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Third party research

Gentoo Media: Q3 pre-announced, '24 guidance reiterated - ABG

Gentoo Media

This is a third party research report and does not necessarily reflect our views or values

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Q3 in line with pre-announcement
Strong Q4 on the cards; >20% sales growth q-o-q
No change to FY guidance, proving resilience


Q3 in line with pre-announced figures

Gentoo Media reports its first quarter as a standalone company after the spin-off of GiG Software, with organic revenue growth of 12% and an adj. EBITDA margin of 48%. Remember that Q3 sales were pre-announced, combined with a margin range of 45-50%, where the margin came in at the higher end adjusted for spin-off related costs which we naturally see as one-off items. Revenue was negatively impacted (>EUR 1.5m) by player-friendly results in the sports betting area which, assuming normal results in Q3 last year, represents a >7% headwind on top line growth y-o-y. In the light of recent profit warnings from key peers Catena Media and Better Collective, we emphasise Gentoo's relative performance as impressive. Gentoo has now proven 15 consecutive quarters with ATH revenue, and the implicit Q4 guidance points towards a continuation of this. On costs, marketing expenses was lower than expected at EUR 6.9m, or 23% of revenue which is low in comparison to previous quarters, but was offset by higher other operating expenses for an adj. EBITDA largely in line with our estimates.
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