Gentoo Media (G2M) ABGSC Investor Days summary

Business Overview and Strategy

• Operates over 150 websites in more than 100 markets, serving 3,000 partners with 450 employees from 47 nationalities across five European offices.

• Generates revenue mainly from casino (75%) and sports betting (25%), with 60% recurring revenue, 30% from listing fees, and 10% from CPA.

• Emphasizes a product-driven approach over SEO, investing in flagship and local champion sites to build a loyal player base and competitive advantage.

• Utilizes both organic publishing and paid marketing channels, with a compliance tool (Sitebee) and a complaint service to build trust and support operators.

• Maintains a strong tech platform with over 100 tech staff, enabling efficiency, scalability, compliance, and player advocacy.

Financial Performance and Targets

• Last twelve months revenue reached EUR 104 million, with EBITDA close to EUR 37 million and FY25 guidance of EUR 40-41 million.

• Free cash flow stands at EUR 28 million, with leverage ratio at 3.34x, expected to fall below three by year-end.

• Quarterly player deposits for partners total around EUR 200 million.

• Stock price rose from SEK 7.49 post-Q3 to around SEK 8.5, with analyst target prices ranging from SEK 10 to SEK 45.

• Outstanding bonds total EUR 60m and SEK 350m, maturing December 18, 2026, with coupon rates at 3m EURIBOR/STIBOR + 7.25% p.a.

Market Dynamics and Regulatory Environment

• Operates in both regulated and unregulated markets, with 70% of global gaming markets regulated and 30% potential upside as more markets regulate.

• Sees growth potential as land-based gaming transitions to online, especially in mature markets.

• Welcomes regulation but stresses the need for balance to avoid over-regulation and loss of channelization to unregulated markets.

• Diversification across 100 markets and multiple revenue channels provides resilience against regulatory changes.

• Estimated iGaming market size for 2025 is $216.7 billion, with a 10.7% CAGR projected to 2030.