Gambling.com Group Reports Second Quarter 2024 Results and Raises 2024 Guidance
Gambling.com Group (Nasdaq: GAMB) reported strong Q2 2024 results, with revenue increasing 18% to $30.5 million and net income rising to $6.9 million. The company delivered over 108,000 new depositing customers (NDCs), up 19% year-over-year. Adjusted EBITDA reached $11.2 million, reflecting a 37% margin. Based on these results, Gambling.com Group raised its 2024 guidance, now expecting full-year revenue of $123-127 million and Adjusted EBITDA of $44-47 million. The company also completed the acquisition of Freebets.com and related assets, and continued its share repurchase program.
Gambling.com Group (Nasdaq: GAMB) ha riportato risultati solidi per il secondo trimestre del 2024, con un aumento del fatturato del 18% a 30,5 milioni di dollari e un reddito netto in crescita a 6,9 milioni di dollari. L'azienda ha acquisito oltre 108.000 nuovi clienti con deposito (NDC), registrando un aumento del 19% rispetto all'anno precedente. Il EBITDA rettificato ha raggiunto 11,2 milioni di dollari, riflettendo un margine del 37%. Sulla base di questi risultati, Gambling.com Group ha rivisto al rialzo le previsioni per il 2024, prevedendo ora un fatturato annuo compreso tra 123 e 127 milioni di dollari e un EBITDA rettificato tra 44 e 47 milioni di dollari. L'azienda ha anche completato l'acquisizione di Freebets.com e delle relative attività, continuando il programma di riacquisto di azioni.
Gambling.com Group (Nasdaq: GAMB) reportó resultados sólidos en el segundo trimestre de 2024, con un aumento del 18% en los ingresos, alcanzando los 30,5 millones de dólares y un ingreso neto que subió a 6,9 millones de dólares. La compañía registró más de 108,000 nuevos clientes depositantes (NDC), un 19% más que el año anterior. El EBITDA ajustado alcanzó los 11,2 millones de dólares, reflejando un margen del 37%. Basado en estos resultados, Gambling.com Group elevó su proyección para 2024, esperando ahora ingresos anuales entre 123 y 127 millones de dólares y un EBITDA ajustado de entre 44 y 47 millones de dólares. La compañía también completó la adquisición de Freebets.com y activos relacionados, y continuó su programa de recompra de acciones.
Gambling.com Group (Nasdaq: GAMB)는 2024년 2분기 실적이 강하게 나타났으며, 수익이 18% 증가해 3050만 달러에 달했습니다 그리고 순이익이 690만 달러로 상승했습니다. 이 회사는 108,000명의 신규 입금 고객(NDC)를 유치하여 전년 대비 19% 증가했습니다. 조정된 EBITDA는 1120만 달러에 달하여 37%의 마진을 반영합니다. 이러한 결과를 바탕으로 Gambling.com Group은 2024년 가이던스를 상향 조정하여, 이제 전체 연간 수익이 1억 2300만에서 1억 2700만 달러, 조정된 EBITDA가 4400만에서 4700만 달러가 될 것으로 예상합니다. 이 회사는 또한 Freebets.com 및 관련 자산을 인수 완료하고 주식 재매입 프로그램을 계속 진행했습니다.
Gambling.com Group (Nasdaq: GAMB) a annoncé de solides résultats pour le deuxième trimestre 2024, avec une augmentation du chiffre d'affaires de 18% à 30,5 millions de dollars et un bénéfice net en hausse à 6,9 millions de dollars. L'entreprise a attiré plus de 108 000 nouveaux clients déposants (NDC), soit une augmentation de 19% par rapport à l'année précédente. Le EBITDA ajusté a atteint 11,2 millions de dollars, ce qui reflète une marge de 37%. Sur la base de ces résultats, Gambling.com Group a relevé ses prévisions pour 2024, s'attendant désormais à un chiffre d'affaires annuel compris entre 123 et 127 millions de dollars et un EBITDA ajusté entre 44 et 47 millions de dollars. L'entreprise a également finalisé l'acquisition de Freebets.com et d'actifs connexes, tout en poursuivant son programme de rachat d'actions.
