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Gambling.com Group Reports Second Quarter 2024 Results and Raises 2024 Guidance
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”)
-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
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.
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:
- 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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Betson Appoints Todd Cravens as SVP of Gaming Division
Betson Enterprises, a division of H. Betti Industries Inc., has appointed Todd Cravens as Senior Vice President of the Gaming Division, effective January 6, 2025. In this role, Todd will oversee the strategic growth and operations of Betson’s gaming division, focusing on expanding distributive gaming initiatives, strengthening customer and supplier relationships, and driving innovation within the industry. Todd will be based out of Betson’s Henderson, NV office and will join the company’s executive leadership team.
Todd brings a wealth of experience in gaming and amusements, including his previous tenure as CEO and President of Galaxy Gaming. With a proven track record in organizational leadership, business development, and strategic execution, Mr. Cravens is well-positioned to lead Betson’s gaming division in its next phase of growth. His focus on customers, product and team align with Betson’s commitment to delivering innovative solutions and superior service to its customers.
“We are thrilled to welcome Todd back to the Betson Gaming team working alongside Rick Kirby. His deep industry knowledge, leadership, and strategic mindset will be instrumental in driving the growth of our gaming division and expanding our footprint in the gaming industry, as well as the overall Betson business,” said Bob Geschine, President of H. Betti Industries.
Commenting on his new role, Todd said: “I can’t wait to get back to work and look forward to rejoining the Betson team. I look forward to working closely with the talented Betson crew to deliver on the company’s strategic objectives, focus on our customers, strengthen our partnerships, and explore new opportunities to innovate in the gaming market and beyond.”
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Scientific Games Scores Deal with NBA for Lottery Scratch Games in US
Scientific Games continues to light up the company’s licensed properties portfolio with another big win. National Basketball Association (NBA)-licensed instant scratch games are now available to U.S. lotteries through Scientific Games, bringing the fan-passionate brand of professional basketball to their players.
As part of the new, multi-year agreement, Scientific Games will work with U.S. lotteries to help create custom second-chance promotions and experiential prizes to amplify their NBA-themed scratch games. Lotteries can also work with local NBA teams in their states to create team-specific games through sponsorships.
The Massachusetts Lottery, perennially ranked No. 1 worldwide for instant scratch game sales, is the first to feature an NBA-branded scratcher under the Scientific Games agreement. The Lottery launched an NBA Champion Boston Celtics-themed game on November 19 with the 2024-25 NBA season in full swing. With total sales of $1.6 billion since the introduction of its first sports-themed ticket in 2006, the Mass Lottery is also ranked No. 1 in the U.S. for retail sales in this category.
“The Celtics are one of the most iconic franchises in all of sports and we are thrilled to commemorate their most recent championship with a ticket that offers their passionate fanbase the opportunity to win up to one million dollars and a variety of experiential and merchandise prizes,” said Mark William Bracken, Executive Director of the Massachusetts State Lottery.
The NBA has a rich tradition of game-changing plays, storied rivalries and team dynasties. It is the most innovative league in sports, helping drive the growth of the sport around the globe. The NBA comprises 30 teams in North America, 29 based in major U.S. cities and one in Canada.
Tina Hoover, VP Licensing for Scientific Games, said: “We are excited to welcome the NBA back into the lottery category. The NBA has a loyal and passionate fanbase, which makes the brand perfect for lottery games that appeal to players in communities across a state. Each game can be customized to a lottery’s home market. Best of all, sales from the games will benefit the lottery’s good cause programs in those same communities.”
In fiscal year 2024, licensed branded games created by Scientific Games for North American lotteries represented USD $2.6 billion in retail sales.
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Seminole Hard Rock Hotel & Casino Tampa Marks $2 Billion Milestone in Jackpots Given Away in 2024
A lucky guest – Richard B. – won a $100,000 Mercedes AMG GLE 53 SUV as part of a celebration of $2 billion in jackpots paid out so far in 2024 by Seminole Hard Rock Hotel & Casino Tampa.
Richard was playing a Dollar Storm – Caribbean Gold $0.25 progressive slot machine with a $18.75 bet. He won $1680 on the machine, which pushed the casino’s total slots payout for 2024 to over $2 billion. The win earned him the new Mercedes in recognition of surpassing the slot payout milestone.
“This is absolutely amazing. I stopped in to play for just a minute, hit a jackpot, and suddenly I was whisked away to find out I won a car. I’ve been playing at Hard Rocks forever, but this is the first time I’ve ever won a car,” said the winner.
In addition to Richard’s good fortune, 881 guests playing with their Unity Card each received $25 in Bonus Free Play. A total of $22,025 was awarded.
“It’s exciting that we have paid out more than $2 billion in jackpots. We are always dedicated to providing exceptional guest experiences, while ensuring that each visit to Seminole Hard Rock Tampa is truly unforgettable,” said Steve Bonner, President of Seminole Hard Rock Hotel & Casino Tampa.
2024 is the third year Seminole Hard Rock Tampa has paid out more than $2 billion in jackpots.
Seminole Hard Rock Tampa has paid out over 723,505 jackpots of $1200 or more so far this year. That’s almost two jackpots for every person who lives in the City of Tampa.
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