Canada
Gambling.com Group Limited Reports Third Quarter 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services active exclusively in the global online gambling industry, today announced its operating and financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Revenue of $10.1 million grew 37% compared to $7.4 million in the same period for the prior year
- Net income of $4.7 million, or $0.13 per diluted share, compared to a net income of $2.3 million, or $0.08 per diluted share, in the same period for the prior year
- Adjusted EBITDA of $3.5 million decreased 14% compared to $4.0 million in the same period for the prior year, representing an Adjusted EBITDA margin of 34%1
- Free cash flow of $0.8 million decreased 81% compared to $3.9 million in the same period for the prior year2
Third Quarter 2021 Business Highlights
- Completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
- Announced appointment of Mr. Daniel D’Arrigo to Board of Directors
- Received temporary supplier license from the Arizona Department of Gaming to provide marketing services to licensed operators in the state and launched free-to-use comparison of legal online sports betting services on BetArizona.com
- Launches of Marylandbets.com, casinosource.nl and gambling.com/nl providing bettors in Maryland and the Netherlands with trusted and up to date gambling information to help them place safe and secure legal wagers
- Completed acquisition of domains suitable for targeting the US market
“Our financial performance in the third quarter remained strong as we grew revenue by 37% compared to the prior year and, despite the third quarter being the seasonally slowest quarter of the year, delivered an Adjusted EBITDA margin of 34%,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Importantly, after the quiet summer months of July and August, we delivered all-time-high revenue in September. With the launch of Arizona and the kickoff of the NFL season, we saw a significant uplift in U.S. revenue in September and our U.S. performance exceeded our internal expectations. Entering the quarter with good momentum we are encouraged by the start to our seasonally stronger fourth quarter. We remain highly focused on prudently growing the Company through both sustained organic growth and future accretive acquisitions which we continue to actively pursue”
1 Adjusted figures represent non-IFRS information. See “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.
2 Adjusted figures represent non-IFRS information. See “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.
Third Quarter 2021 vs. Third Quarter 2020 Financial Highlights
|
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|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
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|||||||||||||||
|
Revenue |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
|
Operating expenses |
|
|
(7,722 |
) |
|
$ |
(3,931 |
) |
|
$ |
(3,791 |
) |
|
|
96 |
% |
|
Operating profit |
|
|
2,401 |
|
|
|
3,475 |
|
|
|
(1,074 |
) |
|
|
(31 |
)% |
|
Income before tax |
|
|
2,694 |
|
|
|
2,609 |
|
|
|
85 |
|
|
|
3 |
% |
|
Net income for the period attributable to the |
|
$ |
4,675 |
|
|
$ |
2,303 |
|
|
$ |
2,372 |
|
|
|
103 |
% |
|
Net income per share attributable to ordinary |
|
|
0.14 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
75 |
% |
|
Net income per share attributable to ordinary |
|
|
0.13 |
|
|
|
0.08 |
|
|
|
0.05 |
|
|
|
63 |
% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
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|
|
|
|
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|
|||||||
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NON-IFRS FINANCIAL MEASURES |
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|
|
|
|
|
|
|
|
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|
||||
|
Adjusted EBITDA |
|
$ |
3,464 |
|
|
$ |
4,027 |
|
|
$ |
(563 |
) |
|
|
(14 |
)% |
|
Adjusted EBITDA Margin |
|
|
34 |
% |
|
|
54 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
754 |
|
|
|
3,917 |
|
|
|
(3,163 |
) |
|
|
(81 |
)% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
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|
% |
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||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
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|
|||||||
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OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
27 |
|
|
|
28 |
|
|
|
(1 |
) |
|
|
(4 |
)% |
(1) We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
|
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AS OF |
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AS OF |
|
CHANGE |
||
|
|
|
2021 |
|
2020 |
|
$ |
|
% |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
(in thousands, USD) |
|
|
|
|
||
|
CONSOLIDATED STATEMENTS OF FINANCIAL |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$53,160 |
|
$8,225 |
|
$44,935 |
|
n/m |
|
Working capital (2) |
|
55,064 |
|
10,059 |
|
45,005 |
|
n/m |
|
Total assets |
|
91,648 |
|
45,383 |
|
46,265 |
|
n/m |
|
Total borrowings |
|
5,919 |
|
5,960 |
|
(41) |
|
n/m |
|
Total liabilities |
|
11,373 |
|
11,171 |
|
202 |
|
n/m |
|
Total equity |
|
80,275 |
|
34,212 |
|
46,063 |
|
n/m |
(2) Working capital is defined as total current assets minus total current liabilities.