Gambling.com Group (Nasdaq: GAMB) berichtete über starke Ergebnisse im zweiten Quartal 2024, mit einem Umsatzanstieg um 18% auf 30,5 Millionen US-Dollar und einem Anstieg des Nettogewinns auf 6,9 Millionen US-Dollar. Das Unternehmen verzeichnete über 108.000 neue Einzahlungen von Kunden (NDCs), was einem Anstieg um 19% im Vergleich zum Vorjahr entspricht. Das bereinigte EBITDA erreichte 11,2 Millionen US-Dollar und spiegelt eine Marge von 37% wider. Basierend auf diesen Ergebnissen erhöhte Gambling.com Group die Prognose für 2024 und erwartet nun einen Gesamtjahresumsatz von 123-127 Millionen US-Dollar und ein bereinigtes EBITDA von 44-47 Millionen US-Dollar. Das Unternehmen hat außerdem die Übernahme von Freebets.com und verwandten Vermögenswerten abgeschlossen und sein Aktienrückkaufprogramm fortgesetzt.
- Revenue increased 18% to a record $30.5 million in Q2 2024
- Net income rose significantly to $6.9 million from $0.3 million in Q2 2023
- Delivered over 108,000 NDCs, a 19% year-over-year increase
- Adjusted EBITDA grew 19% to $11.2 million with a 37% margin
- Raised full-year 2024 guidance for revenue and Adjusted EBITDA
- Completed acquisition of Freebets.com and related assets
- Continued share repurchase program, buying back 833,770 shares in Q2
- Operating cash flow decreased to $0.2 million from $4.6 million in Q2 2023
- Free Cash Flow declined 31% to $6.0 million compared to Q2 2023
- Cost of sales increased by $0.5 million related to media partnerships
Insights
Gambling.com Group's Q2 2024 results demonstrate robust growth and operational efficiency. Revenue increased
The raised 2024 guidance, with revenue now expected between
However, the
The online gambling industry's growth trajectory is evident in Gambling.com Group's performance. The
The company's resilience in North America, despite a challenging comparative period, suggests a strong market position. The acquisition of Freebets.com and related assets could further strengthen their portfolio and market reach.
The updated guidance, assuming no additional North American markets coming online, presents a conservative outlook. Any regulatory changes opening new markets could provide upside potential. The company's focus on high-intent audience and value creation for operator clients positions it well for future growth in the evolving online gambling ecosystem.
-
Second Quarter Revenue Increases
18% to Record$30.5 Million $6.9 Million -
Record Second Quarter Adjusted EBITDA of
$11.2 Million
“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
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
Second Quarter 2024 vs. Second Quarter 2023 Financial Highlights |
||||||||
(USD in thousands, except per share data, unaudited) |
||||||||
|
Three Months Ended June 30, |
|
Change |
|||||
|
2024 |
|
2023 |
|
% |
|||
Revenue |
30,541 |
|
|
25,972 |
|
|
18 |
% |
Net income for the period attributable to shareholders (1) |
6,930 |
|
|
278 |
|
|
2393 |
% |
Net income per share attributable to shareholders, diluted (1) |
0.19 |
|
|
0.01 |
|
|
1800 |
% |
Net income margin (1) |
23 |
% |
|
1 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1)(2) |
7,356 |
|
|
6,535 |
|
|
13 |
% |
Adjusted net income per share attributable to shareholders, diluted (1)(2) |
0.20 |
|
|
0.17 |
|
|
18 |
% |
Adjusted EBITDA (1)(2) |
11,211 |
|
|
9,424 |
|
|
19 |
% |
Adjusted EBITDA Margin (1)(2) |
37 |
% |
|
36 |
% |
|
|
|
Cash flows generated by operating activities |
193 |
|
|
4,586 |
|
|
(96 |
)% |
Free Cash Flow (2) |
5,983 |
|
|
8,653 |
|
|
(31 |
)% |
__________ |
||
(1) |
For the three months ended June 30, 2024, 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 acquisition of BonusFinder of |
|
(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. |
|
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 $8.87 -
Made final deferred consideration payment of
$13.6 million -
Drew
$18.0 million -
Authorized an additional
$10.0 million
Second Quarter 2024 Results Compared to Second Quarter 2023
Revenue rose
Gross profit increased
Total operating expenses decreased
Net income attributable to shareholders rose from
Adjusted EBITDA was
Operating cash flow of
2024 Outlook
Gambling.com Group today updated its 2024 full-year revenue and Adjusted EBITDA guidance. The Company now expects full year revenue of
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 $3.7 million - An average EUR/USD exchange rate of 1.09 throughout 2024
First Half 2024 vs. First Half 2023 Financial Highlights |
||||||||
(USD in thousands, except per share data, unaudited) |
||||||||
|
Six Months Ended June 30, |
|
Change |
|||||
|
2024 |
|
2023 |
|
% |
|||
Revenue |
59,756 |
|
|
52,664 |
|
|
13 |
% |
Net income for the period attributable to shareholders (1) |
14,229 |
|
|
6,873 |
|
|
107 |
% |
Net income per share attributable to shareholders, diluted (1) |
0.38 |
|
|
0.18 |
|
|
111 |
% |
Net income margin (1) |
24 |
% |
|
13 |
% |
|
|
|
Adjusted net income for the period attributable to shareholders (1)(2) |
14,908 |
|
|
14,086 |
|
|
6 |
% |
Adjusted net income per share attributable to shareholders, diluted (1)(2) |
0.40 |
|
|
0.37 |
|
|
8 |
% |
Adjusted EBITDA (1)(2) |
21,370 |
|
|
20,097 |
|
|
6 |
% |
Adjusted EBITDA Margin (1)(2) |
36 |
% |
|
38 |
% |
|
|
|
Cash flows generated by operating activities |
8,999 |
|
|
11,669 |
|
|
(23 |
)% |
Free Cash Flow (2) |
14,176 |
|
|
15,124 |
|
|
(6 |
)% |
__________ |
||
(1) |
For the six months ended June 30, 2024, 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 acquisition of BonusFinder of |
|
(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 15, 2024, 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 six months ended June 30, 2024 and 2023 in the Company's reporting currency and constant currency.
