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Gambling.com Group Limited Revenue Grows 63% to a Q2 Record of $26.0 Million, Net Income Rises to $0.3 Million and Adjusted EBITDA Increases to a Q2 Record of $9.4 Million
Raises 2023 revenue guidance to $100-$104 million and adjusted EBITDA guidance to $36-$40 million; mid-points imply revenue growth of 33% and adjusted EBITDA growth of 58% over the full year 2022
Gambling.com Group Limited (Nasdaq: GAMB), a leading provider of digital marketing services for the global online gambling industry, today reported record second-quarter financial results for the three months ended June 30, 2023. The company also increased its guidance for full-year revenue and adjusted EBITDA.
Second Quarter 2023 vs. Second Quarter 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)
| Three Months Ended June 30, | Change | ||||||||
| 2023 | 2022 | % | |||||||
| Revenue | 25,972 | 15,924 | 63 | % | |||||
| Net income for the period attributable to shareholders (1) | 278 | 56 | 396 | % | |||||
| Net income per share attributable to shareholders, diluted (1) | 0.01 | 0.00 | 100 | % | |||||
| Net income margin (1) | 1 | % | â | % | |||||
| Adjusted net income for the period attributable to shareholders (1)(2) | 6,535 | 3,065 | 113 | % | |||||
| Adjusted net income per share attributable to shareholders, diluted (1)(2) | 0.17 | 0.08 | 113 | % | |||||
| Adjusted EBITDAÂ (1)(2) | 9,424 | 3,617 | 161 | % | |||||
| Adjusted EBITDA Margin (1)(2) | 36 | % | 23 | % | |||||
| Cash flows generated by operating activities | 4,586 | 3,368 | 36 | % | |||||
| Free Cash Flow (2) | 8,526 | 2,822 | 202 | % | |||||
(1) For the three months ended June 30, 2023, net income and net income per share include, and adjusted net income and adjusted net income per share exclude, adjustments related to the company’s 2022 acquisitions of RotoWire and BonusFinder of $6.1 million, or $0.17 per share. Similarly, these adjustments totalled $3 million, or $0.08, per share for the three months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments
(2) 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.
âThe business performed phenomenally in the second quarter with record operating results reflecting another quarter of significant organic revenue growth and strong free cash flow generation,â the co-founder and Chief Executive Officer for Gambling.com Group Limited, Charles Gillespie, said. âThe growth highlights our success in scaling our North American operations as well as continued growth in our more established markets. New depositing customers rose 60% year-over-year to over 91,000, which helped drive a 63% revenue increase to $26 million, 161% growth in adjusted EBITDA to $9.4 million and $8.5 million of free cash flow.
âDespite North America already being our largest reporting market, it still represents a significant growth opportunity for Gambling.com Group Limited and we remain very confident in our ability to continue to increase market share in existing states as they continue to grow. This expected growth will be complemented by an overall expansion of the addressable market as new states such as North Carolina and Kentucky come online with sports betting and iGaming is authorized in additional states. As we continue to scale our North American operations, Gambling.com Group Limited will benefit from other attractive near and long-term growth drivers including valuable media partnerships with leading domestic digital media publishers, McClatchy and Gannett, and the significant long-term global opportunity provided by the recently launched Casinos.com. In addition, we are well positioned to continue growing in our more established markets where we continue to take market share and have signed our first international media partnership with The Independent for the United Kingdom market.
