Revenue Decline Follows Demerger and Market Recalibration
Gentoo Media has reported a challenging start to 2025, with first-quarter revenue falling 11% year-on-year to €24.8 million. The decline is largely attributed to regulatory headwinds in Brazil and a strategic withdrawal from lower-margin business lines, part of a broader restructuring initiative that followed the company’s demerger from its Platform & Sportsbook division.
This reset in business focus came at a cost. EBITDA before special items dropped sharply by 39% to €8.2 million, shrinking the EBITDA margin from 48% in Q1 2024 to just 33% in the same period this year. The company also experienced a hit to net cash flow, with €22.5 million allocated to deferred acquisition payments and expenses associated with the recent corporate split.
CEO Warrer: “A Necessary Quarter of Change”
Gentoo CEO Jonas Warrer framed the difficult quarter as a turning point for the company. “Q1 was a quarter of change and a necessary one. We faced external pressures and made deliberate decisions to position Gentoo Media for what’s ahead,” he noted. “The result is a more focused company with a clear growth strategy and the leadership in place to deliver it.”
The company has already initiated internal restructuring efforts aimed at increasing operational efficiency and maximizing profitability in higher-yielding segments. This includes the trimming of lower-yielding business units and the onboarding of key executive hires, including a new Chief Financial Officer.
Stable Outlook for 2025 Despite Early Dip
Despite the underwhelming start to the year, Gentoo Media remains confident in its full-year outlook. The company expects revenue to remain broadly in line with its 2024 figures, while EBITDA margins are projected to recover to the 40–45% range in the second half of the year.
This forecast follows a record-setting 2024 for Gentoo Media, when the company achieved €124.5 million in revenue—marking a 41% year-on-year growth—and posted a full-year EBITDA margin of 45%. Notably, Q4 2024 delivered standout performance, with revenue jumping 38% to €35.9 million, marking the firm’s 16th consecutive quarter of revenue growth and showcasing the strength of its affiliate-centric business model.
Looking Ahead
While Gentoo’s Q1 2025 results reflect the turbulence of strategic realignment and regulatory friction, the company is positioning itself for renewed growth and operational resilience. With a leaner model, strategic leadership in place, and confidence in its long-term affiliate-led approach, Gentoo Media appears ready to turn short-term challenges into long-term value creation.
