Performance in Q1 reflects regulatory disruption in Brazil and a reduction in some low margin activities notably in Gentoo Media’s paid division. Despite these headwinds, the company maintains a strong financial position, with robust recurring revenue and a cash-generative operating model.
Q1 2025 financial highlights
* Gentoo Media reported revenue of EUR 24.8 million (EUR 28.0 million), down 11% YoY predominantly due to the impact of market regulation in Brazil.
* EBITDA before special items amounted to EUR 8.2 million (EUR 13.5 million) with a margin of 33% (48%).
* Net cash flow impacted by deferred payments related to previous years acquisitions and split related payments totalling EUR 22.5 million.
Post-demerger strategic initiatives
In the wake of the demerger from the Platform & Sportsbook business, Gentoo Media launched a comprehensive strategic review. Completed shortly after the quarter, the process has resulted in a more focused, agile, and resilient business:
* Streamlined operations: Lower-margin activities discontinued to enable full focus on scalable and sustainable growth. Cost base resized with significant annual run-rate savings.
* Organisational capacity strengthened: Senior talent additions, including the appointment of a new CFO, have bolstered leadership.
* Strategic focus: Streamlining the organisation will eliminate inefficiencies, remove duplication and ensure that resources are focused on the highest-value areas of the business.
CEO Jonas Warrer comments: “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. The result is a more focused company with a clear growth strategy and the leadership in place to deliver it. We now move forward with confidence, driven by our ambition to create long-term value for players, partners, and shareholders alike.”
He also revealed that regulatory changes in Brazil had led to significant customer attrition: “In some areas, we lost 90% of the player base,” he said, adding that this meant Gentoo lost revenue instantly.
Outlook
Gentoo Media enters Q2 with renewed momentum and strategic clarity. The business has a strong platform to navigate market fluctuations and capitalise on emerging opportunities across regulated iGaming markets.
“We are well-placed to resume growth in the second half of the year and we expect to see full-year revenues broadly in line with 2024 and EBITDA margins in the range of 40-45%,” states the company.
Source: GMB
