Finances Suppliers

Date: 14.05.2025

by Jonasz Papuga

Gentoo Media Reports Q1 Revenue Dip Amid Strategic Refocus Following Demerger

Gentoo Media has published its interim results for Q1 2025, reflecting both the impact of regulatory disruptions in Brazil and early outcomes of a company-wide strategic shift following its separation from the Platform & Sportsbook division.

Revenue Declines in Challenging Quarter

In the first quarter, Gentoo Media reported revenue of EUR 24.8 million. This marks an 11% decrease from EUR 28.0 million in Q1 2024. The company attributed the decline primarily to new market regulations in Brazil.

EBITDA before special items stood at EUR 8.2 million, with a margin of 33%, down from 48% a year earlier. Additionally, deferred payments from past acquisitions and demerger-related costs impacted net cash flow, totaling EUR 22.5 million.

Despite the dip, Gentoo Media highlighted the strength of its recurring revenue streams and cash-generative operations, which help sustain financial stability.

Post-Demerger Strategy Focuses on Efficiency and Leadership

After separating from its Platform & Sportsbook division, Gentoo Media launched a strategic review. Completed shortly after Q1, the process resulted in significant changes aimed at streamlining the business and improving long-term resilience.

Key initiatives include:

  • Streamlining operations by discontinuing lower-margin activities and resizing the cost base to achieve significant annual savings.

  • Strengthening leadership, with senior appointments including a new Chief Financial Officer.

  • Focusing on high-value areas, eliminating inefficiencies and realigning resources to support scalable, sustainable growth.

CEO Jonas Warrer described the first quarter as “a quarter of change – and a necessary one,” noting that the company is now better positioned for long-term value creation.

“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.”

Looking ahead, Gentoo Media anticipates stronger performance in the second half of 2025. The company expects to maintain full-year revenues broadly in line with 2024 levels and aims for EBITDA margins in the 40–45% range.