Press Releases
$2.5 Trillion Dollar Millennial Megawave Drives Boom in Video Games and Sports Betting: CEOs of Electronic Arts, FansUnite, ESE Entertainment, and Penn National Discuss New Paradigms of Interactive Entertainment
Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: FansUnite, Electronic Arts, ESE Entertainment, and Penn National Gaming.
“Video games have replaced music as the most important aspect of youth culture” is the headline of a recent article in The Guardian, which parallels recent reporting in The Washington Post, and New York Times, highlighting new paradigm shifts in entertainment and consumer behavior. Millennials and GenZ now have $2.5 trillion in spending power, replacing Baby Boomers as the dominant consumer force. The global video gaming industry took in an estimated $180bn in 2020 – more than sports and movies worldwide. The new generation prefers interactive forms of entertainment such as video games and online sports betting. Younger generations left behind traditional media for social media over the past decade – and now they are leaving behind social media for more interactive experiences. Wall Street Reporter highlights the latest comments from industry thought leaders:
“…After the biggest first quarter in the history of Electronic Arts, our second quarter of FY 2021 showed continued strength with net revenue and earnings above our guidance. We are driving growth through the breadth, depth and quality of our new games, our industry-leading live services and expansion to more platforms and more ways to play… We delivered eight new games so far this year, and our network has grown to more than 330 million unique accounts as tens of millions of new players have joined to enjoy more of our amazing games and content. EA SPORTS continues to be a leader in sports interactive entertainment…
“…Our esports programs are scaling the new records in viewership also. Our new Madden NFL episodic content featuring NFL athletes, celebrities and top Madden NFL players is bringing great entertainment to a much wider audience. And our recent FIFA 21 challenge, which paired esports stars with celebrity soccer players was our most-watched esports event to date, with viewership that places it among top esports broadcast worldwide.
“A few thoughts on our growth drivers for FY 2022 and beyond: Each previous console generation has grown in the global market and we expect this transition will be the same. We plan to launch at least six new games on the next-gen consoles in FY 2022. These will include a new Need for Speed game that is bringing some astounding visual leaps, developed by the Criterion team who have launched some of the most highly-rated games in franchise history…”
In a recent presentation at Wall Street Reporter’s NEXT SUPER STOCK livestream, FansUnite (OTC: FUNFF) (CSE: FANS) CEO Scott Burton explained how the company’s latest distribution deal with an online casino games aggregator sets the stage for exponential revenue growth opportunities. In the next 12 months, FUNFF plans to expand its current line from three games to twelve – while adding multiple aggregators for each game – reaching millions of new online casino customers worldwide. With each game generating as much as $500,000 in revenue per month for FUNFF – per online casino – and the potential to be in hundreds of online casinos – these numbers can quickly add up.
January 11 – FUNFF closes an oversubscribed C$13.4 million private placement driven by strong investor demand. “The successful closing of this upsized financing provides further validation that the global gambling market is seeing a resurgence in demand from investors,” said Scott Burton, CEO of FansUnite. “Despite the headwinds caused by the global pandemic in 2020, we saw consumers adopt and embrace online betting for its ease of access and simplicity. With our seasoned team of gaming operators, global B2C brands, and our industry adopted B2B technology platform, we were able to execute on multiple milestones that delivered value to our customers and shareholders. As we now look to advance our operations globally, we believe this additional capital will allow us to explore strategic initiatives and execute on our vision of becoming a globally recognized iGaming leader.”
December 16 – FUNFF gains first-mover advantage into the U.S. esports betting market, as its long-term partner GameCo joins US Bookmaking and Sky Ute Casino to establish the first dedicated esports sportsbook in the United States. FUNFF wholly-owned subsidiary Askott Entertainment will supply its iGaming platform, Chameleon, as part of a fully integrated esports betting solution. Through GameCo’s partnership with Sky Ute Casino and US Bookmaking, FansUnite will be the first iGaming solutions provider to receive significant exposure in the U.S. esports betting market.
December 7 – FUNFF receives Malta Gaming Service License and Critical Gaming Supply, and will now be able to offer a full spectrum of online gambling services in Europe, covering Casino, Fixed Odds Betting, Pool Betting and Controlled Skilled Games. With MGA approval received, FansUnite will be joining other highly respected gambling companies such as PokerStars, Betfair and Unibet in operating their business within MGA regulations.
