Gambling.com Group Reports Fourth Quarter and Full-Year 2024 Results
2025 Guidance Mid-points Imply
Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, “Our record fourth quarter and full-year results were driven by our team’s prioritization of iGaming across the markets where we operate. Our team delivered outstanding performance in the quarter, especially when compared to the launch driven results in the prior-year period. We anticipate growth and continued market share gains in our performance marketing business across all geographic regions in 2025, including
“We capped an active and productive year during which we set the stage for continued strong growth in 2025 and beyond,” said Mr. Gillespie. “In 2024, we extended our record of delivering full-year revenue, Adjusted EBITDA and Free Cash Flow growth with those metrics improving
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Fourth quarter revenue and Adjusted EBITDA increased
Financial Highlights Three Months Ended December 31, 2024 vs. Three Months Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
|
Three Months Ended December 31, |
|
Change |
|||||
|
2024 |
|
2023 |
|
% |
|||
Revenue |
35,308 |
|
|
32,530 |
|
|
9 |
% |
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
24 |
% |
Net income per share attributable to shareholders, diluted |
0.23 |
|
|
0.16 |
|
|
44 |
% |
Net income margin |
22 |
% |
|
20 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1) |
12,172 |
|
|
8,622 |
|
|
41 |
% |
Adjusted net income per share attributable to shareholders, diluted (1) |
0.35 |
|
|
0.22 |
|
|
59 |
% |
Adjusted EBITDA (1) |
14,736 |
|
|
10,569 |
|
|
39 |
% |
Adjusted EBITDA Margin (1) |
42 |
% |
|
32 |
% |
|
|
|
Cash flows generated by operating activities |
13,698 |
|
|
7,140 |
|
|
92 |
% |
Free Cash Flow (1) |
13,162 |
|
|
6,511 |
|
|
102 |
% |
__________ |
(1) 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. |
Fourth Quarter 2024 and Recent Business Highlights
- Delivered more than 145,000 new depositing customers (“NDCs”)
-
Repurchased 486,312 shares at an average price of
per share$9.80 - Won Casino Affiliate of the Year at the 2024 EGR Operator Awards
-
Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of
in cash and$70 million in shares$10 million -
Expanded credit facility to
with a new syndicate$165 million
Three Months Ended December 31, 2024 Results Compared to Three Months Ended December 31, 2023
Revenue rose
Gross profit increased
Total operating expenses increased
Net income attributable to shareholders increased
Adjusted EBITDA increased
Operating cash flow of
2025 Outlook
Gambling.com Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of
The Company’s guidance assumes:
-
Incremental Adjusted EBITDA contributions of approximately
related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025.$14.5 million -
No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in
Missouri in the second half of 2025, the Company’s guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body. - An average EUR/USD exchange rate of 1.07 throughout 2025.
Financial Highlights Full Year Ended December 31, 2024 vs. Full Year Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
|
Year ended December 31, |
|
Change |
|||||
|
2024 |
|
2023 |
|
% |
|||
Revenue |
127,182 |
|
|
108,652 |
|
|
17 |
% |
Net income for the period attributable to shareholders |
30,679 |
|
|
18,260 |
|
|
68 |
% |
Net income per share attributable to shareholders, diluted |
0.84 |
|
|
0.47 |
|
|
79 |
% |
Net income margin |
24 |
% |
|
17 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1) |
42,120 |
|
|
32,207 |
|
|
31 |
% |
Adjusted net income per share attributable to shareholders, diluted (1) |
1.16 |
|
|
0.84 |
|
|
38 |
% |
Adjusted EBITDA (1) |
48,691 |
|
|
36,715 |
|
|
33 |
% |
Adjusted EBITDA Margin (1) |
38 |
% |
|
34 |
% |
|
|
|
Cash flows generated by operating activities |
37,638 |
|
|
17,910 |
|
|
110 |
% |
Free Cash Flow (1) |
41,582 |
|
|
23,000 |
|
|
81 |
% |
__________ |
(1) 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, March 20, 2025, at 8:00 a.m. ET |
|||
Webcast: |
||||
|
877-407-0890 |
|||
International Dial In: |
1 201-389-0918 |
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.
