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Gambling.com Group Q4 Revenue Rises 52% to a Quarterly Record $32.5 Million

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  • Generates Q4 Net Income of $6.4 Million and a 54% Increase in Adjusted EBITDA to $10.6 Million
  • 2023 Full Year Revenue Increased 42% to $108.7 Million; Net Income Rose to $18.3 Million and Adjusted EBITDA Grew 53% to $36.7 Million
  • Enters into Definitive Agreement to Acquire Freebets.com and Related Assets in a Highly Accretive Transaction
  • Introduces 2024 Guidance for Revenue of $129 – $133 Million and Adjusted EBITDA of $44 – $48 Million

Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a leading provider of digital marketing services for the global online gambling industry, today reported record financial results for the fourth quarter and full year ended December 31, 2023. The Company also announced a definitive agreement to acquire Freebets.com and related assets in a transaction that is expected to be immediately accretive to the Company’s financial results upon closing. In addition, the Company introduced 2024 revenue and Adjusted EBITDA guidance as detailed below.

Fourth Quarter and Full Year 2023 vs. Fourth Quarter and Full Year 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)

Three Months Ended December 31,

Change

Year ended December 31,

Change

2023

2022

%

2023

2022

%

Revenue

32,530

21,349

52

%

108,652

76,507

42

%

Net income (loss) for the period attributable to shareholders (1)

   6,374

  (4,409

)

245

%

18,260

   2,390

664

%

Net income (loss) per share attributable to shareholders, diluted (1)

     0.16

    (0.12

)

233

%

     0.47

     0.06

683

%

Net income margin (1)

20

%

(21

) %

17

%

3

%

Adjusted net income for the period attributable to shareholders (1)(2)

   6,808

      613

1011

%

26,302

14,195

85

%

Adjusted net income per share attributable to shareholders, diluted (1)(2)

     0.18

     0.02

800

%

     0.68

     0.37

84

%

Adjusted EBITDA (1)(2)

10,572

   6,855

54

%

36,715

24,069

53

%

Adjusted EBITDA Margin (1)(2)

32

%

32

%

34

%

31

%

Cash flows (used in) generated by operating activities

   6,962

   6,188

13

%

17,910

18,755

(5

)%

Free Cash Flow (2)

     (118

)

      364

(132

) %

16,185

   9,467

71

%

__________

(1) For the three months ended December 31, 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 $0.3 million, or $0.01 per share. Similarly, these adjustments totaled $4.4 million, or $0.13 per share, for the three months ended December 31, 2022. For the year ended December 31, 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 $7.7 million, or $0.21 per share. Similarly, these adjustments totaled $11.2 million, or $0.31 per share, for the year ended December 31, 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.

Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, “Our fourth quarter results extended our strong record of delivering high top-line growth and attractive margins. With consistent execution over the years, and especially over the past four years in North America, we have established one of the strongest and highest-growth performance marketing businesses in the online gambling industry. Our operating momentum continued throughout 2023 and the undeniable power of our capital efficient business is on full display in our full year results which include a 42% increase in revenue to $108.7 million, a 53% rise in Adjusted EBITDA to $36.7 million and 71% growth in Free Cash Flow to $16.2 million.

“Our fourth quarter and full year North American revenue increased 103% and 69%, respectively. Growth was driven by new state launches, strong increases in ‘same-state’ sales and our blossoming media partnership initiatives. We are confident in our ability to continue growing our North American market share this year and we will also benefit from the recent launch of online sports betting in our home state of North Carolina, where we are off to a strong start since the market launched on March 11th.

“Gambling.com Group is positioned for continued revenue, Adjusted EBITDA and Free Cash Flow growth in 2024 and beyond across all of our markets. As significant shareholders, the founders and senior management of Gambling.com Group remain fully aligned with all owners and we are steadfastly committed to enhancing shareholder value.”

Enters into Definitive Agreement to Acquire Freebets.com and Related Assets

Gambling.com Group also announced today that it will expand its presence across the United Kingdom and other European markets through a definitive agreement to acquire Freebets.com and related assets. Closing is expected at the beginning of April, subject to customary closing conditions. Gambling.com Group anticipates that these assets will produce revenue of approximately $10.0 million and incremental Adjusted EBITDA of approximately $5.0 million during the nine months from April to December 2024.

