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Gambling.com Group Limited Reports Second Quarter 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services active exclusively in the global online gambling industry, today announced its operating and financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Financial Highlights
· Revenue of $10.4 million; grew 66% compared to $6.3 million in the same period for the prior year
· Net income of $2.4 million, or $0.08 per diluted share, compared to a net loss of $0.4 million, or a loss of $0.02 per diluted share, in the same period for the prior year
· Adjusted EBITDA of $5.5 million; grew 46% compared to $3.8 million in the same period for the prior year, representing an Adjusted EBITDA margin of 53%[1]
· Free cash flow of $3.1 million; decreased 3% compared to $3.2 million in the same period for the prior year[2]
Second Quarter 2021 Business Highlights
· Completed redomiciliation from Malta to the Channel Island of Jersey in May
· Successful launches of EmpireStakes.com, BetArizona.com and IllinoisBet.com which provides bettors with trusted and up-to-date state-specific gambling information to help them place safe and secure legal wagers
· Completed acquisition of two domain portfolios suitable for targeting the US market
· Subsequent to quarter end, completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
· Subsequent to quarter end, announced appointment of Mr. Daniel D’Arrigo to Board of Directors
“Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our Adjusted EBITDA margins, we areamong the most profitable names in the online gambling industry,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Since our founding in 2006, we have built an affiliate marketing powerhouse with recognizable brands around the globe. Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilize our best-in-class technology platform to support their increasingly important customer acquisition initiatives. We are incredibly excited about the next step in this journey as a public company and look forward to sharing the success with our new investors.”
Second Quarter 2021 vs. Second Quarter 2020 Financial Highlights
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
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||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
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||||
|
|
|
(in thousands USD, except for share and per share data, unaudited) |
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|
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
|
Operating expenses |
|
|
(7,235 |
) |
|
|
(2,997 |
) |
|
|
(4,238 |
) |
|
|
141.4 |
% |
|
Operating profit |
|
|
3,157 |
|
|
|
3,262 |
|
|
|
(105 |
) |
|
|
(3.2 |
)% |
|
Income (loss) before tax |
|
|
3,027 |
|
|
|
(128 |
) |
|
|
3,155 |
|
|
n/m |
|
|
|
Net income (loss) for the period attributable to the equity holders |
|
$ |
2,445 |
|
|
$ |
(428 |
) |
|
$ |
2,873 |
|
|
n/m |
|
|
|
Net income (loss) per share attributable to ordinary shareholders, basic |
|
|
0.09 |
|
|
|
(0.02 |
) |
|
n/m |
|
|
n/m |
|
||
|
Net income (loss) per share attributable to ordinary shareholders, diluted |
|
|
0.08 |
|
|
|
(0.02 |
) |
|
n/m |
|
|
n/m |
|
||
n/m = not meaningful
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THREE MONTHS ENDED JUNE 30, |
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CHANGE |
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||||||||||
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2021 |
|
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2020 |
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$ |
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|
% |
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||||
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(in thousands USD, unaudited) |
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NON-IFRS FINANCIAL MEASURES |
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|
|
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Adjusted EBITDA |
|
|
5,518 |
|
|
|
3,779 |
|
|
|
1,739 |
|
|
|
46.0 |
% |
|
Adjusted EBITDA Margin |
|
|
53.1 |
% |
|
|
60.4 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
3,122 |
|
|
|
3,229 |
|
|
|
(107 |
) |
|
|
(3.3 |
)% |
n/m = not meaningful
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THREE MONTHS ENDED JUNE 30, |
CHANGE |
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||||||||||||
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2021 |
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2020 |
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Amount |
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% |
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||||
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(in thousands, unaudited) |
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OTHER SUPPLEMENTAL DATA |
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New Depositing Customers (1) |
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26 |
|
|
|
25 |
|
|
|
1 |
|
|
|
3.8 |
% |
|
(1) |
We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us. |
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AS OF JUNE 30, |
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AS OF DECEMBER 31, |
|
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CHANGE |
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|||||||
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|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
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|
(Unaudited) |
|
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|
|
|
|
|
|
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(in thousands, USD) |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA |
|
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|
Cash and cash equivalents |
|
$ |
17,168 |
|
|
$ |
8,225 |
|
|
$ |
8,943 |
|
|
|
108.7 |
% |
|
Working capital (2) |
|
|
17,203 |
|
|
|
10,059 |
|
|
|
7,144 |
|
|
|
71.0 |
% |
|
Total assets |
|
|
55,139 |
|
|
|
45,383 |
|
|
|
9,756 |
|
|
|
21.5 |
% |
|
Total borrowings |
|
|
6,062 |
|
|
|
5,960 |
|
|
|
102 |
|
|
|
1.7 |
% |
|
Total liabilities |
|
|
14,052 |
|
|
|
11,171 |
|
|
|
2,881 |
|
|
|
25.8 |
% |
|
Total equity |
|
|
41,087 |
|
|
|
34,212 |
|
|
|
6,875 |
|
|
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(2) |
Working capital is defined as total current assets minus total current liabilities. |
Revenue
Total revenue in the second quarter increased 66% to $10.4 million compared to $6.3 million in the comparable period in 2020. On a constant currency basis, revenue increased $3.5 million, or 52%.The increase was driven by improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs increased 4% to 26,000 compared to 25,000 in the prior year.
