Gambling in the USA
Gambling.com Group Reports 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services for the global online gambling industry, today announced its operating and financial results for the year and the fourth quarter ended December 31, 2021.
2021 Financial Highlights
- North American revenue grew 89% to $7.5 million compared to $4.0 million for the prior year
- Revenue of $42.3 million grew 51% compared to $28.0 million for the prior year
- Net income of $12.5 million, or $0.37 per diluted share, compared to a net income of $15.2 million, or $0.49 per diluted share, for the prior year
- Adjusted EBITDA of $18.4 million increased 26% compared to $14.6 million for the prior year, representing an Adjusted EBITDA margin of 43%1
- Free cash flow of $8.4 million decreased 22% compared to $10.8 million for the prior year1
Fourth Quarter 2021 Financial Highlights
- North American revenue grew 56% to $2.2 million compared to $1.4 million in the same period for the prior year
- Revenue of $10.3 million remained consistent to $10.3 million in the same period for the prior year
- Net income of $0.9 million, or $0.02 per diluted share, compared to a net income of $8.5 million, or $0.35 per diluted share, in the same period for the prior year
- Adjusted EBITDA of $2.3 million decreased 63% compared to $6.1 million in the same period for the prior year, representing an Adjusted EBITDA margin of 22%1
- Free cash flow of $(1.8 million) compared to $3.5 million for the prior year1
Business Highlights
- Completed successful public listing of ordinary shares on the Nasdaq Global Market in July 2021 under the ticker symbol âGAMBâ
- Named the 2021 EGR Affiliate of the Year and 2021 SBC North America Casino Affiliate of the Year
- Delivered 117,000 new depositing customers in 2021 compared to 104,000 in 2020
- Launched several new U.S.- facing websites during 2021 and acquired an incredibly strong portfolio of U.S. specific domain names
- Announced the acquisition of RotoWire.com â a leader in U.S online fantasy sports â in December 2021 to leverage RotoWireâs high-quality traffic and drive substantial incremental sports betting affiliate revenue in the U.S., the acquisition was completed on January 1, 2022
- Announced media partnership with McClatchy in January 2022 to monetize the McClatchy portfolio of digital media assets through sports betting in 29 markets across 14 states
- Successfully entered the New York and Louisiana markets in January 2022
- Announced acquisition of BonusFinder.com in February 2022 to better position the Group for the upcoming market launch in Ontario and further strengthening the Group’s North American presence
âWe grew our revenue in 2021 by 51% compared to the prior year, delivered an EBITDA margin of 43% and generated over $8 million of free cash flow as many other industry players struggled to find a path to sustainable profitability,â said Charles Gillespie, Chief Executive Officer and Co-founder of Gambling.com Group. âAs we look towards 2022, we are encouraged by the strongest start to a year we have seen in our 15-year history. Helped by launches in New York and Louisiana, January was our best-single month performance ever â even before consolidating financial results from our recent acquisitions. Just in January, we have seen the total addressable market in North America expand by leaps and bounds and there is a clear path to additional state launches this year, along with the impending launch of Ontario next month. As B2C operators in the U.S. seek a path to sustainable profitability and evaluate their marketing spend going forward, we believe that the affiliate model is ideally positioned to provide operators with more effective, higher ROI investments where they can clearly attribute the source, profitability and lifetime value of a referred player. We view this shift as greatly benefitting the value of our performance marketing revenue model, and we are confident that these tailwinds support what we expect to be another year of record performance for the Group.â
2022 Outlook
Based on currently available information, the Group estimates that, for the full year 2022:
- Total revenue will be in the range of $71 million and $76 million; and
- Adjusted EBITDA will be in the range $22 million and $27 million1
Elias Mark, Chief Financial Officer of Gambling.com Group, added, âOur expectation for another year of record revenue and Adjusted EBITDA is supported primarily by our premier domain portfolio and our growing presence in the U.S. achieved through continuous investments in U.S-facing assets. Organic growth in North America is complemented by our recent acquisitions of RotoWire.com and BonusFinder.com as well as our initiatives to further our leadership in the more established markets that we currently serve. As we have stated, our Adjusted EBITDA margin may deviate from target in the short-term as we strategically invest to strengthen our U.S. footprint, which is reflected in our 2022 outlook. Nonetheless, our profitability metrics remain among the very best in the industry, and our free cash flow generation more than covers our organic growth initiatives and the acquisition of domain names and other assets. We entered 2022 on strong financial footing and are off to the best start to a year in the Company history led by strong growth in North America. We grew total revenue profitably by 51% in 2021 and we look forward to accelerate that rate of profitable growth in 2022.â
|
2021 â 2023 Financial Targets |
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|
|
|
|
|
Total Revenue Growth |
|
> Average 40% |
|
Adjusted EBITDA Margin1 |
|
> Average 40% |
|
Leverage2 |
|
< Net Debt to Adjusted EBITDA 2.5x3 |
1Â Adjusted figures represent non-IFRS information. See âNon-IFRS Financial Measuresâ and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2Â Leverage is defined as Net Debt as a proportion of Adjusted EBITDA.
