Latest News
Gambling.com Group Limited Reports Second Quarter 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services active exclusively in the global online gambling industry, today announced its operating and financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Financial Highlights
· Revenue of $10.4 million; grew 66% compared to $6.3 million in the same period for the prior year
· Net income of $2.4 million, or $0.08 per diluted share, compared to a net loss of $0.4 million, or a loss of $0.02 per diluted share, in the same period for the prior year
· Adjusted EBITDA of $5.5 million; grew 46% compared to $3.8 million in the same period for the prior year, representing an Adjusted EBITDA margin of 53%[1]
· Free cash flow of $3.1 million; decreased 3% compared to $3.2 million in the same period for the prior year[2]
Second Quarter 2021 Business Highlights
· Completed redomiciliation from Malta to the Channel Island of Jersey in May
· Successful launches of EmpireStakes.com, BetArizona.com and IllinoisBet.com which provides bettors with trusted and up-to-date state-specific gambling information to help them place safe and secure legal wagers
· Completed acquisition of two domain portfolios suitable for targeting the US market
· Subsequent to quarter end, completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
· Subsequent to quarter end, announced appointment of Mr. Daniel D’Arrigo to Board of Directors
“Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our Adjusted EBITDA margins, we areamong the most profitable names in the online gambling industry,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Since our founding in 2006, we have built an affiliate marketing powerhouse with recognizable brands around the globe. Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilize our best-in-class technology platform to support their increasingly important customer acquisition initiatives. We are incredibly excited about the next step in this journey as a public company and look forward to sharing the success with our new investors.”
Second Quarter 2021 vs. Second Quarter 2020 Financial Highlights
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THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
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||||||||||
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|
2021 |
|
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2020 |
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$ |
|
|
% |
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||||
|
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|
(in thousands USD, except for share and per share data, unaudited) |
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA |
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|
|
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|
|
|
|
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Revenue |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
|
Operating expenses |
|
|
(7,235 |
) |
|
|
(2,997 |
) |
|
|
(4,238 |
) |
|
|
141.4 |
% |
|
Operating profit |
|
|
3,157 |
|
|
|
3,262 |
|
|
|
(105 |
) |
|
|
(3.2 |
)% |
|
Income (loss) before tax |
|
|
3,027 |
|
|
|
(128 |
) |
|
|
3,155 |
|
|
n/m |
|
|
|
Net income (loss) for the period attributable to the equity holders |
|
$ |
2,445 |
|
|
$ |
(428 |
) |
|
$ |
2,873 |
|
|
n/m |
|
|
|
Net income (loss) per share attributable to ordinary shareholders, basic |
|
|
0.09 |
|
|
|
(0.02 |
) |
|
n/m |
|
|
n/m |
|
||
|
Net income (loss) per share attributable to ordinary shareholders, diluted |
|
|
0.08 |
|
|
|
(0.02 |
) |
|
n/m |
|
|
n/m |
|
||
n/m = not meaningful
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THREE MONTHS ENDED JUNE 30, |
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CHANGE |
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2021 |
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2020 |
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$ |
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% |
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||||
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(in thousands USD, unaudited) |
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NON-IFRS FINANCIAL MEASURES |
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Adjusted EBITDA |
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|
5,518 |
|
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|
3,779 |
|
|
|
1,739 |
|
|
|
46.0 |
% |
|
Adjusted EBITDA Margin |
|
|
53.1 |
% |
|
|
60.4 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
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|
3,122 |
|
|
|
3,229 |
|
|
|
(107 |
) |
|
|
(3.3 |
)% |
n/m = not meaningful
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THREE MONTHS ENDED JUNE 30, |
CHANGE |
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||||||||||||
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2021 |
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2020 |
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Amount |
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% |
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||||
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(in thousands, unaudited) |
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OTHER SUPPLEMENTAL DATA |
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New Depositing Customers (1) |
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26 |
|
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|
25 |
|
|
|
1 |
|
|
|
3.8 |
% |
|
(1) |
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. |
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AS OF JUNE 30, |
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AS OF DECEMBER 31, |
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CHANGE |
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|||||||
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|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
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|
(Unaudited) |
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(in thousands, USD) |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DATA |
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|
Cash and cash equivalents |
|
$ |
17,168 |
|
|
$ |
8,225 |
|
|
$ |
8,943 |
|
|
|
108.7 |
% |
|
Working capital (2) |
|
|
17,203 |
|
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|
10,059 |
|
|
|
7,144 |
|
|
|
71.0 |
% |
|
Total assets |
|
|
55,139 |
|
|
|
45,383 |
|
|
|
9,756 |
|
|
|
21.5 |
% |
|
Total borrowings |
|
|
6,062 |
|
|
|
5,960 |
|
|
|
102 |
|
|
|
1.7 |
% |
|
Total liabilities |
|
|
14,052 |
|
|
|
11,171 |
|
|
|
2,881 |
|
|
|
25.8 |
% |
|
Total equity |
|
|
41,087 |
|
|
|
34,212 |
|
|
|
6,875 |
|
|
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
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|
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(2) |
Working capital is defined as total current assets minus total current liabilities. |
Revenue
Total revenue in the second quarter increased 66% to $10.4 million compared to $6.3 million in the comparable period in 2020. On a constant currency basis, revenue increased $3.5 million, or 52%.The increase was driven by improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs increased 4% to 26,000 compared to 25,000 in the prior year.