Our revenue disaggregated by market is as follows:
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
U.K. and Ireland |
|
$ |
5,410 |
|
|
$ |
3,489 |
|
|
$ |
1,921 |
|
|
|
55.1 |
% |
|
Other Europe |
|
|
2,822 |
|
|
|
969 |
|
|
|
1,853 |
|
|
|
191.2 |
% |
|
North America |
|
|
1,408 |
|
|
|
1,097 |
|
|
|
311 |
|
|
|
28.4 |
% |
|
Rest of the world |
|
|
752 |
|
|
|
704 |
|
|
|
48 |
|
|
|
6.8 |
% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were primarily driven by organic growth in our U.K. and Ireland, Other Europe, and North American markets.
Our revenue disaggregated by monetization is as follows:
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
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|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Hybrid commission |
|
$ |
4,611 |
|
|
$ |
3,238 |
|
|
$ |
1,373 |
|
|
|
42.4 |
% |
|
Revenue share commission |
|
|
1,054 |
|
|
|
825 |
|
|
|
229 |
|
|
|
27.8 |
% |
|
CPA commission |
|
|
3,558 |
|
|
|
2,130 |
|
|
|
1,428 |
|
|
|
67.0 |
% |
|
Other revenue |
|
|
1,169 |
|
|
|
66 |
|
|
|
1,103 |
|
|
|
1,671.2 |
% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were driven primarily by additional Hybrid commission, CPA commission and Other revenue. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets in the quarter.
Our revenue disaggregated by product type from which it is derived is as follows:
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|
|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Casino |
|
$ |
9,087 |
|
|
$ |
5,570 |
|
|
$ |
3,517 |
|
|
|
63.1 |
% |
|
Sports |
|
|
1,170 |
|
|
|
518 |
|
|
|
652 |
|
|
|
125.9 |
% |
|
Other |
|
|
135 |
|
|
|
171 |
|
|
|
(36 |
) |
|
|
(21.1 |
)% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Sales and marketing expenses |
|
$ |
3,144 |
|
|
$ |
1,598 |
|
|
|
1,546 |
|
|
|
96.7 |
% |
|
Technology expenses |
|
|
944 |
|
|
|
510 |
|
|
|
434 |
|
|
|
85.1 |
% |
|
General and administrative expenses |
|
|
3,387 |
|
|
|
875 |
|
|
|
2,512 |
|
|
|
287.1 |
% |
|
Allowance for credit losses |
|
|
(240 |
) |
|
|
14 |
|
|
|
(254 |
) |
|
n/m |
|
|
|
Total operating expenses |
|
$ |
7,235 |
|
|
$ |
2,997 |
|
|
|
4,238 |
|
|
|
141.4 |
% |
n/m = not meaningful
Total operating expenses increased by $4.2 million to $7.2 million compared to $3.0 million in the prior year. On a constant currency basis, operating expenses increased by $3.9 million to $7.2 million compared to $3.3 million in the prior year.
Sales and Marketing expenses totaled $3.1 million, an increase of $1.5 million compared to 2020, driven by increased wages and salary expenses associated with increased headcount as well as investments in the Company’s organic growth initiatives.
