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Gambling.com Group Reports Second Quarter 2024 Results and Raises 2024 Guidance

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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 second quarter ended June 30, 2024. The Company also raised its 2024 revenue and Adjusted EBITDA guidance as detailed below.

“Our second quarter and year-to-date results highlight the incredible power of our high-intent audience and the clear value we create for our online gambling operator clients. Our team’s proven ability to dynamically manage our owned and operated assets to quickly address changes to the operating environment was evident in the second quarter’s strong topline and Adjusted EBITDA growth, and will continue to benefit us in the future,” commented Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group. “As we continue to execute at a high level, expand our footprint in the online gambling ecosystem and leverage industry growth opportunities, we continue to see a clear path towards our goal of $100 million in annual Adjusted EBITDA. Our significant share repurchase activity in the first half of this year underscores our confidence in the future of the business.”

Elias Mark, Chief Financial Officer of Gambling.com Group added, “Our second quarter performance was driven by our team’s faster than expected re-calibration of our portfolio, leading to accelerated performance of our owned and operated assets. Year-over-year second quarter revenue and Adjusted EBITDA growth of 18% and 19%, respectively, reflect very strong delivery of iGaming NDCs across Europe, including the United Kingdom, as well as resiliency in our North American business, against a challenging comparative prior-year period.”

Second Quarter 2024 and Recent Business Highlights

-Delivered more than 108,000 new depositing customers (“NDCs”)

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-Completed highly accretive acquisition of Freebets.com and related assets on April 1st, and made the initial consideration payment of $20.0 million

-Repurchased 833,770 shares at an average price of $8.17 per share. Subsequent to the end of the second quarter, repurchased an additional 798,061 shares at an average price of $8.87 per share

-Made final deferred consideration payment of $13.6 million for BonusFinder.com

-Drew $18.0 million on the credit facility

-Authorized an additional $10.0 million for the Company’s share repurchase program on August 14th

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Second Quarter 2024 Results Compared to Second Quarter 2023

Revenue rose 18% year-over-year to a second quarter record $30.5 million. The Company delivered more than 108,000 NDCs to customers, an increase of 19% year-over-year, even as the year-ago period benefited from atypically strong growth in U.S. sports betting NDCs, which did not recur this year.

Gross profit increased 16% to $29.1 million, including a $0.5 million increase in cost of sales related to the Company’s media partnerships.

Total operating expenses decreased 15% to $20.8 million, reflecting the elimination of fair value movement in contingent consideration and a modest decrease in general and administrative expenses, partially offset by increases in sales and marketing and technology expenses.

Net income attributable to shareholders rose from $0.3 million to $6.9 million and net income per share rose from $0.01 to $0.19. Adjusted net income increased 13% to $7.4 million and adjusted net income per share increased 18% to $0.20.

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Adjusted EBITDA was $11.2 million, reflecting an Adjusted EBITDA margin of 37% as compared to Adjusted EBITDA of $9.4 million and an Adjusted EBITDA margin of 36%, in the year-ago period.

Operating cash flow of $0.2 million included $7.2 million for the final deferred consideration payment for the acquisition of BonusFinder. Absent the deferred consideration payment, operating cash flow would have been $7.4 million. Free Cash Flow was $6.0 million compared to $8.7 million in the year-ago period reflecting working capital movements and increased capital expenditures.

2024 Outlook

Gambling.com Group today updated its 2024 full-year revenue and Adjusted EBITDA guidance. The Company now expects full year revenue of $123 million to $127 million and Adjusted EBITDA of $44 million to $47 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 15% and 24%, respectively. The Company’s updated outlook compares to the guidance provided on May 16, 2024 for revenue of $118 million to $122 million and Adjusted EBITDA of $40 million to $44 million.