The Company will acquire these assets for a total consideration of between $37.5 million and $42.5 million, consisting of $20.0 million paid on closing, $10.0 million paid on the six-month anniversary of closing and between $7.5 million and $12.5 million to be paid on the one-year anniversary of the closing subject to the revenue performance of the assets during the remainder of 2024. Gambling.com Group expects to fund the purchase price from existing cash on hand, borrowings under the recently announced credit facility and future cash flow.

“This acquisition will provide us with another big brand and assets that complement our existing website portfolio in a number of our key-focus markets, enabling us to drive further growth which is both high margin and highly accretive,” said Charles Gillespie. “By operating these assets on our technology platform, we expect to unlock their full potential. We are confident that this latest acquisition will create incremental shareholder value in the same way we have done with previous acquisitions.”

Fourth Quarter 2023 and Recent Business Highlights

  • Grew North American revenue 103% to $20.3 million
  • Delivered more than 159,000 new depositing customers (“NDCs”)
  • Strong contribution from Kentucky following launch in late September
  • Acquired European casino domains and related assets for $6.4 million
  • Repurchased 205,727 shares for an average price of $9.70
  • Won the iGB Casino Affiliate of the Year Award
  • Launched operations in our home state of North Carolina on March 11th
  • Secured new $50 million credit facility with Wells Fargo Bank, National Association
  • Entered into a definitive agreement to acquire Freebets.com and related assets

Elias Mark, Chief Financial Officer of Gambling.com Group, added, “The strong value we create for our online gambling operator partners is evident in the 56% increase in the number of NDCs we sent to them in 2023. Consistent with our capital efficient DNA, nearly all of our revenue growth in 2023 was organic(1) which we again converted into Free Cash Flow at a very high percentage. We are positioned to further our operating momentum in 2024 as the mid-points of our revenue and Adjusted EBITDA outlook reflect growth of 21% and 25%, respectively.”

(1) Organic growth refers to the percentage change in revenue during a period compared to the same period in the previous year. Organic growth is adjusted to exclude revenue from businesses acquired during the preceding 12 months.

2024 Outlook

The Company announced its 2024 guidance as follows:

Low

Midpoint

High

FY 2023

Revenue (millions)

129

131

133

108.7

Adjusted EBITDA (millions)

44

46

48

36.7

The Company introduces full year 2024 guidance for revenue of $129 million to $133 million and Adjusted EBITDA of $44 million to $48 million.

The Company’s guidance assumes:

  • Following the launch of sports betting in North Carolina on March 11th, no additional North American markets coming online over the balance of 2024
  • No benefit from any new acquisitions, apart from approximately $10 million in revenue and $5 million in incremental Adjusted EBITDA related to the acquisition of Freebets.com and related assets as described above
  • An average EUR/USD exchange rate of 1.09 throughout 2024

Conference Call Details

Date/Time:

Thursday, March 21, 2024, at 8:00 a.m. ET

Webcast:

webcast-eqs.com/gamb20240314/en

U.S. Toll-Free Dial In:

877-407-0890

International Dial In:

1 201-389-0918

To access, please dial in approximately 10 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.

About Gambling.com Group Limited

Gambling.com Group Limited (Nasdaq: GAMB) (the “Group”) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active in the online gambling industry. Founded in 2006, the Group has offices globally, primarily operating in the United States and Ireland. Through its proprietary technology platform, the Group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com, Casinos.com and RotoWire.com. Gambling.com Group owns and operates more than 50 websites in seven languages across 15 national markets covering all aspects of the online gambling industry, including iGaming and sports betting, and the fantasy sports industry.

Use of Non-IFRS Measures

This press release contains certain non-IFRS financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and related ratios. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to our expectation of continued growth in the North American market and other established markets, benefits from the recent launch of online sports betting in North Carolina, our ability to scale and optimize our media partnerships, whether the acquisition of Freebets.com and related assets is immediately accretive and creates additional shareholder value, the 2024 revenue of Freebets.com and related assets, the funding of the purchase price and whether the customary closing conditions of the acquisition of Freebets.com and related assets will be met, the expected continuation to benefit from near- and long-term opportunities to deliver profitable organic growth, whether our ability to leverage revenue drivers with our business model will continue to increase shareholder value, availability of additional, accretive acquisition opportunities, and our 2024 outlook, are all forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “could,” “will,” “would,” “ongoing,” “future” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance, or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual results to differ materially from our expectations are discussed under “Item 3. Key Information – Risk Factors” in Gambling.com Group’s annual report filed on Form 20-F for the year ended December 31, 2022 with the U.S. Securities and Exchange Commission (the “SEC”) on March 23, 2023, and Gambling.com Group’s other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Gambling.com Group disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(USD in thousands, except per share amounts)

The following table details the consolidated statements of comprehensive income for the three and twelve months ended December 31, 2023 and 2022 in the Company’s reporting currency and constant currency.

