While several of its competitors posted disappointing Q3 results, Gentoo Media (formerly Gaming Innovation Group Media) was happy with its Q3, thanks in large part to its limited exposure to the struggling North American affiliate market.
Revenues for the quarter were up 35% year over year, coming in at €30.4 million, with EBITDA of €10 million. With the divestment of its sportsbook and platform products effective Sept. 30, CEO Jonas Warrer thinks the company is well positioned for continued success.
“This restructuring enhances our ability to expand into new markets, invest in technology and pursue strategic acquisitions. And I think with this sort of financial flexibility and the streamlined operations we have, the company is well positioned to deliver strong returns and create substantial value for investors,” he noted.
Americas revenue represents 21% of Gentoo revenue
Unlike some of their competitors, Gentoo Media works in North America but it is only a fraction of its business. Moreover, unlike their competitors, the revenue segment from North America is actually growing rather than shrinking.
Combined North and South American revenue accounted for 21% of total revenue for the quarter, which is a 52% increase from the same period last year.
Warrer noted that he was pleased with the American result and the company plans to continue growing there but also said its limited exposure has saved Gentoo Media from some of the pitfalls of its competitors.
“I think if I have to speak in my experience as working in Gentoo Media, the U.S. has not been what we expected it to be. The market has not been as positive and as attractive as we hoped. So for my part, I can say I’m very happy that we have made a very cautious approach there and have not invested too much because I think that at least me personally, I thought it would be the golden land, the El Dorado, but there has been things have taken longer than I anticipated. And it’s also been the market conditions there have also been tougher than I would have expected,” he said.
“We doubled revenue year-over-year. If we can continue doing that with the investment we have now, I’m very happy. And then if we are to do more in the U.S., I think it comes down to the market conditions becoming more positive than they are now.”
AskGamblers to get expanded U.S. version
One of the big North American projects on the horizon is a U.S. version of the company’s AskGamblers site. While a version currently exists, Warrer said the company is in a “migration phase” for the site, moving the site’s content to a central CMS/ The hope is that project will be done in early 2025 and then they can better leverage the brand stateside.