About Gambling.com Group Limited
Gambling.com Group Limited (Nasdaq: GAMB) (the “Group”) is a fast-growing provider of digital marketing services for the global online gambling industry. Founded in 2006, the Group has offices globally, primarily operating in
Use of Non-IFRS Measures
This press release contains certain non-IFRS financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and related ratios. See “Supplemental Information - Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the
Consolidated Statements of Comprehensive Income (Unaudited)
(USD in thousands, except per share amounts)
The following table details the consolidated statements of comprehensive income for the three and twelve months ended December 31, 2024 and 2023 in the Company's reporting currency and constant currency.
|
Reporting Currency |
|
Constant
|
|
Reporting Currency |
|
Constant
|
||||||||||||||||||
|
Three Months Ended
|
|
Change |
|
Change |
|
Year ended
|
|
|
Change |
|
|
Change |
||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
Revenue |
35,308 |
|
|
32,530 |
|
|
9 |
% |
|
10 |
% |
|
127,182 |
|
|
108,652 |
|
|
|
17 |
% |
|
|
18 |
% |
Cost of sales |
(2,185 |
) |
|
(5,089 |
) |
|
(57 |
)% |
|
(57 |
)% |
|
(7,536 |
) |
|
(9,112 |
) |
|
|
(17 |
)% |
|
|
(17 |
)% |
Gross profit |
33,123 |
|
|
27,441 |
|
|
21 |
% |
|
22 |
% |
|
119,646 |
|
|
99,540 |
|
|
|
20 |
% |
|
|
21 |
% |
Sales and marketing expenses |
(10,876 |
) |
|
(9,687 |
) |
|
12 |
% |
|
13 |
% |
|
(41,897 |
) |
|
(35,331 |
) |
|
|
19 |
% |
|
|
19 |
% |
Technology expenses |
(3,905 |
) |
|
(3,058 |
) |
|
28 |
% |
|
29 |
% |
|
(13,949 |
) |
|
(10,287 |
) |
|
|
36 |
% |
|
|
36 |
% |
General and administrative expenses |
(9,064 |
) |
|
(6,994 |
) |
|
30 |
% |
|
31 |
% |
|
(27,645 |
) |
|
(24,291 |
) |
|
|
14 |
% |
|
|
14 |
% |
Movements in credit losses allowance and write-offs |
581 |
|
|
468 |
|
|
24 |
% |
|
25 |
% |
|
(480 |
) |
|
(914 |
) |
|
|
(47 |
)% |
|
|
(47 |
)% |
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
(6,939 |
) |
|
|
(100 |
)% |
|
|
(100 |
)% |
Operating profit |
9,859 |
|
|
8,170 |
|
|
21 |
% |
|
22 |
% |
|
35,675 |
|
|
21,778 |
|
|
|
64 |
% |
|
|
65 |
% |
Finance income |
57 |
|
|
620 |
|
|
(91 |
)% |
|
(91 |
)% |
|
1,570 |
|
|
634 |
|
|
|
148 |
% |
|
|
149 |
% |
Finance expenses |
(910 |
) |
|
(2,577 |
) |
|
(65 |
)% |
|
(64 |
)% |
|
(3,095 |
) |
|
(2,271 |
) |
|
|
36 |
% |
|
|
37 |
% |
Income before tax |
9,006 |
|
|
6,213 |
|
|
45 |
% |
|
46 |
% |
|
34,150 |
|
|
20,141 |
|
|
|
70 |
% |
|
|
70 |
% |
Income tax charge |
(1,073 |
) |
|
159 |
|
|
(775 |
)% |
|
(778 |
)% |
|
(3,471 |
) |
|
(1,881 |
) |
|
|
85 |
% |
|
|
85 |
% |
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
25 |
% |
|
26 |
% |
|
30,679 |
|
|
18,260 |
|
|
|
68 |
% |
|
|
69 |
% |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exchange differences on translating foreign currencies |
(7,399 |
) |
|
4,953 |
|
|
(249 |
)% |
|
(251 |
)% |
|
(6,605 |
) |
|
2,868 |
|
|
|
(330 |
)% |
|
|
(331 |
)% |
Total comprehensive income for the period attributable to shareholders |
534 |
|
|
11,325 |
|
|
(95 |
)% |
|
(95 |
)% |
|
24,074 |
|
|
21,128 |
|
|
|
14 |
% |
|
|
15 |
% |
Consolidated Statements of Financial Position (Unaudited)
(USD in thousands)
|
DECEMBER 31,
|
|
DECEMBER 31,
|
||
ASSETS |
|
|
|
||
Non-current assets |
|
|
|
||
Property and equipment |