Our revenue disaggregated by market is as follows:
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
U.K. and Ireland |
|
$ |
5,410 |
|
|
$ |
3,489 |
|
|
$ |
1,921 |
|
|
|
55.1 |
% |
|
Other Europe |
|
|
2,822 |
|
|
|
969 |
|
|
|
1,853 |
|
|
|
191.2 |
% |
|
North America |
|
|
1,408 |
|
|
|
1,097 |
|
|
|
311 |
|
|
|
28.4 |
% |
|
Rest of the world |
|
|
752 |
|
|
|
704 |
|
|
|
48 |
|
|
|
6.8 |
% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were primarily driven by organic growth in our U.K. and Ireland, Other Europe, and North American markets.
Our revenue disaggregated by monetization is as follows:
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
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||||||||||
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|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Hybrid commission |
|
$ |
4,611 |
|
|
$ |
3,238 |
|
|
$ |
1,373 |
|
|
|
42.4 |
% |
|
Revenue share commission |
|
|
1,054 |
|
|
|
825 |
|
|
|
229 |
|
|
|
27.8 |
% |
|
CPA commission |
|
|
3,558 |
|
|
|
2,130 |
|
|
|
1,428 |
|
|
|
67.0 |
% |
|
Other revenue |
|
|
1,169 |
|
|
|
66 |
|
|
|
1,103 |
|
|
|
1,671.2 |
% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were driven primarily by additional Hybrid commission, CPA commission and Other revenue. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets in the quarter.
Our revenue disaggregated by product type from which it is derived is as follows:
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|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Casino |
|
$ |
9,087 |
|
|
$ |
5,570 |
|
|
$ |
3,517 |
|
|
|
63.1 |
% |
|
Sports |
|
|
1,170 |
|
|
|
518 |
|
|
|
652 |
|
|
|
125.9 |
% |
|
Other |
|
|
135 |
|
|
|
171 |
|
|
|
(36 |
) |
|
|
(21.1 |
)% |
|
Total revenues |
|
$ |
10,392 |
|
|
$ |
6,259 |
|
|
$ |
4,133 |
|
|
|
66.0 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|
|
|||||
|
Sales and marketing expenses |
|
$ |
3,144 |
|
|
$ |
1,598 |
|
|
|
1,546 |
|
|
|
96.7 |
% |
|
Technology expenses |
|
|
944 |
|
|
|
510 |
|
|
|
434 |
|
|
|
85.1 |
% |
|
General and administrative expenses |
|
|
3,387 |
|
|
|
875 |
|
|
|
2,512 |
|
|
|
287.1 |
% |
|
Allowance for credit losses |
|
|
(240 |
) |
|
|
14 |
|
|
|
(254 |
) |
|
n/m |
|
|
|
Total operating expenses |
|
$ |
7,235 |
|
|
$ |
2,997 |
|
|
|
4,238 |
|
|
|
141.4 |
% |
n/m = not meaningful
Total operating expenses increased by $4.2 million to $7.2 million compared to $3.0 million in the prior year. On a constant currency basis, operating expenses increased by $3.9 million to $7.2 million compared to $3.3 million in the prior year.