ESE Entertainment (TSX.V: ESE) (OTC: ENTEF) CEO, Konrad Wasiela, a featured presenter at Wall Street Reporter’s NEXT SUPER STOCK investors livestream conference, shares his vision for building ESE into the dominant player in the multi-billion dollar global E-Sports market. ESE is now rapidly expanding, with multiple revenue streams, including E-Sports infrastructure software powering global tournaments, exclusive digital media distribution, broadcast rights, and owning world-class leagues and teams, including its K1CK global E-Sports franchise.
In his interview with Wall Street Reporter, ESE CEO, Konrad Wasiela, says the company is now ready to scale – expanding its global footprint, with new partnerships with global brands like Porsche, driving revenue growth with aggressive focus on top line sales and margin expansion, and M&A opportunities.
January 8 – ESE announces Actina, a leading gaming hardware brand, is sponsoring ESE’s K1CK e-sports team for the 2021 season. The League of Legends K1CK team Competes in Ultraliga, a Riot Games licensed league that is broadcasted on national TV in Poland on the Polsat Games Channel.
December 24 – ESE closes an oversubscribed private placement of C$3.6 million.
December 17 – ESE announces that Nuvei Corporation (NVEI), a leading global payment technology company, will be the title sponsor for ESE’s K1CK e-sports team for all of its competitions for the 2021 season, across League of Legends, FIFA, Apex Legends, and more.
“…we’re most excited about the potential for significant long-term growth and value creation through our highly differentiated omnichannel strategy. To that end, we look forward to the launch of our Barstool Sportsbook mobile app in September here in Pennsylvania. We think Barstool’s loyal followers and our existing casino guests will greet unlike anything in the market today… Our Hollywood branded real money iCasino product in Pennsylvania continues to grow nicely even after the reopening of our casinos the last couple of months, with a meaningful portion of our revenues coming from our inactive database. Our proven ability to convert our casino database, together with our partnership with Barstool Sports, will provide significant organic customer acquisition and cross-sell opportunities. In sum, we believe we are extremely well-positioned to capture an outsized share of the growing US sports betting and iCasino market… Despite the ongoing uncertainties with this pandemic, we’re extremely excited for the future and believe all the seeds we planted throughout 2020 will provide a strong foundation for new growth and opportunity ahead.
“…we’ve taken our time to launch Barstool because we’re launching a very competitive product with things like traveling wallet. I think our bet flip experience is second to none, the intuitiveness of how to use the app, and importantly the exclusive betting options, are really the differentiation that we’re going to I think be able to deliver, it’s going to get better over time, but even day one – and I am not going to get too much detail here because we’re yet to see it when we launch it. You’re going to see a lot of opportunities to engage with Dave Portnoy, and Big Cat, and Brandon Walker, and Marty Mush, and many others at Barstool – if you want, bet with them, or you want to bet against them, if you want to save their bets. These are things we’re going to be able to do day one and I think you should imagine that the content and the branding integration into our app with Barstool is just going to get better and better and better every time we do a version release, and we think that we’ll be able to do a new version release probably every six weeks after we launch, so I’m excited about everything…”
Latest News
Galaxy Gaming® and IGT PlayDigital Announce Five-Year Licensing Agreement for Table Game Content
Galaxy Gaming, Inc. announced a licensing arrangement with leading North American global iGaming content and services supplier IGT PlayDigital™. IGT PlayDigital will license Galaxy’s premium table game content for IGT PlayDigital’s online content portfolio under a five-year agreement.
“I’m delighted to bring Galaxy games back to our valued partners at IGT,” said Jason McCulloch, Vice President of iGaming at Galaxy Gaming. “Our products complement each other strategically and given the impressive performance of IGT PlayDigital’s table games, I’m confident that Galaxy Gaming titles will drive further growth and success for both companies.
Under the agreement Galaxy’s popular online brands, including 21+3®, Perfect Pairs®, Buster Blackjack®, Lucky Lucky®, Lucky Ladies® and Caribbean Stud® — will continue to strengthen IGT PlayDigital’s already high-performing online table games portfolio.
