Gentoo Media Inc.

Hi, welcome to Gentoo Media's quarterly presentation for Q4 2025. My name is Jonas Rohrl, I'm the CEO of Gentoo Media and I've been looking forward to present our business and our business results to you today. Gentoo Media is a leading affiliate in the iGaming industry. We help online sportsbooks and casinos acquire higher value players, acting as the bridge between players and operators. Affiliates are a vital part of the iGaming ecosystem. For many operators, affiliates are the main driver for player intake. You can say that we have the online stores that players visit before they decide where to place a bet or open an account. Getting to the Q4 2025 executive summary. Strongest quarter of 2025 for revenue, profitability and cash flow generation. margin expansion driven by a structurally stronger cost base and disciplined execution. Q4 delivered record end-user deposits. We also strengthened visibility across search, emerging AI-powered platforms and paid campaigns, supported by product enhancements and a positive December Google Core update. We see strong EBITDA to operating cash flow conversion, delivering full-year operating cash flow of 33 million euros. Q4 demonstrated operational resilience in a year impacted by Brazil regulation and market volatility. Revenue generation in 2025 is not where we want it to be, and it has disappointed us. However, with the actions taken during the year, we enter 2026 with a structurally stronger business, with clear growth opportunities across core markets, and continued focus on cash generation. It has been a rough year, but it has also been a year that has made us stronger. Going to the financial highlights of the quarter. Q4 delivered the strongest revenue and EBITDA performance of the year. Revenue ended at 25.6 million, down 16% year-on-year, but up 13% quarter-over-quarter. The shortfall versus expectations was driven by softer December sports margins, while the year-over-year decline also reflects the sunset of low-margin activities in Q4 2024. Personal and other OPEX ended down 33% year-over-year, reflecting the benefits of earlier cost prioritizing activity that was executed during the year. Year-end adjustments increased other OPEX by 0.9 million in the quarter. Marketing spend was 5.7 million, down 38% year-over-year, with the marketing ratio improving to 22%. EBITDA before special items reached 14.9 million versus 10.1 in Q4 last year and up 60% quarter over quarter. Special items total 1.6 million. Cash flow from operations was 11.4 versus 7.3 million in Q4 last year. If we look at Q4 this year and compare to Q4 last year, we can see that we have seen a decline in revenue, but we have also seen an increase in EBITDA. Going into revenue and a bit into the revenue details, 59% of revenue come from recurring revenue share agreements. Revenue in Europe decreased by 20% compared to Q4 2024, although revenue generated by the Nordic market remains stable. Revenue in the Americas declined by 11% year over year, with North America revenue growing over 40% year over year and reaching record levels. If we look at Q4 and compare to the previous quarter, all notable regions grew quarter over quarter, with North America leading at 62% quarterly growth. Europe and the Americans contributed respectively 56% and 22% of quarterly revenue, remaining core focus regions for the business in line with previous quarters. Looking into player intake and value of deposits, player intake reached 102,900 FTDs in Q4 2025. North America player intake more than doubled year-over-year and now accounts for nearly 20% of Q4 intake. Play and take from Europe declined year on year, with the Nordics remaining broadly stable. The development reflects continued focus on higher value markets and a more consolidated website portfolio, following the strategic alignment that was executed earlier in the year. When we look at value of deposits, Q4 deposit values reached an all-time high of €202 million. Full-year deposit value reached €774 million, slightly above 2024 numbers, despite this being a year with Brazil regulation and the absence of major summer sports events. Going to the operational highlights. If we look into publishing business, revenue grew 8% quarter over quarter, with notably fixed fees improving. Publishing revenue experienced a softer than expected seasonal uplift in December, impacted by lower sports margins. The December Google Core update had a net positive impact. Flagship brands, including as gamblers, saw traffic recovery following targeted sale and content optimizations. We also piloted our next-generation WordPress platform, improving page speed and technical performance. The wider portfolio will benefit throughout 2026 as the platform is rolled out. Crow and product capabilities expanded alongside continued focus on omnichannel visibility across both search as well as emerging AI-driven platforms. Publishing enters 2026 with improved visibility, a stronger technical foundation and a more scalable platform. Moving to paid and paid highlights. Quarterly revenue increased 36% driven by U.S. market expansion and four-channel improvements. Year-over-year revenue declined 22%, reflecting the sunset of lower margin through four 2024 activities and the effects of the Brazil regulation. Following a strong October and November performance, December revenue was softer than expected due to lower sports margins. A larger share of marketing spend was allocated to the U.S. in the quarter, focusing on opportunities within prediction markets and DFS. Paid and publishing strengthened cross-functional collaboration with the aim to improve and grow our same channel in paid. Paid moved from reset to rebuild during 2025, improving unit economics and entering 2026 in a stronger position. Looking at events post quarter, in late January, GEN2 Media initiated a refinancing process of its existing bond. The net proceeds are expected to repay the current bond and ICF facility. Management is currently evaluating whether the potential new bond terms are attractive for Gentoo Media and for its shareholders, comparing with alternative financing options. We will inform the market as soon as a decision is made. Summing up on the quarter. Strongest quarter of 2025 for revenue, profitability and cash generation. Demonstrating a structurally improved operating model and a structurally stronger business. A stronger cost base drove margin expansion and improved cash conversion. Weakened end user deposits and healthy underlying activity confirms continued strength in traffic quality and continued strength in our commercial engine. Visibility across key brands improved across search, paid channels and emerging AI-driven platforms, supported by product enhancements and a positive December Google Core update. Paid and publishing exited 2025 with stronger unit economics, with closer commercial alignment and a more scalable operating platform. As said in the beginning, revenue generation for 2025 is not where we want it to be. However, with the actions taken during the year, Gen2 Media enters 2026 structurally stronger, with improved visibility, a stronger underlying business, and a scalable platform to drive sustainable cash-generative growth going forward. Thank you for listening in. This concludes our quarterly presentation. I would like to take this opportunity to thank our employees for their hard work and dedication in a demanding year. Next, I would also like to thank our shareholders for their trust and support throughout the year. We have an exciting year ahead of us. Gen2 Media enters 2026 as a stronger business. Our publishing portfolio demonstrates higher quality and our paid division now operates with higher efficiency. This year will also bring the largest sports event in human history with the World Cup this summer as a key growth driver for 2026. Lastly, I would like to thank you, the listener, for taking your time to hear this presentation. Thank you and see you next quarter.

Okay, and now we move over to Q&A. So welcome, Jonas and Mats. Maybe starting a few questions on the headline numbers, maybe Q for top line, you mentioned sportsman margin. I mean, that varies from time to time, but would you say that December is kind of an exceptional impact if you could quantify something or is it more normal variation there?

I would say December was lower than we normally see and lower than expected, definitely. And then in broader terms, I think also for our publishing portfolio, we saw a gentler seasonal uplift than we normally do in December. So we had a very strong October and November, but December fell short of expectations there. both the sports margins and then also a little bit lighter, as I said, gentler seasonal uplift than expected.