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Gambling.com Group Limited Revenue Grows 63% to a Q2 Record of $26.0 Million, Net Income Rises to $0.3 Million and Adjusted EBITDA Increases to a Q2 Record of $9.4 Million

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Raises 2023 revenue guidance to $100-$104 million and adjusted EBITDA guidance to $36-$40 million; mid-points imply revenue growth of 33% and adjusted EBITDA growth of 58% over the full year 2022

Gambling.com Group Limited (Nasdaq: GAMB), a leading provider of digital marketing services for the global online gambling industry, today reported record second-quarter financial results for the three months ended June 30, 2023. The company also increased its guidance for full-year revenue and adjusted EBITDA.

Second Quarter 2023 vs. Second Quarter 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)

Three Months Ended June 30, Change
2023 2022 %
Revenue 25,972 15,924 63 %
Net income for the period attributable to shareholders (1) 278 56 396 %
Net income per share attributable to shareholders, diluted (1) 0.01 0.00 100 %
Net income margin (1) 1 % — %
Adjusted net income for the period attributable to shareholders (1)(2) 6,535 3,065 113 %
Adjusted net income per share attributable to shareholders, diluted (1)(2) 0.17 0.08 113 %
Adjusted EBITDA (1)(2) 9,424 3,617 161 %
Adjusted EBITDA Margin (1)(2) 36 % 23 %
Cash flows generated by operating activities 4,586 3,368 36 %
Free Cash Flow (2) 8,526 2,822 202 %

(1) For the three months ended June 30, 2023, net income and net income per share include, and adjusted net income and adjusted net income per share exclude, adjustments related to the company’s 2022 acquisitions of RotoWire and BonusFinder of $6.1 million, or $0.17 per share. Similarly, these adjustments totalled $3 million, or $0.08, per share for the three months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments

(2) Represents a non-IFRS measure. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for reconciliations to the comparable IFRS numbers.

“The business performed phenomenally in the second quarter with record operating results reflecting another quarter of significant organic revenue growth and strong free cash flow generation,” the co-founder and Chief Executive Officer for Gambling.com Group Limited, Charles Gillespie, said. “The growth highlights our success in scaling our North American operations as well as continued growth in our more established markets. New depositing customers rose 60% year-over-year to over 91,000, which helped drive a 63% revenue increase to $26 million, 161% growth in adjusted EBITDA to $9.4 million and $8.5 million of free cash flow.

“Despite North America already being our largest reporting market, it still represents a significant growth opportunity for Gambling.com Group Limited and we remain very confident in our ability to continue to increase market share in existing states as they continue to grow. This expected growth will be complemented by an overall expansion of the addressable market as new states such as North Carolina and Kentucky come online with sports betting and iGaming is authorized in additional states. As we continue to scale our North American operations, Gambling.com Group Limited will benefit from other attractive near and long-term growth drivers including valuable media partnerships with leading domestic digital media publishers, McClatchy and Gannett, and the significant long-term global opportunity provided by the recently launched Casinos.com. In addition, we are well positioned to continue growing in our more established markets where we continue to take market share and have signed our first international media partnership with The Independent for the United Kingdom market.

“With each quarter of consistent profitable organic growth delivered by Gambling.com Group Limited, we are demonstrating the benefits of what we believe to be the most attractive business model in the industry as we leverage our many growth drivers and capital efficiency. Our excellence in SEO and proprietary data science allows us to consistently generate top-line growth, adjusted EBITDA margins that exceed 30% and strong free cash flow conversion. As a result, we are confident Gambling.com Group Limited will continue to create added value for our shareholders, clients and our valued team members.”