1,833 |
|
|
908 |
|
Right-of-use assets |
4,632 |
|
|
1,460 |
|
Intangible assets |
130,811 |
|
|
98,000 |
|
Deferred tax asset |
6,418 |
|
|
7,134 |
|
Total non-current assets |
143,694 |
|
|
107,502 |
|
Current assets |
|
|
|
||
Trade and other receivables |
21,160 |
|
|
21,938 |
|
Cash and cash equivalents |
13,729 |
|
|
25,429 |
|
Total current assets |
34,889 |
|
|
47,367 |
|
Total assets |
178,583 |
|
|
154,869 |
|
EQUITY AND LIABILITIES |
|
|
|
||
Equity |
|
|
|
||
Share capital |
— |
|
|
— |
|
Capital reserve |
78,037 |
|
|
74,166 |
|
Treasury shares |
(29,998 |
) |
|
(3,107 |
) |
Share-based compensation reserve |
10,624 |
|
|
7,414 |
|
Foreign exchange translation deficit |
(10,812 |
) |
|
(4,207 |
) |
Retained earnings |
75,337 |
|
|
44,658 |
|
Total equity |
123,188 |
|
|
118,924 |
|
Non-current liabilities |
|
|
|
||
Lease liability |
3,819 |
|
|
1,190 |
|
Deferred tax liability |
2,258 |
|
|
2,008 |
|
Borrowings |
19,582 |
|
|
— |
|
Total non-current liabilities |
25,659 |
|
|
3,198 |
|
Current liabilities |
|
|
|
||
Trade and other payables |
10,205 |
|
|
10,793 |
|
Deferred income |
2,616 |
|
|
2,207 |
|
Deferred consideration |
11,277 |
|
|
18,811 |
|
Other liability |
— |
|
|
308 |
|
Borrowings and accrued interest |
3,349 |
|
|
— |
|
Lease liability |
1,213 |
|
|
533 |
|
Income tax payable |
1,076 |
|
|
95 |
|
Total current liabilities |
29,736 |
|
|
32,747 |
|
Total liabilities |
55,395 |
|
|
35,945 |
|
Total equity and liabilities |
178,583 |
|
|
154,869 |
|
Consolidated Statements of Cash Flows (Unaudited)
(USD in thousands)
|
Three months ended
|
|
Year ended
|
||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Cash flow from operating activities |
|
|
|
|
|
|
|
||||
Income before tax |
9,006 |
|
|
6,213 |
|
|
34,150 |
|
|
20,141 |
|
Finance expense (income), net |
853 |
|
|
1,957 |
|
|
1,525 |
|
|
1,637 |
|
Adjustments for non-cash items: |
|
|
|
|
|
|
|
||||
Depreciation and amortization |
1,756 |
|
|
568 |
|
|
5,802 |
|
|
2,088 |
|
Movements in credit loss allowance and write-offs |
(581 |
) |
|
(468 |
) |
|
480 |
|
|
914 |
|
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
|
|
6,939 |
|
Share-based payment expense |
1,215 |
|
|
997 |
|
|
4,953 |
|
|
3,607 |
|
Income tax paid |
(331 |
) |
|
(2,063 |
) |
|
(1,901 |
) |
|
(3,826 |
) |
Payment of contingent consideration in relation to business combinations |
— |
|
|
— |
|
|
— |
|
|
(4,621 |
) |
Payment of deferred consideration in relation to business combinations |
— |
|
|
— |
|
|
(7,156 |
) |
|
(2,897 |
) |
Cash flows from operating activities before changes in working capital |
11,918 |
|
|
7,204 |
|
|
37,853 |
|
|
23,982 |
|
Changes in working capital |
|
|
|
|
|
|
|
||||
Trade and other receivables |
(670 |
) |
|
(3,260 |
) |
|
(98 |
) |
|
(10,387 |
) |
Trade and other payables |
2,450 |
|
|
3,196 |
|
|
(117 |
) |
|
4,240 |
|
Inventories |
— |
|
|
— |
|
|
— |
|
|
75 |
|
Cash flows generated by operating activities |
13,698 |
|
|
7,140 |
|
|
37,638 |
|
|
17,910 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||
Acquisition of property and equipment |
(137 |
) |
|
(157 |
) |
|
(1,326 |
) |
|
(451 |
) |
Acquisition of intangible assets |
— |
|
|
(6,452 |
) |
|
(21,074 |
) |
|
(6,815 |
) |
Capitalization of internally developed intangibles |
(399 |
) |
|
(472 |
) |
|
(1,886 |
) |
|
(1,977 |
) |