|
Reporting Currency |
|
Constant Currency |
|
Reporting Currency |
|
Constant Currency |
||||||||||||||||
|
Three Months Ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||||||
Revenue |
30,541 |
|
|
25,972 |
|
|
18 |
% |
|
19 |
% |
|
59,756 |
|
|
52,664 |
|
|
13 |
% |
|
14 |
% |
Cost of sales |
(1,436 |
) |
|
(896 |
) |
|
60 |
% |
|
62 |
% |
|
(3,669 |
) |
|
(1,887 |
) |
|
94 |
% |
|
96 |
% |
Gross profit |
29,105 |
|
|
25,076 |
|
|
16 |
% |
|
17 |
% |
|
56,087 |
|
|
50,777 |
|
|
10 |
% |
|
11 |
% |
Sales and marketing expenses |
(10,713 |
) |
|
(8,744 |
) |
|
23 |
% |
|
24 |
% |
|
(20,325 |
) |
|
(17,008 |
) |
|
20 |
% |
|
20 |
% |
Technology expenses |
(3,094 |
) |
|
(2,464 |
) |
|
26 |
% |
|
27 |
% |
|
(6,309 |
) |
|
(4,704 |
) |
|
34 |
% |
|
35 |
% |
General and administrative expenses |
(6,237 |
) |
|
(6,928 |
) |
|
(10 |
)% |
|
(9 |
)% |
|
(12,541 |
) |
|
(12,466 |
) |
|
1 |
% |
|
1 |
% |
Movements in credit losses allowance and write-offs |
(741 |
) |
|
(118 |
) |
|
528 |
% |
|
533 |
% |
|
(701 |
) |
|
(767 |
) |
|
(9 |
)% |
|
(8 |
)% |
Fair value movement on contingent consideration |
— |
|
|
(6,087 |
) |
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
(6,939 |
) |
|
(100 |
)% |
|
(100 |
)% |
Operating profit |
8,320 |
|
|
735 |
|
|
1032 |
% |
|
1046 |
% |
|
16,211 |
|
|
8,893 |
|
|
82 |
% |
|
83 |
% |
Finance income |
230 |
|
|
606 |
|
|
(62 |
)% |
|
(62 |
)% |
|
1,174 |
|
|
706 |
|
|
66 |
% |
|
67 |
% |
Finance expenses |
(897 |
) |
|
(420 |
) |
|
114 |
% |
|
116 |
% |
|
(1,351 |
) |
|
(983 |
) |
|
37 |
% |
|
38 |
% |
Income before tax |
7,653 |
|
|
921 |
|
|
731 |
% |
|
741 |
% |
|
16,034 |
|
|
8,616 |
|
|
86 |
% |
|
87 |
% |
Income tax charge |
(723 |
) |
|
(643 |
) |
|
12 |
% |
|
14 |
% |
|
(1,805 |
) |
|
(1,743 |
) |
|
4 |
% |
|
4 |
% |
Net income for the period attributable to shareholders |
6,930 |
|
|
278 |
|
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
|
6,873 |
|
|
107 |
% |
|
108 |
% |
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Exchange differences on translating foreign currencies |
(921 |
) |
|
(676 |
) |
|
36 |
% |
|
38 |
% |
|
(3,515 |
) |
|
692 |
|
|
(608 |
)% |
|
(611 |
)% |
Total comprehensive income for the period attributable to shareholders |
6,009 |
|
|
(398 |
) |
|
1610 |
% |
|
1621 |
% |
|
10,714 |
|
|
7,565 |
|
|
42 |
% |
|
43 |
% |
Consolidated Statements of Financial Position (Unaudited) |
|||||
(USD in thousands) |
|||||
|
JUNE 30,
|
|
DECEMBER 31,
|
||
ASSETS |
|
|
|
||
Non-current assets |
|
|
|
||
Property and equipment |
1,687 |
|
|
908 |
|
Right-of-use assets |
5,272 |
|
|
1,460 |
|
Intangible assets |
133,164 |
|
|
98,000 |
|
Deferred tax asset |
6,694 |
|
|
7,134 |
|
Total non-current assets |
146,817 |
|
|
107,502 |
|
Current assets |
|
|
|
||
Trade and other receivables |
20,807 |
|
|
21,938 |
|
Cash and cash equivalents |
7,523 |
|
|
25,429 |
|
Total current assets |
28,330 |
|
|
47,367 |
|
Total assets |
175,147 |
|
|
154,869 |
|
EQUITY AND LIABILITIES |
|
|
|
||
Equity |
|
|
|
||
Share capital |
— |
|
|
— |
|
Capital reserve |
75,778 |
|
|
74,166 |
|
Treasury shares |
(12,916 |
) |
|
(3,107 |
) |
Share-based compensation reserve |
8,900 |
|
|
7,414 |
|
Foreign exchange translation deficit |
(7,722 |
) |
|
(4,207 |
) |
Retained earnings |
58,887 |
|
|
44,658 |
|
Total equity |
122,927 |
|
|
118,924 |
|
Non-current liabilities |
|
|
|
||
Lease liability |
4,344 |
|
|
1,190 |
|
Deferred tax liability |
