Gentoo Media’s leadership expresses confidence in a strategic realignment occurring in H2 2025 that will salvage the company’s fortunes by the end of the year.

This is in the face of another difficult quarter for the affiliate media group with revenue down 19% year-over-year to €24.4m, down from €30.2m the year prior while being broadly consistent with #24.8m the previous quarter.

In addition, it is continuing to run into profitability issues, as EBITDA dropped 49% from €14.8m to €7.5m. Issues with both revenue and profitability have affected the company throughout this year despite a positive end to 2024.

Gentoo, which rebranded from its previous identity of GiG Media last year, closed 2024 with revenue of €125m, 41% more than in 2023. Some difficulties were beginning to present themselves already, however, with a noticeable decline in new depositing customers.

Group leadership has pointed to ‘market softness in Brazil’ as a key factor behind its Q2 struggles, something that was also noted in Q1. Although reaping dividends for betting operators, affiliates like Gentoo and Better Collective, among others, have been struggling as the country continues to adapt to a new regulated betting market.

In Q1, Gentto CEO Jonas Warrer said that revenue and EBITDA declines during the quarter were the result of ‘short-term disruption, especially in Brazil’. In Q2, the firm’s income was impacted not just by this but also by ‘seasonable impact from the absence of major sports events’.

Again, this is something that has been noted by the likes of Better Collective. Unlike Brazil, this is a trend that affected multiple betting stakeholders in Q2 – including B2B solutions suppliers like Kambi and B2C operators like Betsson, evoke and Entain, among others.

Gentoo remains confident, however, that it can close 2025 in a similarly strong position as it did last year. This is largely due to initiating a restructuring during the first quarter of the year, largely focusing around cost controls, including headcount reductions.

“The quarter marked the completion of the strategic realignment initiated in Q1, streamlining and stabilising the business and sharpening the operational focus,” the group’s H1 statement read, pointing to EBITDA margins returning above the 40% mark while marketing investments led to a 43% increase in player intake between Q1 and Q2.

Looking to the end of the year, Gentoo leadership expects revenue of between €100m-€105m and EBITDA between €40m-€43m, with a margin of 40-41%. This would, however, still mark a drop in revenue of at least 16% from the year prior.

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