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Gambling.com Group Reports First Quarter 2024 Results

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Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the first quarter ended March 31, 2024. The Company also updated its 2024 revenue and Adjusted EBITDA guidance as detailed below.

“We are off to a great start to the year furthering our confidence in our ability to generate strong Adjusted EBITDA and Free Cash Flow growth this year and for years to come,” commented Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group. “The investments we have made for years in our proprietary technology, website portfolio, and accretive acquisitions are driving consistent growth. As we continue to expand our industry leadership and influence across global online gambling markets and leverage the many growth drivers we have, we see a clear road ahead to generate substantially higher Adjusted EBITDA and Free Cash Flow.”

Elias Mark, Chief Financial Officer of Gambling.com Group added, “By growing year on year in every one of our geographic reporting markets, we delivered record Q1 revenue with top line growth of 9% despite the comparable period benefiting from significantly more new state launch activity.”

First Quarter 2024 and Recent Business Highlights

Delivered more than 107,000 new depositing customers (“NDCs”)
Strong initial contribution from North Carolina following launch on March 11th
Secured new $50 million credit facility with Wells Fargo Bank, National Association
Repurchased 329,490 shares for an average price of $9.10
Completed highly accretive acquisition of Freebets.com and related assets on April 1st
Board of Directors approved an additional $10 million for the Company’s ordinary shares repurchase program in May
First Quarter 2024 Results Compared to First Quarter 2023

Revenues rose 9% year-over-year to a first quarter record $29.2 million, reflecting growth across all geographic reporting markets. The Company delivered more than 107,000 NDCs to customers, an increase of 22%.

Gross profit increased 5% to $27.0 million, including a $1.2 million increase in cost of sales related to the Gannett and Independent partnerships.

Total operating expenses increased 9% to $19.1 million, reflecting increases in sales and marketing, technology and general and administrative expenses.

Net income attributable to shareholders and net income per share rose 11% to $7.3 million and $0.19, respectively. Adjusted net income of $7.6 million and adjusted net income per share of $0.20 were flat, reflecting fair value movement related to acquisitions in the comparative period.

Adjusted EBITDA for the first quarter of 2024 was $10.2 million, reflecting an Adjusted EBITDA margin of 35% as compared to Adjusted EBITDA of $10.7 million and Adjusted EBITDA margin of 40%, in the year-ago period. The Q1 2024 Adjusted EBITDA margin reflects higher costs of sales related to media partnerships.

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Operating cash flow increased 24% to $8.8 million. Free Cash Flow increased 32% to $8.2 million reflecting positive working capital movements within operating cash flow and lower capital expenditures. The Company converted 28% of revenues and 81% of Adjusted EBITDA to Free Cash Flow in the first quarter of 2024.

2024 Outlook

Reflecting changes made in early May to how Google treats commercial content on high authority websites that, at present, diminishes the effectiveness of the Company’s media partnerships, Gambling.com Group today updated its 2024 full-year revenue and Adjusted EBITDA guidance. The Company now expects full year revenue of $118 to $122 million and Adjusted EBITDA of $40 million to $44 million. This compares to the initial guidance provided on March 21, 2024, for revenue of $129 million to $133 million and Adjusted EBITDA of $44 million to $48 million. The midpoint of the updated Adjusted EBITDA outlook of $42 million reflects expected year-over-year growth of 14%.

Charles Gillespie commented, “Even with these shifts in the digital landscape, the strength and resilience of our business will enable us to deliver strong year over year Adjusted EBITDA and Free Cash Flow growth. With less competition in the search engine results pages, our owned and operated assets are better positioned for the long term than ever before.”

The Company’s guidance assumes:

Following the launch of sports betting in North Carolina on March 11th, no additional North American markets come online over the balance of 2024
Apart from the acquisition of Freebets.com and related assets, no impact from any additional acquisitions in 2024
Full year cost of sales of approximately $4.8 million, of which $2.2 million was incurred in Q1
An average EUR/USD exchange rate of 1.09 throughout 2024

To access, please dial in approximately 10 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.

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Dr. Laila Mintas Joins ADvantage as Venture Partner

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Expert in sports betting and analytics joins global venture capital firm

ADvantage, a leading venture capital firm that invests in sports technology, is excited to announce the appointment of Dr. Laila Mintas as Venture Partner. With over two decades of experience in the sports industry, Dr. Mintas will play a pivotal role in identifying, evaluating, and nurturing emerging startups in the sector.

Dr. Mintas joins ADvantage at a time of rapid growth in the sports technology space, where innovation in fan engagement, betting and iGaming, and wearable technology is increasingly in demand. Her deep knowledge of the industry and extensive network will be invaluable as Advantage drives forward its mission to shape the future of sports.