2,208 |
|
|
2,008 |
|
Borrowings |
17,032 |
|
|
— |
|
Total non-current liabilities |
23,584 |
|
|
3,198 |
|
Current liabilities |
|
|
|
||
Trade and other payables |
6,958 |
|
|
10,793 |
|
Deferred income |
1,869 |
|
|
2,207 |
|
Deferred consideration |
17,092 |
|
|
18,811 |
|
Contingent consideration |
1,317 |
|
|
— |
|
Borrowings and accrued interest |
145 |
|
|
— |
|
Other liability |
— |
|
|
308 |
|
Lease liability |
1,217 |
|
|
533 |
|
Income tax payable |
38 |
|
|
95 |
|
Total current liabilities |
28,636 |
|
|
32,747 |
|
Total liabilities |
52,220 |
|
|
35,945 |
|
Total equity and liabilities |
175,147 |
|
|
154,869 |
|
Consolidated Statements of Cash Flows (Unaudited) |
|||||||||||
(USD in thousands) |
|||||||||||
|
Three months ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Cash flow from operating activities |
|
|
|
|
|
|
|
||||
Income before tax |
7,653 |
|
|
921 |
|
|
16,034 |
|
|
8,616 |
|
Finance expense, net |
667 |
|
|
(187 |
) |
|
177 |
|
|
277 |
|
|
|
|
|
|
|
|
|
||||
Adjustments for non-cash items: |
|
|
|
|
|
|
|
||||
Depreciation and amortization |
1,621 |
|
|
480 |
|
|
2,245 |
|
|
1,025 |
|
Movements in credit loss allowance and write-offs |
741 |
|
|
118 |
|
|
701 |
|
|
767 |
|
Fair value movement on contingent consideration |
— |
|
|
6,087 |
|
|
— |
|
|
6,939 |
|
Share-based payment expense |
1,720 |
|
|
1,253 |
|
|
2,557 |
|
|
2,099 |
|
Income tax paid |
(1,654 |
) |
|
(1,899 |
) |
|
(1,440 |
) |
|
(1,789 |
) |
Payment of contingent consideration |
— |
|
|
(4,621 |
) |
|
— |
|
|
(4,621 |
) |
Payment of deferred consideration |
(7,156 |
) |
|
— |
|
|
(7,156 |
) |
|
— |
|
Cash flows from operating activities before changes in working capital |
3,592 |
|
|
2,152 |
|
|
13,118 |
|
|
13,313 |
|
Changes in working capital |
|
|
|
|
|
|
|
||||
Trade and other receivables |
(2,204 |
) |
|
1,971 |
|
|
36 |
|
|
(1,892 |
) |
Trade and other payables |
(1,195 |
) |
|
401 |
|
|
(4,155 |
) |
|
186 |
|
Inventories |
— |
|
|
62 |
|
|
— |
|
|
62 |
|
Cash flows generated by operating activities |
193 |
|
|
4,586 |
|
|
8,999 |
|
|
11,669 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||
Acquisition of property and equipment |
(842 |
) |
|
(51 |
) |
|
(914 |
) |
|
(204 |
) |
Acquisition of intangible assets |
(20,605 |
) |
|
(127 |
) |
|
(20,605 |
) |
|
(392 |
) |
Capitalization of internally developed intangibles |
(524 |
) |
|
(503 |
) |
|
(1,065 |
) |
|
(962 |
) |
Interest received from bank deposits |
30 |
|
|
— |
|
|
104 |
|
|
— |
|
Payment of deferred consideration |
(5,594 |
) |
|
— |
|
|
(10,044 |
) |
|
(2,390 |
) |
Payment of contingent consideration |
— |
|
|
(5,557 |
) |
|
— |
|
|
(5,557 |
) |
Cash flows used in investing activities |
(27,535 |
) |
|
(6,238 |
) |
|
(32,524 |
) |
|
(9,505 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||
Exercise of options |
451 |
|
|
— |
|
|
557 |
|
|
— |
|
Treasury shares acquired |
(6,666 |
) |
|
(759 |
) |
|
(9,750 |
) |
|
(759 |
) |
Proceeds from borrowings |
18,000 |
|
|
— |
|
|
18,000 |
|
|
— |
|
Transaction costs related to borrowings |
(847 |
) |
|
— |
|
|
(847 |
) |
|
— |
|
Interest payment attributable to third party borrowings |
(174 |
) |
|
— |
|
|
(174 |
) |
|
— |
|
Interest payment attributable to deferred consideration settled |
(832 |
) |
|
— |
|
|
(1,382 |
) |
|
(110 |
) |
Principal paid on lease liability |
(154 |
) |
|
(94 |
) |
|
(254 |
) |
|
(199 |
) |
Interest paid on lease liability |