Reporting Currency

Constant Currency

Reporting Currency

Constant Currency

Three Months Ended December 31,

Change

Change

Twelve Months Ended December 31,

Change

Change

2023

2022

%

%

2023

2022

%

%

Revenue

32,530

21,349

52

%

45

%

108,652

76,507

42

%

38

%

Cost of sales

(5,089

)

(629

)

709

%

668

%

(9,112

)

(2,959

)

208

%

198

%

Gross profit

27,441

20,720

32

%

26

%

99,540

73,548

35

%

31

%

Sales and marketing expenses

(9,687

)

(9,401

)

3

%

(2

(35,331

)

(33,740

)

5

%

1

%

Technology expenses

(3,058

)

(2,208

)

39

%

31

%

(10,287

)

(6,764

)

52

%

47

%

General and administrative expenses

(6,994

)

(5,201

)

34

%

28

%

(24,291

)

(19,519

)

24

%

21

%

Movements in credit losses allowance

468

102

359

%

337

%

(914

)

(796

)

15

%

11

%

Fair value movement on contingent consideration

(4,317

)

(100

) %

(100

) %

(6,939

)

(10,852

)

(36

) %

(38

) %

Operating profit

8,170

(305

)

2779

%

(2637

) %

21,778

1,877

1060

%

1023

%

Finance income

620

100

%

100

%

634

2,322

(73

) %

(74

) %

Finance expenses

(2,577

)

(4,434

)

42

%

(45

) %

(2,271

)

(1,299

)

75

%

69

%

Income before tax

6,215

(4,739

)

231

%

(224

) %

20,141

2,900

595

%

572

%

Income tax (charge) credit

159

330

(52

) %

(54

) %

(1,881

)

(510

)

269

%

257

%

Net income for the period attributable to shareholders

6,374

(4,409

)

245

%

(237

) %

18,260

2,390

664

%

640

%

Other comprehensive income (loss)

Exchange differences on translating foreign currencies

4,953

9,095

(46

) %

(48

) %

2,868

(4,793

)

(160

) %

(158

) %

Total comprehensive income (loss) for the period attributable to shareholders

11,327

4,686

142

%

(129

) %

21,128

(2,403

)

979

%

952

%

Consolidated Statements of Financial Position (Unaudited)
(USD in thousands)

DECEMBER
31,

2023

DECEMBER
31,

2022

ASSETS

Non-current assets

Property and equipment

908

714

Right-of-use assets

1,460

1,818

Intangible assets

98,000

88,521

Deferred compensation cost

29

Deferred tax asset

7,134

5,832

Total non-current assets

107,502

96,914

Current assets

Trade and other receivables

21,938

12,222

Inventories

75

Cash and cash equivalents

25,429

29,664

Total current assets

47,367

41,961

Total assets

154,869

138,875

EQUITY AND LIABILITIES

Equity

Share capital

Capital reserve

74,166

63,723

Treasury shares

(3,107

)

(348

)

Share options and warrants reserve

7,414

4,411

Foreign exchange translation deficit

(4,207

)

(7,075

)

Retained earnings

44,658

26,398

Total equity

118,924

87,109

Non-current liabilities

Other payables

290

Deferred consideration

4,774

Contingent consideration

11,297

Lease liability

1,190

1,518

Deferred tax liability

2,008

2,179

Total non-current liabilities

3,198

20,058

Current liabilities

Trade and other payables

10,793

6,342

Deferred income

2,207

1,692

Deferred consideration

18,811

2,800

Contingent consideration

19,378

Other liability

308

226

Lease liability

533

554

Income tax payable

95

716

Total current liabilities

32,747

31,708

Total liabilities

35,945

51,766

Total equity and liabilities

154,869

138,875

Consolidated Statements of Cash Flows (Unaudited)
(USD in thousands)

Three Months Ended December
31,

Year ended
December 31,

2023

2022

2023

2022

Cash flow from operating activities

Income before tax

6,215

(4,739

)

20,141

2,900

Finance cost / (income), net

1,957

4,434

1,637

(1,023

)