n/m = not meaningful
Revenue
Total revenue in the third quarter increased 37% to $10.1 million compared to $7.4 million in the comparable period for the prior year. On a constant currency basis, revenue increased $2.3 million, or 30%. The increase was driven by improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs decreased 4% to 27,000 compared to 28,000 in the prior year.
Our revenue disaggregated by market is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
$ |
4,483 |
|
|
$ |
4,311 |
|
|
$ |
172 |
|
|
|
4 |
% |
|
Other Europe |
|
|
2,718 |
|
|
|
1,162 |
|
|
|
1,556 |
|
|
|
134 |
% |
|
North America |
|
|
2,270 |
|
|
|
1,081 |
|
|
|
1,189 |
|
|
|
110 |
% |
|
Rest of the world |
|
|
652 |
|
|
|
852 |
|
|
|
(200 |
) |
|
|
(23 |
)% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were primarily driven by organic growth in our Other Europe and North American markets.
Our revenue disaggregated by monetization is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
$ |
2,808 |
|
|
$ |
3,847 |
|
|
$ |
(1,039 |
) |
|
|
(27 |
)% |
|
Revenue share commission |
|
|
829 |
|
|
|
794 |
|
|
|
35 |
|
|
|
4 |
% |
|
CPA commission |
|
|
5,455 |
|
|
|
2,535 |
|
|
|
2,920 |
|
|
|
115 |
% |
|
Other revenue |
|
|
1,031 |
|
|
|
230 |
|
|
|
801 |
|
|
|
348 |
% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were driven primarily by additional CPA commission and Other revenue. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
$ |
7,965 |
|
|
$ |
6,354 |
|
|
$ |
1,611 |
|
|
|
25 |
% |
|
Sports |
|
|
2,076 |
|
|
|
858 |
|
|
|
1,218 |
|
|
|
142 |
% |
|
Other |
|
|
82 |
|
|
|
194 |
|
|
|
(112 |
) |
|
|
(58 |
)% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
$ |
3,587 |
|
|
$ |
1,790 |
|
|
$ |
1,797 |
|
|
|
100 |
% |
|
Technology expenses |
|
|
1,123 |
|
|
|
663 |
|
|
|
460 |
|
|
|
69 |
% |
|
General and administrative expenses |
|
|
2,978 |
|
|
|
1,402 |
|
|
|
1,576 |
|
|
|
112 |
% |
|
Allowance for credit losses and write offs |
|
|
34 |
|
|
|
76 |
|
|
|
(42 |
) |
|
|
(55 |
)% |
|
Total operating expenses |
|
$ |
7,722 |
|
|
$ |
3,931 |
|
|
$ |
3,791 |
|
|
|
96 |
% |
n/m = not meaningful
Total operating expenses increased by $3.8 million to $7.7 million compared to $3.9 million in the prior year. On a constant currency basis, operating expenses increased by $3.5 million to $7.7 million compared to $4.2 million in the prior year. The increase was driven primarily by headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $3.6 million compared to $1.8 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount and professional services.
Technology expenses totaled $1.1 million compared to $0.7 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.0 million compared to $1.4 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA decreased by 14% to $3.5 million compared to $4.0 million in the prior year representing an Adjusted EBITDA margin of 34%. The decrease was driven primarily by increased operating expenses partly offset by increased revenue.
Operating profit in the third quarter decreased 31% to $2.4 million compared to $3.5 million in 2020. The decrease was driven primarily by a decrease in Adjusted EBITDA and an increase in share-based payments expense.