Interest received from bank deposits |
20 |
|
|
90 |
|
|
137 |
|
|
259 |
|
Payment of deferred consideration in relation to business combinations |
— |
|
|
— |
|
|
(10,154 |
) |
|
(4,933 |
) |
Payment of deferred consideration for intangible assets |
(9,539 |
) |
|
|
|
(9,539 |
) |
|
— |
|
|
Payment of contingent consideration in relation to business combinations |
— |
|
|
— |
|
|
— |
|
|
(5,557 |
) |
Cash flows used in investing activities |
(10,055 |
) |
|
(6,991 |
) |
|
(43,842 |
) |
|
(19,474 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||
Exercise of options |
265 |
|
|
— |
|
|
1,521 |
|
|
106 |
|
Issue of ordinary shares |
218 |
|
|
— |
|
|
218 |
|
|
— |
|
Treasury shares acquired |
(4,883 |
) |
|
(1,813 |
) |
|
(27,078 |
) |
|
(2,572 |
) |
Proceeds from borrowings |
— |
|
|
— |
|
|
45,560 |
|
|
— |
|
Transaction costs related to borrowings |
— |
|
|
— |
|
|
(847 |
) |
|
— |
|
Repayment of borrowings |
— |
|
|
— |
|
|
(21,060 |
) |
|
— |
|
Interest payment attributable to third party borrowings |
(342 |
) |
|
— |
|
|
(888 |
) |
|
— |
|
Interest payment attributable to deferred consideration settled in relation to business combinations |
— |
|
|
— |
|
|
(1,272 |
) |
|
(110 |
) |
Interest payment attributable to deferred consideration settled for intangible assets |
(461 |
) |
|
— |
|
|
(461 |
) |
|
— |
|
Principal paid on lease liability |
(205 |
) |
|
(98 |
) |
|
(688 |
) |
|
(402 |
) |
Interest paid on lease liability |
(78 |
) |
|
(38 |
) |
|
(249 |
) |
|
(165 |
) |
Cash flows used in financing activities |
(5,486 |
) |
|
(1,949 |
) |
|
(5,244 |
) |
|
(3,143 |
) |
Net movement in cash and cash equivalents |
(1,843 |
) |
|
(1,800 |
) |
|
(11,448 |
) |
|
(4,707 |
) |
Cash and cash equivalents at the beginning of the period |
15,723 |
|
|
26,884 |
|
|
25,429 |
|
|
29,664 |
|
Net foreign exchange differences on cash and cash equivalents |
(151 |
) |
|
345 |
|
|
(252 |
) |
|
472 |
|
Cash and cash equivalents at the end of the period |
13,729 |
|
|
25,429 |
|
|
13,729 |
|
|
25,429 |
|
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Consolidated Statement of Comprehensive Income for the period specified, stated in USD thousands, except per share amounts (unaudited):
|
Three Months Ended
|
|
Reporting
|
|
Constant
|
|
Year ended
|
|
Reporting
|
|
Constant
|
||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||
Net income for the period attributable to shareholders |
7,933 |
|
6,372 |
|
24 |
% |
|
26 |
% |
|
30,679 |
|
18,260 |
|
68 |
% |
|
69 |
% |
Weighted-average number of ordinary shares, basic |
34,747,779 |
|
37,403,888 |
|
(7 |
)% |
|
(7 |
)% |
|
36,034,115 |
|
37,083,262 |
|
(3 |
)% |
|
(3 |
)% |
Net income per share attributable to shareholders, basic |
0.23 |
|
0.17 |
|
35 |
% |
|
35 |
% |
|
0.85 |
|
0.49 |
|
73 |
% |
|
73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income for the period attributable to shareholders |
7,933 |
|
6,372 |
|
24 |
% |
|
26 |
% |
|
30,679 |
|
18,260 |
|
68 |
% |
|
69 |
% |
Weighted-average number of ordinary shares, diluted |
35,188,864 |
|
38,879,038 |
|
(9 |
)% |
|
(9 |
)% |
|
36,337,349 |
|
38,542,166 |
|
(6 |
)% |
|
(6 |
)% |
Net income per share attributable to shareholders, diluted |
0.23 |
|
0.16 |
|
44 |
% |
|
44 |
% |
|
0.84 |
|
0.47 |
|
79 |
% |
|
79 |
% |
Disaggregated Revenue
Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.