Second Quarter 2023 and Recent Business Highlights

  • Grew North American revenue 115% to $13.4 million
  • Delivered more than 91,000 new depositing customers
  • Entered into first international media partnership with The Independent, one of the United Kingdom’s largest digital media publishers with more than 20 million unique monthly users
  • Negotiated a final, deferred consideration payment of €18 million related the acquisition of BonusFinder in exchange for the early termination of the earn-out period, providing the company with the ability to accelerate the realization of synergies
  • Repurchased 77,683 ordinary shares at an average price of $9.83 per share

“The operating leverage we generated on 63% year-over-year revenue growth and 161% adjusted EBITDA growth in the second quarter grew free cash flow growth of 202% to $8.5 million,” the Chief Financial Officer for Gambling.com Group Limited, Elias Mark, said. “As a result, we have significant flexibility to simultaneously continue to strategically invest in growth opportunities including the buildout of Casinos.com and the development of our media partnerships and to evaluate strategic transactions that we believe create new shareholder value. Reflecting our strong operating results through the first six months of the year, which outperformed our expectations and our confidence for continued strong performance over the balance of 2023, we are raising our full-year revenue and adjusted EBITDA outlook with the mid-point of the new ranges representing year-over-year growth of 33% and 58%, respectively.”

2023 Outlook

The company raised its full-year 2023 revenue guidance to between $100 million and $104 million and adjusted EBITDA guidance to between $36 million and $40 million. The company’s guidance assumes:

  • Kentucky goes live on September 28 with online sports betting
  • Beyond Kentucky, no online sports betting or iGaming going live in any additional North American markets for the balance of 2023
  • No contribution from any new acquisitions
  • New investments throughout 2023 for the development of Casinos.com and support to our media partners including Gannett, McClatchy and The Independent
  • An average EUR/USD exchange rate of 1.095 throughout the remainder of 2023

First Half 2023 vs. First Half 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)

Six Months Ended June 30, Change
2023 2022 %
Revenue 52,664 35,509 48 %
Net income for the period attributable to shareholders (1) 6,873 4,542 51 %
Net income per share attributable to shareholders, diluted (1) 0.18 0.12 50 %
Net income margin (1) 13 % 13 %
Adjusted net income for the period attributable to shareholders (1)(2) 14,086 7,551 87 %
Adjusted net income per share attributable to shareholders, diluted (1)(2) 0.37 0.21 76 %
Adjusted EBITDA (1)(2) 20,097 10,719 87 %
Adjusted EBITDA Margin (1)(2) 38 % 30 %
Cash flows generated by operating activities 11,669 6,944 68 %
Free Cash Flow (2) 14,732 4,186 252 %

(1) For the six months ended June 30, 2023, net income and net income per share include, and adjusted net income and adjusted net income per share exclude, adjustments related to the company’s 2022 acquisitions of RotoWire and BonusFinder of $7 million, or $0.19 per share. Similarly, these adjustments totalled $3 million, or $0.09, per share for the six months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments.

(2) Represents a non-IFRS measure. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for reconciliations to the comparable IFRS numbers.

Conference Call Details

Date/Time: Thursday, August 17, 2023, at 8:00 am ET
Webcast: https: //www. webcast-egs .com/gamb20230817/en
US Toll-Free Dial In: 877-407-0890
International Dial In: +1-201-389-0918

To access, please dial in approximately ten minutes before the start of the call. An archived webcast of the conference call will also be available in the News & Events section of the company’s website at Gambling .com/corporate/investors/news-events. Information contained on the company’s website is not incorporated into this press release.

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IBIA and PFA Canada join forces to provide sports integrity education to the Canadian Premier League

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IBIA and PFA Canada join forces to provide sports integrity education to the Canadian Premier League

 

CPL first to benefit from CA$300,000 education fund commitment by regulated sports betting operators.

The International Betting Integrity Association (IBIA) and its members bet365, Betway and FanDuel have partnered with the Professional Footballers’ Association Canada (PFA Canada) to design a bespoke two-year sports-integrity education program for players and staff in the Canadian Premier League (CPL).

In 2024, the program – which will start in May – will educate approximately 300 players and staff about the potential threat of sports-betting related match-fixing to the integrity of the Canadian Premier League, their careers, as well as its potential to defraud sports betting operators and customers. The agreement also stipulates a repeat training in 2025 to ensure new players joining the league are also able to protect themselves from criminals and corrupters and report any suspicious activity.