“IGT PlayDigital is pleased to enhance our market-leading iGaming content portfolio with popular online table games from Galaxy Gaming,” said Gil Rotem, IGT PlayDigital President. “As evidenced by IGT PlayDigital’s high performing ‘IGT Blackjack’ game, players around the world readily enjoy table games on their PCs and mobile devices and we believe this content expansion will help our customers engage players and differentiate their offerings.”
Latest News
ACR POKER’S LIGHTNING PKOS DELIVER FAST-PACED TOURNAMENT POKER ACTION AND BIG WINS IN JUST 45 MINUTES
Poker players looking for lightning-fast tournament poker action are heading to ACR Poker. The popular global poker site is bringing the heat with Lightning PKOs—a rapid progressive knockout tournament format that delivers high-speed play and big knockout prizes in tournaments that last just 45 minutes.
“If you’re a family man like me, finding time to play tournaments can be a challenge,” said ACR Pro and poker legend Chris Moneymaker. “ACR Poker’s Lightning PKOs are perfect for time-starved players who love fast-paced poker action and big knockout rewards without the long grind. Whether you’re playing on mobile or desktop, there’s 45-minute tournaments running around the clock, making it easy to find a game and join the excitement anytime.”
Running 24/7, Lightning PKOs give players the flexibility to jump into the action at any time. With buy-ins ranging from $0.11 up to $31.50, these tournaments cater to every bankroll while providing the chance to play for instant knockout bounties. With 20 minutes of late registration, players can join on the fly without missing out.
Unlike traditional poker tournaments that can last for hours, Lightning PKOs keep the action moving, with every tournament wrapping up in just 45 minutes. Players start with 10 big blinds and every knockout results in an instant cash prize. With more players joining daily, the prize pools continue to grow, offering even greater rewards in every tournament.
Lightning PKOs are now available as part of ACR Poker’s recently revamped tournament schedule, giving players the chance to jump in and play anytime, anywhere.
In addition to the high-energy Lightning PKOs, players can experience even more action at ACR Poker throughout March and April. The Online Super Series runs until Monday, March 31st, featuring $25 million in guarantees and a $35,000 Leaderboard Contest. Players can also jump into the $12 million guaranteed Dual Venom tournaments starting Sunday, April 13th and secure their $2,650 seat for as little as $0 through the Venom Vault and Venom Fever Satellites.
2025 Guidance Mid-points Imply 35% and 40% Year-Over-Year Revenue and Adjusted EBITDA Growth
Gambling.com Group Limited, a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the fourth quarter and full-year ended December 31, 2024.
Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, “Our record fourth quarter and full-year results were driven by our team’s prioritization of iGaming across the markets where we operate. Our team delivered outstanding performance in the quarter, especially when compared to the launch driven results in the prior-year period. We anticipate growth and continued market share gains in our performance marketing business across all geographic regions in 2025, including North America. The consolidation of Odds Holdings, Inc. from January 1st marks the start of the Company’s next phase of growth as we layer on sports data solutions to our existing, high-growth, high-margin business. Our competitive positioning is strong across the globe.”
“We capped an active and productive year during which we set the stage for continued strong growth in 2025 and beyond,” said Mr. Gillespie. “In 2024, we extended our record of delivering full-year revenue, Adjusted EBITDA and Free Cash Flow growth with those metrics improving 17%, 33%, and 81%, respectively, year-over-year. In addition, we strengthened our product and market positioning organically as well as through the complementary, accretive acquisitions of Freebets.com and Odds Holdings. With the biggest and most talented team we have ever had and an enhanced product offering, we are making great progress towards our goal of reaching $100 million in annual Adjusted EBITDA.”
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Fourth quarter revenue and Adjusted EBITDA increased 9% and 39% year-over-year, respectively, and over 80% of Adjusted EBITDA converted to free cash flow, reflecting the continued success of our strategies to optimize the returns from our global portfolio of owned and operated assets. As expected, we generated strong online casino growth across all our geographical regions, while our North American business continued to be resilient against challenging comparables. As reflected in our full-year guidance, we expect to generate significant year-over-year revenue and Adjusted EBITDA growth in 2025, and we are well-positioned to carry this operating momentum forward.”