âWith each quarter of consistent profitable organic growth delivered by Gambling.com Group Limited, we are demonstrating the benefits of what we believe to be the most attractive business model in the industry as we leverage our many growth drivers and capital efficiency. Our excellence in SEO and proprietary data science allows us to consistently generate top-line growth, adjusted EBITDA margins that exceed 30% and strong free cash flow conversion. As a result, we are confident Gambling.com Group Limited will continue to create added value for our shareholders, clients and our valued team members.â
Second Quarter 2023 and Recent Business Highlights
- Grew North American revenue 115% to $13.4 million
- Delivered more than 91,000 new depositing customers
- Entered into first international media partnership with The Independent, one of the United Kingdomâs largest digital media publishers with more than 20 million unique monthly users
- Negotiated a final, deferred consideration payment of âŹ18 million related the acquisition of BonusFinder in exchange for the early termination of the earn-out period, providing the company with the ability to accelerate the realization of synergies
- Repurchased 77,683 ordinary shares at an average price of $9.83 per share
âThe operating leverage we generated on 63% year-over-year revenue growth and 161% adjusted EBITDA growth in the second quarter grew free cash flow growth of 202% to $8.5 million,â the Chief Financial Officer for Gambling.com Group Limited, Elias Mark, said. âAs a result, we have significant flexibility to simultaneously continue to strategically invest in growth opportunities including the buildout of Casinos.com and the development of our media partnerships and to evaluate strategic transactions that we believe create new shareholder value. Reflecting our strong operating results through the first six months of the year, which outperformed our expectations and our confidence for continued strong performance over the balance of 2023, we are raising our full-year revenue and adjusted EBITDA outlook with the mid-point of the new ranges representing year-over-year growth of 33% and 58%, respectively.â
2023 Outlook
The company raised its full-year 2023 revenue guidance to between $100 million and $104 million and adjusted EBITDA guidance to between $36 million and $40 million. The companyâs guidance assumes:
- Kentucky goes live on September 28 with online sports betting
- Beyond Kentucky, no online sports betting or iGaming going live in any additional North American markets for the balance of 2023
- No contribution from any new acquisitions
- New investments throughout 2023 for the development of Casinos.com and support to our media partners including Gannett, McClatchy and The Independent
- An average EUR/USD exchange rate of 1.095 throughout the remainder of 2023
First Half 2023 vs. First Half 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)
| Six Months Ended June 30, | Change | ||||||||
| 2023 | 2022 | % | |||||||
| Revenue | 52,664 | 35,509 | 48 | % | |||||
| Net income for the period attributable to shareholders (1) | 6,873 | 4,542 | 51 | % | |||||
| Net income per share attributable to shareholders, diluted (1) | 0.18 | 0.12 | 50 | % | |||||
| Net income margin (1) | 13 | % | 13 | % | |||||
| Adjusted net income for the period attributable to shareholders (1)(2) | 14,086 | 7,551 | 87 | % | |||||
| Adjusted net income per share attributable to shareholders, diluted (1)(2) | 0.37 | 0.21 | 76 | % | |||||
| Adjusted EBITDAÂ (1)(2) | 20,097 | 10,719 | 87 | % | |||||
| Adjusted EBITDA Margin (1)(2) | 38 | % | 30 | % | |||||
| Cash flows generated by operating activities | 11,669 | 6,944 | 68 | % | |||||
| Free Cash Flow (2) | 14,732 | 4,186 | 252 | % | |||||
(1) For the six months ended June 30, 2023, net income and net income per share include, and adjusted net income and adjusted net income per share exclude, adjustments related to the company’s 2022 acquisitions of RotoWire and BonusFinder of $7 million, or $0.19 per share. Similarly, these adjustments totalled $3 million, or $0.09, per share for the six months ended June 30, 2022. See Supplemental Information – Non-IFRS Financial Measures and the tables at the end of this release for an explanation of the adjustments.
(2) 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.
Conference Call Details
Date/Time: Thursday, August 17, 2023, at 8:00 am ET
Webcast: https: //www. webcast-egs .com/gamb20230817/en
US Toll-Free Dial In: 877-407-0890
International Dial In: +1-201-389-0918
To access, please dial in approximately ten minutes before the start of the call. An archived webcast of the conference call will also be available in the News & Events section of the companyâs website at Gambling .com/corporate/investors/news-events. Information contained on the companyâs website is not incorporated into this press release.
Gambling in the USA
BMM INNOVATION GROUP SHOWCASES ITS SUPPORT FOR TRIBAL SOVEREIGNTY AT INDIAN GAMING CONFERENCE & EXPO MARCH 31 – APRIL 3 AT SAN DIEGO CONVENTION CENTER
Company to sponsor, attend, and speak at the San Diego, California show.
BMM Innovation Group (âBMM,â âBIG Group,â or âBIGâ), a technology conglomerate focused on product compliance testing, cybersecurity solutions, and virtual training for the global gaming industry, today announced its sponsorship and participation in the Indian Gaming Associationâs (âIGAâ) annual IGA Conference & Expo, March 31-April 3 at the San Diego Convention Center.
With over three decades of experience supporting Tribal gaming, BIG will be on-site as sponsors, speakers, and attendees to reinforce the Companyâs steadfast commitment to Tribal sovereignty and self-regulation.
