Gentoo Media remains confident in its ability to adapt to the AI era

(AsiaGameHub) –   The gaming affiliate network Gentoo Media continues to adjust to the pressures generated by artificial intelligence and its influence on search engines, according to leadership.

First-quarter 2026 results showed a 5% year-over-year revenue decrease from €25.4 million (£22 million) to €24 million, with a mix of challenges cited as holding back early-year momentum.

Volatility in search engines—partly linked to AI-generated content, Google’s AI Overviews, and core updates rolled out in March—affected customer engagement.

The count of first-time depositing customers fell from 91,100 in Q1 2025 to 81,400 this year, although the company has not directly linked this shift to AI and search-engine turbulence.

“The role of AI in search and user behaviour keeps evolving, and we are actively adapting our content, product, and technical strategy to keep Gentoo Media visible, relevant, and competitive across both established and emerging discovery channels,” said Jonas Warrer, Chief Executive Officer of Gentoo, in a letter to stakeholders.

Beyond AI and search engines, Gentoo also noted that favourable sports outcomes weighed on returns from revenue-share arrangements with betting operators.

AI impact can’t shake Gentoo profit

Despite the revenue dip, Gentoo remains profitable, with Q1 net profit at €219,000—a marked recovery from a €2.9 million loss a year earlier. EBITDA also increased from €8.8 million to €10.5 million.

Gentoo Media was established in June 2024 as the independent entity carved out of GiG Media, previously the media and affiliation arm of Gaming Innovation Group (GiG), which was divested and subsequently rebranded as Gentoo.

The firm’s Q4 2024 accounts reflected a strong operational start, with revenue reaching €36 million. Difficulties emerged in 2025, however, as changes to Google search and the spread of AI content took effect.

While still facing these headwinds, leadership is confident that restructuring measures are beginning to lift performance for the Nasdaq Stockholm–listed company. Q4 2025 was highlighted as a turning point.

These restructuring and cost-cutting efforts have led to some job reductions, with headcount falling from 404 to 292 employees. Closing its Norwich, England, offices also resulted in a non-cash asset impairment charge of €2.6 million in Q1 2026.

Warrer concluded: “We remain focused on our 2026 priorities: driving higher-quality revenue, strengthening flagship brands, and embedding AI-driven capabilities across content, product, and acquisition channels.

“Coupled with a leaner organisation and improved financial flexibility, this positions Gentoo Media well for long-term value creation.”