The business also swung to a loss after tax of €3.3m, compared to a €2.8m profit in Q1 2024.
The firm’s adjustedl loss after tax, before items affecting comparability and currency effects, was €759,000, compared to a €381,000 loss in the prior year.
Despite the reduction in adjusted EBITDA and profit, the company delivered 72,906 new depositing customers during the quarter, up 60% year-on-year and 69% quarter-over-quarter.
CEO Robert Andersson described the quarter as delivering “mixed results, clearly illustrating both the resilience and adaptability of Acroud in the face of challenging market conditions.”
Brazil causes EBITDA slump
The significant drop in adjusted EBITDA was accredited to “substantial pressures primarily stemming from regulatory changes in Brazil.”
The introduction of the country’s regulated betting market in January led to a notable decline in player activity in January and February, the company said, while “harsher-than-expected tax conditions further suppressed our profitability within the iGaming Affiliation segment.”
The business added that it remains confident in the long-term potential of the Brazilian market, however.
In contrast, Acroud’s SaaS business segment delivered a 62% revenue increase to €6m, “driven by strong adoption of our Network model and other strategic shifts.”Acroud completes strategic restructuring
The company added that despite these short-term challenges, strategic initiatives undertaken during Q1 have strengthened its financial structure.
“The successful completion of our comprehensive restructuring process marks a pivotal milestone and transformative moment in Acroud’s history,” it said.
“This comprehensive initiative included the issuance of approximately SEK 65.3m in Super Senior Bonds, which provided critical liquidity to bolster our balance sheet and pursue new growth opportunities.
“Additionally, we successfully converted around SEK 70m of bond debt into equity, substantially reducing our financial leverage and creating a more sustainable financial framework.”
Through the restructuring, the company also acquired the remaining 49% of Acroud Media Ltd from RAIE Media for €12m, paid through a combination of cash and newly issued shares.
Following the restructuring, RAIE Media now olds around 39% of Acroud shares.
“These restructuring efforts have resulted in Acroud achieving full ownership of all subsidiaries, significantly simplifying our corporate structure and enhancing operational efficiency,” CEO Andersson said.
“With clearer governance and streamlined operations, we can now better focus on strategic initiatives aimed at innovation, market expansion, and delivering enhanced shareholder value.”