Technology expenses totaled $0.9 million compared to $0.5 million in 2020, mainly the result of higher wages and salary expense associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.4 million compared to $0.9 million in the prior year, mainly driven by non-recurring expenses related to the public offering totaling approximately $1.5 million and the expansion of the senior management team.
Earnings
Adjusted EBITDA increased by 46% to $5.5 million compared to $3.8 million in the prior year representing an Adjusted EBITDA margin of 53%.
Operating profit in the second quarter decreased 3% to $3.2 million compared to $3.3 million in 2020. Operating profit was affected by non-recurring expenses related to the public offering totaling approximately $1.5 million.
Net income in the second quarter totaled $2.4 million, or $0.08 per diluted share, compared to a net loss of $0.4 million, or a loss of $0.02 per diluted share, in the prior year. The increase was the result of significant growth in pre-tax income compared to the prior year.
Free Cash-flow
Total cash generated from operations of $4.7 million increased 47% compared to $3.2 million in the prior year. The increase was driven by improved operating profit and net income compared to the prior year. Free cash flow, totaled $3.1 million compared to $3.2 million in the prior year. The decline was the result of increased capital expenditures consisting primarily of the acquisition of two domain portfolios, partially offset by the increase in cash generated from operations.
Balance Sheet
Cash balances as of June 30, 2021 totaled $17.2 million, an increase of $9.0 million compared to $8.2 million as of December 31, 2020. Working capital as of June 30, 2021 totaled $17.2 million, an increase of $7.1 million compared to $10.1 million as of December 31, 2020.
Total assets as of June 30, 2021 were $55.1 million compared to $45.4 million as of December 30, 2020. Total borrowings, including accrued interest, totaled $6.1 million compared to $6.0 million as of December 31, 2020. Total liabilities stood at $14.1 million compared to $11.2 million as of December 31, 2020.
Total equity as of June 30, 2021 was $41.1 million compared to $34.2 million as of December 31, 2020.
2021 – 2023 Financial Targets
|
Total Revenue Growth |
˃ Average 40% |
|
Adjusted EBITDA Margin[3] |
≥ Average 40% |
|
Leverage[4] |
< Net Debt to Adjusted EBITDA 2.5x[5] |
2021 Outlook
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our financial results for the second quarter came in at the high end of our previously provided ranges as we reported strong growth in revenue, adjusted EBITDA, and net income compared to the prior year. We also continue to produce strong free cash flow and weremain in a solid financial position after the public offering last month. We are carrying encouraging momentum into the second half of the year. As a result, we are expecting to achieve or exceed our Revenue Growth target and Adjusted EBITDA margin target for the full year 2021 before the effects of any acquisitions and without incurring further borrowings.”
Latest News
BMM INNOVATION GROUP TO SHOWCASE ITS WORLD-LEADING TESTING SERVICES FOR BRAZIL’S FAST-GROWING GAMING MARKET AT BIS SIGMA AMERICAS SUMMIT APRIL 7–10
Company to share expert insights and highlight its fast-track product certification and lottery support at São Paulo, Brazil show
BMM Innovation Group (“BMM,” “BIG Group,” or “BIG”), a technology conglomerate focused on product compliance testing, cybersecurity solutions, and virtual training for the global gaming industry, will exhibit at BiS SiGMA Americas April 7-10 at the Transamerica Expo Center in São Paulo, Brazil in Stand No. F133.
As Brazil’s gaming landscape undergoes a significant transformation under new federal regulations, BMM is heavily partnered with operators, suppliers, and regulators through this transition. With its three expert divisions – BMM Testlabs, BIG Cyber, and RG24seven Virtual Training – the BIG Group brings unmatched expertise in product testing, cybersecurity, and responsible gaming education, all vital for success in the dynamic Brazilian market.
At the show, BMM will highlight its fast-track product testing and certification process, developed specifically to address Brazil’s recertification requirements for B2B and B2C operators. This streamlined service ensures that gaming companies meet all regulatory standards while maintaining their operating licenses with minimal disruption.
