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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

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  • 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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Plaza Hotel & Casino launches Stay for a Cause to benefit St. Jude’s Ranch for Children

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Located in the heart of downtown Las Vegas, the Plaza Hotel & Casino has partnered with the Southern Nevada charity, St. Jude’s Ranch for Children, to launch Stay for a Cause.

Any guest who books a room at the Plaza Hotel & Casino for check-in prior to Dec. 31, 2025, via the Stay for a Cause hotel package will have 20 percent of the room rate automatically donated to St. Jude’s Ranch for Children. Established in 1966, the nonprofit organization helps provide healing and hope to abused and at-risk children in Southern Nevada.

“The Plaza has previously held toy drives to benefit St. Jude’s Ranch for Children, and we wanted to expand our partnership this year,” said Gary Vickery, vice president of operations at the Plaza Hotel & Casino. “With Stay for a Cause, guests can enjoy a great vacation at the Plaza and make a difference in our community at the same time.”

“We are grateful to the Plaza for their generous support through this innovative program,” said St. Jude’s Ranch for Children CEO Dr. Christina Vela. “By choosing to stay at the Plaza, guests are not just enjoying the wonderful accommodations, but also contributing to providing healing and hope to abused, neglected, exploited, and/or homeless children. We extend our heartfelt thanks to the Plaza and all the guests who choose to make their stay count for a greater cause.”

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New Study Reveals Economic and Social Risks of iGaming

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In response to the increasing concerns over the social and economic risks of iGaming, the gaming and entertainment business leaders have joined forces to launch the National Association Against iGaming (NAAiG).

The organization is formed in opposition to the expansion of iGaming and its well-reported economic and social dangers and urges other local businesses, employee unions, and community groups to mobilize in their effort to protect local communities.

A new study for NAAiG by The Innovation Group, a research and advisory firm specializing in gaming, hospitality, and tourism that has previously conducted multiple studies of online gambling for state governments and industry stakeholders, debunks the myth that iGaming offers easy revenue for states. Instead, the study uncovers the damaging effects of iGaming expansion, exposing widespread job losses and significant declines in economic output across multiple states.

Main findings of the report:

Land-based casino revenue drops by 16% on average after iGaming is introduced, leading to substantial job losses, hundreds of millions of dollars in lost economic output and reduced tax contributions that fund public services.

States introducing iGaming face significant economic losses, with projected job cuts reaching 4921 in New York and 4733 in Illinois by 2029.

iGaming results in significant losses for states in economic output. All states analyzed would see massive GDP reductions, including Ohio ($602 million), Indiana ($428 million), Maryland ($372 million), and Colorado ($313 million).

States’ net tax gains from iGaming are limited, even before accounting for the increased social costs associated with its high rates of problem gambling and related social ills. For instance, Louisiana, Maryland, and Mississippi could all see negative net tax revenue due to displaced in-person gaming dollars and related impacts on state and local economies.

Brick-and-mortar casinos in every state would face significant revenue losses due to iGaming cannibalization. Projections reach up to $983.7 million in New York, $545.3 million in Illinois, $522.6 million in Ohio, and $342.6 million in Maryland by 2029.

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The introduction of iGaming reduces in-person casino employment, with an estimated 2818 jobs lost in Ohio, 2642 in Louisiana and 1906 in Mississippi.

The job losses caused by iGaming will result in massive reductions each year in employee wages and related taxes for states. Annual labor income losses would reach nearly $110 million in Colorado and Maryland, $204 million in Ohio, nearly $300 million in Illinois, and nearly $450 million in New York.

States with iGaming experience an 8.3% decline in distributed gaming revenue, impacting taverns and small gaming establishments.

Projected U.S. gambling losses from iGaming are expected to surpass $1 trillion by 2028, straining local economies and public health resources.

“These statistics underscore the urgent need for action. iGaming’s unchecked access to gambling on cell phones is bad public policy that threatens local jobs and businesses and will cost states. When increased social costs caused by iGaming higher rates of underage and problem gambling are considered, the net tax revenue results are uniformly negative for every state,” said Mark Stewart, EVP & General Counsel of The Cordish Companies and NAAiG board member. “

“Beyond the lack of any real upside for states, iGaming puts vulnerable individuals at greater risk of problem gambling and financial instability. NAAiG is uniting stakeholders to push back and stop the spread of these harmful trends and advocate for responsible gaming policies,” said NAAiG board member Jason Gumer, Executive Vice President and General Counsel at Monarch Casino & Resort Inc.

“iGaming is eroding our communities. This isn’t just about responsible gaming—it’s about protecting local family-sustaining jobs and preventing financial harm. In Maryland alone, iGaming could cost $372 million in economic output, $342.6 million in lost casino revenue and nearly $110 million in annual wages. We must act now to protect our state and local economies nationwide,” said Shannon McCracken, Senior Director of Government Relations at Churchill Downs Incorporated and NAAIG board member.

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SCCG Partners with SFT Combat

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SCCG Management has announced a strategic partnership with SFT Combat, Brazil’s premier mixed martial arts (MMA) organization, to facilitate betting sponsorship opportunities within Brazil’s rapidly growing sports betting market.

Through this partnership, SCCG Management will leverage its expertise in the Brazilian gaming market to connect SFT Combat with leading sports betting operators and brands. SCCG has a proven track record of securing high-impact sponsorship deals across sports, with partnerships that include the Cincinnati Bengals, Colorado Rockies, Hendrick Motorsports, and Pillow Fight Championship. By tapping into SCCG’s global network and industry expertise, this collaboration will drive new revenue opportunities and enhance the commercial appeal of combat sports in Brazil.

Stephen Crystal, Founder & CEO of SCCG Management, said: “Brazil is one of the most exciting and rapidly evolving sports betting markets in the world, and combat sports hold a special place in its culture. Our partnership with SFT Combat allows us to bring top-tier betting brands into this thriving ecosystem while ensuring sponsorships are strategically aligned with the promotion’s elite-level competition and massive television audience. SCCG specializes in securing the right partners for the right opportunities, and we’re thrilled to help drive SFT Combat’s sponsorship growth in the gaming sector.”

David Hudson, President of SFT Combat, said: “I am absolutely thrilled about this groundbreaking partnership! Brazil isn’t just a country—it’s the powerhouse exporting the finest MMA talent outside the US. With a roster of world-class fighters, our nation is uniquely positioned to host events that captivate the global stage. This alliance is a pivotal step, one that will not only showcase our unmatched talent but also propel us towards creating truly world-class events. Together, we’re redefining the future of combat sports.”

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