Adjustments for non-cash items:

Depreciation and amortization

568

1,401

2,088

6,959

Movements in credit loss allowance

(468

)

(102

)

914

796

Fair value movement on contingent consideration

4,317

6,939

10,852

Share-based payment expense

817

814

3,607

3,214

Warrants repurchased

(800

)

Income tax paid

(2,063

)

(628

)

(3,826

)

(1,444

)

Payment of contingent consideration

(4,621

)

Payment of deferred consideration

(2,897

)

Cash flows from operating activities before changes in working capital

7,026

5,497

23,982

21,454

Changes in working capital

Trade and other receivables

(3,260

)

(907

)

(10,387

)

(5,838

)

Trade and other payables

3,196

1,673

4,240

3,214

Inventories

(75

)

75

(75

)

Cash flows (used in ) generated by operating activities

6,962

6,188

17,910

18,755

Cash flows from investing activities

Acquisition of property and equipment

(157

)

(451

)

(330

)

Acquisition of intangible assets

(6,924

)

(5,824

)

(8,792

)

(8,958

)

Acquisition of subsidiaries, net of cash acquired

(23,411

)

Interest received from bank deposits

90

259

Payment of deferred consideration

(4,933

)

Payment of contingent consideration

(5,557

)

Cash flows used in investing activities

(6,991

)

(5,824

)

(19,474

)

(32,699

)

Cash flows from financing activities

Exercise of share options

106

Treasury shares acquired

(1,813

)

(348

)

(2,572

)

(348

)

Repayment of borrowings

(6,000

)

(6,000

)

Interest payment attributable to third party borrowings

(99

)

(458

)

Interest payment attributable to deferred consideration settled

(110

)

Principal paid on lease liability

(98

)

(75

)

(402

)

(315

)

Interest paid on lease liability

(38

)

(47

)

(165

)

(189

)

Cash flows used in financing activities

(1,949

)

(6,569

)

(3,143

)

(7,310

)

Net movement in cash and cash equivalents

(1,978

)

(6,205

)

(4,707

)

(21,254

)

Cash and cash equivalents at the beginning of the period

26,884

35,092

29,664

51,047

Net foreign exchange differences on cash and cash equivalents

522

777

472

(129

)

Cash and cash equivalents at the end of the period

25,429

29,664

25,429

29,664

Earnings Per Share

Below is a reconciliation of basic and diluted earnings per share as presented in the Consolidated Statement of Comprehensive Income for the period specified, stated in USD thousands, except per share amounts (unaudited):

Three Months Ended
December 31,

Reporting
Currency
Change

Constant
Currency
Change

Year Ended December
31,

Reporting
Currency
Change

Constant
Currency
Change

2023

2022

%

%

2023

2022

%

%

Net income for the period attributable to shareholders

6,374

(4,409

)

245

%

(237

) %

18,260

2,390

664

%

640

%

Weighted-average number of ordinary shares, basic

37,403,888

36,467,299

3

%

3

%

37,083,262

35,828,204

4

%

4

%

Net income per share attributable to shareholders, basic

0.17

(0.12

)

242

%

(231

) %

0.49

0.07

600

%

600

%

Net income for the period attributable to shareholders

6,374

(4,409

)

245

%

(237

) %

18,260

2,390

664

%

640

%

Weighted-average number of ordinary shares, diluted

38,879,038

37,289,010

4

%

4

%

38,542,166

38,212,108

1

%

1

%

Net income per share attributable to shareholders, diluted

0.16

(0.12

)

233

%

(233

) %

0.47

0.06

683

%

683

%

Supplemental Information

Rounding

We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

Non-IFRS Financial Measures

Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.

Adjusted Net Income and Adjusted Net Income Per Share

Adjusted net income is a non-IFRS financial measure defined as net income attributable to equity holders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. Adjusted net income per diluted share is a non-IFRS financial measure defined as adjusted net income attributable to equity holders divided by the diluted weighted average number of common shares outstanding.

We believe adjusted net income and adjusted net income per diluted share are useful to our management as a measure of comparative performance from period to period as these measures remove the effect of the fair value gain or loss related to the contingent consideration, unwinding of deferred consideration, and certain employee bonuses, all associated with our acquisitions, during the limited period where these items are incurred. We expect to incur expenses related to the unwinding of deferred consideration and employee bonuses until April 2024. See Note 5 of the consolidated financial statements for the year ended December 31, 2023 for a description of the contingent and deferred considerations associated with our acquisitions.

Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share, diluted from net income for the period attributable to the equity holders and net income per share attributed to ordinary shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income (Loss) and for the period specified stated in the Company’s reporting currency and constant currency (unaudited):

Reporting Currency

Constant
Currency

Reporting Currency

Constant
Currency

Three months ended
December 31,

Change

Change

Year ended December
31,

Change

Change

2023

2022

%

%

2023

2022

%

%

Revenue

32,530

21,349

52

%

45

%

108,652

76,507

42

%

38

%

Net income (loss) for the period attributable to shareholders

6,374

(4,409

)

245

%

(237

) %

18,260

2,390

664

%

640

%

Net income margin

20

%

(21

) %

17

%

3

%

Net income (loss) for the period attributable to shareholders

6,374

(4,409

)

245

%

(237

) %

18,260

2,390

664

%

640

%

Fair value movement on contingent consideration (1)

4,317

(100

) %

(100

) %

6,939

10,852

(36

) %

(38

) %

Unwinding of deferred consideration (1)

309

77

301

%

277

%

735

325

126

%

119

%

Employees’ bonuses related to acquisition(1)

125

628

(80

) %

(81

) %

368

628

(41

) %

(43

) %

Adjusted net income for the period attributable to shareholders

6,808

613

1011

%

939

%

26,302

14,195

85

%

79

%

Net income per share attributable to shareholders, basic

0.17

-0.12

242

%

(231

) %

0.49

0.07

600

%

600

%

Effect of adjustments for fair value movements on contingent consideration, basic

0.00

0.12

(100

) %

(100

) %

0.19

0.30

(37

) %

(39

) %

Effect of adjustments for unwinding on deferred consideration, basic

0.01

0.01

%

%

0.02

0.01

100

%

100

%

Effect of adjustments for bonuses related to acquisition, basic

0.00

0.01

%

%

0.01

0.02

(50

) %

(50

) %

Adjusted net income per share attributable to shareholders, basic

0.18

0.02

800

%

800

%

0.71

0.40

78

%

73

%

Net income per share attributable to ordinary shareholders, diluted

0.16

-0.12

233

%

(233

) %

0.47

0.06

683

%

683

%

Adjusted net income per share attributable to shareholders, diluted

0.18

0.02

800

%

800

%

0.68

0.37

84

%

79

%

__________

(1) There is no tax impact from fair value movement on contingent consideration, unwinding of deferred consideration or employee bonuses related to acquisition.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

EBITDA is a non-IFRS financial measure defined as earnings excluding interest, income tax (charge) credit, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, foreign exchange gains (losses), fair value of contingent consideration, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.

We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management team as a measure of comparative operating performance from period to period as those measures remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.

While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.

Below is a reconciliation to EBITDA, Adjusted EBITDA from net income for the period attributable to shareholders as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited):

Reporting Currency

Constant
Currency

Reporting Currency

Constant
Currency

Three Months Ended
December 31,

Change

Change

Year ended
December 31,

Change

Change

2023

2022

%

%

2023

2022

%

%

(USD in thousands)

(USD in thousands)

Net income (loss) for the period attributable to shareholders

6,374

(4,409

)

(245

) %

(237

) %

18,260

2,390

664

%

640

%

Add back (deduct):

Interest expenses on borrowings and lease liability

38

150

(75

) %

(76

) %

165

646

(74

) %

(75

) %

Income tax charge

(159

)

(330

)

(52

) %

(52

) %

1,881

510

269

%

257

%

Depreciation expense

63

43

47

%

41

%

246

190

29

%

26

%

Amortization expense

505

1,358

(63

) %

(65

) %

1,842

6,769

(73

) %

(74

) %

EBITDA

6,821

(3,188

)

(314

) %

(303

) %

22,394

10,505

113

%

106

%

Share-based payment expense

997

814

22

%

16

%

3,787

3,214

18

%

14

%

Fair value movement on contingent consideration

4,317

(100

) %

(100

) %

6,939

10,852

(36

) %

(38

) %

Unwinding of deferred consideration

309

77

301

%

281

%

735

325

126

%

119

%

Foreign currency translation losses (gains), net

1,699

4,293

(60

) %

(62

) %

923

(2,097

)

(144

) %

(143

) %

Interest income from bank deposits

(90

)

100

%

100

%

(259

)

100

%

100

%

Other finance results

1

(86

)

(101

) %

(101

) %

73

103

(29

) %

(31

) %

Secondary offering related costs

100

%

%

733

100

%

100

%

Acquisition related costs (1)

508

100

%

100

%

821

539

52

%

47

%

Employees’ bonuses related to acquisition

125

628

(80

) %

100

%

368

628

(41

) %

(43

) %

Employee bonuses related to the public offerings

201

100

%

100

%

201

100

%

100

%

Adjusted EBITDA

10,572

6,855

54

%

47

%

36,715

24,069

53

%

48

%

__________

(1) The acquisition costs are related to historical and potential business combinations of the Group.

