Gentoo continues revenue dip despite cost base improvements

EBITDA before special items reached €9.3 million with a 41% margin, falling from the €13.7 million reported in Q3 2024 when the margin stood at 46%. Net profit for the quarter came in at €1.0 million, while cash flow from operations rose to €8.6 million.

After the strategic rehauls and broad layoffs announced in H1, the affiliate cut its total personnel and operating expenses in Q3 to €7.4 million, 21% lower than Q1. Marketing spend dropped to €6.0 million, down from €8.4 million in Q2.

Revenue share agreements remained the company’s largest income stream at 64% of total revenue, while CPA accounted for 13% and listing fees and other sources made up the remaining 23%.

A review of previously reported financial information uncovered “certain misstatements” in the audit of its 2024 financial statements. This resulted in a revenue increase of €1.2 million and an EBITDA increase of €2.2 million for H1 2025.

Commenting on the results, Gentoo Media CEO Jonas Warrer acknowledged that “revenue for the quarter came in below expectations”, though its “underlying activity remained healthy, with stable player intake, solid deposit levels and improved customer acquisition efficiency compared to last year and first half of 2025”.

Sector breakdown

The publishing arm continued to lead with €59.6 million in revenue for the first nine months of 2025, though this was down from €67.5 million in the same period last year. EBITDA before special items for the segment reached €28.2 million with a margin of 47%.

In North America, flagship brand WSN.com delivered 70% quarter-on-quarter revenue growth, supported by sustained traffic improvements. AskGamblers recovered after the June Google Core Update caused earlier setbacks, while other key assets such as Casinotopsonline.com and Time2Play.com saw steady increases in traffic and revenue, benefiting from positive impacts from the same update.

The paid media segment generated €13.5 million in revenue over the first nine months, down from €20.2 million year-on-year, while EBITDA before special items stood at -€1.6 million with a -12% margin. Marketing spend in Q3 was cut nearly 50% to €2.46 million quarter-on-quarter, while retaining two-thirds of acquisition volume with FTDs at 56,612. Customer acquisition costs improved by 33% compared to Q1, and the total value of deposits increased by around 15% year-on-year.

The unit also faced disruption in a major acquisition channel that temporarily halved revenue from that source, although this has since been resolved. Echoing Better Collective’s Q3 update, Gentoo Media pointed to “exceptionally favourable sports outcomes for players” as a key reason for the quarterly revenue dip, which caused a 42% decline in revenue share intake compared to the July to August average.

Operational highlights

Warrer reaffirmed the group’s ongoing strategic transformation, noting that “significant improvements have been implemented across both internal and external reporting, with a particular focus on establishing a strengthened control environment, clearer governance structures and more timely and reliable financial insights to support the business” throughout 2025.

The affiliate strengthened its platform execution and scalability in Q3 through streamlined initiatives and the appointment of a new senior technology and product leadership team. It also made substantial progress on its next-generation WordPress framework after earlier delays, with the first sites scheduled to go live in Q4 and a full rollout planned by summer 2026.

Work continued on the UX revamp for AskGamblers, with new page templates moving into execution in Q4 to improve engagement and monetisation. The group also upgraded its marketing technology stack to enhance data accuracy, automation and campaign efficiency.

Gentoo Media further developed its people foundation for long-term growth, moving staff into a new Malta office in Q3 and expanding leadership and capability development programmes to support professional progression.

Looking ahead

The company entered Q4 on a positive note, with October revenue rising 15% month-on-month. New partner onboardings in the paid segment are expected to contribute meaningful revenue in Q4.

“The effects of the strategic realignment initiated earlier in the year are now visible across the business, reflected in stronger margins and a stabilised, more efficient cost base,” Warrer said. “As we enter the final quarter, we do so with sharper execution, a streamlined structure and a solid platform for sustainable growth.”

Gentoo Media maintained the full-year targets set in the previous quarter, forecasting revenue between €100 million and €105 million and EBITDA before special items between €40 million and €43 million with a margin of 40% to 41%. It also raised its guidance for free cash flow from operations to €31 million to €34 million, up from the earlier expectation of €27 million to €30 million.