Gambling.com Group raised their 2024 forecast after annoucing a record quarter, in which they completed the acquisition of Freebets.
The affiliate marketing group, in its release of Q2 results covering the period from 30 June to 31 December 2024 said that it expects a full year revenue between $123m and PS127m as well as an adjusted EBITDA range of $44m to PS47m. Gambling.com had predicted in May that the figures would be $118m-PS122m, and $44m-PS44m, respectively, following Freebets’ acquisition. Midpoints in the new predictions suggest a full-year growth rate of EBITDA of 24.5% and revenue of 15.5%.
The group reaffirmed its goal to generate an annual EBITDA adjusted of $100m.
The revenue for Q2 increased 18% on an annual basis to $30,5m. The group’s revenue was also boosted with the acquisition of Freebets for up to $ 42,5 million.
The group has delivered to its clients more than 108,000 NDCs (new depositing customers) in the last three months. This represents a 19% increase year over year. This was achieved despite the fact that in the previous period, US NDCs grew at an unusually high rate.
The group’s gross profit increased by 16%, to $29.1m. This includes a $0.5m rise in the cost of sales due to media partnership.
The total operating costs decreased by 15%, to $20.8m. This is due to the removal of fair-value movement for contingent consideration. General and administrative costs decreased by 9%, but were partially offset with increases in marketing and sales expenses (23%) as well as technology costs (26%).
The adjusted EBITDA increased by 19%, to $11.2m. Margin was 37%.
The business purchased 833,770 share at an average of $8.17 each. The initial payment for Freebets was $20m, and BonusFinder’s final payment is $13.6m.
Charles Gillespie, chief executive of the online gambling operators’ association said that the results for the second quarter as well as the year to date show the power and value created by our audience. The second quarter saw a strong increase in topline and adjusted EBITDA, demonstrating our team’s ability to manage assets dynamically to respond to changes in operating environments.
We continue to be confident in our business as we have repurchased significant shares in the first half of this year. The significant amount of shares we have repurchased in the first six months of this year shows our faith in the future success of the company.
Buy Free Bets based on Success in 2023
Gambling.com acquired Freebets.com on April 1. Cost will range between $37.5m to $42.5m depending on revenue.
Gambling.com stated at that time, it expected Freebets.com will generate an extra $10.0m of revenue in the current fiscal year as well as $5.0m additional adjusted EBITDA.
In 2023, revenue increased 42.1% to $108.7m. In 2023, the Group’s highlights included the launch and expansion of Casinos.com. The group also announced a partnership with UK-based media company The Independent.
A rise in revenues was accompanied by a net profit of 21.1m dollars, compared to a loss of $2.4m in 2022. The adjusted EBITDA was also 52.3% more at $36.7m.
Gambling.com released its 2023 numbers in March and set revenue estimates of $129m to $133m by 2024. The “raised 2024 estimate announced today was slightly higher than the forecast released in May.