Below is the Adjusted EBITDA Margin calculation for the period specified stated in the Company’s reporting currency and constant currency (unaudited):

Reporting Currency

Constant
Currency

Reporting Currency

Constant
Currency

Three Months Ended December 31,

Change

Change

Year ended December
31,

Change

Change

2023

2022

%

%

2023

2022

%

%

(USD in thousands,
except margin)

(in thousands USD, except margin)

Revenue

32,530

21,349

52

%

45

%

108,652

76,507

42

%

38

%

Adjusted EBITDA

10,572

6,855

54

%

47

%

36,715

24,069

53

%

48

%

Adjusted EBITDA Margin

32

%

32

%

34

%

31

%

In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward-looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.

Free Cash Flow

Free Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities adjusted for payments related to contingent and deferred consideration included within operating cash flow less capital expenditures.

We believe Free Cash Flow is useful to our management team as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.

The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures because the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.

Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Consolidated Statement of Cash Flows for the period specified in the Company’s reporting currency (unaudited):

Three Months Ended
December 31,

Change

Year ended December
31,

Change

2023

2022

%

2023

2022

%

(in thousands USD, unaudited)

(USD in thousands, unaudited)

Cash flows generated by operating activities

6,962

6,188

13

%

17,910

18,755

(5

)

Adjustment for items presented in operating activities:

Payment of contingent consideration

%

4,621

100

%

Payment of deferred consideration

%

2,897

100

%

Adjustment for items presenting in investing activities:

Capital Expenditures (1)

(7,081

)

(5,824

)

22

%

(9,243

)

(9,288

)

%

Free Cash Flow

(118

)

364

(132

) %

16,185

9,467

71

%

__________

(1) Capital expenditures are defined as the acquisition of property and equipment and the acquisition of intangible assets, and excludes cash flows related to business combinations.

 

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Gambling in the USA

Play’n GO Announces Expansion of Rush Street Interactive Partnership with Pennsylvania Launch on BetRivers Platform 

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Swedish gaming giants’ games now live with leading operator Rush Street Interactive Incorporated in Michigan, West Virginia, New Jersey and ‘The Keystone State’

Play’n GO, the world’s leading casino entertainment provider, has today announced further expansion of its partnership with leading United States operator Rush Street Interactive Incorporated (NYSE: RSI) (RSI), which operates the BetRivers platform. The Swedish gaming giant’s content is now available with BetRivers in Pennsylvania.

Play’n GO has already had great success with RSI via the BetRivers brand in Michigan, New Jersey and West Virginia and this expansion sees the partnership extend to a fourth United States state. This announcement follows Play’n GO’s procurement of a Pennsylvania license in March and will see BetRivers players in Pennsylvania gain access to some classic titles from the Play’n GO catalogue including Reactoonz and Boat Bonanza.

Play’n GO is now licensed in six United States states and is aiming to be active in every regulated market in the United States and around the world.

“We’re excited to expand our United States offering into the great state of Pennsylvania and are proud to do so with the innovative and well-respected team at BetRivers, with whom we’ve already enjoyed such great success in recent months,” the North America Commercial Director for Play’n GO, Magnus Natt och Dag, said. “Play’n GO is committed to a safe, sustainable entertainment-led industry and we know that the team at BetRivers shares that same vision.”

“We’re very happy to be expanding our partnership with Play’n Go into Pennsylvania on our BetRivers platform,” the Chief Executive Officer for RSI, Richard Schwartz, said. “Play’n Go has an impressive portfolio of popular titles and we are thrilled to offer our BetRivers PA players its innovative and top-quality games.”

To find out more about working with Play’n GO in the United States and other regulated markets, please visit PlaynGO. com.

