Gentoo Media reports all-time-high revenue for Q4 2024 following business split

Gentoo Media has posted record revenue of €35.9m (£29.8m) for Q4 2024 as bosses pointed to recent M&A moves as key growth drivers for the affiliate.

The figure represents an increase of 37.5% when compared to the same period in 2023, 18% of which was labelled as organic growth.  

Alongside the revenue spike, EBITDA before special items came to €14.3m, up 31.2% YoY and with an EBITDA margin of 40%.  

EBIT totalled €9.8m for Q4, rising from €6.9m the previous year and leaving a 27% margin. 

Overall profit for Q4 amounted to €7.8m, compared to the €7.7m loss experienced in the corresponding period the previous year.  

Gentoo Media also noted a decrease in first time depositors (FTDs) for Q4, with 112,400 new players representing an 18% decline YoY.  

Despite the drop in FTDs, the value of deposits rose 27% YoY to €200m as the company had “a stronger focus on higher-value markets”.  

Bosses pinpointed the acquisitions of SEO and content services business Titan, KaFe Rocks and “flagship asset” AskGamblers are key drivers for the business, while Casinomeister, which was purchased last year, is in line for a “significant revamp”.

The affiliate also noted a net neutral impact of two new Google updates during the quarter, whereby “one of the larger sites in the portfolio, targeting a specific market, saw a notable positive spike in rankings while “two smaller websites in the portfolio were hit negatively”.

Management added that the company had yet to “realise a turn-around for Casinotopsonline.com, which was a strong revenue and player intake driver in 2023 and earlier years”.

And while Time2play.com experienced a decline in traffic and revenue from the US due to an August Google update, Gentoo Media said this was offset by a 35% quarter-on-quarter revenue growth from US sportsbook comparison portal WSN.com.

Several KaFe Rocks sites were successfully migrated to the main platform during the reporting period, while plans for the AskGamblers transition remain in the offing.

Paid media made up 23% of group revenue, while revenue share agreements contributed 51% and 18% coming from cost per acquisition (CPA) deals.

The affiliate noted that revenue from non-top five websites grew 55% YoY, with top five website revenue “in line with the fourth quarter of 2023”.  

Revenue from the Americas and Europe also grew 37% YoY, with both markets described as “pivotal to Gentoo Media’s growth strategy”. 

Q4 marked the start of the period where Gentoo Media operated as its own seperate company, divesting from the previous Gaming Innovation Group (GiG) parent company.  

When looking at the full-year 2024, revenue increased 41% YoY to €124.5m, with 17% of this growth organic.  

The company made a €51.4m loss in 2024, compared with the €11.5m profit generated in 2023. 

Gentoo Media said it expected double-digit revenue growth in 2025 and will release further guidance in the upcoming Q1 earnings release.

CEO Jonas Warrer said: “As we have navigated the transition up to and after the split, our 2024 financials naturally reflect certain one-time factors.  

“However, as we move into 2025, we expect a much clearer financial picture, providing investors with greater visibility into the strong cash flow characteristics of our business – an aspect that I and management are particularly excited about.  

“I extend my heartfelt gratitude to our exceptional team at Gentoo Media. Your dedication, resilience and hard work have been instrumental in driving our success. I also want to thank our partners for their continued collaboration and commitment.

“Lastly, I am deeply grateful to our investors and board of directors for their trust and support, which remain critical to our ongoing success.” 

Gentoo Media’s shares were up by 1% on the day in Stockholm at the time of writing.