Khalid Ali, CEO of IBIA, said: “IBIA’s members take their role – as responsible regulated betting operators – in protecting the integrity of sporting competition and of betting markets seriously. Alongside balanced, efficient and evidenced-based regulation, protecting soccer players, staff and officials from being targeted by criminals is an essential first step to stamping-out sports-betting related match-fixing and fraud.”

The program will include a combination of dedicated in-person trainings and online resources for players and staff in the CPL’s eight league teams. The in-person sessions will educate players on the environment in which they are operating, including rules and sanctions, as well as highlighting the scale and accuracy of technology enabled sports integrity monitoring.

Dan Kruk, Executive Director of PFA Canada, said: “IBIA has delivered sports-integrity education to over thirty-five thousand athletes in Europe since 2010, and we’re grateful that they can leverage that know-how to design a bespoke training for CPL players. At PFA Canada we understand that, despite being more resource-intensive, in-person sports integrity education is essential to gain the trust and understanding of busy athletes, and to enable full, frank and open conversations.”

The CPL’s sports-integrity education program has been enabled by a CA$300,000 commitment over three years by IBIA and its member operators bet365, Betway and FanDuel for the Canadian market, from which other sports are also expected to benefit.

“At FanDuel Canada, we recognize the critical role athlete education plays in maintaining sports integrity,” said Dale Hooper, General Manager of FanDuel Canada. “We are thrilled to expand our engagement with IBIA through this new partnership helping to build a curriculum that will help athletes understand their role in protecting sport.”

Joachim Bjerg of Betway stated: “We’re very proud to partner and support IBIA and the Professional Footballers’ Association Canada that will design, create and implement a bespoke course that will further enhance Betway’s global commitment to educating players and staff involved in sport.

“As a responsible regulated betting operator, we see our role in this sector imperative to safeguarding the integrity of sports and we very much look forward to working with IBIA on this exciting and important initiative.”

Jean-Francois Reymond, IBIA’s Education Ambassador, who will work with the PFA Canada trainers on the May launch, said: “We look forward to working with PFA Canada to further protect the Canadian Premier League from the threat of sports-betting related match-fixing. Protecting the integrity of sport means protecting the integrity of athletes. Most often through a lack of awareness, it is the athletes who are risking their careers and livelihoods. IBIA’s objective is to help build a best-in-class program for all athletes that serves to protect the integrity of Canadian sport and the careers of Canada’s athletes.”

IBIA’s sports-integrity education program is a global offering, alongside IBIA’s not-for-profit model for sharing data on suspicious sporting events with sports regulators and law enforcement, player education can significantly reduce the threat of sports betting related match-fixing. In 2024, IBIA has already trained athletes at the EUBC’s European Boxing Championships in Serbia and is in active discussion with sports governing bodies in Canada and several other jurisdictions to ensure that as many athletes as possible can benefit from sports integrity education. Please contact us if you are interested in learning more.

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Texas Lottery Releases Four New Hits with Chances to Win Cash and A Sedona Adventure

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Texas Lottery players are bracing for a chance to have an instant hit when they play four new scratch ticket games that launched on May 6. The HIT family of games, ranging in price from $1 to $20, features more than $220 million in total combined cash prizes with top prizes ranging from $5000 to $1 million. In addition, the HIT family is paired with the Sedona Day of Luck Promotion, offering players with non-winning tickets a chance to win a luxurious trip to Sedona, Arizona.

“The new HIT family of scratch ticket games brings Texas Lottery players the ultimate blend of exciting cash prizes and the chance to have an unforgettable journey to Sedona through a series of promotional second-chance drawings that are integrated into all four games. In addition to the impressive prizes, the vibrant artwork and holographic effects on every ticket will be sure to make the HIT family stand out at retail, leading to strong sales that will yield much-needed revenue for public education in Texas,” Ryan Mindell, executive director of the Texas Lottery, said.