Proud Partners in Tribal Progress
The BIG Groupâs Chairman, President, and Chief Executive Officer Martin Storm said, âBMM proudly partners with Tribal governments, Tribal casinos, and Tribal gaming equipment and technology suppliers to advance Tribal sovereignty, self-determination, and economic development. We are honored to continue supporting the growth and integrity of Tribal gaming through our trusted product compliance services, world-class training and virtual education, and our cybersecurity solutions to protect Tribal enterprises.â
BMMâs long-standing relationships with Tribal gaming suppliers and regulators are at the heart of its mission. As active members of IGA and other key Tribal organizations, BIG is committed to elevating Tribal voices and ensuring Tribal interests remain at the forefront of industry growth.
BIG Group Shares Thought Leadership on Conference Panels and Trainings
- In addition to sponsoring and attending, the BIG Groupâs expert thought leaders will speak and provide in-person training at the conference:
- Tuesday, April 1 at 9 am: Innovation vs. Regulation: Keep Pace with Emerging Gaming Technologies â Sean Mason, Senior Director of Tribal Services
- Tuesday, April 1 at 4 pm: Gaming and Cyber Risk Best Practices â Mitigate Risk and Sleep Better at Night â Heather Lee, Senior Director of Sales for BIG Cyber
- Wednesday, April 2 at 9 am: Level III Commissioner Certification Training â Peter Nikiper, Director of Technical Compliance
Unmatched Expertise in Product Compliance and Certification
As a trusted testing laboratory for Tribal gaming jurisdictions across North America, BMMâs focus is fairness, integrity, and security in every gaming environment. IGA attendees are invited to connect with BMM experts to learn more about the Companyâs comprehensive product compliance programs.
Education & Training for Long-Term Success
BIG continues to empower Tribal gaming employees through exclusive education and training programs, including free access to RG24seven Virtual Training. These knowledge-sharing initiatives are designed to support responsible gaming, regulatory compliance, and the long-term sustainability of Tribal gaming operations.
Cybersecurity Solutions Tailored for Tribal Gaming
The BIG Group is focused on bolstering cybersecurity defenses for Tribal enterprises through its BIG Cyber services, which includes penetration testing, vulnerability assessments, PCI:DSS evaluations, and a host of managed security services featuring CYREBROâs Security Operations Center, KnowBe4âs security awareness training, and Maxxsureâs risk management platform.
Internet Vikings, a licensed in-state hosting provider for the U.S. iGaming and online sports betting industry, is announcing that itâs supporting Plannatech, a large B2B Provider, now stepping into the B2C space, in its expansion within the United States through an agreement to provide VMware cloud hosting solutions in Arizona.
Plannatech, leveraging the well-established Betcris brand from the America’s sports betting industry, has selected Internet Vikings for its structured setup processes, stable hosting environment, and technical expertise. This agreement ensures that the B2C iGaming and sportsbook operator benefits from a highly secure and reliable infrastructure, with Internet Vikingsâ responsive support playing a crucial role in maintaining smooth operations.
âThis is our 2nd state with Internet Vikings, who has been an absolute pleasure working with in providing the solid hosting infrastructure we need as we now expand into Arizona this time as the Operator,â said Adam Bjorn, CEO at Plannatech.
âWe value our partnership with Plannatech and extending our VMware cloud hosting solutions to Arizona was the perfect next step as they bring new strategic offerings to the U.S. market,â said Rickard Vikström, CEO and Founder of Internet Vikings.
The Arizona sports betting market has seen impressive growth rates, with total handle reaching $791.2M in October 2024. While several operators have struggled to gain traction, Plannatech, utilizing the Betcris brand, is taking a strategic approach and leveraging its extensive experience in competitive markets. By choosing Internet Vikings as their hosting partner, Plannatech ensures a strong, compliant, and resilient digital presence as they expand their U.S. operations.
Looking Back: Growth & Achievements
FBMDS is celebrating five years of expansion and innovation. How would you describe the brandâs journey during this time?
Our journey over the past five years has been one of bold moves, strategic growth, and relentless innovation. As part of the FBMÂź Group, we began as pioneers in Video Bingo, but our vision extended far beyond that. We have focused on delivering profitable products to our clients and engaging gaming experiences to players. By expanding into multiple gaming categories and strengthening our global presence in key markets like Mexico and Brazil, we have redefined what a localized, player-centric gaming experience should be.
What were the key milestones that shaped FBMDSâ success over the past five years?
