“Not where we want it to be”: Gentoo revenue further dips in Q2
The affiliate’s Q2 revenue declined 19% year-on-year to €24.4 million (£21.1 million/$28.4 million) as the business continued to face headwinds in the Brazilian market and the lack of major sporting events in 2025.
EBITDA before special items was €7.5 million with a margin of 31%, a 49% decrease from €14.8 million in the same period last year. Revenue share accounted for 60% of the affiliate’s revenue, while CPA contributed 14% and listing fees and other made up the remaining 26%.
Following the broad layoffs and restructuring efforts announced earlier this year, the business reported total personnel and operating expenses of €8.5 million, a decrease from €9.8 million in Q1 2025. Marketing expenses stood at €8.4 million, the same as in Q2 2025, but up by €1.5 million from the previous quarter, which the affiliate said reduced EBITDA by €1.5 million.
Cash flow during the quarter was €7.7 million, impacted by one-off costs related to terminated positions. The affiliate also delisted its shares from Euronext Oslo Børs on 24th July 2025 while maintaining the listing on Nasdaq Stockholm.
Commenting on the results, Gentoo Media CEO Jonas Warrer acknowledged that the revenue “is not where we want it to be” and said the business has “acted fast to address the situation”.
Decline in revenue share
As part of the group’s restructuring initiatives, the CEO reaffirmed its priority to “channel resources into areas with the strongest opportunity, reduce exposure in assets and markets with weaker prospects and align the organisation to deliver efficient and sustainable growth”. Gentoo Media has reduced its portfolio from around 150 sites to 70 active sites, with resources focusing on flagship brands such as AskGamblers.com, WSN.com, Casinotopsonline.com and Time2play.com, alongside high-potential local sites.
Despite challenging financial performance, the affiliate’s player intake reached 136,000 FTDs, up 14,000 year-on-year and close to the all-time high of 137,700 achieved in Q4 2024. The value of deposits rose to €195 million, compared to €192 million in Q2 2024.
However, performance was held back by weaker revenue share earnings, which sat at 7.8% over deposit values, as opposed to the expected 10%, with Brazil a key driver. The affiliate has started a partner optimisation programme to prioritise its most reliable partners with the highest earnings and margins to improve traffic values.
Publishing revenue declined by €3.1 million year-on-year, while paid media revenue was down €2.8 million, despite a doubling of new player intake in the sector from 42k in Q1 to 84k in Q2. The company blamed regulatory changes in Brazil and the absence of major sporting events for the decline.
Similar to previous quarters, Casinotopsonline.com and Time2play.com continued to underperform, although the affiliate claimed that the latest Google Core Update “had an overall positive impact on the publishing portfolio”.
Operation overview
In 2024, Gentoo Media onboarded more than 150 new employees, which impacted its cost base towards the end of 2024 and carried into 2025. It has since implemented strategic rehauls across the business to address the “growing pains”. According to Warrer, the group’s cost base “is now in a healthier position than anticipated, driven by decisive actions to right-size the organisation”.
“These steps have created a leaner, more agile company, better equipped to execute on our strategic priorities and capture opportunities as market conditions evolve,” he added.
As part of the transition, the affiliate revealed that its former CSO, Gioacchino Morsicato and CTO Vadim Jefimenko have departed. The group is currently revamping its commercial organisation to “sharpen the go-to-market model, align sales and marketing across priority markets and strengthen capabilities to deepen customer engagement and accelerate revenue”. It also conducted a full reassessment of ongoing technology projects and platforms and initiated an incremental upgrade programme during Q2 to improve the business’s long-term value, efficiency and scalability.
The group has appointed a new leadership team to lead its sales and commercial operations. Three senior technology and product leaders will join in Q3 to drive platform and MarTech development. Meanwhile, the business is committed to “retaining and attracting top talent” and will continue investing in office facilities in H2, including moving into new premises in Malta in September 2025.
Renewed yearly targets
The affiliate also provided clearer guidance on its FY25 targets in its Q2 results. Expecting growth in H2 over H1, it acknowledged that “the current rate of improvement is below expectations”. The updated targets now include achieving full-year revenue between €100 to €105 million, EBITDA before special items between €40 to €43 million with a margin of 40% to 41% and free cash flows from operations at €27 million to €30 million.
“As we move into the second half of the year, we do so with renewed clarity and confidence,” said Warrer. “We have a robust portfolio boasting several of the most valuable websites in the industry, a healthier cost structure and a committed team ready to deliver on our ambitions. The steps we are taking today will position Gentoo Media for sustainable, profitable growth in the years ahead.”