3Â Net Debt is defined as Borrowings less Cash and Cash Equivalents.
|
2021 vs. 2020 Financial Highlights |
||||||||||||||||
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
|
|||||||||||||||
|
Revenue |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
|
Operating expenses |
|
|
(30,931 |
) |
|
|
(16,849 |
) |
|
|
(14,082 |
) |
|
|
84 |
% |
|
Operating profit |
|
|
11,392 |
|
|
|
11,131 |
|
|
|
261 |
|
|
|
2 |
% |
|
Income before tax |
|
|
12,164 |
|
|
|
10,752 |
|
|
|
1,412 |
|
|
|
13 |
% |
|
Net income for the period attributable to the |
|
|
12,453 |
|
|
|
15,151 |
|
|
|
(2,698 |
) |
|
|
(18 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.40 |
|
|
|
0.55 |
|
|
|
(0.15 |
) |
|
|
(27 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.37 |
|
|
|
0.49 |
|
|
|
(0.12 |
) |
|
|
(24 |
)% |
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except Adjusted EBITDA Margin, unaudited) |
|
|
|
|
|
|
|
|||||||
|
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
|
18,356 |
|
|
|
14,608 |
|
|
|
3,748 |
|
|
|
26 |
% |
|
Adjusted EBITDA Margin |
|
|
43 |
% |
|
|
52 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
8,423 |
|
|
|
10,804 |
|
|
|
(2,381 |
) |
|
|
(22 |
)% |
n/m = not meaningful
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
|
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
117 |
|
|
|
104 |
|
|
|
13 |
|
|
|
13 |
% |
- 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.
Revenue
Total revenue increased 51% to $42.3 million for the year ended December 31, 2021 compared to $28.0 million for the prior year. On a constant currency basis, revenue increased $13.4 million, or 46%. Revenue growth was organic. The increase was driven by both growth in NDCs and improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs increased 13% to 117,000 compared to 104,000 in the prior year.
Our revenue disaggregated by market is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
|
21,391 |
|
|
|
16,189 |
|
|
|
5,202 |
|
|
|
32 |
% |
|
Other Europe |
|
|
10,800 |
|
|
|
5,252 |
|
|
|
5,548 |
|
|
|
106 |
% |
|
North America |
|
|
7,484 |
|
|
|
3,959 |
|
|
|
3,525 |
|
|
|
89 |
% |
|
Rest of the world |
|
|
2,648 |
|
|
|
2,580 |
|
|
|
68 |
|
|
|
3 |
% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were primarily driven by growth in revenue from the U.K. and Ireland, Other Europe, and North America.
