Gentoo Media has lowered its full-year 2026 financial guidance after Brazil moved to ban fixed-odds betting, a decision that takes immediate effect.
The company now expects full-year revenue of approximately €92m, a notable reduction from its previous guidance range of €97m to €100m.
EBITDA before special items is now forecast at around €40m, down from the earlier projection of between €44m and €47m.
Operating cash flow has also been revised downward to approximately €30m, compared with previous estimates ranging from €32m to €36m.
The downgrade arrives as Gentoo Media prepares to repay bonds worth approximately €91.5m that are due to mature in December this year.
To cover that repayment, the company plans to use a €50m loan from a major shareholder alongside a planned €50m share issue.
Brazil had generated approximately €3.8m in net revenue for Gentoo between January and August, making the ban a significant blow to the business.
Gentoo noted that because it had been actively investing in the Brazilian market, the country’s contribution to EBITDA and cash generation was proportionately lower than its contribution to overall revenue.
The company had anticipated strong growth in Brazil during the fourth quarter, making the timing of the ban particularly damaging to its near-term financial performance.
The new guidance now assumes no further betting and online gaming revenue from Brazil for the remainder of the current financial year.
Gentoo also flagged that weaker sports margins in the latter part of the third quarter had hurt its revenue share income, adding further pressure to an already challenging period.
The Brazilian market disruption has had a wider impact across the sector, with Gentoo’s affiliate rival Better Collective seeing its share price fall by over 30% since the ban was announced.
The scale of those market reactions underlines how significantly Brazil had factored into growth projections for affiliate businesses operating across the region.
Gentoo Media’s revised outlook serves as a sharp reminder of the regulatory risks that remain central to operating in emerging betting markets around the world.
