Gentoo Media published a 15th consecutive quarter of revenue growth for Q3 2024 following its recent split from Gaming Innovation Group (GiG).
Across the third quarter, Gentoo’s revenue grew to €30.4m to represent a 35% growth year-over-year (12% organic) on previous year’s comparatives of €22.5m in Q3 2023.
Jonas Warrer, Gentoo Media CEO, commented: “I am pleased to present our third quarterly report for 2024, marking yet another record-setting quarter for Gentoo Media, with 15 consecutive quarters of all-time high revenue.
“Our focused strategy on sustainable, long-term growth – emphasising diversification and increased revenue share earnings – continues to strengthen our business. Despite market volatility, our disciplined approach has proven resilient, driving steady success and positioning us with a competitive edge in an increasingly dynamic marketplace.
“We remain confident that our strategic path will support our continued growth and stability in the coming quarters.”
Adjusted EBITDA came in at €14.6m (Q3 2023: €10.4m) reflecting a 48% margin, while group accounts booked ‘special items’ related to the company’s September split from GiG, capped at €600,000.
With special items excluded, EBITDA witnessed an uptick of 36% YoY by growing to €14m (46% margin). Media cash flow operations were valued at €19.9m, while IFRS5 standard platform & sportsbook cash flow was €12.2m.
In total, 58% of revenues were generated from recurring revenue share agreements, an increase of 24% YoY.
Despite headwinds in Norway, Europe-centric revenue increased 51% YoY, while revenue share from the Americas grew by 52%. This growth in the Americas was headlined by more than double digit growth in North America.
Europe and the Americas stood as principal markets, contributing 59% and 21% of quarterly revenue respectively.
Gentoo’s portfolio saw non-top five websites contributing 65% of the total revenue gained across Q3, an increase of 46% YoY. Meanwhile, top five websites revenue (35% of total) also increased 14% YoY as Gentoo’s explained that “a significant increase was seen in partners generating more than €10k per quarter, up 94% YoY”.
This influx of revenue comes as a result of an update from Google launched earlier this year, which offset the search rankings of Casinotopsonline.com and other Gentoo websites.
Leadership at the company expects that momentum will continue into Q4, sticking with its 2024 guidance expecting projected revenues of €125-135m and an EBITDA margin of 45-50%.
There was disappointment across the French casino sector this weekend as Senators approved new tax hikes across all gambling verticals.
The “comportmental tax raises” which take aim at soft drinks, tobacco and gambling, were backed by French Senators.
Having previously been rejected by MPs in the region, however, Senators pushed through the measures yesterday, with Lottery GGR set to be taxed at 10%, all retail sports bets at 10% from 7% and online bets at 15% from 10.5% currently.
French casinos and online operators currently pay GGR taxes of around 55% and the new measures would push the taxes close to 60%. The reforms are part of the government’s plan to raise €500m to boost its social security budget and address its national debt.
A tax increase across all gambling disciplines was proposed in October by the Budget 2025 of Prime Minster Michel Barnier, with plans to raise €500m from French operators.
Opening this week’s annual conference of the country’s igaming trade body AFJEL, Nicolas Béraud, CEO of Betclic and AFJEL President, said higher taxes will make it even more difficult for operators to generate profits and put at risk many sports federations, leagues and grassroots organisations.
The government was “at best underestimating and at worst ignoring” their concerns, he said.
He added that regulations were handicapping the industry when it comes to ensuring maximum protection for players.
He also warned that French players can find an online casino site on Google in minutes and “play without even realising it’s an illegal site”. He also made the point that with an estimated four million players already active and revenues of €2bn, the illegal market in France is already “the size of a mature market”.
“We honestly don’t know if problem gambling rates have gotten worse in recent years, but the four million playing on illegal sites should be brought into a legal setting. There is no one better than online operators at monitoring activity and detecting problem gamblers,” added Béraud.