(55 |
) |
|
(40 |
) |
|
(89 |
) |
|
(87 |
) |
Cash flows generated by (used in) financing activities |
9,723 |
|
|
(893 |
) |
|
6,061 |
|
|
(1,155 |
) |
Net movement in cash and cash equivalents |
(17,619 |
) |
|
(2,545 |
) |
|
(17,464 |
) |
|
1,009 |
|
Cash and cash equivalents at the beginning of the period |
25,318 |
|
|
33,564 |
|
|
25,429 |
|
|
29,664 |
|
Net foreign exchange differences on cash and cash equivalents |
(176 |
) |
|
292 |
|
|
(442 |
) |
|
638 |
|
Cash and cash equivalents at the end of the period |
7,523 |
|
|
31,311 |
|
|
7,523 |
|
|
31,311 |
|
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 June 30, |
|
Reporting Currency Change |
|
Constant Currency Change |
|
Six Months Ended June 30, |
|
Reporting Currency Change |
|
Constant Currency Change |
||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||
Net income for the period attributable to shareholders |
6,930 |
|
278 |
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
6,873 |
|
107 |
% |
|
108 |
% |
Weighted-average number of ordinary shares, basic |
36,724,946 |
|
37,082,794 |
|
(1 |
)% |
|
(1 |
)% |
|
36,906,748 |
|
36,757,214 |
|
— |
% |
|
— |
% |
Net income per share attributable to shareholders, basic |
0.19 |
|
0.01 |
|
1800 |
% |
|
1800 |
% |
|
0.39 |
|
0.19 |
|
105 |
% |
|
105 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income for the period attributable to shareholders |
6,930 |
|
278 |
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
6,873 |
|
107 |
% |
|
108 |
% |
Weighted-average number of ordinary shares, diluted |
36,990,785 |
|
38,462,183 |
|
(4 |
)% |
|
(4 |
)% |
|
37,212,252 |
|
38,123,560 |
|
(2 |
)% |
|
(2 |
)% |
Net income per share attributable to shareholders, diluted |
0.19 |
|
0.01 |
|
1800 |
% |
|
1800 |
% |
|
0.38 |
|
0.18 |
|
111 |
% |
|
111 |
% |
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 June 30, |
|
Change |
|
Six Months Ended June 30, |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
|
12,257 |
|
13,361 |
|
(8 |
)% |
|
27,073 |
|
27,504 |
|
(2 |
)% |
|
9,911 |
|
8,364 |
|
18 |
% |
|
18,831 |
|
16,891 |
|
11 |
% |
Other |
5,931 |
|
2,812 |
|
111 |
% |
|
9,792 |
|
5,582 |
|
75 |
% |
Rest of the world |
2,442 |
|
1,435 |
|
70 |
% |
|
4,060 |
|
2,687 |
|
51 |
% |
Total revenues |
30,541 |
|
25,972 |
|
18 |
% |
|
59,756 |
|
52,664 |
|
13 |
% |
The Company presents disaggregated revenue by monetization type as follows:
|
Three Months Ended June 30, |
|
Change |
|
Six Months Ended June 30, |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Performance marketing |
24,219 |
|
20,776 |
|
17 |
% |
|
47,592 |
|
42,537 |
|
12 |
% |
Subscription and content syndication |
1,946 |
|
1,712 |
|
14 |
% |
|
3,905 |
|
3,575 |
|
9 |
% |
Advertising and other |
4,376 |
|
3,484 |
|
26 |
% |
|
8,259 |
|
6,552 |
|
26 |
% |
Total revenues |
30,541 |
|
25,972 |
|
18 |
% |
|
59,756 |
|
52,664 |
|
13 |
% |
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 June 30, |
|
Change |
|
Six Months Ended June 30, |
|
Change |
||||||
|
2024 |
|
2023 |
|
2024 vs 2023 |
|
2024 |
|
2023 |
|
2024 vs 2023 |
||
Casino |
22,073 |
|
17,541 |
|
26 |
% |
|
41,883 |
|
34,613 |
|
21 |
% |
Sports |
8,180 |
|
8,394 |
|
(3 |
)% |
|
17,317 |
|
17,588 |
|
(2 |
)% |
Other |
288 |
|
37 |
|
678 |
% |
|
556 |
|
463 |
|
20 |
% |
Total revenues |
30,541 |
|
25,972 |
|
18 |
% |
|
59,756 |
|
52,664 |
|
13 |
% |
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
