Q2 2026 Gentoo Media Inc Earnings Call

August 26, 2026

Jonas Warrer: And 10 players with leading iGaming operators worldwide. We are a leading affiliate marketing company in the online casino and sportsbook industry with a diverse portfolio of websites, products, and campaigns. We help online sportsbooks and casinos acquire high-value players at scale through premium lead generation and compliance solutions. Our business model is essentially functioning as the digital storefront for the iGaming industry, where we connect high-intent players with leading operators using a mix of our own websites and paid campaigns. We do this to generate performance-based recurring revenue share earnings supported by listing fees and CPA agreements. Going into our strategy, our strategic ambition, what we want to achieve, we want to build a leaner, more scalable, and cash generative affiliate business. We want to focus capital and resources on the highest performing brands, markets, and channels.

Speaker #1: Ten players with leading iGaming operators worldwide. We are a leading affiliate marketing company in the online casino and sportsbook industry, with a diverse portfolio of websites, products, and campaigns.

Speaker #1: We help online sportsbooks and casinos acquire high-value players at scale through premium lead generation and compliance solutions. Our business model essentially functions as the digital storefront for the iGaming industry, where we connect high-intent players with leading operators using a mix of our owned websites and paid campaigns.

Speaker #1: We do this to generate performance-based, recurring revenue share earnings, supported by listing fees and CPA agreements. Going into our strategy—our strategic ambition—what we want to achieve, we want to build a leaner, more scalable, and cash-generative affiliate business.

Speaker #1: We want to focus capital and resources on the highest-performing brands, markets, and channels. We want to increase revenue quality and player value to improve monetization, partner optimization, and disciplined execution.

Jonas Warrer: We want to increase revenue quality and player value to improve monetization, partner optimization, and disciplined execution. We want to strengthen our flagship brands and also our local champion sites across key markets. We want to expand our multi-channel acquisition capabilities across own websites, paid media, and emerging AI-driven discovery channels. We want to transition fully into an AI-enabled operating model across technology, product, content, automation, and commercial decision-making. We want to achieve this through our strategic pillars. One, reduce complexity in the business. Two, build and expand our flagship brands. Three, win with our local champion sites in local markets. Four, expand and strengthen our multi-channel acquisition capabilities. Five, continue to drive higher player value, and six, continue to invest and expand our superior tech, product, and design. Going into the quarter, Q2 2026 showed continued operational and financial progress, although revenue came in below expectations.

Speaker #1: We want to strengthen our flagship brands and also our local champion sites across key markets. We want to expand our multi-channel acquisition capabilities across our own websites, paid media, and emerging AI-driven discovery channels.

Speaker #1: Then we want to transition fully into an AI-enabled operating model across technology, product, content, automation, and commercial decision-making. We want to achieve this through our strategic pillars: 1) reduce complexity in the business, 2) build and expand our flagship brands, 3) win with our local champion sites in local markets, 4) expand and strengthen our multi-channel acquisition capabilities, 5) continue to drive higher player value, and 6) continue to invest and expand our superior tech, product, and design.

Speaker #1: Going into the quarter, Q2 2026 showed continued operational and financial progress, although revenue came in below expectations. Player intake and player activity increased quarter over quarter, supported by the World Cup and by higher marketing investments, but this did not translate into an immediate revenue uplift.

Jonas Warrer: Player intake and player activity increased quarter-over-quarter, supported by the World Cup and by higher marketing investments, but this did not translate into an immediate revenue uplift. Our cost, marketing spend, people cost, and other OpEx decreased by 16% year-on-year, reflecting our continued cost discipline and our structural lower operating cost base. Operating cash flow remained resilient, impacted negatively by EUR 2 million in accelerated supplier payments. If we exclude for these payments, operating cash flow increased 13% year-on-year. Investment continued across sports, product, technology, AI adoption, and acquisition. De-leveraging continued in the quarter with net interest-bearing debt being reduced, including deferred considerations, and with the leverage ratio improving also. Quarterly highlights, what I think here is the main absolute things to mention. If we look at player intake, this is a quarter where we are growing player intake quarter-over-quarter.

Speaker #1: Our cost, marketing spend, people cost, and other OPEX decreased by 16% year on year, reflecting our continued cost discipline and our structural base. Operating cash flow remained resilient, impacted negatively by $2 million in accelerated supply abatements, and if we exclude these payments, operating cash flow increased 13% year on year.

Speaker #1: Investment continued across sports, product, technology, AI adoption, and acquisition. Delivery continued in the quarter, with net interest-bearing debt being reduced, including deferred considerations, and with the deleverage ratio improving also.

Speaker #1: Quarterly highlights—what I think here are the main absolute things to mention if we look at player intake: this is a quarter where we are growing player intake quarter over quarter, and as you can see, we have gone through a period of decline, to some degree expected through the strategic realignment, where we have focused efforts on higher-value markets.

Jonas Warrer: As you can see, we have gone through a period with decline to some degree expected through the strategic realignment, where we have focused efforts on higher value markets. But of course, nice to see that in Q2, we grow player intake now, both in publishing and in paid quarter-over-quarter. We also see growth in player activity, in value of deposits, both growing year-over-year and also growing quarterly. Unfortunately, we do not see this increased player intake and activity translating into revenue growth. So revenue declines 9% year-on-year. But what we see is that despite lower revenue compared to Q2 2025, we see EBITDA growing and our EBITDA margin expanding. Cash from operations remained resilient, notably when we adjust for the EUR 2 million that we did in accelerated supplier payments. Financial highlights.

Speaker #1: But of course, it’s nice to see that in Q2 we grew player intake in both publishing and paid, quarter over quarter. We also see growth in player activity, and in the value of deposits—both growing year over year and also growing quarterly.

Speaker #1: Unfortunately, we did not see this increased player intake and activity translating into revenue growth. So, revenue declines 9% year on year, but what we see is that despite lower revenue compared to Q2 2025, we see EBITDA growing and our EBITDA margin expanding.

Speaker #1: Cash from operations remained resilient, notably when we adjust for the $2 million that we did in accelerated supplier payments. Financial highlights: revenue at $22.9 million, down 9% year on year, as higher World Cup player activity did not translate into an immediate revenue uplift.

Jonas Warrer: Revenue at EUR 22.9 million, down 9% year on year, as higher World Cup player activity did not translate into an immediate revenue uplift. Marketing spend ended at EUR 6.8 million, down 19% year on year, but up 25% quarter over quarter, reflecting increased investments around the World Cup. Personnel and other OpEx ended at EUR 7.2 million, down 12% year over year and 11% quarter over quarter. Combined marketing spend, personnel cost, and other OpEx decreased by EUR 2.6 million, or 16% year over year. EBITDA before special items increased 5% year on year, ending at EUR 8.9 million, also with the margin expanding to 39% from 34% in Q2 last year. Operating cash flow remained resilient, ending at EUR 6.4 million in Q2 2026. Looking into revenue, recurring revenue share remained the largest revenue source at 60%, with listing fees and CPA contributing respectively 28% and 12%.