BMM Testlabs’ Marzia Turrini, President of iGaming & Cybersecurity, said, “BMM is committed to guiding customers through the certification process with speed, precision, and expert support. Our goal is to reduce regulatory risks and accelerate time to market in Brazil’s evolving regulatory environment.”
At BiS SiGMA, BMM will highlight its support for Brazil’s expanding state lottery market, working closely with operators to support multi-jurisdictional entry and growth. BMM’s lottery and iLottery testing services help ensure full compliance while enabling faster, broader market access.
Visitors to BMM Innovation Group’s stand at BiS SiGMA Americas will gain insights into the Company’s full suite of services for cybersecurity and defense, as well as responsible gaming, including:
- Vulnerability assessments, penetration tests, PCI:DSS evaluations, and a suite of managed security services featuring CYREBRO’s Security Operations Center, KnowBe4’s security awareness training, and Maxxsure’s risk management platform.
- RG24seven Virtual Training, offering expert-led education on responsible gaming, anti-money laundering, and many other important topics, available in Portuguese, Spanish, and English for gaming professionals worldwide.
Turrini added, “BMM is more than just a test lab. We are a long-term strategic partner, helping shape a secure, responsible, and compliant gaming industry in Brazil and globally.”
BMM invites all BiS SiGMA attendees to stop by Stand No. F133 and discover how the Company drives innovation, reliability, and trust across Brazil’s regulated gaming industry. For more information on BMM’s Brazil support, visit the BMM Brazil Hub at brazil.bmm.com/.
Latest News
No fooling! The All-Inclusive Hotel Room Package is back for summer stays at the Plaza Hotel & Casino
Tomorrow might be April Fool’s Day but this is no joke, the Plaza Hotel & Casino is bringing back Las Vegas’ only all-inclusive hotel room package starting at $125 per person per night.
The Plaza introduced its all-inclusive hotel room package last summer. It was so well received by guests that the iconic downtown Las Vegas property is bringing it back and extending it for all of June, July and August.
“At a time when tourists are concerned about increasing costs in Las Vegas, including resort fees and paying to park, we wanted to give our guests a more affordable summer vacation option by again offering our all-inclusive hotel room package,” said Jonathan Jossel, CEO of the Plaza Hotel & Casino.
The Plaza’ all-inclusive hotel room package waives all resort fees, but guests will still have free access to the fitness center, self-parking, and rooftop pool. It also includes bottomless drinks from the Omaha Bar and Sports Book Bar on the casino floor as well as breakfast and dinner from various dining outlets, and more.
The Plaza’s all-inclusive hotel room package is available for booking beginning today. Rooms must be booked online by Aug. 29 for a stay June 1 through Aug. 30.
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Jogo da Zebra: The Most Thrilling Version of the Classic Minesweeper Arrives from Vibra Gaming
Vibra Gaming, the leading game and platform developer in the LatAm market, unveils its latest and most exciting release: Jogo da Zebra, a high-adrenaline experience where every click can multiply your winnings. Designed especially for the Brazilian audience, this game reimagines the classic Minesweeper with visuals and gameplay that resonate with local culture.
The game unfolds on a 5×5 grid with 25 hidden tiles. Players can choose how much to bet and how many zebras will appear on the board, directly influencing the level of risk and potential rewards.
To win, players click on the tiles to reveal golden squares, increasing their bet multiplier. At any moment, they can cash out and secure their winnings before encountering a zebra.
The game also incorporates innovative mechanics to enhance the excitement. By selecting the number of hidden zebras on the board (from 1 to 20), players can adjust the difficulty and raise the prize multiplier as they progress. Additionally, if a zebra is revealed followed by a heart, the game grants an extra life, allowing the player to continue without ending the round. This unique feature adds a new layer of thrill and strategy, as only one extra life can be earned per game.
Jogo da Zebra also includes a Turbo Button, which speeds up tile reveals for a more dynamic gaming experience. A Cash Out button allows players to stop and collect their winnings before risking another click.
Ramiro Atucha, CEO of Vibra Gaming, commented: “Jogo da Zebra combines the nostalgia of a classic with captivating gameplay and big rewards. It’s the perfect game for thrill-seekers who enjoy risk, where every click can make a difference in winning big. We developed it with the Brazilian audience in mind, incorporating a local theme that connects with their culture and gaming preferences.”
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