Adjusted net income is a non-IFRS financial measure 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. 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 of the fair value gain or loss related to the contingent consideration, unwinding of deferred consideration, and certain employee bonuses, all associated with our acquisitions, during the limited period where these items are incurred. The unwinding of deferred consideration during the three and six months ended June 30, 2024 is mainly associated with the unwinding of the discount applied to the valuation of deferred consideration for the acquisition of the Freebets.com assets. The unwinding of deferred consideration and employee bonuses incurred until April 2024 relate to the Company’s acquisition of RotoWire and BonusFinder. See Note 5 of the consolidated financial statements for the year ended December 31, 2023 filed on March 21, 2024 for a description of the contingent and deferred considerations associated with our 2022 acquisitions.
Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share, diluted 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 Currency |
|
Reporting Currency |
|
Constant Currency |
||||||||||||||||
|
Three months ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||||||
Revenue |
30,541 |
|
|
25,972 |
|
|
18 |
% |
|
19 |
% |
|
59,756 |
|
|
52,664 |
|
|
13 |
% |
|
14 |
% |
Net income for the period attributable to shareholders |
6,930 |
|
|
278 |
|
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
|
6,873 |
|
|
107 |
% |
|
108 |
% |
Net income margin |
23 |
% |
|
1 |
% |
|
|
|
|
|
24 |
% |
|
13 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income for the period attributable to shareholders |
6,930 |
|
|
278 |
|
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
|
6,873 |
|
|
107 |
% |
|
108 |
% |
Fair value movement on contingent consideration (1) |
— |
|
|
6,087 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
6,939 |
|
|
(100 |
)% |
|
(100 |
)% |
Unwinding of deferred consideration (1) |
426 |
|
|
55 |
|
|
675 |
% |
|
689 |
% |
|
679 |
|
|
109 |
|
|
523 |
% |
|
529 |
% |
Employees' bonuses related to acquisition(1) |
— |
|
|
115 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
165 |
|
|
(100 |
)% |
|
(100 |
)% |
Adjusted net income for the period attributable to shareholders |
7,356 |
|
|
6,535 |
|
|
13 |
% |
|
14 |
% |
|
14,908 |
|
|
14,086 |
|
|
6 |
% |
|
7 |
% |
Net income per share attributable to shareholders, basic |
0.19 |
|
|
0.01 |
|
|
1800 |
% |
|
1800 |
% |
|
0.39 |
|
|
0.19 |
|
|
105 |
% |
|
105 |
% |
Effect of adjustments for fair value movements on contingent consideration, basic |
0.00 |
|
|
0.16 |
|
|
(100 |
)% |
|
(100 |
)% |
|
0.00 |
|
|
0.19 |
|
|
(100 |
)% |
|
(100 |
)% |
Effect of adjustments for unwinding on deferred consideration, basic |
0.01 |
|
|
0.00 |
|
|
100 |
% |
|
100 |
% |
|
0.02 |
|
|
0.00 |
|
|
100 |
% |
|
100 |
% |
Effect of adjustments for bonuses related to acquisition, basic |
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
|
0.00 |
|
|
0.00 |
|
|
— |
% |
|
— |
% |
Adjusted net income per share attributable to shareholders, basic |
0.20 |
|
|
0.17 |
|
|
18 |
% |
|
11 |
% |
|
0.41 |
|
|
0.38 |
|
|
8 |
% |
|
8 |
% |
Net income per share attributable to ordinary shareholders, diluted |
0.19 |
|
|
0.01 |
|
|
1800 |
% |
|
1800 |
% |
|
0.38 |
|
|
0.18 |
|
|
111 |
% |
|
111 |
% |
Adjusted net income per share attributable to shareholders, diluted |