Financial Highlights Three Months Ended December 31, 2024 vs. Three Months Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
|
|
Three Months Ended December 31, |
|
Change |
|||||
|
|
2024 |
|
2023 |
|
% |
|||
|
Revenue |
35,308 |
|
|
32,530 |
|
|
9 |
% |
|
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
24 |
% |
|
Net income per share attributable to shareholders, diluted |
0.23 |
|
|
0.16 |
|
|
44 |
% |
|
Net income margin |
22 |
% |
|
20 |
% |
|
|
|
|
Adjusted net income for the period attributable to shareholders (1) |
12,172 |
|
|
8,622 |
|
|
41 |
% |
|
Adjusted net income per share attributable to shareholders, diluted (1) |
0.35 |
|
|
0.22 |
|
|
59 |
% |
|
Adjusted EBITDA (1) |
14,736 |
|
|
10,569 |
|
|
39 |
% |
|
Adjusted EBITDA Margin (1) |
42 |
% |
|
32 |
% |
|
|
|
|
Cash flows generated by operating activities |
13,698 |
|
|
7,140 |
|
|
92 |
% |
|
Free Cash Flow (1) |
13,162 |
|
|
6,511 |
|
|
102 |
% |
|
__________ |
|
(1) 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. |
Fourth Quarter 2024 and Recent Business Highlights
- Delivered more than 145,000 new depositing customers (“NDCs”)
- Repurchased 486,312 shares at an average price of $9.80 per share
- Won Casino Affiliate of the Year at the 2024 EGR Operator Awards
- Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in shares
- Expanded credit facility to $165 million with a new syndicate
Three Months Ended December 31, 2024 Results Compared to Three Months Ended December 31, 2023
Revenue rose 9% year-over-year to a record $35.3 million. The Company delivered more than 145,000 NDCs to clients, a 9% year-over-year decrease reflecting a challenging comparison primarily due to ESPNBet’s launch in 17 markets in the 2023 fourth quarter period.
Gross profit increased 21% to $33.1 million, due to strong revenue growth and a $2.9 million year-over-year decrease in cost of sales related to the Company’s media partnerships.
Total operating expenses increased 21% to $23.3 million, primarily as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets.
Net income attributable to shareholders increased $1.6 million to $7.9 million and net income per share was $0.23 compared to $0.16 in the prior year period. Adjusted net income rose 41% to $12.2 million and adjusted net income per share increased 59% to $0.35.
Adjusted EBITDA increased 39% to a record $14.7 million, reflecting an Adjusted EBITDA margin of 42% as compared to Adjusted EBITDA of $10.6 million and an Adjusted EBITDA margin of 32% in the prior-year period.
Operating cash flow of $13.7 million compared to $7.1 million in the prior-year period. Free cash flow grew 102% to $13.2 million reflecting growth in net income and Adjusted EBITDA and positive working capital movements in the quarter.
2025 Outlook
Gambling.com Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an adjusted EBITDA margin of 39.5%.
The Company’s guidance assumes:
- Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025.
- No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company’s guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body.
- An average EUR/USD exchange rate of 1.07 throughout 2025.
Financial Highlights Full Year Ended December 31, 2024 vs. Full Year Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
|
|
Year ended December 31, |
|
Change |
|||||
|
|
2024 |
|
2023 |
|
% |
|||
|
Revenue |
127,182 |
|
|
108,652 |
|
|
17 |
% |
|
Net income for the period attributable to shareholders |
30,679 |
|
|
18,260 |
|
|
68 |
% |
|
Net income per share attributable to shareholders, diluted |
0.84 |
|
|
0.47 |
|
|
79 |
% |
|
Net income margin |
24 |
% |
|
17 |
% |
|
|
|
|
Adjusted net income for the period attributable to shareholders (1) |
42,120 |
|
|
32,207 |
|
|
31 |
% |
|
Adjusted net income per share attributable to shareholders, diluted (1) |
1.16 |
|
|
0.84 |
|
|
38 |
% |
|
Adjusted EBITDA (1) |
48,691 |
|
|
36,715 |
|
|
33 |
% |
|
Adjusted EBITDA Margin (1) |
38 |
% |
|
34 |
% |
|
|
|
|
Cash flows generated by operating activities |
37,638 |
|
|
17,910 |
|
|
110 |
% |
|
Free Cash Flow (1) |
41,582 |
|
|
23,000 |
|
|
81 |
% |
|
__________ |
|
(1) 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. |
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