Speaker #1: Marketing spend ended at $6.8 million, down 19% year over year, but up 25% quarter over quarter, reflecting increased investments around the World Cup. Personal and other operating expenses ended at $7.2 million, down 12% year over year and 11% quarter over quarter.

Speaker #1: Combined marketing spend, personal cost, and other OPEX decreased by 2.6 million or 16% year over year. EBITDA before special items increased 5% year on year, ending at 8.9 million, also with the margin expanding to 39% from 34% in Q2 last year.

Speaker #1: Operating cash flow remained resilient, ending at $6.4 million in Q2 2026. Looking into revenue, recurring revenue share remained the largest revenue source at 60%, with listing fees and CPA contributing, respectively, 28% and 12%.

Speaker #1: This is very much in line with previous quarters. Europe contributed 59% of revenue, the Americas 18%, and Global 23%. If I have to highlight one thing here, I would highlight our Global revenue, or revenue from Global markets, that increased 14% year over year. I think this is very much driven by our flagship brands that are becoming better and better at monetizing worldwide traffic.

Jonas Warrer: This is very much in line with previous quarters. Europe contributed 59% of revenue, the Americas 18%, and global 23%. If I have to highlight one thing here, I would highlight our global revenue, our revenue from global markets that increased 14% year on year. I think this is very much driven by our flagship brands that are becoming better and better at monetizing worldwide traffic. If we turn to player intake and value and deposits and look into the details there, we can see that player intake increased 25% quarter over quarter, driven by growth across both paid and publishing. Player intake ended 25% below last year, driven by lower marketing investments and stricter focus on higher value markets and players. Value of deposits reached an all-time high of EUR 207 million, increasing 3% quarter over quarter and 6% year over year.

Speaker #1: If we turn to player intake, value, and deposits, and look into the details there, we can see that player intake increased 25% quarter over quarter, driven by growth across both Paid and Publishing.

Speaker #1: Player intake ended 25% below last year, driven by lower marketing investment and a stricter focus on higher-value markets and players. Value of deposits reached an all-time high of $207 million, increasing 3% quarter over quarter and 6% year over year.

Speaker #1: The combination of growing player intake and record deposits demonstrates stronger player activity and provides a foundation for future revenue growth. Looking into our cost base, we continue to become more and more efficient.

Jonas Warrer: The combination of growing player intake and record deposits demonstrates stronger player activity and provides a foundation for future revenue growth. Looking into our cost base, we continue to become more and more efficient. Our total cost decreased by EUR 2.6 million, or 16% year over year. Marketing spend increased throughout the quarter of 25% from Q1, reflected increased investment around the World Cup, while remaining 19% below Q2 2025. Combined people cost and other OpEx decreased by 12% year on year to EUR 7.2 million and by 11% quarter over quarter, equivalent to EUR 0.9 million. This is in line with the outlook communicated in Q1 2026. What we can see here is that we are fewer people, meaning that we see a big reduction in people cost and then some of that people cost being moved to other OpEx.

Speaker #1: Our total cost decreased by $2.6 million, or 16% year over year. Marketing spend increased throughout the quarter, up 25% from Q1, reflecting increased investment around the World Cup, while remaining 19% below Q2 2025.

Speaker #1: Combined people cost and other OPEX decreased by 12% year over year to $7.2 million, and by 11% quarter over quarter, equivalent to $0.9 million. This is in line with the outlook communicated in Q1 2026.

Speaker #1: What we can see here is that we are fewer people, meaning that we see a big reduction in people cost, and then some of that people cost being moved to other OPEX.

Speaker #1: But essentially, at the end of the day, a leaner and more focused business with a more scalable operating model. In the quarter, we also continued to de-risk and de-leverage the business.

Jonas Warrer: But essentially at the end of the day, a leaner, a more focused business with a more scalable operating model. In the quarter, we also continued to de-risk and de-leverage the business. Since Q2 last year, net interest bearing debt, including deferred payments, has been reduced by EUR 10.6 million. In this quarter, we did EUR 1 million of deferred payments, and we also reduced EUR 1 million in loans. This also means that our leverage ratio improved to 2.58 from 2.99 last year. Essentially you can see here that the de-leveraging of the business continues as our refinancing process advances. Our profitability and credit metrics have improved over the past 12 months, with adjusted EBITDA last 12 months increasing 6% and our net interest bearing debt decreasing 9% year over year. Leverage ratio improving from 2.99 to 2.58.

Speaker #1: Since Q2 last year, net interest-bearing debt, including deferred payments, has been reduced by $10.6 million. In this quarter, we made $1 million in deferred payments, and we also reduced loans by $1 million.

Speaker #1: This also means that our leverage ratio improved to 2.58 from 2.99 last year. So essentially, you can see here that the deleveraging of the business continues as our refinancing process advances.

Speaker #1: Our profitability and credit metrics have improved over the past 12 months, with adjusted EBITDA for the last 12 months increasing 6%, and our net interest-bearing debt decreasing 9% year over year.

Speaker #1: Leverage ratio improving from 2.99 to 2.58. Looking into our debt structure, we can see that we have sort of three facilities here.

Jonas Warrer: Looking into our debt structure, we can see that we have three facilities here. Our bond that matures in December this year at EUR 91.5 million, and then we have our shareholder-backed loans with the bulk of it maturing end of next year. The board and management are evaluating a range of refinancing alternatives, including a new bond and private debt structures. The objective is to secure an appropriate long-term solution with sufficient flexibility, including the ability to distribute cash while maintaining disciplined cost of financing. No preferred structure has yet been selected, and the market will be updated no later than 1 October 2026. Going into the operational highlights. Our websites in our publishing business execution remain focused on strengthening core brands, improving monetization, and allocating resources to the highest potential markets and products.

Speaker #1: Our bonds that mature in December this year are at $91.5 million, and then we have our shareholder-backed loans, with the bulk of it maturing at the end of next year.

Speaker #1: The Board and management are evaluating a range of refinancing alternatives, including a new bond and private debt structures. The objective is to secure an appropriate long-term solution with sufficient flexibility, including the ability to distribute cash while maintaining disciplined cost of financing.

Speaker #1: No preferred structure has yet been selected, and the market will be updated no later than October 1, 2026. Going into the operational highlights, our websites in our publishing business remain focused on strengthening core brands, improving monetization, and allocating resources to the highest-potential markets and products.

Speaker #1: Product development centered on our Scalers Casino Master and enhanced sports products and features, targeting the World Cup. The casino platform migration continued, and was completed after the quarter ended.

Jonas Warrer: Product development centered on AskGamblers, CasinoMeister, and enhanced sports products and features targeting the World Cup. The casino platform migration continued and was completed after the quarter ended. Also, further websites were migrated to our next generation content platform, reducing complexity and enabling faster product content and SEO execution. AI adoption also advanced with the launch of an internal assistant, increasing content production and editing efficiency across our publishing business. I am very excited to see when we do these kind of steps forward using AI, how much it can transform the business and how much it can increase efficiency. This is very much a theme that we have been working on since last year. So excited to see what we can continue to do there, being more and more AI adaptive.

Speaker #1: Also, further websites were migrated to our next-generation content platform, reducing complexity and enabling faster product content and SEO execution. AI adoption also advanced with the launch of an internal assisting assistant, increasing content production and editing efficiency across our publishing business.