0.20 |
|
|
0.17 |
|
|
18 |
% |
|
18 |
% |
|
0.40 |
|
|
0.37 |
|
|
8 |
% |
|
8 |
% |
__________ |
||
(1) |
There is no tax impact from fair value movement on contingent consideration, unwinding of deferred consideration or employee bonuses related to acquisition. |
|
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 Currency |
|
Reporting Currency |
|
Constant Currency |
||||||||||||||||
|
Three Months Ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||||||
|
(USD in thousands) |
|
|
|
|
(USD in thousands) |
|
|
|
||||||||||||||
Net income (loss) for the period attributable to shareholders |
6,930 |
|
|
278 |
|
|
2393 |
% |
|
2429 |
% |
|
14,229 |
|
|
6,873 |
|
|
107 |
% |
|
108 |
% |
Add back (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expenses on borrowings and lease liability |
445 |
|
|
44 |
|
|
911 |
% |
|
911 |
% |
|
479 |
|
|
87 |
|
|
451 |
% |
|
457 |
% |
Income tax charge |
723 |
|
|
643 |
|
|
12 |
% |
|
14 |
% |
|
1,805 |
|
|
1,743 |
|
|
4 |
% |
|
4 |
% |
Depreciation expense |
71 |
|
|
63 |
|
|
13 |
% |
|
15 |
% |
|
141 |
|
|
120 |
|
|
18 |
% |
|
18 |
% |
Amortization expense |
1,550 |
|
|
417 |
|
|
272 |
% |
|
275 |
% |
|
2,104 |
|
|
905 |
|
|
132 |
% |
|
134 |
% |
EBITDA |
9,719 |
|
|
1,445 |
|
|
573 |
% |
|
580 |
% |
|
18,758 |
|
|
9,728 |
|
|
93 |
% |
|
94 |
% |
Share-based payment and related expense |
1,720 |
|
|
1,253 |
|
|
37 |
% |
|
39 |
% |
|
2,557 |
|
|
2,099 |
|
|
22 |
% |
|
23 |
% |
Fair value movement on contingent consideration |
— |
|
|
6,087 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
6,939 |
|
|
(100 |
)% |
|
(100 |
)% |
Interest income |
(30 |
) |
|
(60 |
) |
|
(50 |
)% |
|
(49 |
)% |
|
(104 |
) |
|
(79 |
) |
|
32 |
% |
|
33 |
% |
Unwinding of deferred consideration |
426 |
|
|
55 |
|
|
675 |
% |
|
689 |
% |
|
679 |
|
|
109 |
|
|
523 |
% |
|
529 |
% |
Foreign currency translation losses (gains), net |
(198 |
) |
|
(243 |
) |
|
(19 |
)% |
|
(18 |
)% |
|
(917 |
) |
|
103 |
|
|
(990 |
)% |
|
(999 |
)% |
Other finance results |
24 |
|
|
18 |
|
|
33 |
% |
|
33 |
% |
|
40 |
|
|
57 |
|
|
(30 |
)% |
|
(30 |
)% |
Secondary offering related costs |
— |
|
|
733 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
733 |
|
|
(100 |
)% |
|
(100 |
)% |
Acquisition related costs (1)(2) |
(450 |
) |
|
21 |
|
|
(2243 |
)% |
|
(2243 |
)% |
|
357 |
|
|
243 |
|
|
47 |
% |
|
48 |
% |
Employees' bonuses related to acquisition |
— |
|
|
115 |
|
|
(100 |
)% |
|
(100 |
)% |
|
— |
|
|
165 |
|
|
(100 |
)% |
|
(100 |
)% |
Adjusted EBITDA |
11,211 |
|
|
9,424 |
|
|
19 |
% |
|
20 |
% |
|
21,370 |
|
|
20,097 |
|
|
6 |
% |
|
7 |
% |
__________ |
||
(1) |
The acquisition costs are related to historical and contemplated business combinations of the Group. |
|
(2) |
During the three months ended June 30, 2024, accounting treatment related to the asset acquisition in April 2024 was finalized which resulted in capitalization of |
|
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 Currency |
|
Reporting Currency |
|
Constant Currency |
||||||||||||||||
|
Three Months Ended June 30, |
|
Change |
|
Change |
|
Six Months Ended June 30, |
|
Change |
|
Change |
||||||||||||
|
2024 |
|
2023 |
|
% |
|
% |
|
2024 |
|
2023 |
|
% |
|
% |
||||||||
|
(USD in thousands, except margin) |
|
|
|
|
(in thousands USD, except margin) |
|
|
|
||||||||||||||
Revenue |
30,541 |
|
|
25,972 |
|
|
18 |
% |
|
19 |
% |
|
59,756 |
|
|
52,664 |
|
|
13 |
% |