The Company presents revenue as disaggregated by market based on the location of end user as follows:
|
Three Months Ended
|
|
Change |
|
Year ended
|
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
|
15,632 |
|
20,516 |
|
(24 |
)% |
|
55,500 |
|
60,755 |
|
(9 |
)% |
|
10,555 |
|
7,495 |
|
41 |
% |
|
39,179 |
|
31,347 |
|
25 |
% |
Other |
6,366 |
|
3,086 |
|
106 |
% |
|
22,463 |
|
10,994 |
|
104 |
% |
Rest of the world |
2,755 |
|
1,433 |
|
92 |
% |
|
10,040 |
|
5,556 |
|
81 |
% |
Total revenues |
35,308 |
|
32,530 |
|
9 |
% |
|
127,182 |
|
108,652 |
|
17 |
% |
The Company presents disaggregated revenue by monetization type as follows:
|
Three Months Ended
|
|
Change |
|
Year ended
|
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Performance marketing |
28,404 |
|
27,000 |
|
5 |
% |
|
101,078 |
|
87,824 |
|
15 |
% |
Subscription |
2,191 |
|
2,009 |
|
9 |
% |
|
8,367 |
|
7,652 |
|
9 |
% |
Advertising & other |
4,713 |
|
3,521 |
|
34 |
% |
|
17,737 |
|
13,176 |
|
35 |
% |
Total revenues |
35,308 |
|
32,530 |
|
9 |
% |
|
127,182 |
|
108,652 |
|
17 |
% |
The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows:
|
Three Months Ended
|
|
Change |
|
Year ended
|
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Casino |
25,505 |
|
17,081 |
|
49 |
% |
|
92,224 |
|
66,869 |
|
38 |
% |
Sports |
9,135 |
|
14,933 |
|
(39 |
)% |
|
33,282 |
|
40,634 |
|
(18 |
)% |
Other |
668 |
|
516 |
|
29 |
% |
|
1,676 |
|
1,149 |
|
46 |
% |
Total revenues |
35,308 |
|
32,530 |
|
9 |
% |
|
127,182 |
|
108,652 |
|
17 |
% |
Supplemental Information
Rounding
We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.
Adjusted Net Income and Adjusted Net Income Per Share
In the fourth quarter of 2024, we changed our definition of adjusted net income, a non-IFRS financial measure, to net income attributable to equity holders adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, fair value movements related to contingent consideration, unwinding of deferred consideration, amortization expenses related to acquired businesses and assets, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Previously, adjusted net income, a non-IFRS financial measure was defined as net income attributable to equity holders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. We believe this more appropriately reflects the measurement of Adjusted Net Income as it includes adjustments for non-recurring items and significant non-cash items in addition to fair value movements related to contingent consideration and unwinding of deferred consideration.
Adjusted net income per diluted share is a non-IFRS financial measure defined as adjusted net income attributable to equity holders divided by the diluted weighted average number of common shares outstanding.
We believe adjusted net income and adjusted net income per diluted share are useful to our management as a measure of comparative performance from period to period as these measures remove the effect non-recurring items, significant non-cash items, fair value movements related to the contingent consideration, unwinding of deferred consideration, and acquisition related expenses. See Note 2 of the consolidated financial statements for the year ended December 31, 2024 filed on March 20, 2025 for a description of the contingent and deferred considerations associated with our acquisitions.