Our revenue disaggregated by monetization is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
|
15,616 |
|
|
|
14,738 |
|
|
|
878 |
|
|
|
6 |
% |
|
Revenue share commission |
|
|
3,596 |
|
|
|
3,308 |
|
|
|
288 |
|
|
|
9 |
% |
|
CPA commission |
|
|
18,591 |
|
|
|
9,047 |
|
|
|
9,544 |
|
|
|
105 |
% |
|
Other revenue |
|
|
4,520 |
|
|
|
887 |
|
|
|
3,633 |
|
|
|
410 |
% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven primarily by additional Cost Per Acquisition, or CPA, commission and Other revenue. The increase in Other revenue was driven by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
|
35,632 |
|
|
|
24,135 |
|
|
|
11,497 |
|
|
|
48 |
% |
|
Sports |
|
|
6,188 |
|
|
|
3,210 |
|
|
|
2,978 |
|
|
|
93 |
% |
|
Other |
|
|
503 |
|
|
|
635 |
|
|
|
(132 |
) |
|
|
(21 |
)% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
|
14,067 |
|
|
|
8,103 |
|
|
|
5,964 |
|
|
|
74 |
% |
|
Technology expenses |
|
|
3,947 |
|
|
|
2,503 |
|
|
|
1,444 |
|
|
|
58 |
% |
|
General and administrative expenses |
|
|
13,014 |
|
|
|
5,956 |
|
|
|
7,058 |
|
|
|
119 |
% |
|
Movements in credit losses allowance and write offs |
|
|
(97 |
) |
|
|
287 |
|
|
|
(384 |
) |
|
|
(134 |
)% |
|
Total operating expenses |
|
|
30,931 |
|
|
|
16,849 |
|
|
|
14,082 |
|
|
|
84 |
% |
Total operating expenses increased by $14.1 million to $30.9 million compared to $16.8 million in the prior year. On a constant currency basis, operating expenses increased by $13.5 million, or 77%. The increase was driven primarily by increased headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $14.1 million compared to $8.1 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $4.0 million compared to $2.5 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $13.0 million compared to $6.0 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA increased by 26% to $18.4 million compared to $14.6 million in the prior year representing an Adjusted EBITDA margin of 43%. The increase was driven primarily by increased revenue partly offset by increased operating expenses.
Operating profit remained relatively constant at $11.4 million compared to $11.1 million in 2020. Operating profit in 2021 was affected by non-recurring costs related to the public offering and future acquisitions by $2.6 million, and share based payments costs by $ 2.0 million ($0.7 million and $0.4 million, respectively, in 2020).
Net income totaled $12.5 million, or $0.37 per diluted share, compared to net income of $15.2 million, or $0.49 per diluted share, in the prior year. Net income in 2020 was positively affected by the recognition of deferred tax assets of $5.4 million and gain from bonds’ redemption of $1.4 million ($1.8 million and zero, respectively, in 2021).
Free Cash-flow
Total cash generated from operations of $14.0 million increased 28% compared to $10.9 million in the prior year. The increase was driven primarily by increased adjusted EBITDA. Free cash flow totaled $8.4 million compared to $10.8 million in the prior year. The decline was the result of increased cash flow generated from operations offset by increased capital expenditures consisting primarily of the acquisition of domain names and capitalized development costs.
|
Balance Sheet |
||||||||||||||||
|
|
|
AS OF |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
(in thousands, USD) |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF FINANCIAL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
|
51,047 |
|
|
|
8,225 |
|
|
|
42,822 |
|
|
|
521 |
% |
|
Working capital (2) |
|
|
46,714 |
|
|
|
10,059 |
|
|
|
36,655 |
|
|
|
364 |
% |
|
Total assets |
|
|
91,025 |
|
|
|
45,383 |
|
|
|
45,642 |
|
|
|
101 |
% |
|
Total borrowings |
|
|
5,944 |
|
|
|
5,960 |
|
|
|
(16 |
) |
|
|
(0 |
)% |
|
Total liabilities |
|
|
11,116 |
|
|
|
11,171 |
|
|
|
(55 |
) |
|
|
(0 |
)% |
|
Total equity |
|
|
79,909 |
|
|
|
34,212 |
|
|
|
45,697 |
|
|
|
134 |
% |
- Working capital is defined as total current assets minus total current liabilities.
n/m = not meaningful
Cash balances as of December 31, 2021 totaled $51.0 million, an increase of $42.8 million compared to $8.2 million as of December 31, 2020. Working capital as of December 31, 2021 totaled $46.7 million, an increase of $36.6 million compared to $10.1 million as of December 31, 2020.
Total assets as of December 31, 2021 were $91.0 million compared to $45.4 million as of December 31, 2020. Total borrowings, including accrued interest, remained constant at $5.9 million as of December 31, 2021 and 2020. Total liabilities decreased slightly as of December 31, 2021 to $11.1 million compared to $11.2 million as of December 31, 2020.
