget expectations, and this positive momentum has continued into May. Our tactical and strategic initiatives, especially within the Brazilian market, are beginning to deliver measurable results. Furthermore, ongoing cost-saving measures, including significant administrative cost reductions will further enhance our operational efficiency from the second quarter onwards.

I am incredibly proud of our team’s dedication, agility, and perseverance in navigating these challenging times. With our newly fortified financial foundation, strategic clarity, and innovative approach to market challenges, Acroud is exceptionally well-positioned for sustained growth and enhanced profitability in the coming quarters and beyond, said Robert Andersson, President, CEO.