Key points:
- Q3 2024 revenue reached €30.4m, a 35% year-on-year increase
- EBITDA before special items was €14.6m with a 48% margin, underscoring Gentoo’s strengthened position post-restructuring
- A business split completed in September 2024 saw Gentoo fully transition to an affiliate-focused model
Gentoo Media, formerly known as Gaming Innovation Group, reported record revenue growth for the third quarter of 2024, a result of its recent restructuring efforts and emphasis on higher-value markets.
The company’s Q3 2024 revenue increased by 35% year-on-year to €30.4m ($32.2m), of which 12% came from organic growth. This result marks Gentoo’s 15th consecutive quarter of record revenue.
Gentoo’s recent rebranding and completion of its separation from its platform and sportsbook division, which took effect on 30 September, has left the company focused exclusively on its affiliate business.
The spin-off has streamlined Gentoo’s operations, allowing it to focus on affiliate marketing. We spoke to COO Daniel Kürstein on the rebrand in a recent issue of Trafficology.
Earnings and profitability
During Q3, Gentoo achieved an EBITDA before special items of €14.6m, representing an EBITDA margin of 48%. EBITDA after special items rose 36% year-on-year to €14.0m, maintaining a 46% margin.
Earnings before interest and taxes (EBIT) were reported at €10.0m, achieving a margin of 33%.
CEO Jonas Warrer commented: “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. Our deliberate strategy of focusing on sustainable growth through revenue sharing and a measured, disciplined approach has consistently paid off.”
Strategic market focus and player metrics
Gentoo Media continued its strategic emphasis on higher-value markets, which contributed to a 36% increase in the total value of deposits among its player base. Despite a slight 2% decrease in player intake, the company’s focus on quality over quantity in player metrics has boosted overall deposit values.
A key growth area has been Gentoo’s affiliate strategy in North America, where the company’s main US-focused platform, WSN.com, recorded all-time high revenue.
This performance follows March 2024’s Google Core update, which initially impacted site rankings but has since shown recovery.
Restructuring and enhanced financial flexibility
The company’s recent organisational shift, which involved the spin-off of its platform and sportsbook division, has bolstered its focus and increased financial flexibility.
Following the restructuring, Gentoo expanded its capital allocation options and now operates independently as an affiliate marketing-focused business. In support of its strategic initiatives, Gentoo entered into a €25m revolving credit facility with Citibank Europe, enhancing its ability to pursue targeted growth and acquisitions.
Past partnerships and performance context
Earlier in the year, Gentoo renewed its agreement with Betsson Group, extending the use of its GiG Comply tool for compliance and brand protection.
In Q2 2024, Gentoo reported similarly strong performance with revenue growth of 39% and an EBITDA margin that matched its Q3 achievements. These quarters of steady growth, particularly after rebranding as Gentoo Media and shifting to a dedicated affiliate focus, position the company to meet its full-year guidance of €125m - 135m in revenue with an EBITDA margin between 45-50%.
Looking forward
Looking to the future, CEO Jonas Warrer highlighted the importance of “organic growth and strategic acquisitions” as pillars of Gentoo’s continued development, with an emphasis on expanding affiliate offerings in North America and Europe, and expects further progress as it capitalises on its recent restructuring and affiliate-focused model.
