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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 | % | — | % | |||||
| 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 EBITDA (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.
“The 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,” the co-founder and Chief Executive Officer for Gambling.com Group Limited, Charles Gillespie, said. “The 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.
“Despite 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.
“With 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.”
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 Kingdom’s largest digital media publishers with more than 20 million unique monthly users
- Negotiated a final, deferred consideration payment of €18 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
“The 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,” the Chief Financial Officer for Gambling.com Group Limited, Elias Mark, said. “As 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.”
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 company’s 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 EBITDA (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 company’s website at Gambling .com/corporate/investors/news-events. Information contained on the company’s website is not incorporated into this press release.
Inspired Entertainment, Inc., a leading B2B provider of gaming content, technology, hardware, and services, is pleased to welcome Rafael Brunacci as its new Business Development Director for LATAM – Virtuals. In this strategic role, Mr. Brunacci will lead Inspired’s growth initiatives in Latin America, concentrating on expanding the company’s Virtual Sports footprint and advancing its business across this rapidly growing market.
With a strong background in the iGaming industry, payment services, and eSports, Rafael brings the ideal mix of skills to drive Inspired’s Virtuals business forward in LATAM, with a specific focus on the imminent regulated market opening in Brazil. His leadership will play a key role in enhancing Inspired’s presence and delivering value to both clients and partners across the region.
Most recently, Rafael served as Business Development Manager for LATAM at Oddin.gg, where he championed the integration of eSports solutions across Latin America. His efforts helped build market awareness and educate local stakeholders on best practices, positioning eSports as a high-potential sector within the LATAM betting industry. Rafael’s work was instrumental in establishing strategic partnerships, increasing the adoption of eSports, and solidifying the company’s presence within the region.
Prior to this, he was with CoinsPaid as a Business Development Manager LATAM, delivering Crypto Payment solutions to the iGaming industry. Rafael’s diverse experience also includes roles at Intralinks and Prudential Financial, where he honed his skills in digital transformation and financial market solutions across Latin America.
“We are delighted to welcome Rafael to the Inspired team,” said Ian Freeman, Chief Commercial Officer – Virtual Sports at Inspired.
“Rafael brings a dynamic blend of experience in the iGaming industry, payment services and eSports, which is instrumental as we expand our Virtual Sports offerings across LATAM. As a native Brazilian, fluent in English, Spanish, and Portuguese, his ability to navigate complex market environments makes him exceptionally qualified to drive growth and engagement in this critical region.”
“I am excited to join Inspired and contribute to the Company’s continued expansion in LATAM,” said Mr. Brunacci. “Inspired’s commitment to innovation in gaming technology aligns perfectly with my background, and I look forward to leveraging my experience to foster growth, support clients, and drive the adoption of Inspired’s Virtual Sports products in the region.”
FanDuel, North America’s premier online gaming company, announced a new partnership with the Professional Women’s Hockey League (PWHL) becoming an Official Sportsbook Partner and exclusive In-app Streaming Partner in the US.
This collaboration offers hockey fans unmatched access to the PWHL, with FanDuel streaming up to 90 regular season PWHL games and playoffs live on the FanDuel app. Fans can both watch and wager on their favorite teams and athletes throughout the season, with offerings including player prop bets, novelty markets and Same Game Parlays, all in one place. The partnership goes beyond the app, and starting at the beginning of the season, fans will see FanDuel as an integral part of PWHL games.
“FanDuel is proud to partner with the PWHL and support the league’s incredible athletes. This partnership is about creating a new era of fan engagement—one that brings hockey closer to fans while helping grow the visibility of women’s professional sports,” said Dale Hooper, General Manager of FanDuel Canada.
With this collaboration, FanDuel reinforces its leadership as the best sportsbook for fans to engage with their favorite teams and athletes, bringing them closer to the action and women’s hockey than ever before.
Canada
The Grand Traverse Band of Ottawa and Chippewa Indians Plans to Open a Gaming Facility in Benzonia
The Grand Traverse Band of Ottawa and Chippewa Indians plans to open a gaming facility in Benzonia.
“The Grand Traverse Band of Ottawa and Chippewa Indians wishes to share with the public the exciting news that the tribe will open a new gaming facility on its trust land in Benzie County. The facility will create much-needed new employment opportunities and stimulate economic growth for the tribe and for the local community,” reads an undated press release on the tribe’s website.
The gaming facility will be located at the tribe’s community center at 7282 Hoadley Road, in Benzonia, according to the release.
At the Nov. 26 Benzie County Board of Commissioners, John Petoskey spoke to commissioners about the gaming facility on behalf of the tribe.
Petoskey said he had been in contact with county officials about the gaming facility.
“What the tribe would like to do is to open a gaming facility on Hoadly Road just down the street from the Wesco gas station,” Petoskey said.
He said the tribe submitted a notice of notification to the National Indian Gaming Commission and the Office of Indian Gaming in the summer of 2023.
“In the view of the tribe, this site is eligible for gaming under the Indian Gaming Regulatory Act under what’s know as restored land exception to the categorical prohibition of gaming after 1988. That was basically the same argument the tribe used for Turtle Creek and was successful in that case,” Petoskey said.
He said state officials also have been notified of the tribe’s intent.
Petoskey said federal officials had 120 days to review the notice and object.
“At this point, they have not raised objections, so our internal gaming commission at the Grand Traverse Band issued a gaming license on Nov. 21,” he said.
He said after the license was issued, the tribe reached out to Benzie County officials so that they would know what was going on at tribal land and could answer questions from the public.
The tribal center will be renovated to accommodate gaming The tribe also has a housing development on the property.
Petoskey said the facility will feature slot machines and table games.
Work on the renovation has already started, including electrical and architectural work.
Expanded parking may be constructed if “demand is sufficient” Petoskey said.
He also said the gaming facility would create between 20 and 50 jobs.
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