|
14 |
% |
Adjusted EBITDA |
11,211 |
|
|
9,424 |
|
|
19 |
% |
|
20 |
% |
|
21,370 |
|
|
20,097 |
|
|
6 |
% |
|
7 |
% |
Adjusted EBITDA Margin |
37 |
% |
|
36 |
% |
|
|
|
|
|
36 |
% |
|
38 |
% |
|
|
|
|
||||
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, the Company changed its definition of free cash flow to exclude from capital expenditures the cash flows related to acquisitions accounted for as business combinations and asset acquisitions. Previously, capital expenditures only excluded cash flows related to business combinations. The Company believes that this more appropriately reflects the measurement of free cash flow as it limits the adjustments to capital expenditures that relate to ongoing maintenance capital expenditure.
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 June 30, |
|
Change |
|
Six Months Ended June 30, |
|
Change |
||||||||||
|
2024 |
|
2023 |
|
% |
|
2024 |
|
2023 |
|
% |
||||||
|
(in thousands USD, unaudited) |
|
|
|
(USD in thousands, unaudited) |
|
|
||||||||||
Cash flows generated by operating activities |
193 |
|
|
4,586 |
|
|
(96 |
)% |
|
8,999 |
|
|
11,669 |
|
|
(23 |
)% |
Adjustment for items presented in operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Payment of contingent consideration |
— |
|
|
4,621 |
|
|
(100 |
)% |
|
— |
|
|
4,621 |
|
|
(100 |
)% |
Payment of deferred consideration |
7,156 |
|
|
— |
|
|
100 |
% |
|
7,156 |
|
|
— |
|
|
100 |
% |
Adjustment for items presenting in investing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital Expenditures (1) |
(1,366 |
) |
|
(554 |
) |
|
147 |
% |
|
(1,979 |
) |
|
(1,166 |
) |
|
(70 |
)% |
Free Cash Flow |
5,983 |
|
|
8,653 |
|
|
(31 |
)% |
|
14,176 |
|
|
15,124 |
|
|
(6 |
)% |
__________ |
||
(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 six months ended June 30, 2024 and 2023 exclude |
|
Due to the change in the definition of free cash flow, as discussed above, the Company has recast its full year 2023, 2022 and 2021 free cash flow in the following tables.
The table below provides free cash flow in accordance with the changed definition of free cash flow, which excludes capital expenditures related to the acquisition of intangible assets:
|
|
Year Ended December 31, |
|||||||
|
|
2023 |
|
2022 |
|
2021 |
|||
|
|
(USD in thousands) |
|||||||
Cash flows generated by operating activities |
|
17,910 |
|
|
18,755 |
|
|
13,997 |
|
Adjustment for items presented in operating activities: |
|
|
|
|
|
|
|||
Payment of contingent consideration |
|
4,621 |
|
|
— |
|
|
— |
|
Payment of deferred consideration |
|
2,897 |
|
|
— |
|
|
— |
|
Adjustment for items presenting in investing activities: |
|
|
|
|
|
|
|||
Capital Expenditures |
|
(2,365 |
) |
|
(2,323 |
) |
|
(1,964 |
) |
Free Cash Flow |
|
23,063 |
|
|
16,432 |
|
|
12,033 |
|
Capital expenditures presented above for the years ended December 31, 2023, 2022 and 2021 have been recast to exclude cash flows related to intangible asset acquisitions
View source version on businesswire.com: https://www.businesswire.com/news/home/20240815580067/en/
For further information, please contact:
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
FAQ
What was Gambling.com Group's revenue for Q2 2024?
How many new depositing customers (NDCs) did GAMB deliver in Q2 2024?
What is Gambling.com Group's updated 2024 revenue guidance?
Did GAMB make any acquisitions in Q2 2024?
What was GAMB's Adjusted EBITDA for Q2 2024?