Speaker #1: I'm very excited to see, when we take these kinds of steps forward using AI, how much it can transform the business and how much it can increase efficiency.

Speaker #1: And this is very much a theme that we have been working on since last year, right? So, excited to see what we can continue to do there, being more and more AI-adoptive.

Speaker #1: Looking into paid – in all of our paid campaigns, player acquisition accelerated during the quarter, with FTDs increasing 46% quarter-over-quarter, while the CAC, the customer acquisition cost – what we pay for one player – remained broadly stable.

Jonas Warrer: Looking into all of our paid campaigns, player acquisition accelerated during the quarter with FTDs increasing 46% quarter-over-quarter. While the CAC, the customer acquisition cost, what we pay for one player, remains broadly stable. Higher operator bonuses and acquisition incentives reduce the initial revenue contribution from all the newly acquired revenue share players that we generated in paid. The expanded player base is expected to generate recurring revenue share values as players remain active over subsequent periods. In paid, similar to in publishing, we also saw continued AI adoption, AI-driven site creation, and real-time performance optimization became fully operational, improving execution speed and supporting further scalable growth. Revenue in Q2 was below expectations and did not yet reflect the positive development in player intake and player activity. The company continues to advance initiatives aimed at improving monetization and supporting a return to revenue growth.

Speaker #1: Higher operator bonuses and acquisition incentives reduced the initial revenue contribution from all the newly acquired revenue share players that we generated in paid. The expanded player base is expected to generate recurring revenue share values as players remain active over subsequent periods.

Speaker #1: In Paid, similar to in Publishing, we also saw continued AI adoption. AI-driven site creation and real-time performance optimization became fully operational, improving execution speed and supporting further scalable growth.

Speaker #1: Revenue in Q2 was below expectations and did not yet reflect the deposited development in player intake and player activity. The company continues to advance initiatives aimed at improving monetization and supporting a return to revenue growth.

Speaker #1: So I just wanted to take the chance here to speak in broad terms about the key drivers that we are working on here. First of all, partner optimization.

Jonas Warrer: Just wanted to take the chance here to speak in broad terms about the key drivers that we are working on here. First of all, partner optimization. This means strengthening commercial terms and relationships with leading operators across priority markets, supporting stronger and more resilient monetization as player activity grows. Traffic optimization, directing traffic towards partners, delivering the strongest conversion, the highest player value, and the strongest or most sustainable long-term revenue contribution. We also invest in brands, products, and technology in our flagship brands and also in our local champion brands, in sports products, in technology and higher value markets to strengthen traffic, engagement and player value. Then we are scaling paid acquisition selectively where campaigns demonstrate attractive conversion, monetization and payback.

Speaker #1: This means strengthening commercial terms and relationships with leading operators across priority markets, supporting stronger and more resilient monetization as player activity grows. Traffic optimization.

Speaker #1: We are directing traffic towards partners delivering the strongest conversion, the highest player value, and the strongest or most sustainable long-term revenue contribution. We also invest in brands, products, and technology in our flagship brands, as well as in our local champion brands.

Speaker #1: In sports products, in technology, and high-value markets, we are working to strengthen traffic, engagement, and player value. And then, we are scaling paid acquisition selectively, where campaigns demonstrate attractive conversion, monetization, and payback.

Speaker #1: In a quarter where we see that we have grown player activity, and if we look back over the last period where we have continued to grow player activity, it has, of course, been a key focus point for management and for Gentoo Media to see that we also grow revenue while we grow player activity.

Jonas Warrer: In a quarter where we see that we have grown player activity, if we look back over the last period where we have continued to grow player activity, it is of course a key focus point for management and for Gentoo Media to see that we also grow revenue when we grow player activity. This is absolutely a focal point for the H2 of 2026. Summarizing the quarter and looking ahead, revenue declined 9% year over year, while EBITDA before special items increased 5% to EUR 8.9 million. The margin expanded by 5 percentage points to 39%, reflecting our structurally lower cost base. Player intake and player activity increased during the quarter, supported by higher marketing investments and the World Cup. However, this increase in player activity did not translate into a short-term uplift in revenue in the quarter. People cost and other OpEx developed as expected.

Speaker #1: So this is absolutely a focal point for the second half of 2026. Summarizing the quarter and looking ahead, revenue declined 9% year over year, while EBITDA before special items increased 5% to $8.9 million.

Speaker #1: The margin expanded by 5 percentage points to 39%, reflecting our structurally lower cost base. Player intake and player activity increased during the quarter, supported by higher marketing investments and the World Cup.

Speaker #1: However, this increase in player activity did not translate into a short-term uplift in revenue in the quarter. People costs and other OPEX developed as expected.

Speaker #1: The cost base is expected to decline further during the remainder of the year as processes are optimized and AI adoption continues. Cash generation remains strong, while the de-risking and deleveraging of the business continued.

Jonas Warrer: The cost base is expected to decline further during the remainder of the year as processes are optimized and AI adoption continues. Cash generation remains strong while the de-risking and the de-leveraging of the business continued. Looking ahead, we will continue to invest in our flagship brands and in our local champion brands, continue to invest in sports products and sports related acquisition capabilities, and we will continue to invest in paid acquisition capabilities. All of this, of course, to support future revenue growth. Commercial optimization is a key priority for H2 of 2026. Focusing on improving partner terms, partner relationships, and not the least, focusing on converting growing player activity into revenue growth for Gentoo Media. Following the completion of H1 of 2026, and notably the revenue in Q2 coming in significantly below expectations, Gentoo Media is revising its full year guidance.

Speaker #1: Looking ahead, we will continue to invest in our flagship brands and in our local champion brands, continue to invest in sports products and sports-related acquisition capabilities, and we will continue to invest in paid acquisition capabilities.

Speaker #1: All of this, of course, is to support future revenue growth. Commercial optimization is a key priority for the second half of 2026, focusing on improving partner terms, partner relationships, and, not least, focusing on converting growing player activity into revenue growth for Gentoo Media.

Speaker #1: Following the completion of the first half of 2026, and with revenue in Q2 coming in significantly below expectations, Gentoo Media is revising its full-year guidance.

Speaker #1: We are now guiding revenue at $97 to $100 million for 2026, adjusted EBITDA at $44 to $47 million, and cash flow from operations at $32 to $36 million.

Jonas Warrer: We are guiding now revenue at EUR 97 to 100 million for 2026, adjusted EBITDA at EUR 44 to 47 million, and cash flow from operations at EUR 32 to 36 million. Lower than expected H1 revenue reduced the full year outlook, partly offset by continued cost reductions and resilient margins. This concludes our presentation. Thank you for tuning in. Adding a bit of afterthought to the presentation. In Gentoo Media, we know what steps we need to take in the next period ahead of us. We have done many things correctly. We have seen financial and operational progress. We are growing player activity. But of course, we need to deal with the fact that we have not grown revenue. This remains a focal point for the organization and for management going forward.

Speaker #1: Lower-than-expected first-half revenue reduced the full-year outlook, partly offset by continued cost reductions and resilient margins. This concludes our presentation. Thank you for tuning in.

