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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 $3.2 million in the same period for the prior year[2]
Second Quarter 2021 Business Highlights
· Completed redomiciliation from Malta to the Channel Island of Jersey in May
· Successful launches of EmpireStakes.com, BetArizona.com and IllinoisBet.com which provides bettors with trusted and up-to-date state-specific gambling information to help them place safe and secure legal wagers
· Completed acquisition of two domain portfolios suitable for targeting the US market
· Subsequent to quarter end, completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
· Subsequent to quarter end, announced appointment of Mr. Daniel D’Arrigo to Board of Directors
“Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our Adjusted EBITDA margins, we areamong the most profitable names in the online gambling industry,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Since our founding in 2006, we have built an affiliate marketing powerhouse with recognizable brands around the globe. Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilize our best-in-class technology platform to support their increasingly important customer acquisition initiatives. We are incredibly excited about the next step in this journey as a public company and look forward to sharing the success with our new investors.”
Second Quarter 2021 vs. Second Quarter 2020 Financial Highlights
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THREE MONTHS ENDED JUNE 30, |
|
|
CHANGE |
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||||||||||
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2021 |
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2020 |
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$ |
|
|
% |
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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 |
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||
|
Net income (loss) per share attributable to ordinary shareholders, diluted |
|
|
0.08 |
|
|
|
(0.02 |
) |
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n/m |
|
|
n/m |
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||
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 |
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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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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 |
|
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25 |
|
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|
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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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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|
|
|
|
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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 |
|
|
$ |
|
|
% |
|
||||
|
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|
(in thousands USD, unaudited) |
|
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|
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|
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|
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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, |
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|
CHANGE |
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||||||||||
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|
2021 |
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2020 |
|
|
$ |
|
|
% |
|
||||
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|
(in thousands USD, unaudited) |
|
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|
|
|
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|
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|
|||||
|
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.”
Cineplex Digital Media (CDM), a division of Cineplex, announced it has signed a ten-year agreement with the North Carolina Education Lottery to provide a digital signage network solution at retailers across North Carolina.
Following a comprehensive process, CDM was chosen given its unique strategic and ecosystem-based approach to digital signage solutions, extensive retail experience and ability to provide industry leading design, content strategy, and data expertise. CDM’s solution includes digital menu boards inside more than 1500 select lottery retail partner locations and claim centers across North Carolina, with an opportunity to expand locations throughout its long-term partnership.
With flexible marketing and messaging options, this new program will enhance the player experience and the North Carolina Education Lottery’s commitment to supporting retail partner success. CDM’s unique approach and end-to-end solution will ensure the lottery can tailor messages to playing audiences while measuring and optimizing its impact and return for education in North Carolina.
“We constantly look for innovative ways to connect with our players. The agreement with Cineplex Digital Media provides us with a digital platform to reach that audience with messaging tailored specifically to them. That is a major investment in our retail partners that should help us raise more money for the good cause we serve,” said Terri Rose, Chief Brand Officer, North Carolina Education Lottery.
“We are honoured to be chosen as the North Carolina Education Lottery’s exclusive digital signage partner and look forward to working with them to provide solutions to support its education fundraising and elevate player experience. With our experience in the lottery market and our strategic partnership network, we are excited to work together to deploy a specialized and data optimized retail digital solution to keep retailer and player experience top-of-mind,” said Fab Stanghieri, Executive Vice President and Managing Director, CDM.
In a continued effort to safeguard Michigan residents and uphold the integrity of its regulated gaming environment, the Michigan Gaming Control Board (MGCB) has issued cease-and-desist orders to six online gambling operators unlawfully offering services in the state.
The named entities—Bonus Blitz Casino, DomGame, Royal Ace Casino, Slots Capital, Supernova Casino, and Wins Mania—have been found providing internet-based gambling without obtaining the necessary state authorization, violating Michigan’s Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act, and sections of the Michigan Penal Code.
“These illegal operators often masquerade as legitimate gaming platforms, but they exist entirely outside the legal safeguards that protect consumers. When Michiganders play on unlicensed sites, they’re placing their personal and financial security at risk—with little to no recourse if things go wrong,” said Henry Williams, Executive Director of the MGCB.
Unlike Michigan-licensed gaming platforms—which undergo rigorous vetting, continuous monitoring, and must comply with strict state regulations—these unlicensed operators are not authorized to offer gaming services in the state. Some are based outside the US, operating beyond the reach of U.S. regulatory oversight, while others may claim domestic ties but still fail to meet Michigan’s legal and licensing requirements.
Because they operate without state approval, these entities do not follow Michigan’s consumer protection standards, responsible gaming mandates, or transparent dispute resolution procedures designed to ensure fair play and data security.
“This action sends a clear message to illegal operators: Michigan is not a place for rogue gambling. We are committed to preserving a safe, legal, and accountable gaming landscape—and that includes rooting out bad actors who threaten the trust we’ve built with consumers,” Williams said.
Win Systems, a leading provider of technology for the gaming and entertainment industry, successfully concluded its exclusive showroom event on May 28 and 29 at its offices in Lima, Peru. Over two engaging days, local operators and strategic partners had the opportunity to experience the company’s latest innovations first-hand, with special attention given to the new Gold Club Colors, an innovative evolution of its renowned electronic roulette.
The experience was highly praised by attendees, who interacted directly with the Gold Club Colors and witnessed its advanced aesthetic and functional customization features. This version allows key components such as LED lighting, armrests, cilinder, and game layout to be tailored to the visual identity of each casino, enhancing both the venue’s atmosphere and the overall player experience. Also drawing strong interest was the dynamic paytable, which adjusts rewards based on the flow of each game session.
“This event was truly special for us. Beyond showcasing our products, we wanted to create a space to connect, share ideas, and listen to the local market’s needs firsthand. The response was fantastic and encourages us to continue strengthening our presence in Peru,” said Galy Olazo, Country Manager for Win Systems in Peru.
The showroom not only demonstrated one of the most advanced electronic roulettes on the market in action but also reaffirmed Win Systems’ commitment to ongoing innovation and close collaboration with its clients and strategic partners.
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