GiG gears up for strategic split as Gentoo Media posts record revenue 

Gaming Innovation Group (GiG) has reported revenue of €37.6m for Q2 2024 as bosses confirmed the company’s strategic split into two separate entities will be completed by the end of September.

The long-awaited break-up, which was decided upon following a strategic review last year, will see the affiliate arm, Gentoo Media, and the supplier division, GiG Platform and Sportsbook, become two separately listed businesses.

The first day of the divisions operating as individual entities is expected to be 1 October. 

Ahead of the split, Gentoo Media, which recently rebranded from GiG Media, is the arm in the ascendancy, according to the firm’s latest quarterly report.

It posted all-time high revenue of €30.3m during Q2, with that figure representing a 39% year-on-year (YoY) increase, of which 18% stemmed from organic growth. 

It marks the 14th successive quarter of record revenues from the affiliate business. 

Gentoo Media’s EBITDA was recorded at €14.8m, climbing 43% YoY from Q2 2023’s earnings of €10.3m, while corresponding EBITDA margin rose to 48.7%.

Analysing Gentoo Media’s revenue results further, 25% of the overall €30.3m came from paid media, a four-percentage point drop from Q2 2023.

Revenue share agreements made up 64% of revenue during the reporting period, alongside 10% from cost per acquisition deals. 

Geographically, Gentoo Media’s European revenue soared 43% YoY, while significant growth in both North America and Latam meant there was a rise of 94% YoY in the firm’s Americas segment.

Europe contributed the bulk of Gentoo Media’s overall revenue at 55%, with 26% coming from the Americas.

First-time depositors (FTDs) rose 11% YoY to 121,900, a marked improvement from the 109,400 recorded within the same time period last year. 

The business pointed to the strength of the AskGamblers and Time2play Media brands in driving FTDs north.

Gentoo Media also acquired Casinomeister in July and this week confirmed it had completed its move for SEO firm Titan after announcing the deal earlier this summer.

However, GiG explained that a focus on “higher-value markets” meant that player intake in Latam dropped considerably this quarter compared to 2023, but such a tweak is expected to increase revenues in the future due to higher-value players on revenue share agreements.

In addition, the division reported a net loss of €5m against a profit of €6.5m last year as bosses pointed to assets held for distribution to owners ahead of the split and amortisation increases from recent acquisitions.

Despite growth for Gentoo Media, revenue for GiG’s Platform and Sportsbook division decreased 21% YoY to €7.3m, €2m short of Q2 2023’s total.

Meanwhile, adjusted EBITDA fell to a loss of €1.6m, slipping from a positive return of €3.7m in Q2 2023.

Such a decline has been explained by the business as “how GiG Enterprise Solution is accounted for under IFRS with the vast majority of the value being recorded in 2023”, alongside client exits from last year.

Over the course of Q2, four brands went live with the supplier, two more than Q2 2023, while a further two have been onboarded in the opening exchanges of the third quarter of this year.

Ahead of the split from Gentoo Media, GiG Platform and Sportsbook announced updated 2025 revenue guidance of €44m alongside EBITDA of €10m.

However, full-year 2024 revenue is expected to land between €30m and €33m, with adjusted EBITDA loss to hit between €3.5m and €2.5m.

Gentoo Media did not disclose any further guidance.

Mikael Riese Harstad, GiG chair, said: “I am fully confident that both companies will flourish as independent entities, each continuing to lead and innovate within their respective areas of focus.

“In conclusion, the second quarter of 2024 has truly been one of significant achievement and strategic progress. 

“As we move forward with the final steps  of our strategic split, me and Petter Nylander, chairman of Platform and Sportsbook, are confident that both Gentoo Media and Platform and Sportsbook will continue to grow, innovate and deliver value to our shareholders like never before.”