Speaker #1: Adding a bit of afterthought to the presentation, at Gentoo Media we know what steps we need to take in the next period ahead of us.

Speaker #1: We have done many things correctly. We have seen financial and operational progress, and we are growing player activity. But, of course, we need to address the fact that we have not grown revenue.

Speaker #1: This remains a focal point for the organization and for management going forward. I want to thank both investors and employees for their support during the last period that we have gone through, and I can say on behalf of all of Gentoo Media that all of us are looking very much ahead to see what we can achieve in the remaining months of 2026.

Jonas Warrer: I want to thank both investors and employees for the support in the last period that we have gone through, and I can say on behalf of all of Gentoo Media that all of us are looking very much ahead to see what we can achieve in the remaining months of 2026. Thank you.

Speaker #1: Thank you. Okay, thank you for the presentation. Then, moving over to Q&A, starting with maybe the revenue here in Q2. Also, I get a few questions here from the webcast.

[Analyst]: Okay. Thank you for the presentation. Moving over to Q&A, starting with maybe the revenue in Q2. Also get a few questions here from the webcast. Trying to explain, as you say, we saw a good FTD intake revenue. Deposits grew, but you did not see any revenue growth quarter-over-quarter. You mentioned the bonus effect to some extent, but could you give some more flavor on why we did not see any kind of revenue growth in the quarter, if you can put some color on that?

Operator: Okay. Thank you for the presentation. Moving over to Q&A, starting with maybe the revenue in Q2. Also get a few questions here from the webcast. Trying to explain, as you say, we saw a good FTD intake revenue. Deposits grew, but you did not see any revenue growth quarter-over-quarter. You mentioned the bonus effect to some extent, but could you give some more flavor on why we did not see any kind of revenue growth in the quarter, if you can put some color on that?

Speaker #1: Maybe, trying to explain—as you say—we saw a good afternoon intake, revenue deposits grew, but you didn't see any revenue growth quarter over quarter.

Speaker #1: I mean, you mentioned the bonus effect to some extent, but could you give some more flavor on why we didn't see any kind of revenue growth in the quarter? If you can, put some color on that.

Speaker #2: Yeah, I think if we split it up into external and internal factors—of course, you know, you can say there were some external factors.

Jonas Warrer: Yeah. I think if we split it up into external and internal factors, of course, you can say there were some external factors. We did not earn what we expected on the World Cup. There were some maybe tax changes in UK. I think what I would like to address here are the internal factors, what we can control. As part of the portfolio simplification we have gone through, we have, of course, reduced investments in some markets, and then also expected a decline in revenue there. I think that effect has been higher than expected. We did all of this with our eyes wide open, right? Choosing to invest in fewer markets, in higher value markets in order to drive long-term revenue growth.

Speaker #2: We didn't earn what we expected on the World Cup. There were some, maybe, tax changes in the UK, but I think what I would like to address here are the internal factors—what we can control.

Speaker #2: So, you know, as part of the portfolio simplification we have gone through, we have, of course, reduced investments in some markets, and then also expected a decline in revenue there.

Speaker #2: And I think that effect has been higher than expected. We did all of this with our eyes wide open, right? Choosing to invest in fewer, higher-value markets in order to drive long-term revenue growth.

Speaker #2: And clearly, the initiatives that we have tried to execute there have not delivered the results fast enough or high enough in order to make a better result for Q2.

Jonas Warrer: Clearly, the initiatives that we have tried to execute there have not delivered the results fast enough and high enough, in order to make a better result for Q2. I think we can see a lag there. Then, of course, also, we are in a situation where we have grown player activity, but we have not grown revenue for the business. We can control that, of course, as part of the commercial optimization that I talked about in the presentation. In short, what we can control internally in Gentoo Media, we have not moved strong enough and fast enough on the initiatives to grow revenue in the higher value markets as we wanted. We have not delivered, I would say, on the commercial optimization in the sense that we are not growing revenue right now when we are growing player activity.

Speaker #2: So I think we can see a lag there. And then, of course, we are also in a situation where we have grown player activity, but we have not grown revenue for the business.

Speaker #2: And we can control that, of course, as part of the commercial optimization that I talked about in the presentation. So, in short, what we can control internally in Gentoo Media—we have not moved strong enough and fast enough on the initiatives to grow revenue in the higher value markets as we wanted.

Speaker #2: And we have not delivered, I would say, on the commercial optimization in the sense that we are not growing revenue right now, even though we are growing player activity.

Speaker #2: And that's the short version of it. I'm not going to blame a lot of things here, beyond that we should have done better on the revenue part.

Jonas Warrer: That is the short version of it. I am not going to blame a lot of things here beyond that we should have done better on the revenue path.

Speaker #1: Okay, thank you. And also, looking at the deposits here, which have kind of climbed every quarter sequentially, and also pretty good FTD intake this quarter.

[Analyst]: Okay. Thank you. Looking at the deposits here, which has kind of climbed every quarter sequentially, also some pretty good FTD intake this quarter. Can you explain, is this a forward-looking indicator that revenue should go up? What kind of lag is there of the deposits compared to revenue? There was a question on the webcast, if you could say something about, have you seen the kind of revenue improving from these KPIs looking into Q3?

Operator: Okay. Thank you. Looking at the deposits here, which has kind of climbed every quarter sequentially, also some pretty good FTD intake this quarter. Can you explain, is this a forward-looking indicator that revenue should go up? What kind of lag is there of the deposits compared to revenue? There was a question on the webcast, if you could say something about, have you seen the kind of revenue improving from these KPIs looking into Q3?

Speaker #1: Can you explain about, I mean, is this a forward-looking indicator, the revenue should go up, and what kind of lag is there of the deposits compared to revenue?

Speaker #1: And there were also questions on the webcast here if you could say something about, have you seen the kind of revenue improving from these KPIs looking into Q3?

Speaker #2: Yeah, revenue should improve as we grow player activity. I think, you know, we have gone through a period where we have been very focused on streamlining the business and cost reductions.

Jonas Warrer: Yeah. Revenue should improve as we grow player activity. I think we have gone through a period where we have been very focused on streamlining the business and on cost reductions. I guess in that process, maybe we have a little bit lost focus on the commercial parts of it, meaning ensuring that we work with the right partners, that we have the right deals, that we promote the right offers, and we earn the right amount of money as we should working with our partners for the long term. There is always a fallback option, right? If we become unsure about the sort of long-term sustainability of revenue share earnings, that is shifting more and more towards CPA and towards listing fees.

Speaker #2: And I guess, in that process, maybe we have a little bit there lost focus on the commercial parts of it, meaning, you know, ensuring that we work with the right partners, that we have the right deals, that we promote the right offers, and we earn the right amount of money as we should, working with our partners long term.

Speaker #2: There's always a fallback option, right, if we become unsure about the sort of long-term sustainability of revenue sharing. And that is shifting more and more towards CPA and towards listing fees.

Jonas Warrer: But at this stage, we believe that revenue share is still the main income source for us as this will generate the highest long-term revenue for Gentoo Media. Then we just need to take some steps now to also prove that revenue is growing now while player activity is growing.