“We are thrilled to welcome Laila to the ADvantage team,” said Alex Bente, Managing Partner at ADvantage. “I’ve had the pleasure of getting to know her over the past couple of years, and her unique background gives her unmatched insights. She is a world-class expert in sports data, analytics, fantasy, and betting with an extensive network in the industry. We’re excited to work more closely with her as we continue to back the best and brightest entrepreneurs in our industry.”

Having held pivotal roles in global organizations such as FIFA and Sportradar, Dr. Mintas brings over 20 years of experience and a proven track record of success in sports technology with a focus on sports betting and iGaming. An active investor, she has built a portfolio of investments in the fan engagement, sports betting, and iCasino-tech industries.

“Joining ADvantage represents an exciting opportunity to leverage my experience in sports and gaming technology,” said Dr. Mintas. “I am passionate about supporting innovative companies that are redefining the sports landscape globally. Together with the talented team at ADvantage, I look forward to fostering the next generation of sports tech entrepreneurs.”

“Technology has reshaped fan engagement into interactive, immersive experience. Today’s sports enthusiasts demand experiences that foster a two-way relationship with their favorite teams and athletes. We are looking to invest into companies that are redefining what it means to be a fan in this digital age.”

In 2024, Dr. Mintas was chosen as a judge for numerous prestigious awards in the sports betting and iGaming Industry, including the SBC Awards, Global Gaming Awards Americas, Global OTT Sports Awards, the GGB Gaming & Technology Awards, and the iGB Most Influential Women Awards. Throughout her career, she was awarded the Leaders in Sports U 40 Award, the SBJ Game Changers Award, the International Award for Women in the Gaming Industry – Inspiration of the Year, the SBJ´s Power Player Sports Betting Award, the Business Insider´s Leaders of the Sports Betting Industry Award, and the GGB Emerging Leaders of Gaming 40 Under 40 Award.

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Compliance Updates

BF Games Makes Strategic Entry into Brazilian Market

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BF Games Makes Strategic Entry into Brazilian Market

 

BF Games, a leading slot games provider, has announced its successful entry into the Brazilian market as a supplier to licensed operators. This milestone marks the company’s first step in its Latin American expansion strategy. The company views Brazil’s newly regulated online casino market as an optimal direction for its growth in the coming months.

Wiktor Grabarczyk, CEO of BF Games, commented: “We are thrilled to bring our premium game portfolio to players in this dynamic market. While Latin America represents new territory for our products,  we are confident that our offerings are tailored to meet local expectations, representing a major step in our growth and presence in Brazil and the broader Latin American region.”

This expansion into Brazil follows BF Games’ successful entry into several other markets over the past year, including the Netherlands, Italy, Czech Republic, and Georgia.

Brazilian players will have access to popular titles such as Book of Gods, El Dorado Totems, Chicken Madness, Stunning Crown, Buffalo Trail, Cave of Gems and more.

Rok Hribar, CCO of BF Games and BF HUB Aggregation, committed: “Our strategic partnerships with leading operators and our role as an aggregator to our 3rd party game providers have been instrumental in our success. We are confident that our diverse portfolio will captivate players. Our substantial investments in game development and our unwavering focus on clients and players have significantly expanded our player base, surpassing our targets. We are eagerly anticipating continued growth and success in this year.”

BF Games has established itself as a prominent figure in the gaming industry, building its reputation on a commitment to creating engaging and visually stunning games. The company continues to push the boundaries of game design and technology, consistently delivering memorable gaming experiences to players worldwide.

The Brazilian market entry is a testament to BF Games’ strategic vision and dedication to growth, paving the way for further opportunities in Latin America.

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Ottawa Black Bears Announce Partnership Deal with PowerPlay

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The Ottawa Black Bears announced an extensive partnership agreement with PowerPlay Online Sportsbook and Casino that will see the company’s logo featured on the club’s home and away jerseys.

In addition to the jersey partnership, PowerPlay will also have branding elements inside the goal crease, behind the bench, on the LED display ring, and along the rinkboards for Black Bears home games at Canadian Tire Centre. As part of the deal, PowerPlay also becomes the exclusive sportsbook and online casino partner for the Ottawa Black Bears.

“We are thrilled to have PowerPlay on board for our inaugural season with such a comprehensive partnership agreement. Their investment with the Black Bears represents a foundational agreement for our lacrosse club. And we’re proud to wear their logo alongside ours as we launch our franchise,” said Chelsea McDermott, Vice President of Business Operations for the Ottawa Black Bears.

“We are excited to bring PowerPlay’s bold, community-driven spirit to Ottawa-Gatineau, partnering with the Black Bears as they establish themselves as a force in lacrosse. This partnership celebrates a sport deeply tied to Canada’s heritage and competitive energy. Together, we’ll ignite passion, energize fans, and deliver excitement all season long,” said Thomas Vermeulen, Marketing Director for PowerPlay.

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