Players will look to strike a $1 million top prize when they play HIT $1,000,000. With 30 chances to win a cash prize on every ticket, the $20 game in the family features over $88.5 million in total cash prizes, including four $1 million top prizes throughout the game.

At the $10 price point, HIT $500,000 gives players 30 chances to win on every ticket, including five top prizes worth $500,000. The game is loaded with more than $76.7 million in total cash prizes, including more than 1.6 million prizes ranging from $20 to $100.

HIT $200,000 offers 25 chances to win a cash prize, including one of six $200,000 top prizes, on every ticket in the $5 game. The game has over $47.3 million in total cash prizes up for grabs and more than 1.8 million prizes between $10 and $200.

Players can cash in big when they play HIT $5,000 for just one $1. Featuring more than $7.7 million in total cash prizes in the game, HIT $5000 offers five chances to win a cash prize on every ticket, including one of 15 top prizes worth $5000.

For those that don’t win an instant cash prize, the excitement and the chance to win continues. Texas Lottery players can enter their non-winning HIT scratch tickets into the Sedona Day of Luck Promotion through their Luck Zone account for a chance to win $100 plus an entry into a drawing for a chance to win a Trip Prize to Sedona.

Those selected for a Trip Prize will enjoy a luxurious trip to Sedona from Oct. 5-9, 2025. Eighty total winners selected from five drawings and their guests will have a chance to participate in the Day of Luck Game Show with guaranteed cash prizes, including the opportunity to win up to $2 million. The adventure includes private airfare, luxurious accommodations at the Enchantment Resort, exclusive activities, custom dining experiences, a $1500 spending allowance, daily cash prizes and more.

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ESPN BET Named Official Sports Betting Sponsor of the PGA Championship Through 2026

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The PGA of America and PENN Entertainment announced a multiyear sports betting partnership. Under the agreement, ESPN BET becomes the “Official Sports Betting Sponsor” of the PGA Championship through 2026. The 2024 PGA Championship will take place at Valhalla Golf Club in Louisville, Kentucky from May 16-19.

This agreement marks a milestone for the PGA Championship as it becomes the first men’s golf major to establish an official sports betting sponsor. ESPN BET is a best-in-class online sportsbook that combines PENN’s proprietary in-house technology and deep sportsbook operational expertise with ESPN’s industry-leading brand and multiplatform reach.

“We are incredibly proud to partner with PENN Entertainment and immerse ESPN BET into the spectator experience throughout the PGA Championship. The added onsite presence of ESPN BET as well as broadcast and content offerings will provide spectators with exciting new ways to enjoy and engage with all of the action during the PGA Championship,” said Jeff Price, PGA of America Chief Commercial Officer.

“We’re pleased to be the PGA of America’s first ever gaming partner and align ESPN BET with this prestigious men’s golf major. We look forward to accessing highly engaging touchpoints to bring ESPN BET onto the course and into the PGA Championship broadcast on ESPN. With the PGA Championship set to take place in states where ESPN BET operates through 2026, this partnership provides us with a great opportunity to interact with and engage golf fans,” said Jason Birney, Vice President of Operations at PENN Interactive.

The 2024 PGA Championship will feature the ESPN BET Members Lounge located adjacent to the green on the par-4 13th hole. The ESPN BET Members Lounge is a premium hospitality space available only to ESPN BET account holders. The lounge offers views of Valhalla’s newly renovated signature 13th green and includes a variety of amenities including beverages, covered seating, a VR simulator of the 13th hole, special ESPN BET offers for patrons on site, and more. Additional consumer-facing activities will also take place in the lounge throughout the week.

In addition to activating onsite at the Championship, ESPN BET will be integrated into broadcasts on ESPN networks, with betting odds and insights provided to enhance storytelling within the Championship. The sponsorship also includes opportunities for collaborative content across PGA of America digital media platforms. In the leadup to the Championship, ESPN BET will offer specially curated PGA Championship betting offers prior to and during all four rounds of competition.

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