Speaker #2: But at this stage, we believe that revenue share is still the main income source for us, as this will generate the highest long-term revenue for Gentoo Media.

Speaker #2: Then we just need to take some steps now to also prove that revenue is growing now when player activity is growing.

Speaker #1: Thank you. And looking at—I mean, if I look at some of your larger brands, Casino Maestra, Scamblers—it looks like traffic, at least for Scamblers, has been stable at the higher level.

[Analyst]: Thank you. If I look at some of your larger brands, CasinoMeister, AskGamblers, it has looked like traffic at AskGamblers has been stable at the higher level. CasinoMeister looks to be improving. Is that something you can confirm internally that you see this as well?

Operator: Thank you. If I look at some of your larger brands, CasinoMeister, AskGamblers, it has looked like traffic at AskGamblers has been stable at the higher level. CasinoMeister looks to be improving. Is that something you can confirm internally that you see this as well?

Speaker #1: Casino Maestra looks to be improving. Is that something you can confirm internally, that you see this as well?

Speaker #2: I think Scamlers have had—you know, there are always Google updates that can either be good or bad. I think the last Google update was slightly negative for Scamlers.

Jonas Warrer: I think AskGamblers have had. There is always Google updates that can either be good or bad. I think the last Google update was slightly negative for AskGamblers, whereas it was quite positive for CasinoMeister, for instance. As we have always talked about, we enjoy having a diverse portfolio of websites in order to not be dependent on singular horses whenever there is a Google update. There is a lot of things we are doing to improve our publishing websites now, and we are growing also and investing in sports. I do not think I have anything notable to say for Q2 when it comes to, for instance, AskGamblers developments beyond the fact that we still keep working on the site and we keep investing in design.

Speaker #2: Whereas it was quite positive for Casino Maestra, for instance. So, you know, as we have always talked about, we enjoy having a diverse portfolio of websites in order not to be dependent on singular horses whenever there is a Google update.

Speaker #2: But there are a lot of things we are doing to improve our publishing websites now, and we are growing as well, and investing in sports. I don't think I have anything particularly notable to say for Q2 when it comes to, for instance, Scamlers developments.

Speaker #2: Beyond the fact that we still keep working on the site and we keep investing in the site, if there’s anything, I would probably say that Scamlers has become better in Q2 at monetizing what we can call global traffic from the rest of the world, where we also see an increase here.

Jonas Warrer: If there is anything, I would probably say that AskGamblers has become better in Q2 at monetizing what we can call global traffic from the rest of the world, where we also see an increase here.

[Analyst]: Another question from the webcast here, looking at paid media specifically, which had a negative EBITDA. Was that kind of deliberate to invest in the FIFA World Cup, or can you talk a bit about that?

Operator: Another question from the webcast here, looking at paid media specifically, which had a negative EBITDA. Was that kind of deliberate to invest in the FIFA World Cup, or can you talk a bit about that?

Speaker #1: Another question from the webcast here, looking at paid media specifically—which had a negative EBITDA. Was that kind of deliberate, to invest in this FIFA World Cup? Or can you talk a bit about that?

Speaker #2: Yeah, we chose to invest big in the World Cup with the opportunity that was there. I think I'm quite—we are quite—satisfied to see that we kept our CAC, or the customer acquisition cost per player, stable despite growing player intake with the amounts that we did.

Jonas Warrer: We chose to invest big in the World Cup with the opportunity that was there. I think we are quite satisfied to see that we kept our CAC or the customer acquisition cost per player very stable despite growing player intake with the amounts that we did. Of course, we also expected then to see some revenue coming out of that in Q2, and that uplift did not come for various factors. I think as we also describe in the report, in sports in general and in paid, we work with fewer partners here, so we are more dependent on singular operator's choices. We saw that some operators also saw the World Cup as an opportunity to increase player intake by being more, you can say, high and positive on the bonuses and by giving higher player incentives, which affected earnings short-term for us there.

Speaker #2: Of course, we also expected then to see some revenue coming out of that in Q2, and that uplift did not come, due to various factors.

Speaker #2: And I think, as we also described in the report, in sports in general and in paid, we work with fewer partners here. So we are more dependent on singular operators' choices.

Speaker #2: And we saw that some operators also saw the World Cup as an opportunity to increase player intake by being more, you could say, high and positive on the bonuses.

Speaker #2: And by giving higher player incentives, which affected earnings short-term for us there.

Speaker #1: Understood. And if you look at the kind of FTD intake in the last couple of quarters, and this quarter as well, I mean, do you see the same kind of quality, so to say, in terms of FTDs, or is there any change in that that you see?

[Analyst]: Understood. If you look at the kind of FTD intake in the last couple of quarters and this quarter as well, do you see the same kind of quality, so to say, in terms of FTDs, or is there any change in that you see?

Operator: Understood. If you look at the kind of FTD intake in the last couple of quarters and this quarter as well, do you see the same kind of quality, so to say, in terms of FTDs, or is there any change in that you see?

Speaker #2: No, I wouldn't say we have seen any changes in the quality of the players that we are making. The strategy is very much intact there in the higher-value markets that we are choosing to invest in.

Jonas Warrer: No, I wouldn't say we have seen any changes in the quality of the players that we are making. The strategy is very much intact there in the higher value markets that we are choosing to invest in line with what was implemented in last year. So it's essentially just continuing the decisions that we took there. No, I don't think you can say that there's either a lower quality of traffic or higher quality of traffic.

Speaker #2: In line with what was implemented last year, it's essentially just continuing the decision that we took then. So no, I don't think you can say that there's either a lower quality of traffic or a higher quality of traffic.

Speaker #1: And a question on the operational efficiency you have carried out. You mentioned also that you have implemented more AI for content. Can you, kind of, is this the tangible effect you see in terms of the financial impact, or can you elaborate a bit on how the impact of that comes through?

[Analyst]: A question on the operational efficiency you have carried out. You mentioned that you have implemented more AI for content. Is it the tangible effects you see in terms of the financial impact, or can you elaborate a bit on how the impact of that comes through?

Operator: A question on the operational efficiency you have carried out. You mentioned that you have implemented more AI for content. Is it the tangible effects you see in terms of the financial impact, or can you elaborate a bit on how the impact of that comes through?

Speaker #2: Yeah, of course. Everything in the world of content and SEO is a bit more long-term, right? You will see the effects more long-term.

Jonas Warrer: Yeah, of course, everything in the world of content and SEO is a bit more long-term. You will see the effects more long-term. But I think what we can see is that our employees are able to be far more productive, but not the least also work with far higher quality in what they do. When I see the system now we have built and how we can work with our sites from a content and SEO perspective, it is really different from when I started out in the industry many years ago. There's really so much you can say assisting below where you are given advice on how to take the best decisions for how to get the site to rank better.

Speaker #2: But I think what we can see is that our employees are able to be far more productive, but not the least, also work with far higher quality in what they do.

Speaker #2: When I see the system now we have built, and how we can work with our sites from a content and SEO perspective, it is really different from when I started out in the industry many years ago.

Speaker #2: There's really so much you can say assisting below, where you are given advice on how to make the best decisions for how to get the site to rank better.