While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share from net income for the period attributable to the equity holders and net income per share attributed to ordinary shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income and for the period specified stated in the Company's reporting currency and constant currency (unaudited):
|
Reporting Currency |
|
Constant
|
|
Reporting Currency |
|
Constant
|
|||||||||||||||||
|
Three months ended
|
|
Change |
|
Change |
|
Year ended
|
|
Change |
|
Change |
|||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
% |
||||
Revenue |
35,308 |
|
|
32,530 |
|
|
9 |
% |
|
10 |
% |
|
127,182 |
|
|
108,652 |
|
|
|
17 |
% |
|
18 |
% |
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
24 |
% |
|
26 |
% |
|
30,679 |
|
|
18,260 |
|
|
|
68 |
% |
|
69 |
% |
Net income margin |
22 |
% |
|
20 |
% |
|
|
|
|
|
24 |
% |
|
17 |
% |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
24 |
% |
|
26 |
% |
|
30,679 |
|
|
18,260 |
|
|
|
68 |
% |
|
69 |
% |
Share-based payment and related expense (2) |
1,215 |
|
|
997 |
|
|
22 |
% |
|
23 |
% |
|
4,953 |
|
|
3,787 |
|
|
|
31 |
% |
|
31 |
% |
Fair value movement on contingent consideration (1) |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
6,939 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Unwinding of deferred consideration (1) |
213 |
|
|
309 |
|
|
(31 |
)% |
|
(30 |
)% |
|
1,289 |
|
|
735 |
|
|
|
75 |
% |
|
76 |
% |
Employees' bonuses related to acquisition(1) |
— |
|
|
125 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
368 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Secondary offering related costs |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
733 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Employees' bonuses related to offering |
— |
|
|
201 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
201 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Acquisition related costs |
1,907 |
|
|
508 |
|
|
275 |
% |
|
279 |
% |
|
2,151 |
|
|
821 |
|
|
|
162 |
% |
|
163 |
% |
Other transaction related costs | — |
— |
— |
% |
— |
% |
110 |
— |
100 |
% |
100 |
% |
||||||||||||
Amortization expense related to acquired businesses and assets |
998 |
|
|
133 |
|
|
650 |
% |
|
656 |
% |
|
3,246 |
|
|
461 |
|
|
|
604 |
% |
|
607 |
% |
Tax effect of the adjusting costs |
(94 |
) |
|
(23 |
) |
|
309 |
% |
|
309 |
% |
|
(308 |
) |
|
(98 |
) |
|
|
214 |
% |
|
214 |
% |
Adjusted net income for the period attributable to shareholders |
12,172 |
|
|
8,622 |
|
|
41 |
% |
|
42 |
% |
|
42,120 |
|
|
32,207 |
|
|
|
31 |
% |
|
31 |
% |
Net income per share attributable to shareholders, basic |
0.23 |
|
|
0.17 |
|
|
35 |
% |
|
35 |
% |
|
0.85 |
|
|
0.49 |
|
|
|
73 |
% |
|
73 |
% |
Effect of adjustments for share-based payment and related expense, basic |
0.03 |
|
|
0.03 |
|
|
— |
% |
|
— |
% |
|
0.14 |
|
|
0.10 |
|
|
|
40 |
% |
|
40 |
% |
Effect of adjustments for fair value movements on contingent consideration, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.19 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for unwinding on deferred consideration, basic |
0.01 |
|
|
0.01 |
|
|
— |
% |
|
— |
% |
|
0.04 |
|
|
0.02 |
|
|
|
100 |
% |
|
100 |
% |
Effect of adjustments for bonuses related to acquisition, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.01 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for secondary offering related costs, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.02 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for employees' bonuses related to offering, basic |
0.00 |
|
|
0.01 |
|
|
(100 |
)% |
|
(100 |
)% |
|
0.00 |
|
|
0.01 |
|
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for acquisition related costs, basic |
0.05 |
|
|
0.01 |
|
|
400 |
% |
|
400 |
% |
|
0.06 |
|
|
0.02 |
|
|
|
200 |
% |
|
200 |
% |
Effect of adjustments for other transaction related costs, basic | 0.00 |
0.00 |
— |
% |
— |
% |
0.00 |
0.00 |
— |
% |
— |
% |
||||||||||||
Effect of adjustments for amortization expense related to acquired businesses and assets, basic |
0.03 |
|
|
0.00 |
|
|
100 |
% |
|
100 |
% |
|
0.09 |
|
|
0.01 |
|
|
|
800 |
% |
|
800 |
% |
Effect of tax adjustments, basic |
— |
|
|
0.00 |
|
|
100 |
% |
|
100 |
% |
|
(0.01 |
) |
|
0.01 |
|
|
|
(200 |
)% |
|
(100 |
)% |
Adjusted net income per share attributable to shareholders, basic |
0.35 |
|
|
0.23 |
|
|
52 |
% |
|
52 |
% |
|
1.17 |
|
|
0.87 |
|
|
|
34 |
% |
|
36 |
% |
Net income per share attributable to ordinary shareholders, diluted |
0.23 |
|
|
0.16 |
|
|
44 |
% |
|
44 |
% |
|
0.84 |
|
|
0.47 |
|
|
|
79 |
% |
|
79 |
% |
Adjusted net income per share attributable to shareholders, diluted |
0.35 |
|
|
0.22 |
|
|
59 |
% |
|
59 |
% |
|
1.16 |
|
|
0.84 |
|
|
|
38 |
% |
|
40 |
% |
__________ |
(1) There is no tax impact from fair value movement on contingent consideration, unwinding of deferred consideration or employee bonuses related to acquisition. |
|
(2) Tax effect of adjusting costs is computed on share based payment and related expenses; secondary offering costs and related bonuses to employees; acquisition related costs and amortization charges related to acquired businesses and assets using effective tax rate for each period. |
Adjusted net income attributable to shareholders presented above for the three months and the year ended December 31, 2023 has been recast by
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings excluding interest, income tax (charge) credit, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, foreign exchange gains (losses), fair value of contingent consideration, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management team as a measure of comparative operating performance from period to period as those measures remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.
