Gentoo Media (OTCPK:GIGI) Conference Transcript

Summary of Gentoo Media Investor Day Conference Call Company Overview - Company Name: Gentoo Media - Industry: Online Gaming and Affiliate Marketing - Headquarters: Stockholm, Sweden - Employee Count: 450 employees from 47 different nationalities - Market Presence: Operates in 100 different markets with 150 websites generating significant traffic [2][3] Financial Performance - Revenue: EUR 104 million (Last Twelve Months) - EBITDA: EUR 37 million, with guidance for EUR 40 to 41 million for the year [3] - Free Cash Flow: EUR 28 million, indicating strong cash generation capabilities [3] - Revenue Breakdown: - Casino Betting: 75% of revenue - Sports Betting: 25% of revenue [3] - Current Leverage: Slightly above 3, expected to decrease below 3 by year-end [3] Business Model - Revenue Share Model: - 60% from recurring revenue through player base - 30% from listing fees paid by operators - 10% from Cost Per Acquisition (CPA) fees [4] - Player Conversion: Gentoo Media converts approximately EUR 200 million in deposits quarterly for its partners [6] - Marketing Strategy: Utilizes both traditional marketing channels and affiliate sites, with over 1 million monthly visitors across its websites [5][9] Market Dynamics - iGaming Market Growth: The iGaming market is expanding, with 30%-40% of players generated through affiliate channels. Gentoo Media operates in regulated environments, presenting growth opportunities as 30% of global gaming markets remain unregulated [11][12] - Regulatory Landscape: - The UK has proposed raising the remote gaming duty from 21% to 40%, which is expected to have a net impact close to zero due to market growth [24][25] - Brazil is viewed as an immature market with high initial expectations that have not materialized, leading to a cautious investment approach [20][21][23] Strategic Focus - Technology Investment: Emphasis on enhancing the tech platform to improve efficiency and commercial edge [10][17] - Market Diversification: Operating in 100 markets allows for flexibility and adaptation to regulatory changes [28] - Future Goals: Aim to become the leading affiliate in the casino sector by 2030, with a focus on cash generation and high-quality revenue streams [17][31] Challenges and Opportunities - Market Challenges: - The Brazilian market presents hurdles due to low revenue share and immature market dynamics [22][23] - Regulatory changes in key markets like the UK may impact operations but also present growth opportunities [24][25] - Opportunities: - Continued investment in technology and product-driven strategies to adapt to AI and market changes [31] - Potential for growth in transitioning markets from offline to online gaming [31][32] Conclusion Gentoo Media is positioned in a growing iGaming market with a strong business model focused on affiliate marketing. The company is navigating regulatory challenges while investing in technology and market diversification to achieve its long-term goals.