Jonas Warrer: Quite excited to see that actually the same in paid, where now we have a full site generation driven by AI in the sense that our marketeers can simply just describe what they want, and then that is being built. Also on the data part here, being assisted by AI. It is very exciting to see what we can do next step here. It really is something where for me, being in the industry for that many years, it really is mind-blowing to see what you can do with AI when you do it correctly.

Speaker #2: And quite excited to see that actually it's the same in Paid, where, you know, now we have full site generation driven by AI in the sense that our marketers can simply just describe what they want, and then that is being built.

Speaker #2: And then also on the data part here, being assisted by AI, it's—yeah, it's very exciting to see what we can do next step here.

Speaker #2: It really is something where, for me, being in the industry for that many years, it really is mind-blowing to see what you can do with AI when you do it correctly.

Speaker #1: And a question on the regional development: Looking at America, you mentioned that Latin America grew, I think, and North America was down. And also, a question on the webcast.

[Analyst]: A question on the regional development. Looking at the Americas, you mentioned that Latin America grew, I think, and North America was down. Also a question on the webcast. Do you see Brazil, is that kind of stabilizing at a low level or what is helping Latin America growing in this quarter?

Operator: A question on the regional development. Looking at the Americas, you mentioned that Latin America grew, I think, and North America was down. Also a question on the webcast. Do you see Brazil, is that kind of stabilizing at a low level or what is helping Latin America growing in this quarter?

Speaker #1: I mean, do you see Brazil as kind of stabilizing at a low level, or what's helping Latin America grow in this quarter?

Speaker #2: Yeah, a few other markets, but in Brazil—of course, I would highlight Brazil as the main market in Latin for us, right? And then, yeah, US was down in the quarter.

Jonas Warrer: Yeah, a few other markets than Brazil, but of course, I would highlight Brazil as the main market in Latin for us. US was down in the quarter. I think it was expected that we should see growth in Latin America with the World Cup, of course.

Speaker #2: I think it was expected that we would see growth in Latin America with the World Cup, of course.

Speaker #1: Understood. And a few questions on the cash flow and bond refinancing came up a lot during the webcast. Maybe turning to cash flow first—you mentioned some accelerated supplier payments in the quarter.

[Analyst]: Understood. A few questions on the cash flow and the bond refinancing. There was a lot from the webcast. Maybe starting to cash flow first. You mentioned some accelerated supplier payments in the quarter. Is that something you expect to reverse in Q3, or how should we view the kind of work in capital development from here?

Operator: Understood. A few questions on the cash flow and the bond refinancing. There was a lot from the webcast. Maybe starting to cash flow first. You mentioned some accelerated supplier payments in the quarter. Is that something you expect to reverse in Q3, or how should we view the kind of work in capital development from here?

Speaker #1: Is that something you expect to reverse in Q3, or how should we view the kind of working capital development from here?

Speaker #2: Now, I would say what we did there was simply take the chance to strengthen supply relationships and also try to improve pricing and commercial terms for us with our suppliers.

Jonas Warrer: I would say what we did there was simply we took the chance to strengthen supplier relationships and also try to improve pricing and commercial terms for us with our suppliers. Do not expect to see the same thing happening in Q3. But we saw an opportunity to do that in Q2 and went for it.

Speaker #2: Don't expect to see the same thing happening in Q3. But we saw an opportunity to do that in Q2 and went for it.

[Analyst]: A few questions on the bond refinancing update here. Maybe starting with, if you compare what you talked about in the middle of the year there, you talked about refinancing EUR 120 million, I think it says here. Now you are looking at new alternatives. What has changed compared to then?

Speaker #1: And also a few questions on the bond refinancing update here. Maybe starting with, I mean, if you compare what you talked about earlier in the year there, you talked about refinancing €120 million, I think it says here.

Operator: A few questions on the bond refinancing update here. Maybe starting with, if you compare what you talked about in the middle of the year there, you talked about refinancing EUR 120 million, I think it says here. Now you are looking at new alternatives. What has changed compared to then?

Speaker #1: Now you're looking at new alternatives. I mean, what has changed compared to then?

Speaker #2: I think what has changed in this period we have been in now, when we have discussed refinancing, is at least that our credit metrics—if I can call it that—have improved.

Jonas Warrer: I think what has changed is in this period we have been in now when we have discussed refinancing is at least that our credit metrics, if I call it that, have improved, and we have also managed to reduce debt during that period. The board is evaluating a wider range of alternatives, and everything is right now being analyzed in order to take the best long-term solution for the company. As I said, there will be an update going out to the market no later than 1 October this year. Refinancing is, of course, a big focus for us in the company right now, given that we have a bond that matures end of this year.

Speaker #2: And we have also managed to reduce debt during that period. The Board is evaluating a wider range of alternatives, and everything is right now being analyzed in order to take the best long-term solution for the company.

Speaker #2: And as I said, there will be an update going out to the market no later than the 1st of October. This year. It's of course a big, you can say, refinancing is of course a big focus for us in the company right now.

Speaker #2: Given that we have a bond that matures at the end of this year—and maybe to add a little bit about the volume there, Ricard—back when we launched the bond refinancing at the beginning of the year, we had an RCF facility.

[Analyst]: And-

Operator: And-

Jonas Warrer: Just maybe to add a little bit about the volume there, Rikard, that back when we launched the kind of the bond refi in the beginning of the year, we had an RCF facility we wanted to clear out by doing an increase the volume in the bond. We took the decision to step away from that process, and instead we took in a shareholder-backed facility with a different maturity date. That is also why the volumes are not necessarily as high as they were back then.

[Company Representative] (Gentoo Media): Just maybe to add a little bit about the volume there, Rikard, that back when we launched the kind of the bond refi in the beginning of the year, we had an RCF facility we wanted to clear out by doing an increase the volume in the bond. We took the decision to step away from that process, and instead we took in a shareholder-backed facility with a different maturity date. That is also why the volumes are not necessarily as high as they were back then.

Speaker #2: We wanted to clear out by increasing the volume in the bond. We took the decision to step away from that process, and instead, we took in a shareholder-backed facility.

Speaker #2: With a different maturity date. So that's also why the volumes are not necessarily as high as they were back then.

Speaker #1: And can you comment on, I mean, longer term, is that—or, I mean, midterm—is that something you want to keep, that kind of structure? Or do you want to just have one facility?

[Analyst]: Can you comment on, longer term, or midterm, is that something you want to keep that kind of structure, or do you want to just have one facility?

Operator: Can you comment on, longer term, or midterm, is that something you want to keep that kind of structure, or do you want to just have one facility?

Jonas Warrer: There is no decision upon it. Of course, the aim here is to find a financial structure that is suitable for the long-term strategic ambition for the business. We are very pleased to have such a big support from the shareholders with a facility. If we are to continue with that, then that would be it. But of course, we are trying to find a solution that can balance the strategic ambition for the business, but also the cost of the facility.

[Company Representative] (Gentoo Media): There is no decision upon it. Of course, the aim here is to find a financial structure that is suitable for the long-term strategic ambition for the business. We are very pleased to have such a big support from the shareholders with a facility. If we are to continue with that, then that would be it. But of course, we are trying to find a solution that can balance the strategic ambition for the business, but also the cost of the facility.