Total equity as of December 31, 2021 was $79.9 million compared to $34.2 million as of December 31, 2020.
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 Financial Highlights |
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|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
|
|||||||||||||||
|
Revenue |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
|
Operating expenses |
|
|
(9,668 |
) |
|
|
(5,897 |
) |
|
|
(3,771 |
) |
|
|
64 |
% |
|
Operating profit |
|
|
623 |
|
|
|
4,370 |
|
|
|
(3,747 |
) |
|
|
(86 |
)% |
|
Income before tax |
|
|
1,311 |
|
|
|
3,489 |
|
|
|
(2,178 |
) |
|
|
(62 |
)% |
|
Net income for the period attributable to the |
|
|
867 |
|
|
|
8,541 |
|
|
|
(7,674 |
) |
|
|
(90 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.03 |
|
|
|
0.39 |
|
|
|
(0.36 |
) |
|
|
(92 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.02 |
|
|
|
0.35 |
|
|
|
(0.33 |
) |
|
|
(94 |
)% |
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, |
|
|
|
|
|
|
|
|||||||
|
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
|
2,272 |
|
|
|
6,115 |
|
|
|
(3,843 |
) |
|
|
(63 |
)% |
|
Adjusted EBITDA Margin |
|
|
22 |
% |
|
|
60 |
% |
|
n/m |
|
|
|
(38 |
)% |
|
|
Free Cash Flow |
|
|
(1,811 |
) |
|
|
3,533 |
|
|
|
(5,344 |
) |
|
|
(151 |
)% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
|
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
28 |
|
|
|
35 |
|
|
|
(7 |
) |
|
|
(20 |
)% |
- 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.
Revenue
Total revenue in the fourth quarter remained relatively constant at $10.3 million. On a constant currency basis, revenue remained relatively constant. NDCs decreased 20% to 28,000 compared to 35,000 in the prior year. We attribute the improved monetization of NDCs to a combination of technology improvements and changes in product and market mix.
Our revenue disaggregated by market is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
|
5,226 |
|
|
|
5,780 |
|
|
|
(554 |
) |
|
|
(10 |
)% |
|
Other Europe |
|
|
2,260 |
|
|
|
2,299 |
|
|
|
(39 |
) |
|
|
(2 |
)% |
|
North America |
|
|
2,154 |
|
|
|
1,383 |
|
|
|
771 |
|
|
|
56 |
% |
|
Rest of the world |
|
|
651 |
|
|
|
805 |
|
|
|
(154 |
) |
|
|
(19 |
)% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Changes in revenue were driven by strong organic growth in our North American markets, offset by a decline in the U.K. and Ireland and, to a lesser extent, Other Europe and Rest of the world. U.K. and Ireland revenue was negatively affected by higher than usual volatility in organic search traffic. In the comparable period, U.K. and Ireland revenue was positively affected by increased demand coinciding with restrictive Covid-19 measures. Other Europe was negatively affected by regulatory changes in Germany implemented in July 2021 partly offset by growth in revenue from other European markets.
Our revenue disaggregated by monetization is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
|
2,935 |
|
|
|
5,557 |
|
|
|
(2,622 |
) |
|
|
(47 |
)% |
|
Revenue share commission |
|
|
744 |
|
|
|
1,004 |
|
|
|
(260 |
) |
|
|
(26 |
)% |
|
CPA commission |
|
|
5,202 |
|
|
|
3,271 |
|
|
|
1,931 |
|
|
|
59 |
% |
|
Other revenue |
|
|
1,410 |
|
|
|
435 |
|
|
|
975 |
|
|
|
224 |
% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue from CPA commission and Other revenue increased whereas revenue from hybrid and revenue share commission decreased. The changes in monetization were primarily a result of changes in market mix with a higher proportion of revenue from the U.S compared to the previous year. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
|
8,466 |
|
|
|
8,846 |
|
|
|
(380 |
) |
|
|
(4 |
)% |
|
Sports |
|
|
1,769 |
|
|
|
1,160 |
|
|
|
609 |
|
|
|
53 |
% |
|
Other |
|
|
56 |
|
|
|
261 |
|
|
|
(205 |
) |
|
|
(79 |
)% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue increases were driven by growth in revenue from sports products offset by a decrease in casino and other revenue.