While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to EBITDA, Adjusted EBITDA from net income for the period attributable to shareholders as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited):
|
Reporting Currency |
|
Constant
|
|
Reporting Currency |
|
Constant
|
||||||||||||||||||
|
Three Months Ended
|
|
Change |
|
Change |
|
Year ended
|
|
Change |
|
Change |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
|
(USD in thousands) |
|
|
|
|
(USD in thousands) |
|
|
|
|
|
||||||||||||||
Net income for the period attributable to shareholders |
7,933 |
|
|
6,372 |
|
|
24 |
% |
|
26 |
% |
|
30,679 |
|
|
18,260 |
|
|
|
68 |
% |
|
|
69 |
% |
Add back (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expenses on borrowings and lease liability |
581 |
|
|
38 |
|
|
1429 |
% |
|
1429 |
% |
|
1,509 |
|
|
165 |
|
|
|
815 |
% |
|
|
820 |
% |
Interest income |
(20 |
) |
|
(90 |
) |
|
(78 |
)% |
|
(78 |
)% |
|
(137 |
) |
|
(259 |
) |
|
|
(47 |
)% |
|
|
(47 |
)% |
Income tax charge |
1,073 |
|
|
(159 |
) |
|
(775 |
)% |
|
(778 |
)% |
|
3,471 |
|
|
1,881 |
|
|
|
85 |
% |
|
|
85 |
% |
Depreciation expense |
124 |
|
|
63 |
|
|
97 |
% |
|
100 |
% |
|
376 |
|
|
246 |
|
|
|
53 |
% |
|
|
53 |
% |
Amortization expense |
1,632 |
|
|
505 |
|
|
223 |
% |
|
226 |
% |
|
5,426 |
|
|
1,842 |
|
|
|
195 |
% |
|
|
196 |
% |
EBITDA |
11,323 |
|
|
6,729 |
|
|
68 |
% |
|
70 |
% |
|
41,324 |
|
|
22,135 |
|
|
|
87 |
% |
|
|
88 |
% |
Share-based payment and related expense |
1,215 |
|
|
997 |
|
|
22 |
% |
|
23 |
% |
|
4,953 |
|
|
3,787 |
|
|
|
31 |
% |
|
|
31 |
% |
Fair value movement on contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
6,939 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Unwinding of deferred consideration |
213 |
|
|
309 |
|
|
(31 |
)% |
|
(30 |
)% |
|
1,289 |
|
|
735 |
|
|
|
75 |
% |
|
|
76 |
% |
Foreign currency translation losses (gains), net |
(7 |
) |
|
1,699 |
|
|
(100 |
)% |
|
(100 |
)% |
|
(1,316 |
) |
|
923 |
|
|
|
(243 |
)% |
|
|
(243 |
)% |
Other finance results |
85 |
|
|
1 |
|
|
8400 |
% |
|
8400 |
% |
|
180 |
|
|
73 |
|
|
|
147 |
% |
|
|
148 |
% |
Secondary offering related costs |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
— |
|
|
733 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Employee bonuses related to the offering |
— |
|
|
201 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
201 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Other transaction related costs |
— |
|
|
— |
|
|
— |
% |
|
— |
% |
|
110 |
|
|
— |
|
|
|
100 |
% |
|
|
100 |
% |
Acquisition related costs (1) |
1,907 |
|
|
508 |
|
|
275 |
% |
|
279 |
% |
|
2,151 |
|
|
821 |
|
|
|
162 |
% |
|
|
163 |
% |
Employees' bonuses related to acquisition |
— |
|
|
125 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
368 |
|
|
|
(100 |
)% |
|
|
(100 |
)% |
Adjusted EBITDA |
14,736 |
|
|
10,569 |
|
|
39 |
% |
|
41 |
% |
|
48,691 |
|
|
36,715 |
|
|
|
33 |
% |
|
|
33 |
% |
__________ |
(1) The acquisition costs are related to historical and contemplated business combinations of the Group. |
Below is the Adjusted EBITDA Margin calculation for the period specified stated in the Company's reporting currency and constant currency (unaudited):
|
Reporting Currency |
|
Constant
|
|
Reporting Currency |
|
Constant