Speaker #2: There's no decision upon it. Of course, the aim here is to find a financial structure that's suitable for the long-term strategic ambition for the business.

Speaker #2: We are very pleased to have such strong support from the shareholders. With the facility, if we are to continue with that, then that would be it.

Speaker #2: But of course, we are trying to find a solution that can balance the strategic ambition for the business, but also the cost of the facility.

Speaker #2: So, and right now, we are of course looking at all alternatives to try to balance these two things out.

[Company Representative] (Gentoo Media): Right now we are, of course, looking at all alternatives to try to balance these two things out.

Speaker #1: And if you look at—I mean, I think you mentioned that—the conditions probably have improved somewhat, because you have a slightly lower net debt to EBITDA right now.

[Analyst]: If you look at, I think you mentioned that the conditions probably have improved somewhat because you have a slightly lower net debt to EBITDA right now. If you look at the kind of macro environment and compare it to Q1, is that better or the same?

Operator: If you look at, I think you mentioned that the conditions probably have improved somewhat because you have a slightly lower net debt to EBITDA right now. If you look at the kind of macro environment and compare it to Q1, is that better or the same?

Speaker #1: If you look at the kind of macro environment and compare it to Q1, is that better or the same?

Speaker #2: I think I don't have any specific opinion about that. Of course, overall, capital markets are changing from time to time—sometimes from day to day.

[Company Representative] (Gentoo Media): I don't have any specific opinion about that. Of course, overall capital markets are changing from time to time, sometimes from day to day. It's, of course, a part of the overall assessment to see whether we believe that market conditions are attractive or not at a specific point in time.

Speaker #2: It’s, of course, a part of the overall assessment to see whether we believe that market conditions are attractive or not at a specific point in time.

Speaker #1: All right. Another question on the refinancing here. I mean, also, I think it says in Note 6 in the report from the web, it mentions that you have shareholder support among the alternatives.

[Analyst]: All right. Of course, another question on the refinancing here. Also I think it says that note 6 in the report from the web, where it says notes that you have shareholder support among the alternatives. Can that include equity or is it shareholder loans you're talking about?

Operator: All right. Of course, another question on the refinancing here. Also I think it says that note 6 in the report from the web, where it says notes that you have shareholder support among the alternatives. Can that include equity or is it shareholder loans you're talking about?

Speaker #1: Is that—I mean, can that include equity, or is it shareholder loans you're talking about?

[Company Representative] (Gentoo Media): Well, all components is, of course, a part of securing the business going forward. Today, as a part of coming out of the split from Gaming Innovation Group, the business have a negative equity. So of course, we are looking at equity components as well, but nothing has been decided. And that would be the same kind of comments that we have had in the past.

Speaker #2: All components are, of course, a part of securing the business going forward. Today, as a part of coming out of the split from Gaming Innovation Group, the business has a negative equity.

Speaker #2: So, of course, we are looking at equity components as well, but nothing has been decided. That would be the same kind of comment that we have made in the past.

[Analyst]: And I don't know how much you can comment, but if you compare kind of the private debt alternative to the bond alternatives, what could be the benefits from one or the other, if you can elaborate a bit on that would be interesting.

Operator: And I don't know how much you can comment, but if you compare kind of the private debt alternative to the bond alternatives, what could be the benefits from one or the other, if you can elaborate a bit on that would be interesting.

Speaker #1: And I don't know how much you can comment, but if you compare kind of the private debt alternative to the bond alternatives, what could be the benefits from one or the other, if you can elaborate a bit?

Speaker #1: And that would be interesting.

Speaker #2: You can say overall we have been in the bond market for many years. And we have been we have been glad about the support in that market.

[Company Representative] (Gentoo Media): You can say. Overall, we have been in the bond market for many years. We have been glad about the support in that market. It is also a maybe not as flexible instrument for a business, especially as cash generative as we are. We have actually, as Jonas also mentioned in presentation, delivered on a lot of stronger metrics in terms of credit over the past year. So when we are trying to balance out which financial solution is the best, it is not on a short-term basis. It is more or less to what do we want to achieve going forward, and we want to secure a maximum of flexibility in our financial structure. There can be benefits of having a private instrument to secure more flexibility.

Speaker #2: It's also maybe not as flexible an instrument for a business, especially one as cash generative as we are. We have actually, as Jonas also mentioned in the presentation, delivered on a lot of stronger metrics in terms of credit over the past year.

Speaker #2: So, when we are trying to balance out which financial solution is the best, it's not on a short-term basis. It's more or less about what we want to achieve going forward.

Speaker #2: And we want to secure a maximum of flexibility in our financial structure. There can be benefits to having private flexibility. There can be a way to look at it.

[Company Representative] (Gentoo Media): That can be a way to look at it, but right now, again, we need to balance all aspects of choosing an instrument out. That is some of the reflections of course we have had over the last year where we have looked into this.

Speaker #2: But right now, again, we need to balance all aspects of choosing an instrument. But those are some of the reflections, of course, we have had over the last year, where we have looked into this.

Speaker #1: And also, I think you mentioned the two focus parties: to have flexibility to allow for distribution, but also interest rates. Can you provide some color on what is most important if you have to kind of weigh the two?

[Analyst]: Also, I think you mentioned the two focus parts is to have flexibility to allow for distribution, but also interest rates. Can you provide some color on what is most important if you have to kind of weigh the two?

Operator: Also, I think you mentioned the two focus parts is to have flexibility to allow for distribution, but also interest rates. Can you provide some color on what is most important if you have to kind of weigh the two?

Speaker #2: I think that's a hard one to say—what is most important here. It's a combined evaluation we're doing, we're looking at here, yeah.

[Company Representative] (Gentoo Media): I think that is a hard one to say what is most important here. It is a combined evaluation we are looking at here. Yeah. I agree.

Speaker #1: Agreed. Got it. Okay. And looking a bit at the guidance here, you lowered it a bit compared to your previous guidance, reflecting a slightly soft Q2 here.

[Analyst]: Got it. Okay. Looking a bit on the guidance here, you lowered a bit compared to your previous guidance, reflecting a slightly soft Q2 here. What will be the kind of main drivers of top line looking in H2? Is it the FIFA World Cup more benefit in Q3? Is it that you see this conversion of value deposits? If you can elaborate a bit on that, it would be interesting.

Operator: Got it. Okay. Looking a bit on the guidance here, you lowered a bit compared to your previous guidance, reflecting a slightly soft Q2 here. What will be the kind of main drivers of top line looking in H2? Is it the FIFA World Cup more benefit in Q3? Is it that you see this conversion of value deposits? If you can elaborate a bit on that, it would be interesting.

Speaker #1: What will be the main drivers of top line growth looking at the second half? I mean, is it the FIFA World Cup benefit, with more benefit in Q3?

Speaker #1: Is it that you see this conversion of value deposits, or, if you could elaborate a bit on that, it would be interesting.

Speaker #2: I think commercial optimization is, of course, a key theme here, right? Improving relationships and terms with operators and the markets we are in.