Operating Expenses
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
|
4,632 |
|
|
|
2,442 |
|
|
|
2,190 |
|
|
|
90 |
% |
|
Technology expenses |
|
|
1,190 |
|
|
|
798 |
|
|
|
392 |
|
|
|
49 |
% |
|
General and administrative expenses |
|
|
3,877 |
|
|
|
2,609 |
|
|
|
1,268 |
|
|
|
49 |
% |
|
Movements in credit losses allowance and write offs |
|
|
(31 |
) |
|
|
48 |
|
|
|
(79 |
) |
|
|
(165 |
)% |
|
Total operating expenses |
|
|
9,668 |
|
|
|
5,897 |
|
|
|
3,771 |
|
|
|
64 |
% |
Total operating expenses increased by $3.8 million to $9.7 million compared to $5.9 million in the prior year. On a constant currency basis, operating expenses increased by $3.6 million, or 58%. The increase was driven primarily by headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $4.6 million compared to $2.4 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $1.2 million compared to $0.8 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.9 million compared to $2.6 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA decreased by 63% to $2.3 million compared to $6.1 million in the prior year representing an Adjusted EBITDA margin of 22%. The decrease was driven by increased operating expenses.
Operating profit in the fourth quarter decreased 86% to $0.6 million compared to $4.4 million in 2020. The decrease was driven primarily by a decrease in Adjusted EBITDA and an increase in share-based payments expense.
Net income in the fourth quarter totaled $0.9 million, or $0.02 per diluted share, compared to net income of $8.5 million, or $0.35 per diluted share, in the prior year. Net income in the forth quarter 2021 was positively affected by a USD/Euro foreign currency exchange gain of $1.1 million (zero in 2020). While net income in the fourth quarter of 2020 was positively affected by the recognition of deferred tax assets of $5.4 million (deferred tax asset reduction of $0.2 million in 2021).
Gambling in the USA
Spin Your Way to Political Fun in Slotland and WinADayâs Race for Office MegaMatrix Slot
The drama of the 2024 U.S. elections is here, and players can take advantage of extra bonuses to play Race for Office, Game of the Month.
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View a video version of this story
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The hottest new game from Aristocrat Gaming, Phoenix Link, is now live on casino floors, with Yaamavaâ Resort & Casino being the first in North America to offer the highly-anticipated game. As the next evolution of the international hit game, Dragon Link, Phoenix Link features player-favorite mechanics from top games with all-new themes, features, and bonuses.
âWe have been humbled by the incredible global fanfare Dragon Link has received over the years but are never ones to rest on our laurels. The teams have been working tirelessly on a follow-up that brings together all the player-favorite elements in a new and exciting way with Phoenix Link as the proud result. We were thrilled to partner with Yaamavaâ to premiere Phoenix Link with flair, excitement, and celebration,â said Victor Duarte, executive vice president of product for Aristocrat Gaming.
Phoenix Link players will enjoy the gameâs additional denominations, configurations, and jackpots on each of the launch game theme titles. Gameplay features include Hold & Spin, Free Games with multiplier wilds or twin spin reels, Phoenix Mystery trigger, and more new bonus twists. Phoenix Link is available on the Neptune Single cabinet.
âYaamavaâ is thrilled to host yet another world premiere in gaming with the launch of Phoenix Link by Aristocrat Gaming. Our Club Serrano members are already raving about this captivating extension of the player-favorite Dragon Link. Itâs a great addition to the Yaamavaâ gaming floor,â said Kenji Hall, General Manager of Yaamavaâ Resort & Casino at San Manuel, said.
Gambling in the USA
NOVOMATIC shines at G2E 2024: A street smart showcase of innovation and engagement
In line with its commitment to innovation, NOVOMATIC unveiled several ground breaking product launches that left a significant impact on the gaming industry. The V.I.P. Xâ˘Â cabinet series emerged as one of the main attractions, highlighting models such as the V.I.P. X Royal⢠1.85, V.I.P. X Dream⢠3.43, and the V.I.P. X Lounge⢠2.32. The crown jewel of the presentation was the V.I.P. Galaxy⢠2.65, setting a new benchmark for luxury cabinets with its perfect blend of comfort and state-of-the-art gaming technology. Featuring high-definition screens and immersive sound systems, the fully adjustable lounge design promises an unparalleled gaming experience, leaving customers eager to introduce these innovations onto their gaming floors.
