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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, |
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|
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 |
) |
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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 |
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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 |
|
|
|
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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|
|
|
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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, |
|
|
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.”
International iGaming holding PIN-UP Global will participate in IGB L!VE, one of the industry’s premier events taking place July 2-3 in London. Booth K40, spanning 168 square meters, will feature two distinct zones – PIN-UP Global and PIN-UP Partners. The holding will create valuable networking opportunities for industry professionals.
Visitors to the PIN-UP Global booth will have the opportunity to meet with the holding’s teams to explore the B2B portfolio designed to boost operational performance and drive business growth in the iGaming sector. The holding’s team will focus on growing its partner network and demonstrating the company’s latest technological developments.
PIN-UP Global team will be on hand throughout the event to explore potential investment opportunities and discuss partnerships with promising startups. The holding continues to identify and support promising teams developing innovative solutions in MarTech, iGaming, FinTech, AI/ML, and analytics.
PIN-UP Partners is joining iGB Affiliate London with top-performing offers, exclusive merch, and proven partnership models. Recognized as the Best iGaming Affiliate Program by AW’2024, MAC’2024, and SiGMA’22, PIN-UP Partners team is ready to build strong, long-term partnerships.
For industry professionals seeking new career opportunities, HR representatives from PIN-UP Global will be present at the event. Interested candidates can book meetings to discuss current openings within the international holding.
With the holding growing rapidly — a remarkable 58% just over the past year — new opportunities and prospects are opening up every day, both for existing team members and for those looking to join. As a result, the holding is actively seeking strong specialists for managerial positions, as well as professionals in tech, marketing, media buying, and more. Visit our booth to become part of the PIN-UP Global team.
For convenient meeting scheduling with holding representatives, exhibition delegates can use the touchscreen booking system and conduct meetings in specially equipped meeting rooms.
PIN-UP Global welcomes all IGB L!VE London attendees – industry experts, potential partners, and talented professionals – to connect with their team during the event to discuss tech solutions, collaboration opportunities, and career prospects.
PIN-UP Global is an international iGaming holding company specialising in developing and implementing advanced technologies, B2B solutions, and innovative products for the iGaming industry.
Compliance Updates
BETBY ACHIEVES GLI CERTIFICATION FOR PERU, EXPANDING ITS FOOTPRINT IN LATIN AMERICA’S REGULATED MARKETS
BETBY, a top-tier sports betting supplier, has received certification from Gaming Laboratories International (GLI) to provide its sportsbook solution in Peru’s regulated market. This certification marks another significant milestone in BETBY’s continued expansion across Latin America.
With the Peruvian government formalizing its regulated sports betting framework, GLI certification has emerged as a crucial requirement for providers aiming to serve licensed operators in the country. BETBY is now authorized to deliver its innovative and tailored sportsbook solutions in Peru’s rapidly expanding regulated betting market.
GLI’s certification, recognized as a benchmark for excellence, validates BETBY’s ability to meet Peru’s strict technical requirements, including those related to sportsbook functionality, information security management systems, and information security standards. Peru’s regulatory framework is primarily based on GLI-33 certification, which BETBY successfully achieved in early 2025. As a result, the company was well-positioned to swiftly meet the country’s compliance standards.
“Peru represents a key step in our broader Latin American growth strategy, as the region continues to adopt clearer regulatory frameworks for online sports betting,” said Ilze Ramolina, Head of Legal & Compliance at BETBY. “Securing GLI certification for this market, which has a growing digital infrastructure and tech-savvy audience, allows us to support licensed operators in launching compliant and competitive offerings from day one. This is yet another step forward in our mission to deliver tailored, localized solutions that meet both local requirements and regional expectations across the region.”
This achievement follows BETBY’s previous certification for the Brazilian market, solidifying its presence in two of Latin America’s most promising jurisdictions. The supplier’s flexible and highly localised sportsbook platform, combined with its commitment to compliance, positions it as a trusted partner for operators looking to thrive in newly regulated environments.
By entering the Peruvian market, BETBY continues to demonstrate its strategic focus on Latin America, providing hyper-localized, engaging, and secure sports betting experiences for both operators and players.
To find out more about BETBY, visit: https://betby.com/
Global entertainment brand SkillOnNet is deepening its existing partnership with Stockholm-based game studio Thunderkick to launch the developer’s unique, engaging slot titles in Ontario.
The Canadian province is one of the most exciting regulated markets in North America, and the Ontario players will now gain access to Thunderkick’s full portfolio of highly acclaimed games via SkillOnNet-powered online casino brands such as PlayOJO, SlotsMagic, and SpinGenie.
Thunderkick is known for its independent, boundary-pushing slot games like Pink Elephants, Esqueleto Explosivo, and Beat the Beast and has established a strong reputation for creativity and originality in the iGaming space. The deal allows the studio to further expand its global footprint while giving Ontario players the chance to enjoy a fresh wave of premium content.
Ontario’s regulated online gaming market, which officially opened in 2022, has quickly become a key market for the iGaming industry, and SkillOnNet was among the first brands to secure licensing in the province. The expansion reinforces SkillOnNet’s commitment to delivering top-tier entertainment in regulated markets globally.
Jani Kontturi at SkillOnNet said: “Thunderkick has been a key partner of ours in other markets, and we’re delighted to bring their outstanding content to Ontario. This region is fast becoming a vital part of our operations, and we’re confident players here will respond just as positively to Thunderkick’s games as they have elsewhere.”
Mariam Dodosh, Account Manager at Thunderkick said: “We’re thrilled to expand our relationship with SkillOnNet and enter the Ontario market together. Our games have a track record of strong performance, and we’re excited to see them go live in one of the most dynamic new regions in iGaming.”
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