Sales and Marketing expenses totaled $3.1 million, an increase of $1.5 million compared to 2020, driven by increased wages and salary expenses associated with increased headcount as well as investments in the Company’s organic growth initiatives.
Technology expenses totaled $0.9 million compared to $0.5 million in 2020, mainly the result of higher wages and salary expense associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.4 million compared to $0.9 million in the prior year, mainly driven by non-recurring expenses related to the public offering totaling approximately $1.5 million and the expansion of the senior management team.
Earnings
Adjusted EBITDA increased by 46% to $5.5 million compared to $3.8 million in the prior year representing an Adjusted EBITDA margin of 53%.
Operating profit in the second quarter decreased 3% to $3.2 million compared to $3.3 million in 2020. Operating profit was affected by non-recurring expenses related to the public offering totaling approximately $1.5 million.
Net income in the second quarter totaled $2.4 million, or $0.08 per diluted share, compared to a net loss of $0.4 million, or a loss of $0.02 per diluted share, in the prior year. The increase was the result of significant growth in pre-tax income compared to the prior year.
Free Cash-flow
Total cash generated from operations of $4.7 million increased 47% compared to $3.2 million in the prior year. The increase was driven by improved operating profit and net income compared to the prior year. Free cash flow, totaled $3.1 million compared to $3.2 million in the prior year. The decline was the result of increased capital expenditures consisting primarily of the acquisition of two domain portfolios, partially offset by the increase in cash generated from operations.
Balance Sheet
Cash balances as of June 30, 2021 totaled $17.2 million, an increase of $9.0 million compared to $8.2 million as of December 31, 2020. Working capital as of June 30, 2021 totaled $17.2 million, an increase of $7.1 million compared to $10.1 million as of December 31, 2020.
Total assets as of June 30, 2021 were $55.1 million compared to $45.4 million as of December 30, 2020. Total borrowings, including accrued interest, totaled $6.1 million compared to $6.0 million as of December 31, 2020. Total liabilities stood at $14.1 million compared to $11.2 million as of December 31, 2020.
Total equity as of June 30, 2021 was $41.1 million compared to $34.2 million as of December 31, 2020.
2021 – 2023 Financial Targets
|
Total Revenue Growth |
˃ Average 40% |
|
Adjusted EBITDA Margin[3] |
≥ Average 40% |
|
Leverage[4] |
< Net Debt to Adjusted EBITDA 2.5x[5] |
2021 Outlook
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our financial results for the second quarter came in at the high end of our previously provided ranges as we reported strong growth in revenue, adjusted EBITDA, and net income compared to the prior year. We also continue to produce strong free cash flow and weremain in a solid financial position after the public offering last month. We are carrying encouraging momentum into the second half of the year. As a result, we are expecting to achieve or exceed our Revenue Growth target and Adjusted EBITDA margin target for the full year 2021 before the effects of any acquisitions and without incurring further borrowings.”
RockApp, a leading global media buying agency, proudly announces that it has obtained official licenses in all regulated US states, allowing it to promote iGaming services nationwide, including Colorado, Indiana, Massachusetts, Michigan, New Jersey, Pennsylvania, and West Virginia. With these licenses, RockApp is now authorized to operate in all regulated US states, except for New York. This achievement comes amidst tightening regulatory standards, underscoring the agency’s commitment to compliance and excellence in performance marketing. The move positions RockApp as a trusted partner for iGaming companies looking to expand their reach in one of the world’s largest and fastest-growing markets.
These developments enable the agency to work with prominent industry players, including established American brands, and deliver targeted advertising campaigns with measurable results. By securing a legal presence in all regulated states, RockApp reinforces its reputation as a reliable and professional partner, capable of navigating complex regulatory landscapes.
This milestone is part of RockApp’s broader strategy to strengthen its position as a global leader in the media buying industry. Over the past year, the company has demonstrated impressive growth, achieving a 440% increase in customer acquisition, a 300% boost in turnover, and a record-breaking 4,000 first-time deposits achieved in a single day. These achievements reflect RockApp’s dedication to innovation, strategic planning, and delivering exceptional value to its clients.
