Gentoo Media has revealed a 11% YoY decline in revenue to €24.8 million for Q1 of 2025, ending an unbroken sequence of 16 consecutive quarters of growth which began in 2020.
EBITDA dipped 39% to €8.2 million with the margin falling to 33% from 48%. FTDs referred to operators fell 24% YoY to 95,000 from 125,000 in the comparable period last year.
The affiliate blamed the impacts of market regulation in Brazil and a shift away from lower-value activities implemented following a post-demerger strategic review initiated during Q1. FY25 revenues are now expected broadly in line with the prior year.
Difficult steps
CEO Jonas Warrer (pictured) said the “quarter of change” initiated following the business’ uncoupling from the GiG platform and sportsbook arm in October 2024 had been “a necessary one”.
Actions arising from the review included the discontinuation of lower margin activities, resizing of its cost base, elimination of efficiencies and duplication and bolstering of its leadership, spearheaded by the appointment of new CFO Mads Haugegaard Albrechtsen.
The portfolio was consolidated to 70 “high potential websites in key long-term growth markets” and in April Gentoo cut headcount across the group.
“While difficult, these steps were essential to reduce complexity and establish an appropriate foundation for the future”, said Warrer.
“The result is a more focused company with a clear growth strategy and the leadership in place to deliver it”, he added: “From H2 2025 and onwards, we anticipate improved margins and growth to resume”.
Bullish on Brazil
Warrer also reiterated his confidence in Brazil’s long-term potential despite regulatory uncertainty and market volatility proving “more disruptive than initially anticipated”.
Sportsbooks’ player re-registration requirement under the regulatory framework has disrupted the affiliate tracking chain with the potential loss of previously acquired and referred users. Sector leader Better Collective has projected an EBITDA hit of up to €50m from Brazil in 2025.
Publishing mix
Performance from the core publishing segment, representing 82% of 1Q25 revenue, was mixed. Google’s March core update had a net positive impact with Askgamblers.com retaining its positive trajectory and WSN.com reporting all-time high revenue in March.
CasinoMeister.com, which will fully migrate to Gentoo’s proprietary platform by 3Q25, continued its strong growth in organic traffic.
Casinotopsonline.com and Time2play.com however continued to drag on performance, with recovery efforts ongoing. Excluding these, the publishing portfolio grew by 5% YoY.