Gentoo Media scores all-time high revenue in Q3 amid “sustainable” growth
Revenue derived from non-leading brands soars as management also highlights improvements to tech and product as core foundations for the group
Gentoo Media has posted all-time high revenue of €30.4m (£25.3m) for Q3 2024 in the first earnings report for the group since its split from the GiG sports betting supplier arm at the end of September.
Revenue jumped 35% year on year (YoY) against Q3 2023’s return of €22.5m, as this Q3 became the 15th consecutive quarter of revenue growth for the affiliate.
The firm’s shares are up 3.4% at the time of writing to SEK24.30 (£1.75).
Meanwhile EBITDA rose 36% YoY from €10.3m to €14m, EBIT was up 40% YoY from €7.1m to €10m and profit from continuing operations came in at €4.9m.
Paid media represented 18% of group revenue for the quarter, with revenue share agreements accounting for 58% of revenue.
An additional 33% of revenue was derived from listing fees and other services while the remaining 9% came from CPA deals.
Geographically, European revenue rose 51% and contributed to 59% of group revenue while the Americas also noted growth of 52%.
First time depositors for the quarter remained flat, dipping 2% YoY to 112,000 compared to Q3 2023’s count of 113,800.
Gentoo Media said that while its publishing arm, which includes brands AskGamblers and KaFe Rocks, saw player intake increase 10%, it was offset by a 16% decline in paid activities.
The group said both divisions were now focusing on higher value markets and “deprioritising player acquisition in lower-value markets”.
Operationally, Gentoo Media noted revenue from its non-top five websites grew 46% YoY, with revenue from the top five sites up 14%.
The business said this was forming part of its “sustainable” long-term growth strategy, which also includes tech and product updates to its proprietary platform.
Gentoo Media has retained its full-year 2024 guidance of revenue between €125m and €135m, with an adjusted EBITDA margin of between 45% and 50%.
Jonas Warrer, Gentoo Media CEO, said: “Our diversification strategy, which focused on sustainable long-term growth amid challenging market conditions, continues to deliver strong results.
“Traditionally, the fourth quarter is historically a period of strong performance for Gentoo Media, benefiting from favourable seasonality in both casino and sports.
“Gentoo Media is well-positioned to seize the opportunities this exciting period presents. In Q3, several new initiatives were launched to drive further revenue growth in Q4, and the team eagerly anticipates seeing the full impact of these efforts,” he added.