Net income in the third quarter totaled $4.7 million, or $0.13 per diluted share, compared to net income of $2.3 million, or $0.08 per diluted share, in the prior year. The increase was primarily driven by the recognition of deferred tax assets related to the transferred intangible assets.
Free Cash-flow
Total cash generated from operations of $1.4 million decreased 65% compared to $4.0 million in the prior year. The decrease was driven primarily by decreased adjusted EBITDA, the settlement of non-recurring IPO-related expenses and income tax payments. Free cash flow totaled $0.8 million compared to $3.9 million in the prior year. The decline was the result of decreased cash flow generated from operations and increased capital expenditures consisting primarily of the acquisition of domain names and capitalized development costs.
Balance Sheet
Cash balances as of September 30, 2021 totaled $53.2 million, an increase of $45.0 million compared to $8.2 million as of December 31, 2020. Working capital as of September 30, 2021 totaled $55.1 million, an increase of $45.0 million compared to $10.1 million as of December 31, 2020.
Total assets as of September 30, 2021 were $91.6 million compared to $45.4 million as of December 30, 2020. Total borrowings, including accrued interest, totaled $5.9 million compared to $6.0 million as of December 31, 2020. Total liabilities were $11.4 million compared to $11.2 million as of December 31, 2020.
Total equity as of September 30, 2021 was $80.3 million compared to $34.2 million as of December 31, 2020.
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
2021 – 2023 Financial Targets
|
|
|
|
|
Total Revenue Growth |
|
> Average 40% |
|
Adjusted EBITDA Margin3 |
|
> Average 40% |
|
Leverage4 |
|
< Net Debt to Adjusted EBITDA 2.5x5 |
2021 Outlook
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our third quarter results came in a bit above our expectations and after slow summer trading our financial performance accelerated in September to close out the quarter with the best month in the Company’s history. Our Adjusted EBITDA margin of 34% in the quarter was healthy despite a seasonally slow quarter and investments in scaling the organization for organic growth initiatives and operating as a public company. This is consistent with our prior guidance that our near-term margins may deviate from our average 40% target as we invest in our organic growth plan and pursue our M&A strategy. For the full year, we are reiterating our expectation to achieve both above 40% year-on-year organic revenue growth and approximately 40% Adjusted EBITDA margin. We remain in a very strong financial position after the IPO last quarter which offers us significant optionality going forward to execute our growth plan and each of our capital allocation priorities.”
Conference Call Details
|
|
|
|
|
Date/Time: |
|
Thursday, November 18, 2021, at 9:00 am EST |
|
Webcast: |
|
https://www.webcast-eqs.com/gamb20211118/en |
|
U.S. Toll-Free Dial In: |
|
877-407-0890 |
|
International Dial In: |
|
+1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format within the “News & Events” section of the Company’s website.
High Roller Technologies, operator of the premium online casino brands High Roller and Fruta, announced the submission of its Internet Gaming Operator license application in Ontario, Canada, targeting the launch of its flagship brand HighRoller.com in the second half of 2025.
“The submission of our licensing application to access Ontario’s regulated online gambling market is an important milestone in our Company’s journey. Once our application is approved, we anticipate that we will have the opportunity to launch our online casino product into the market later this year,” said Ben Clemes, Chief Executive Officer at High Roller.
Ontario is one of the largest regulated online gambling markets in the world as measured by gross gaming revenue. In 2024, regulated online gambling operators within the province generated approximately $2.3B in gross gaming revenue, and growth continues to be recorded in the first half of 2025. Recently, the province of Alberta passed enabling legislation to establish a regulatory framework for online gambling. Once available, the Company also intends to pursue licensure in Alberta to expand its regulated market footprint in Canada.
“Ontario is missing an elegant brand like High Roller. We’re excited to roll out the red carpet for our new customers, and we’re looking forward to showcasing our tremendous product,” said Clemes.
The post High Roller Submits Gaming License Application in Ontario appeared first on Gaming and Gambling Industry in the Americas.