Jonas Warrer: I think the commercial optimization is, of course, a key theme here, right? Improving relationships and terms with operators in the markets we are in, then also being a bit better at traffic optimization, knowing where to send traffic, sending it to the right players with the right offers that will generate long-term revenue for us. Then we continue to invest in sports and in our websites and in our higher-value markets. Also expect to see something from this. Then of course, also we have the fourth leg here, which is scaling paid acquisition up in the markets and with the campaigns where we see a positive or attractive return on advertising spends. I would call it those the four sort of bigger legs that this chair has to rest on.

[Company Representative] (Gentoo Media): I think the commercial optimization is, of course, a key theme here, right? Improving relationships and terms with operators in the markets we are in, then also being a bit better at traffic optimization, knowing where to send traffic, sending it to the right players with the right offers that will generate long-term revenue for us. Then we continue to invest in sports and in our websites and in our higher-value markets. Also expect to see something from this. Then of course, also we have the fourth leg here, which is scaling paid acquisition up in the markets and with the campaigns where we see a positive or attractive return on advertising spends. I would call it those the four sort of bigger legs that this chair has to rest on.

Speaker #2: And then also being a bit better at traffic optimization, knowing where to send traffic, sending it to the right players with the right offers.

Speaker #2: That will generate long-term revenue for us. Then, we continue to invest in sports and in our websites, and in our higher-value markets. We also expect to see something from this.

Speaker #2: And then, of course, we also have the Fort Lake here, which is scaling paid acquisition up in the markets and with the campaigns where we see a positive or attractive return on advertising spend.

Speaker #2: So I would call those the four sort of bigger legs that this chair has to rest on: the commercial optimization—some parts of that can be implemented quite fast, and of course, some of that will take a short period to deal with.

Jonas Warrer: The commercial optimization, some parts of that can be implemented quite fast, and of course, some of that will take a short period to deal with. I think for the bigger part about the commercial optimization, I think we should start to see the real effect of that one in Q4 versus if we are looking at Q3 and Q4. But this is one where this is really a focal point for management of Gentoo Media to deal with this one.</seg <seg id="3">If you look at your first one on the kind of macro environment. There is always things happening in different markets, but is it something that you feel is a higher risk than normal if you look at any regulatory changes in any market that you can see right now for H2?

[Company Representative] (Gentoo Media): The commercial optimization, some parts of that can be implemented quite fast, and of course, some of that will take a short period to deal with. I think for the bigger part about the commercial optimization, I think we should start to see the real effect of that one in Q4 versus if we are looking at Q3 and Q4. But this is one where this is really a focal point for management of Gentoo Media to deal with this one.

Speaker #2: So, I think for the bigger part about the commercial optimization, we should start to see the real effect of that in Q4, versus if we're looking at Q3 and Q4.

Speaker #2: But this is one where this is really a focal point for management at Gentoo Media to deal with this one.

[Analyst]: And if you look at your first one on the kind of macro environment. There's always things happening in different markets, but is it something that you feel is a higher risk than normal if you look at any regulatory changes in any market that you can see right now for H2?

Operator: And if you look at your first one on the kind of macro environment. There's always things happening in different markets, but is it something that you feel is a higher risk than normal if you look at any regulatory changes in any market that you can see right now for H2?

Speaker #1: And if you look at your first one, on the kind of macro environment, I mean, there's always things happening in different markets. But is it something that you feel is a higher risk than normal if you look at any regulatory changes in any market that you can see right now for H2?

Speaker #2: No, I don't think, looking ahead, that we see anything right now that worries us in that sense. There will always be things that will either improve market conditions somewhere or will decrease market conditions somewhere.

Jonas Warrer: No, I don't think looking ahead that we see anything right now that worries us in that sense. There will always be things that will either improve market conditions somewhere or will decrease market conditions somewhere. Can we say that the last period has maybe been a little bit tougher than normally? Maybe. But again, I'm not going to use that as an excuse. We have not delivered the revenue we should in Q2, and that's just the gist of it, and we need to deal with that.

Speaker #2: Can we say that the last period has maybe been a little bit tougher than normal—maybe. But again, I'm not going to use that as an excuse. We have not delivered the revenue we should in Q2.

Speaker #2: And that's just the gist of it, and we need to deal with that.

Speaker #1: And also, looking at the cost structure, I mean, you had continued focus on cost development in Q2. You did increase marketing spend. If you look into the next couple of quarters, do you think marketing spend will be higher in Q3, as there's a few more weeks of the World Cup? Or do you see that coming down a bit in the next couple of quarters?

[Analyst]: Looking at the cost structure, you had continued focus on cost development in Q2. You did increase marketing spend. If you look into the next couple of quarters, do you think marketing spend will be higher in Q3 after some few more weeks of the World Cup? Or do you see that coming down a bit in the next couple of quarters? Also in terms of other OpEx and employee costs, do you think it's fully realized, the cost savings that you've implemented?

Operator: Looking at the cost structure, you had continued focus on cost development in Q2. You did increase marketing spend. If you look into the next couple of quarters, do you think marketing spend will be higher in Q3 after some few more weeks of the World Cup? Or do you see that coming down a bit in the next couple of quarters? Also in terms of other OpEx and employee costs, do you think it's fully realized, the cost savings that you've implemented?

Speaker #1: And also, in terms of other OPEX and employee cost, do you think the cost savings that you've implemented are fully realized?

Speaker #2: Yeah. So, in terms of marketing cost, I think it's evident to say we expect August to be the weakest month in the second half of 2026.

Jonas Warrer: Yeah. In terms of marketing costs, I think it's evident to say we expect August to be the weakest month in the second half of 2026, then with an uptick, of course, in September. Then, of course, Q4 being the absolute best quarter in the year as it has traditionally always been. So I would expect also to see marketing costs being reflected there in Q4 being higher. If we look at people cost and other OpEx, we expect that to continue to decline going forward as we optimize processes, simplify the organization, and adapt more and more into AI. Of course, that being said, we have gone through quite some big cost reductions over the last year, and I think if we look two quarters ahead, we are not expecting at all the same cost reductions.

Speaker #2: Then with an uptick, of course, in September. And then, of course, Q4 being the absolute best quarter in the year, as it has traditionally always been.

Speaker #2: So I would expect, also, to see marketing costs being reflected there in Q4 as higher. If we look at people costs and other OPEX, we expect that to continue to decline going forward as we optimize processes, simplify the organization, and adapt more and more into AI.

Speaker #2: Of course, that being said, we have gone through quite a few significant cost reductions over the last year. And I think if we look two quarters ahead, we are not expecting at all the same cost reductions, but we do expect costs to continue to decline as we optimize our organization and become more and more efficient.

Jonas Warrer: We expect costs to continue to decline there as we optimize our organization and become more and more efficient.

Speaker #1: Okay, with that, we will finalize the Q&A. Thank you very much for joining.

[Analyst]: Okay. With that, we will finalize the Q&A, and thank you very much for joining.

Operator: Okay. With that, we will finalize the Q&A, and thank you very much for joining.

Jonas Warrer: Thank you very much.

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Q2 2026 Gentoo Media Inc Earnings Call

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