The Company’s guidance assumes:

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  • No additional North American markets come online over the balance of 2024
  • Apart from the completed acquisition of Freebets.com and related assets, no benefit from any additional acquisitions in 2024
  • Full year cost of sales of approximately $6.5 million, of which $3.7 million was incurred in the first half of 2024
  • An average EUR/USD exchange rate of 1.09 throughout 2024

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21VIRAL Speeds Up Game Integration Time for Operators

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21VIRAL, the game aggregation provider focusing on Latin America today, confirmed it is committed to raising the industry standards by introducing next-generation AI technology via its GameConnector platform. This AI technology is designed to ‘speed up’ integration between operators and game content studios, reducing the time from months to weeks.

21VIRAL was founded by industry entrepreneurs with 20+ years of successful experience building and streamlining high-tech supply chain platform technology solutions and enhancing commercial benefits to stakeholders.

Christoph Härtel, CEO of 21VIRAL, emphasized the company’s customer-first approach. He stated, “Our goal is to build a product and solution experience that truly meets the needs of our customers. This is why we decided to specialize in the Latin American market, given its current and expected growth rates.”

“We looked at market-product fit and listened to operators seeking unique game content for their local market in weeks rather than months. So, we launched GameConnector, which will be debuted at the SBC Summit in Lisbon.

The 21VIRAL GameConnector is the equivalent of an engineering hub. It reduces integration headaches for operators and game providers, increases speed to market by using AI, and includes transparent game pricing and commission reporting, which is also a headache for operators in terms of figuring out which games make them money.

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We have onboarded several industry-established operators and game providers in record time using AI to facilitate faster and more streamlined workflows. However, one of the limiting factors of scale-up businesses, especially if you are an operator or game provider, is the technical integration expertise and market access within the supply chain.

Part of the solution to these problems is commercial pricing transparency and integration support, so we have created more accessibility for onboarding operators and game providers. GameConnector will be the enabler for all the technical integration, heavy lifting, and onboarding. We will also offer reverse integration, a process where we integrate our GameConnector Platform into their systems, thereby reducing their work effort. Therefore, the operators have little to zero work effort – it’s a win-win for all parties involved.”

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CT Interactive Expands its Global Footprint with Novibet

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CT Interactive, a global provider of online gaming solutions, has announced the launch of its games on Novibet’s platforms for Mexico (www.novibet.mx) . This partnership underscores CT Interactive’s commitment to expanding its reach and delivering high-quality gaming experiences to players worldwide.

Striving to offer exciting content to its users, Novibet.mx will now feature a selection of CT Interactive’s newest and most innovative games. Players in Mexico can now enjoy Star Girl, a captivating game that combines stellar graphics with thrilling gameplay; The Big Chilli, a spicy title that promises exciting features; Dr. Winstein Buy Bonus, a unique game where players can take control of their gaming experience with the Buy Bonus feature; Clover Queen, a game that brings the luck of the Irish to the reels, offering big wins and enchanting visuals. These slot games are designed to offer a diverse range of gaming experiences, ensuring there’s something for every player’s taste. This launch marks a significant step in CT Interactive’s strategy to bring fresh and engaging content to the rapidly growing Mexican online gaming market.

Simultaneously, CT Interactive has announced the release of its comprehensive portfolio of 61 games on Novibet.com, catering to markets regulated by the Malta Gaming Authority. This extensive collection includes some of CT Interactive’s most popular and enduring titles, such as Lucky Clover, a fan-favorite known for its classic design and rewarding gameplay; Win Storm, an action-packed game with dynamic features and high win potential; HOT 7’s X 2, an exciting slot game that offers double the excitement and twice the winning opportunities. The integration of these games is set to enhance Novibet’s offering, providing players with a wide variety of high-quality slots that deliver both entertainment and the potential for significant rewards.

This partnership between CT Interactive and Novibet is a testament to both companies’ dedication to delivering top-tier gaming experiences.

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Monika Zlateva, CCO of CT Interactive, said: “We are thrilled to partner with Novibet to bring our latest games to more players. This collaboration aligns with our goal of reaching new audiences and providing them with the high-quality gaming experiences that CT Interactive is known for. We look forward to a successful partnership with Novibet as we continue to grow and innovate in the online gaming industry.”

