Gentoo Media saw revenue decline 11% year on year (YoY) after what CEO Jonas Warrer described as a “quarter of change”.
The firm’s topline figure for Q1 2025 fell for the first time in 17 consecutive quarters, sitting at €24.8m (£20.9m), down from the €28m generated in the corresponding period last year, with the slump attributed mainly to the impact of market regulation in Brazil, which went live on 1 January 2025.
As per Gentoo Media’s results presentation, in what was the third full quarter since its split from the GiG sports betting supplier arm at the end of September 2024, the launch of Brazil’s regulated market led to a “sharper-than-expected drop in active players”, though the company reaffirmed that the long-term outlook for operations in the region remain positive.
The affiliate also posted EBITDA of €8.2m for the reporting period alongside a corresponding margin of 33%, marking a decline of 39% YoY from the €13.5m amassed in the same metric during Q1 2024.
Gentoo Media reported a 24% YoY fall in first-time depositors (FTDs), which sat at 95,100 for the first quarter of 2025, although the value of those deposits remained flat at €183m despite turbulence in Brazil.
Revenue share agreements contributed 59% to Gentoo Media’s group-wide total, while 28% came from listing fees and other services, and the remaining 13% was derived from CPA deals.
Geographically, Gentoo Media reported struggles in its core markets of Europe and the Americas, where revenue fell by 8% and 26% YoY, respectively, with the latter hindered by the regulatory changes in Brazil.
Gentoo Media’s European division contributed 63% of the firm’s entire revenue total, while the Americas generated 18%.
The affiliate’s publishing arm, which includes brands AskGamblers, Casinomeister and KaFe Rocks, was boosted by a Google Core update in March.
However, it was a difficult quarter for Casinotopsonline.com, reporting a €1.9m fall in revenue YoY, but this was offset by gains made elsewhere within the rest of the publishing division, which otherwise saw growth of 5% compared to the first quarter of 2024.
Overall, Gentoo Media’s publishing segment accumulated €20.3m in revenue for Q1 2025, a marginal decline of €1m when pitted against the year prior.
Elsewhere, the firm’s paid media division reported a 32% YoY decline in revenue, again as a result of headwinds in Brazil.
“Underperforming” initiatives within the arm from the previous quarter were phased out in Q1 2025, which management explained helped free up resources for “scalable, high-return opportunities”.
Marketing expenses remained flat YoY at €6.8m, while personnel costs totalled €5.8m, representing a climb of 31% YoY.
Following a strategic review concluded during Q1, that bosses said was designed to “create a more agile, focused and efficient organisation”, Gentoo Media confirmed it had “eliminated inefficiencies”, which included a headcount reduction that Warrer conceded was “difficult”.
Reflecting on the quarter, the Gentoo Media CEO explained: “Q1 was a quarter of change – and a necessary one.
“We faced external pressures and made deliberate decisions to position Gentoo Media for what’s ahead. The result is a more focused company with a clear growth strategy and the leadership in place to deliver it.
“We now move forward with confidence, driven by our ambition to create long-term value for players, partners and shareholders alike.”
In a letter to the affiliate’s shareholders, Warrer noted that the financial performance does not reflect Gentoo Media’s targets, but issued an optimistic update for the remainder of the year.
“We remain confident in our strategy, our team and the strength of our portfolio,” the CEO wrote. “I would like to sincerely thank our employees for their dedication during this pivotal period and our investors and partners for their continued trust and support.
“Together, we are building a stronger Gentoo Media – one ready to lead with execution, innovation and sustainable growth.”
In terms of financial guidance, Gentoo Media said it expects full-year revenue to fall in line with the €123m generated over the course of 2024, while EBITDA margin is anticipated to land between 40%-45%.
The decline in revenue has had a significant impact on Gentoo Media’s share price, with the affiliate’s stock falling by 22% to sit at SEK13.16 (£1.02) in early trading today.
The post Gentoo Media revenue falls for the first time in 17 consecutive quarters first appeared on EGR Intel.
CEO Jonas Warrer concedes that affiliate’s Q1 display “does not reflect the level of performance” it is targeting as struggles in recently regulated Brazil take their toll
The post Gentoo Media revenue falls for the first time in 17 consecutive quarters first appeared on EGR Intel.