|
||||||||||||||||||
|
Three Months Ended
|
|
Change |
|
Change |
|
Year ended
|
|
Change |
|
Change |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
% |
|
% |
|
2024 |
|
|
2023 |
|
|
|
% |
|
|
% |
||||
|
(USD in thousands,
|
|
|
|
|
(in thousands USD,
|
|
|
|
|
|
||||||||||||||
Revenue |
35,308 |
|
|
32,530 |
|
|
9 |
% |
|
10 |
% |
|
127,182 |
|
|
108,652 |
|
|
|
17 |
% |
|
|
18 |
% |
Adjusted EBITDA |
14,736 |
|
|
10,569 |
|
|
39 |
% |
|
41 |
% |
|
48,691 |
|
|
36,715 |
|
|
|
33 |
% |
|
|
33 |
% |
Adjusted EBITDA Margin |
42 |
% |
|
32 |
% |
|
|
|
|
|
38 |
% |
|
34 |
% |
|
|
|
|
|
|
In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward-looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.
Free Cash Flow
Free Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities less capital expenditures. In the second quarter of 2024, we changed our definition of free cash flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not asset acquisitions were excluded from capital expenditures. We believe this more appropriately reflects the measurement of free cash flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions.
We believe Free Cash Flow is useful to our management team as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures because the measure does not deduct the payments required for debt payments and other obligations or payments made for acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Consolidated Statement of Cash Flows for the period specified in the Company's reporting currency (unaudited):
|
Three Months Ended
|
|
Change |
|
Year ended
|
|
Change |
|||||||||||
|
2024 |
|
2023 |
|
% |
|
2024 |
|
2023 |
|
|
% |
||||||
|
(in thousands USD,
|
|
|
|
(USD in thousands,
|
|
|
|
||||||||||
Cash flows generated by operating activities |
13,698 |
|
|
7,140 |
|
|
92 |
% |
|
37,638 |
|
|
17,910 |
|
|
|
110 |
% |
Adjustment for items presented in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Payment of contingent consideration |
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
4,621 |
|
|
|
(100 |
)% |
Payment of deferred consideration |
— |
|
|
— |
|
|
— |
% |
|
7,156 |
|
|
2,897 |
|
|
|
147 |
% |
Adjustment for items presenting in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital Expenditures (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Acquisition of property and equipment |
(137 |
) |
|
(157 |
) |
|
(13 |
)% |
|
(1,326 |
) |
|
(451 |
) |
|
|
194 |
% |
Capitalization of internally developed intangibles |
(399 |
) |
|
(472 |
) |
|
(15 |
)% |
|
(1,886 |
) |
|
(1,977 |
) |
|
|
(5 |
)% |
Free Cash Flow |
13,162 |
|
|
6,511 |
|
|
102 |
% |
|
41,582 |
|
|
23,000 |
|
|
|
81 |
% |
__________ |
(1) Capital expenditures are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions, as described above. Accordingly, capital expenditures presented above for the year ended December 31, 2023 have been recast to exclude cash flows related to acquisition of intangible assets |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250320612695/en/
For further information:
Investors: Peter McGough, Gambling.com Group, investors@gdcgroup.com
Richard Land, Norberto Aja, JCIR, GAMB@jcir.com, 212-835-8500
Media: Eddie Motl, Gambling.com Group, media@gdcgroup.com
Source: Gambling.com Group Limited