Several milestones have defined our success. First, our solidification as a market leader in Video Bingo and Lotto Games, setting the gold standard with best-seller products like Multi Mega, Power Pick Lotto, and Champion IV. Our leadership in Video Bingo is reinforced by unique features like the jackpot system, Magic Ball, and attractive paytables, all of which drive engagement and retention.
Second, our presence at international trade shows has played a crucial role in strengthening relationships with key partners and clients while reinforcing our brand positioning, as seen in events like G2E Las Vegas 2024. Lastly, our rapid expansion in the LATAM region, particularly in Mexico and Brazil, has solidified FBMDS as a trusted and respected brand in a highly competitive landscape.
What has been the most significant challenge, and how did FBMDS overcome it?
The online gaming industry is highly competitive, and differentiation is key. Our challenge was to deliver games that not only stood out but also ensured profitability for operators and engaging experiences for players. We tackled this by investing in customization, localization, and innovationâensuring that every product aligns with the preferences of specific markets. Our ability to adapt game mechanics, themes, and retention strategies has positioned us ahead of the competition, creating unique gaming experiences that drive business success.
Product Evolution & Market Leadership
FBMDS has built a strong reputation in Video Bingo. How has this segment evolved, and what makes FBMDS a leader in this category?
Video Bingo is our DNA, and we have continuously pushed its evolution by refining gameplay mechanics, introducing engaging themes, and incorporating advanced technology to enhance user experience. Our commitment to differentiation sets us apart: our jackpot feature, the Magic Ball, and attractive paytables are tailored to maximize player engagement and operator profitability. Customization is at the heart of our strategy, ensuring our games resonate with local markets and drive long-term success.
Among FBMDSâ product portfolio, do you have a personal favorite? Why?
Itâs hard to pick just one, but Iâd highlight our Video Bingo games because they represent our legacy and continued leadership in the industry. We believe Video Bingo is an essential asset for any online casino, as it offers a nostalgic yet modern experience, combining interactive features with high retention rates. Our jackpot system enhances player excitement, while innovative game mechanics keep engagement levels high. In addition, our crash games showcase our adaptability and innovation, delivering high-quality visuals and dynamic gameplay. These two categories reflect our strategic pillars: player engagement and profitable gaming solutions for operators.
Future Outlook & Expansion Plans
Looking ahead, whatâs the vision for FBMDSâ next five years?
We are just getting started. Our vision is to expand our influence by continuously delivering innovative and engaging gaming experiences that drive profitability for operators. While we maintain our leadership in Video Bingo, we are also focused on strengthening our position in other gaming verticals. We will continue investing in localized, player-driven innovation, ensuring that every product we launch enhances both player experience and operator success.
Brazil is a key market with huge potential. How does FBMDS plan to strengthen its presence in this region?
Brazil is a strategic priority for us. With regulatory developments and increasing demand for online gaming, we see tremendous opportunities to expand. Our approach is centered on offering tailored gaming experiences that resonate with Brazilian players, ensuring our products align with their cultural and gaming preferences. Additionally, we are forging strategic partnerships with operators to facilitate seamless and impactful expansion in the region, ensuring that our games drive engagement and profitability for our partners.
Innovation & Whatâs Next
Can you share any insights about upcoming products or features that FBMDS is working on?
Absolutely. We are developing a new generation of Video Bingo games featuring advanced jackpot systems, enhanced gameplay mechanics, and even more engaging features tailored to player preferences. Our goal is to create experiences that keep players entertained while maximizing operator revenue. In addition, we are working on new slots and bonus structures designed to drive engagement and profitability, ensuring that FBMDS remains at the forefront of gaming innovation.
What can operators and players expect from FBMDS in the near future?
A: More expansion, more innovation, and an even stronger, more diverse gaming portfolio. Players can expect cutting-edge experiences featuring interactive and rewarding mechanics, while operators will benefit from flexible, high-performance gaming solutions designed to optimize engagement and profitability. We are committed to maintaining our leadership in Video Bingo while continuously evolving to meet market demands.
Final Thoughts
After five years of continuous growth, what message would you like to share with FBMDSâ partners and players?
First and foremost, a heartfelt thank you to our players, partners, and the entire FBMDS team. Your trust and support have been instrumental in our journey. As we move forward, we remain committed to delivering exceptional gaming experiences, driving profitability for our partners, and continuously pushing the boundaries of innovation. The best is yet to come!
If you had to describe FBMDSâ journey in one word, what would it be?
Transformational.
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