“This is a pivotal moment for RockApp,” said Niko Belikov, Founder at RockApp. “Securing licenses in the US not only opens new doors for us but also allows us to bring our expertise in iGaming promotion to a market that values professionalism and results. We’re excited to support our clients as they navigate this dynamic landscape and achieve unparalleled success.”
Latest News
BetMGM Secures Exclusive Online Casino Content Rights to “Family Feud” and “The Price is Right” with Fremantle Partnership
BetMGM, a leading iGaming and sports betting operator, announced a new and exclusive online casino rights partnership with Fremantle, a world leader in creating, producing and distributing entertainment content for over 100 years. The multi-year agreement secures the intellectual property rights for iconic game shows “The Price is Right” and “Family Feud” for slots, table games, and non-traditional casino games. The partnership establishes the foundation for BetMGM to create customized online casino content around both game show brands.
“This partnership unlocks various ways for BetMGM and Fremantle to collaborate and expand our brand. ‘Family Feud’ and ‘The Price is Right’ are two of the most popular game shows in North America, and we look forward to bringing their fun and excitement to our online casino in various exciting ways,” said Adam Greenblatt, Chief Executive Officer of BetMGM.
During select weeks throughout the upcoming seasons, BetMGM will be featured as a sponsor with exclusive, never-before-seen partnership integrations for “Family Feud” and “The Price is Right”. Throughout 2025 BetMGM and Fremantle will reveal additional details on these planned partnership activations.
Suzanne Lopez, COO of Fremantle North America, said: “Our exclusive deal with BetMGM and our premier game show IP represents a significant milestone for us both. This innovative collaboration paves the way for in-game branding across diverse online casino categories, while also providing opportunities for integrated TV sponsorships. It’s all about enhancing how fans of ‘The Price Is Right’ and ‘Family Feud’ connect with the shows in fresh, immersive ways.”
The company’s award-winning online casino is home to over 3500 titles across North American markets and one of the largest state-by-state exclusive jackpot networks. BetMGM’s jackpot network currently consists of more than 20 game titles including popular games such as MGM Grand Millions, Bison Fury, and Loot’En Khamun and the Dead Sea Scrolls.
Canada
BetConstruct Becomes the First iGaming Company to Offer Both B2B and B2C Licenses in Canada through Affiliate Entity
BetConstruct, a global pioneer in iGaming and sports betting solutions, has announced a significant milestone in the gaming industry. Through its affiliate entity, BetConstruct has become the first iGaming company authorized to facilitate the issuance of both Business-to-Business (B2B) and Business-to-Consumer (B2C) licenses. This remarkable achievement was made possible by obtaining a direct license authorization from the Tobique First Nation in Canada.
The Tobique First Nation, renowned for its innovative and forward-thinking regulatory approach, has entrusted BetConstruct’s affiliate entity with the authority to oversee applications and facilitate the issuance of licenses from its jurisdiction. This partnership underscores shared values of innovation, transparency, and a commitment to responsible gaming practices.
This historic development places BetConstruct at the forefront of the Canadian iGaming market, redefining the opportunities available to gaming operators. By leveraging its affiliate entity’s licensing capabilities, BetConstruct empowers businesses to navigate a streamlined and transparent regulatory environment, unlocking new opportunities for growth and innovation.
“At BetConstruct, we’ve always strived to push the boundaries of what’s possible in iGaming. This landmark achievement with the Tobique First Nation reflects our unwavering dedication to creating opportunities for our partners while upholding the highest standards of responsibility and integrity in gaming,” said Vigen Badalyan, Co-Founder of BetConstruct.
The issuance of dual licenses under the watchful eye of BetConstruct’s affiliate not only highlights BetConstruct’s commitment to supporting its partners but also reinforces the company’s role as a trusted leader in the global iGaming landscape.
This milestone signals a new era for regulated iGaming, as BetConstruct takes bold steps to establish a robust ecosystem for operators and consumers alike. With its direct license authorization from the Tobique First Nation, BetConstruct is setting a new standard for innovation, consumer protection, and sustainable growth in Canada and beyond.
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