The unveiling of a new LED wall as part of the DIAMOND Xâ˘Â series, including the DIAMOND X⢠1.55J, showcased the U.S.-style designed Piggy Prizes title. The modern and interactive design sent a clear message: NOVOMATIC Americas has fully arrived, enhancing its reputation for premium entertainment experiences.
Groundbreaking Progressives and a Robust VGT Lineup
NOVOMATIC introduced a variety of THUNDER CASH⢠GOLD Progressives featuring new titles like Charming Ladyâs Boom Coinsâ˘Â and Red Amazon Explosionâ˘. The Globe Link⢠Xtension Volume 1 & 2 also attracted considerable interest, marking a significant impact with several new themes. The excitement surrounding these progressive games was palpable, bolstered by innovative math models and enticing bonus structures.
The VGT product range received special emphasis, particularly with the Street-Smart-themed area dedicated to highlight the themes and flexible assortment of cabinet styles for markets in Illinois, Pennsylvania, West Virginia, Puerto Rico, and Georgia. This dynamic showcase reinforced NOVOMATICâs commitment to providing leading solutions in performance and player appeal within the VGT sector. Featuring both NOVOLINEâ˘Â and Magic HD customer favorite themes, this area showed the new game mixes on DIAMOND X⢠2.32, BLACK EDITION II 3.27 & BLACK EDITION II 1.49J, V.I.P. X Lounge⢠2.32 and FUNMASTER 2.27. Specifically in Illinois, featuring the Magic HD game mix consisting of the Overlay Magic Play Lock & Spin feature, and the new Poker3â˘Â multi-hand video poker mix. NOVOLINEâ˘Â games were shown on the Black Edition II 1.49J cabinet with popular games like ULTRA BOOSTâ˘Â and Money Partyâ˘Â themes. Georgia Skill showed three new game titles in the Magic HD mix while more new titles lined the streets of the NOVOMATIC booth.
Advancements in Sports Betting and Casino Management
In addition to its product line, NOVOMATIC showed their cutting-edge sports betting kiosks including the ActionBook⢠Edge 1.43J, and ActionBook⢠Plus 2.27 models. With advanced graphics and rapid processing capabilities, these kiosks offer operators unmatched flexibility and performance. The premiere of the award-winning NOVOVISIONâ˘Â casino management system was another highlight, leveraging biometric technology for enhanced player recognition and streamlined operations. Already acknowledged as a âBest CMS/Software Productâ at the European Casino Awards, this system generated significant buzz regarding its potential to revolutionize the gaming landscape.
Industry Recognition for Creative and Commercial Success
The combination of NOVOMATICâs innovative product launches and captivating booth design earned widespread acclaim. The company was recognized for its Street-Smart booth, praised for creativity, interactivity, and the memorable experiences it fostered. Industry experts and attendees alike hailed NOVOMATICâs presence at G2E 2024 as one of the most impactful.
Alexander Merwald, CEO at NOVOMATIC Americas, stated, “G2E 2024 was an incredible success for NOVOMATIC. We were proud to showcase the V.I.P. X⢠cabinet series â Our ‘Street Games, Street Smart’ focus resonated strongly, as we demonstrated how our tailored solutions meet the real-world needs of both casino and VGT operators. The response from customers reaffirmed NOVOMATIC’s position as a leader in delivering innovation, performance, and market-specific strategies for North America.”
Thomas Schmalzer, VP of Global Sales, and Product Management at NOVOMATIC AG, added, “The product diversity and innovation showcased at G2E 2024 have been enthusiastically received by both operators and players. Our V.I.P. X⢠series and extensive range of progressives reflect our unwavering commitment to delivering premium solutions to the global market.”
With new partnerships established and product placements secured at G2E 2024, NOVOMATIC is primed to expand its market presence across North America. The success at this yearâs expo signifies a vital step forward in the companyâs mission to set the standard for gaming entertainment.
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