Foteini Matthaiou, Casino Product & CRM Director, said: “At Novibet, our mission is to bring players a gaming experience that is not only entertaining but also distinctive and dynamic. Partnering with CT Interactive allows us to introduce a range of innovative titles that resonate with players seeking something fresh and engaging. We are happy to bring these captivating games to our platforms in Mexico and across Malta Gaming Authority regulated markets, ensuring our users enjoy both thrilling gameplay and the highest standards of quality. This collaboration reflects our ongoing dedication to pushing the boundaries of what online gaming can offer.”

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Compliance Updates

Public Health Advocacy Institute (PHAI) and Congressional Leaders Unveil the SAFE Bet Act to Address Sports Betting Risks

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Public Health Advocacy Institute (PHAI) at the Northeastern University School of Law has supported Congressman Paul D. Tonko (NY-20) and Senator Richard Blumenthal (D-CT) last week in introducing the SAFE Bet Act, which addresses the risks associated with legalized gambling.

The SAFE Bet Act is the first federal legislative initiative to address the vast public health implications of mobile sports betting since sports betting was legalized in 2018. When the SAFE Bet Act is enacted, federal standards will be set to create a safer and less addictive betting environment. While still allowing the freedom for those who wish to participate, these standards will include addressing advertising, affordability, and artificial intelligence issues.

PHAI’s President and Northeastern University Distinguished Professor of Law, Richard Daynard, said: “PHAI’s mission is to serve the greater good by seeking big ideas to advance public health and justice. That is why we’re fully dedicated to playing a leading role in work to bring about a comprehensive public health response to the looming crisis presented by the out-of-control gambling industry.”

“The gambling industry is following a playbook developed by the tobacco industry and this is a direct threat to public health. At PHAI, we will work tirelessly to address this threat and protect public health. Supporting the SAFE Bet Act is part of this effort,” Daynard added.

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PHAI Executive Director Mark Gottlieb said: “It is my desire to play an important role in national and international efforts to develop and implement a public health approach to regulating the gambling industry and online gambling. At PHAI, we utilize a wide range of resources—including litigation and advocacy—to protect public health. It has become apparent that the gambling industry and its partners act with conscious and reckless disregard for public safety. Collaborating with Congressman Tonko and Senator Blumenthal to create the SAFE Bet Act is one part of how PHAI will bring a public health response to the gambling industry.”

“As the Director of Gambling Policy with the Public Health Advocacy Institute it is my role to develop comprehensive public health strategies and advocacy efforts to address the looming crisis being caused by the unprecedented expansion of the gambling industry and online gambling. The ‘responsible gaming’ model of industry self-regulation is unethical and an abject failure. At PHAI, we will help lead a growing movement to expose the failures of the gambling industry’s responsible gaming model. In doing so, we will develop and help implement a series of comprehensive public health reforms designed to regulate the gambling industry, prevent harm, and protect individuals and families. It is a privilege to support Congressman Tonko and Senator Blumenthal as we work to advance the SAFE Bet Act,” said Dr. Harry Levant, PHAI Director of Gambling Policy.

“Since their inception, sports and sporting events have been a chance for family, friends, and strangers to gather together in celebration of beloved teams and athletes in a great American pastime. But now, every single moment of every sporting event across the globe has become a betting opportunity. That resulted in a frightening rise in gambling disorder, which has in turn enacted a horrific toll on individuals, many of whom have lost their home, job, marriage, and their lives. We have a duty to protect people and their families from suffering the tremendous harm related to gambling addiction. Our SAFE Bet Act gets the job done and gives sports back to the American people,” Congressman Tonko said.

At the press conference, Senator Blumenthal said: “Right now, states have legalized gambling, but they failed to protect citizens against those excesses, abuses, and exploitations. State regulation is faint-hearted and half-baked. That’s why we need a national standard–not to ban gambling–but simply to take back control over an industry that is out of bounds.”

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