The International Association of Gaming Regulators (IAGR) has released the program for its upcoming annual conference, to be held in Toronto from 20-23 October.
With the theme ‘Resilient regulation: Exploring what works, why and what’s next’, the event brings together global regulators and thought leaders to examine how regulatory frameworks can evolve to meet today’s challenges.
The four-day program explores timely issues, including the rise of AI and behavioural analytics, the impact of converging technologies, cross-border collaboration and the continued push to strengthen responsible gambling policies.
IAGR President Ben Haden said the program offers a strong preview of the content and conversations delegates can expect in Toronto.
‘This year’s program showcases the breadth and complexity of the challenges facing gambling regulators worldwide, from protecting player wellbeing to tackling illegal markets and understanding new technologies,’ Haden said.
‘I encourage regulators, researchers and policy professionals from around the world to join us in Toronto. The conference is a space to learn, share experience, challenge assumptions and shape the future of effective, collaborative regulation.’
Confirmed speakers and panellists include:
- Andrew Rhodes, CEO, Gambling Commission, Great Britain
- Anders Dorph, Director, Danish Gambling Authority, Denmark
- Dr Karin Schnarr, CEO and Registrar, Alcohol and Gaming Commission of Ontario, Canada
- Mark Vander Linden, Director of Research and Responsible Gaming and Carrie Torrisi, Chief of Sports Wagering Division, Massachusetts Gaming Commission, United States
- Bashir Are, CEO, Lagos State Lotteries and Gaming Authority, Nigeria
- Teo Chun Ching, Chief Executive, Gambling Regulatory Authority, Singapore
- Ladipo Abiose Akolade, Founder, GamblePause Initiative Africa, Nigeria
- Rasmus Kjaergaard, CEO, Mindway AI, Denmark
- Tracy Parker, Senior Vice President, Accreditation, Advisory and Insights, Responsible Gambling Council, Canada
- Pedro Romero, Chief of Safer Gambling Partnerships, BetBlocker, Gibraltar
- Sonia Wasowska, Head of Supervision, General Commercial Gaming Regulatory Authority, United Arab Emirates
- Steven Blackburn, Partner, Ashurst Risk Advisory, Australia
The event will be held at The Westin Harbour Castle on Toronto’s waterfront.
The post IAGR announces program for IAGR2025 conference in Toronto appeared first on Gaming and Gambling Industry in the Americas.
Home field advantage has a new name, as the Edmonton Elks announced that Play Alberta Field at Commonwealth Stadium is now the home of the Elks.
The field naming rights are part of a broader multi-year agreement between Play Alberta and the EE, making Play Alberta the official sports betting partner of the Club.
“We couldn’t be more excited to expand our partnership with Play Alberta. This partnership is about more than just putting a name on the field – it’s about building something meaningful for our fans and our community. Play Alberta is an Alberta-based organization that shares our values and our commitment to giving back. Together, we’re creating new ways for fans to connect with our team and experience the game day atmosphere in a whole new way,” said Elks President and CEO Chris Morris.
The expanded relationship between the Elks and Play Alberta will allow the game day experience to continue to grow. Fans can look forward to unique activations and promotions around the stadium, including the chance to win game tickets and memorabilia.
“Since Play Alberta’s launch five years ago, our team has made it a priority to connect with the communities where our players live and work. We are very excited to join the Edmonton Elks on the field on game days during upcoming CFL seasons. Play Alberta Field at Commonwealth Stadium allows us to partner with the Elks and showcase two brands built for Albertans in a historic Edmonton location,” said Alberta Gaming, Liquor and Cannabis Chief Executive Officer Kandice Machado.
The Elks open their 76th season on Saturday, June 7 in Vancouver when they take on the B.C. Lions. Edmonton’s home opener at Play Alberta Field at Commonwealth Stadium is slated for Thursday, June 19 against the Montreal Alouettes.
The post Edmonton Elks, Play Alberta Connect on New Partnership appeared first on Gaming and Gambling Industry in the Americas.
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