Gentoo Media (G2M) Q2 2024 earnings summary

Executive summary

• Strategic split into Gentoo Media and Platform & Sportsbook to be completed by October 1, 2024, aiming to optimize growth and flexibility, with separate listings.

• Gentoo Media delivered record-high revenue and EBITDA for the 14th consecutive quarter, with strong growth in Europe and the Americas.

• Platform & Sportsbook established a solid growth foundation, securing significant contracts, expanding its sales pipeline, and restructuring with new leadership.

• Gentoo Media rebranded from GiG Media, focusing on sustainable long-term growth and operational efficiency.

• Both businesses are positioned to unlock shareholder value as standalone entities.

Financial highlights

• Gentoo Media Q2 2024 revenue: €30.3m (up 39% YoY, 18% organic growth), EBITDA: €14.8m (up 43% YoY, margin 48.7%), EBIT: €7.8m (margin 25.8%).

• Platform & Sportsbook Q2 2024 revenue: €7.3m (down 22% YoY), adjusted EBITDA: -€1.6m.

• Group Q2 2024 revenue: €37.6m (up 21% YoY), EBITDA: €12.8m (down 6% YoY), EBIT: €0.9m.

• Net loss for Q2 2024: €5.0m, mainly due to increased amortization and financial expenses.

• Cash and cash equivalents at June 30, 2024: €25.8m, supported by €9m equity raise and €15m bond tap.

Outlook and guidance

• Platform & Sportsbook 2024 revenue guidance: €30m–€33m; adjusted EBITDA: -€3.5m to -€2.5m; 2025 revenue expected at least €44m (+38% YoY), EBITDA at least €10m (23% margin).

• Cashflow breakeven targeted by Q3 2025; 82% of 2025 revenue already contracted.

• Board focused on completing the company split in September 2024 to unlock growth and strategic flexibility.

• Gentoo Media expects continued growth from recent acquisitions and market diversification.

• Strong start to Q3 2024, with July revenue up 37% YoY for Gentoo Media.