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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 $3.2 million in the same period for the prior year[2]
Second Quarter 2021 Business Highlights
· Completed redomiciliation from Malta to the Channel Island of Jersey in May
· Successful launches of EmpireStakes.com, BetArizona.com and IllinoisBet.com which provides bettors with trusted and up-to-date state-specific gambling information to help them place safe and secure legal wagers
· Completed acquisition of two domain portfolios suitable for targeting the US market
· Subsequent to quarter end, completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
· Subsequent to quarter end, announced appointment of Mr. Daniel D’Arrigo to Board of Directors
“Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our Adjusted EBITDA margins, we areamong the most profitable names in the online gambling industry,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Since our founding in 2006, we have built an affiliate marketing powerhouse with recognizable brands around the globe. Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilize our best-in-class technology platform to support their increasingly important customer acquisition initiatives. We are incredibly excited about the next step in this journey as a public company and look forward to sharing the success with our new investors.”
Second Quarter 2021 vs. Second Quarter 2020 Financial Highlights
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THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
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||||||||||
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2021 |
|
|
2020 |
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$ |
|
|
% |
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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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|
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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 |
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|
|
1,739 |
|
|
|
46.0 |
% |
|
Adjusted EBITDA Margin |
|
|
53.1 |
% |
|
|
60.4 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
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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(in thousands, unaudited) |
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OTHER SUPPLEMENTAL DATA |
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New Depositing Customers (1) |
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26 |
|
|
|
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 |
|
|
|
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 |
|
||||||||||
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|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
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|
|
|
|
|
|
|
|||||
|
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.”
Award-winning fast-betting content provider strengthens its position in the region with the latest hire
BETER, the in-demand provider of fast-betting content, data, and live streaming for esports and sports, has strengthened its team with the appointment of Juliana Querino as LatAm Business Development Manager.
Juliana, a seasoned business development specialist based in Brazil, has extensive experience in the Latin American iGaming industry. She has previously held various business development positions at Better Collective, Endorphina, Salsa Technology, and other companies. Her expertise was recognized by the G&M News platform, which included her in its Top 5 Women in the Industry 2024 list—highlighting women making significant contributions to the growth of iGaming in the region.
In her new role at BETER, she will drive the company’s expansion across Latin America, forging new partnerships with regional operators and aggregators, particularly in Brazil, where demand for BETER’s content continues to grow.
She will also drive BETER into new LatAm markets where the provider does not currently have a presence while managing relationships with existing partners to ensure they get the most out of the provider’s next-gen content offering.
Chuck Robinson, Chief Revenue Officer at BETER, said: “Latin America is a fast-moving market with opportunities opening up all the time. To capitalize on these, we need an exceptional specialist, and in Juliana, we have found exactly that. Her expertise and deep market knowledge make her a valuable addition to our team.
“We are already experiencing strong demand for our fast-betting products and solutions across the region. With Juliana on board, we can further identify key operators that would benefit from partnering with us, driving even greater growth.
“I’m delighted to welcome Juliana to the BETER team.”
Juliana Querino commented: “Fast-betting content has become essential for operators in Latin America and beyond, and I’m thrilled to join BETER in expanding awareness of its award-winning portfolio.
“BETER is renowned for its ESportsBattle and Setka Cup tournaments, which are already popular among bettors in LatAm. But our offering goes far beyond that, and I’m eager to showcase the full suite of products and solutions to operators from Brazil to Peru.”
“I look forward to helping BETER maximize the full potential of the LatAm market.”
BetBreak.org has published “When and How to Take a Time-Out from Sportsbetting,” a brand-new workbook designed to help readers understand how taking a break – of any duration – from sports betting can be transformational for their mental health, financial health, and relationships with friends and family.
“This workbook and self-study guide is for anyone who wants to explore their relationship with gambling and it’s especially for those who are wondering whether it might be time for a break from sports betting,” said addiction expert Dr. Jeffrey Reynolds.
The workbook includes information about how to know if you are ready to change, tips for curbing your sports betting if you aren’t ready to quit, setting SMART goals, and limiting access to the three things necessary to gamble. The guide also contains proven tools for managing cravings and urges, resources to regain control over your finances, strategies for dealing with guilt and shame as well as stress management tips.
“The BetBreak workbook is based on the science of behavior change and helps readers make the sustainable shifts in habits necessary to live life with more presence, focus, well-being and happiness,” Dr. Reynolds said.
SCCG Management, a global leader in gaming advisory, business development, and investment strategies, has secured membership to the Fantasy Sports & Gaming Association (FSGA). As the premier organization dedicated to advancing fantasy sports and sports betting, FSGA provides a collaborative environment where industry leaders, innovators, and pioneers shape the future of these rapidly growing sectors.
By joining FSGA, SCCG Management reinforces its commitment to staying at the forefront of industry trends, market developments, and emerging opportunities within fantasy sports and sports gaming. The partnership will allow SCCG to engage with key stakeholders, participate in thought leadership discussions, and contribute strategic insights to the evolving landscape of fantasy sports, sports wagering, and interactive gaming experiences.
With the fantasy sports and sports betting industries experiencing unprecedented growth and innovation, SCCG’s expertise in business development, technology integration, and investment strategy will bring valuable insights to the FSGA community. As a member, SCCG will actively participate in industry conferences, working groups, and networking events, including the upcoming 2025 FSGA Winter Conference, which serves as a hub for leaders, visionaries, and top executives shaping the future of fantasy sports and sports betting.
“FSGA is at the center of innovation in fantasy sports and gaming, and we are excited to join this influential community. At SCCG, we are always looking to align with industry leaders who are shaping the future of interactive sports entertainment. Through this partnership, we look forward to collaborating with fellow members, exchanging insights, and driving innovation across fantasy sports and sports betting,” Stephen Crystal, Founder & CEO of SCCG Management, said.
As SCCG continues to expand its global impact in fantasy sports, sports betting, and gaming technology, its membership in FSGA further solidifies its position as a trusted advisor and partner to the industry’s most innovative companies.
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