Gentoo Media Sees Record Revenue and Profit Growth in Q3 Following Strategic Shift to Affiliate Focus
Gentoo Media, formerly known as Gaming Innovation Group, recorded a 35% revenue increase in Q3 2024. Following its separation from platform and sportsbook operations, Gentoo now emphasizes higher-value markets and affiliate growth in North America, demonstrating sustained financial progress.
Q3 Revenue Up 35% Year on Year
Gentoo Media’s Q3 2024 revenue was €30.4m, 35% up year-on-year. 12% of that was organic and it’s the 15th consecutive quarter of record revenue.
Gentoo’s focus on high value markets and shift to exclusive affiliate only has enabled them to generate sustainable revenue through long term revenue share models.
Operational Streamlining and Affiliate Focus
With the separation from the platform and sportsbook on September 30th 2024 complete Gentoo can now streamline operations and focus on affiliate marketing.
COO Daniel Kürstein wrote about the rebrand in the latest issue of Trafficology, explaining how Gentoo’s new strategy aligns with their core competencies.
Q3 Earnings and Margins
Gentoo’s Q3 EBITDA before special items was €14.6m, 48% margin. Including special items EBITDA was up 36% year on year to €14.0m, 46% margin. EBIT was €10.0m, 33% margin.
CEO Jonas Warrer expressed satisfaction with these results, noting, “We are pleased to deliver our 15th consecutive all-time high quarter, which reflects the strong foundation we’ve built over the past five years.”
Market Focus and Player Metrics
Gentoo’s focus on high end markets resulted in 36% increase in total deposits from players, quality over quantity in player metrics. 2% drop in player intake but overall deposit volumes increased. In North America WSN.com affiliate platform had record revenue, site rankings recovered after March 2024 Google Core update.
More Cash and Targeted Growth
After the restructure Gentoo is now fully an affiliate business, which gives more options for capital allocation and more financial flexibility. Gentoo secured a €25m revolving credit facility with Citibank Europe to support strategic acquisitions and targeted growth initiatives to pursue the affiliate model.
Partners and Context
Gentoo renewed its partnership with Betsson Group earlier in the year and uses GiG Comply as a compliance solution. Gentoo’s rebrand and affiliate focus in Q2 and Q3 has driven the growth, keeping EBITDA margins high and on track for the annual revenue target of €125m to €135m.
Future is Organic and Acquisitions
CEO Jonas Warrer said Gentoo will focus on affiliate growth in North America and Europe. “Organic growth and strategic acquisitions” will be the way to go as the company is capitalizing on the restructure and new business model.
