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Gambling.com announces record revenue for Q1

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The Gambling.com Group achieved a record revenue of 29.2 million dollars (PS 23.0m/EUR 26.9m) in the first quarter, while its net profit increased.

The revenue was 9.4% higher than Q1 2023. Elias Mark noted, Chief Financial Officer of Gambling.com Group that revenue was up 9.4% compared to Q1 2023.

He said that by growing in all of our geographical reporting markets year-on-year, they had achieved a record revenue for Q1 with 9% growth on top. This was despite the fact that comparable periods had seen a significant increase in new state launches.

In Q1 of last year Gambling.com signed a strategic multi-year partnership with US media company Gannett Co. Gambling.com was able to take advantage of Gannett’s US presence through this agreement.

Charles Gillespie noted in his Q1 2024 remarks that Gambling.com Group’s previous investments are paying dividends.

He said that the investments made in proprietary technology, website portfolios and accretive purchases over many years are driving growth. As we expand our leadership in the global online gaming markets, and leverage all of the growth drivers that we possess, we will be able to produce a substantially higher adjusted EBITDA.

In Q1, Gambling.com obtained a credit facility of $50.0m. The credit facility consisted of two parts: a $25m revolving facility and a 25m term loan. The company also delivered 107,000 depositing clients and launched online sports betting in North Carolina on 11th March.

Revenue from Other Europe surges during Q1

When analyzing Gambling.com by market, the Other Europe segment’s revenue jumped 39.3% from $3.8m to $4.83m. The revenue for the segment Rest of World was up by 29.2% annually.

Both the North America and UK & Ireland segments grew at a similar rate. UK and Ireland revenue reached $8.9m, an increase of 4.6%. North America’s revenue increased by 4.7%, to $14.8m.

Performance marketing, which generates $23.3m in revenue, is the most popular monetisation method. Advertising and other generated $3.8m, a 26.5% increase, while subscriptions and content syndication grew by 5.1%, to $1.9m.

Gambling.com Casino generated revenues of $19.8m, an increase of 16.0%. Sports and Other, however, saw declines. The Sports segment saw revenue drop by 0.6%, to $9.1m, and the Other segment revenue fell 37.0%, to $268,000.

Expenses cause decline in operating profit

The cost of sales in the third quarter was $2.2m. This represents a 125.3% increase year on year. Gross profit was $26,9m. This is an increase of 5.0% annually.

Other costs were highest at $9.6m. General and administrative costs were $6.3m, followed by technology expenses of $3.2m. The operating profit was $7.8m after accounting for $40,000 of movements in the credit loss allowance. This represents a 3.2% drop.

The finance income soared from $100,000 to $944,000. Finance expenses of $454,000 offset this slightly, and the resultant profit was $8.3m. This is an increase of 7.6%.

After an income tax of $1.0m (which is similar to the Q1 of 2023), the net profit was $7.2m. This represents a 10.6% increase.

The adjusted EBITDA was $10m for the third quarter, a decrease of 4.8% from last year.

Annual projections adjusted

Gambling.com has lowered today (16 May) its revenue forecast and EBITDA adjusted for 2024 as a result of the first quarter’s results. New guidance projects FY revenues between $118m and 122m, down from the $129m to 133m originally projected for FY24 on 21st March 2024.

The adjusted EBITDA will now fall between 40m and 44m instead of previously stated $44m-$48m. Gambling.com stated that the figures were reduced due to Google’s new policy on commercial content. This “diminishes effectiveness of media partnerships for the company”, according to the affiliate.

Gillespie stated that Gambling.com will be able to reach these goals by 2024.

He continued, “Even though the digital landscape is changing rapidly, our strength and resilience will allow us to achieve strong growth in adjusted EBITDA as well as free cash flows year over year.” With less competition on the search engine result pages, owned and operated properties are more positioned than ever for the future.

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