In another troubling week for the gambling affiliate industry in the U.S., Gentoo Media revealed that it has enjoyed its 15th successive quarter of record revenues.
Gentoo noted in a release that “following the industry’s active developments in recent weeks,” its third-quarter 2024 revenues are expected to end at $32.8 million with an EBITDA margin between 46 and 48%.
The company, which operates numerous affiliate sites including the North America-focused sport-first flagship site WSN, is confident in its guidance for full-year 2024 results. It projects full-year revenues will fall between $135 and $146 million, while EBITDA margin is expected to land between 4 and 50%.
In the final quarter, the company expects strong seasonality, particularly within casinos, along with revenue growth from initiatives launched throughout the year.
“We are pleased to deliver our 15th consecutive all-time high quarter, which reflects the strong foundation we’ve built over the past five years,” said CEO Jonas Warrer. “Our deliberate strategy of focusing on sustainable growth through revenue sharing and a measured, disciplined approach has consistently paid off.
“Our commitment to organic growth and diversity has proven resilient as we adapt to shifting market conditions. We look forward to building on this momentum as we remain well-positioned to thrive in a dynamic market with a long-term vision of continued success.”
Mikael Harstad, Chairman of Gentoo Media, added that executives’ long-term strategy of “steady, diversified growth” has proven successful despite market volatility thanks to what he called a disciplined revenue-sharing model that continues to drive sustainable success.
“The results speak for themselves – our strategy is working, and we’re confident it will keep giving us a competitive edge.”
The announcement comes after Gentoo completed its rebrand from its previous life as Gaming Innovation Group (GiG). Gentoo Media will release its full Q3-2024 Interim Report on Nov. 13.
Catena Media and Better Collective batten down hatches, XLMedia gets out
As Gentoo’s release referenced, affiliates in the U.S. are not having a good time right now.
Catena Media announced this week that it will be laying off 29 more employees in advance of its Q3 earnings call in an attempt to “rightsize” the content and marketing teams as it tightens its focus.
The cuts affected roughly 10% of the North American workforce. Catena offloaded its British and Australian sites in 2023 after selling the AskGamblers brand to GiG in 2022. The group also conducted a previous round of layoffs on shared services between the U.S. and European teams.
The company said it plans to focus on product development, put resources behind the major brands in the portfolio and diversify revenue streams. In August, at its Q2 earnings call, CEO Manuel Stan said the sweepstakes vertical and the Hispanic market will be increased focuses moving forward. set to be front and center.
Three days later, Better Collective announced it is downsizing not its staff but its revenue guidance, pushing down full-year 2024 revenue and EBITDA projections.
The note to investors attributed most of the downgrade to “lower activity than expected from U.S. partners”, but also noted that decreasing interest in Brazil had an effect on the bottom line. The company, which had already wound down the news sections of its sites SportsHandle and U.S. Bets and moved the news writing staff over to Action Network, did reaffirm that it still believes the two markets are worth pursuing in the long term.
Another affiliate, XLMedia, holds a contrary view. That company confirmed on Monday it believes it is no longer financially viable for the company to continue its North American operations, and has sold its remaining assets on the continent to Sportradar.