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Gambling in the USA

KT Group is the betting terminal of choice for the Kentucky Derby and Wrigley Field this season

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KT Group is excited to announce that its Whizz kiosks have been selected as the preferred self-service betting terminals for two iconic locations: the Kentucky Derby and Wrigley Field this season. This selection by Churchill Downs and DraftKings solidifies KT Group’s position as a leader in innovative self-service solutions.
Whizz kiosks offer superior quality, functionality, and versatility, ensuring a seamless and enhanced betting experience for patrons at these prestigious events. With industry leaders like Churchill Downs and DraftKings choosing Whizz kiosks, KT Group further strengthens its reputation as a trusted provider of cutting-edge self-service solutions in the betting industry.
The Kentucky Derby, often dubbed “The Run for the Roses,” stands as one of the most prestigious events in the world of horse racing. Held annually on the first Saturday in May at Churchill Downs in Louisville, Kentucky, the Derby attracts thousands of spectators and enthusiasts from around the globe.
“The Kentucky Derby’s rich heritage, dating back to 1875, is truly unmatched,” said Kenneth Larsen, founder of KT Group. “From the mint julep tradition to the stirring rendition of ‘My Old Kentucky Home,’ the event embodies Southern charm. We’re incredibly proud to be providing our products to be enjoyed by customers at such an iconic venue.”
Wrigley Field stands as an iconic symbol of baseball history and tradition. Located in Chicago, Illinois, Wrigley Field is the beloved home ballpark of the Chicago Cubs, one of Major League Baseball’s oldest and most storied franchises. Opening its gates in 1914, Wrigley Field has witnessed countless memorable moments and legendary players throughout its century-long history.
“Wrigley Field’s charm is undeniable,” said Kenneth Larsen, founder of KT Group. “From the ivy-covered walls to the iconic marquee, it’s a place steeped in baseball history.  And while the roar of the crowd during a close game is unmatched, Wrigley Field’s recent evolution into a multifaceted entertainment destination is exciting. We’re thrilled to be a part of providing fans with an unforgettable experience, whether they’re there for a Cubs game, a concert, or something entirely new.”
“We are incredibly proud to have our Whizz family of kiosks chosen as the betting terminals for esteemed venues like the Kentucky Derby and Wrigley Field,” says Kenneth “It’s an honour to partner with iconic brands such as Churchill Downs and DraftKings to provide cutting-edge self-service solutions for these landmark events.”
He continued, “The selection of Whizz kiosks for these high-profile events underscores our commitment to delivering cutting-edge technology and exceptional service to our clients. With a focus on innovation and customer satisfaction, KT Group continues to revolutionise the self-service industry, empowering businesses to enhance their operations and provide unparalleled experiences to their customers.”
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Gambling in the USA

BMM Testlabs Receives Official Accreditation to Test and Certify Payment Solutions for the Payment Card Industry Data Security Standard (PCI-DSS)

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Company offers a full suite of solutions to help gaming companies protect transactions, payments, and consumer data

BMM Testlabs (BMM; or the Company), the world’s original gaming test lab renowned for exceptional product compliance and certification services, today announced its official accreditation to test and certify products to ensure they adhere to the Payment Card Industry Data Security Standard (PCI-DSS). This accreditation underscores BMM Testlabs’ commitment to upholding the highest standards of security and compliance within the Gaming industry.

BMM is now a PCI Recognized Laboratory authorized by the Payment Card Industry Security Standards Council (PCI SCC) to perform security evaluations to help protect the people, processes, and technologies across the payment ecosystem to help secure payments and data worldwide.

BMM Testlabs Vice President of Security Services Julien Pottiez said, “As a trusted partner to the global gaming industry, we recognize the critical importance of maintaining the highest levels of security and compliance. Achieving accreditation to perform audits and tests against the PCI-DSS demonstrates our ongoing commitment to delivering unparalleled testing services that meet the evolving needs of our clients.”

Pottiez added, Today, the PCI-DSS standard is not only applicable to regulatory requirements, but is also proving essential in enhancing your security posture, maintaining your customersߣ trust and confidence, and reducing the risk of costly data breaches.

PCI-DSS is a set of security standards designed to ensure that all companies that accept, process, store, or transmit credit card information maintain a secure environment. PCI-DSS compliance is especially important for iGaming operators and suppliers, point-of-sale systems and retailers, and any organization that processes payments to protect the integrity of the transaction and the consumerߣs financial data.

BMM`s comprehensive PCI-DSS solutions include compliance assessment, penetration testing, auditing, and iGaming regulatory certification.

 

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