Financial reports

Gambling.com Group Reports Third Quarter 2024 Results and Raises 2024 Guidance

Published

5 months ago

November 14, 2024

GamingAmericas.com

gambling.com-group-reports-third-quarter-2024-results-and-raises-2024-guidance

– Third Quarter Revenue Increases 37% to Record $32.1 Million; Net Income Rises to $8.5 Million

– Record Quarterly Adjusted EBITDA of $12.6 Million Up 108% Versus Year-Ago Period

Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the third quarter ended September 30, 2024. The Company also raised its 2024 revenue and Adjusted EBITDA guidance as detailed below.

“Our record third quarter and year-to-date results reflect our best-in-class execution in the affiliate sector to consistently grow market share around the world,” commented Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group. “The third quarter’s strong revenue growth and record Adjusted EBITDA highlights Gambling.com Group’s position as an industry leader in creating value for both our shareholders and our online gambling operator clients. To complement our continued organic market share growth, we continue to evaluate opportunities adjacent to the core business to expand our footprint in the online gaming ecosystem as we progress towards our goal of $100 million in annual Adjusted EBITDA.”

Prague Gaming & TECH Summit 2025 (25-26 March)

Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Year-over-year third quarter revenue and Adjusted EBITDA increased 37% and 108%, respectively, with very high free cash flow conversion, reflecting the continued success of our strategies to optimize the returns from our global portfolio of owned and operated assets. As expected, we generated strong iGaming NDC growth across all our geographical regions, while our North American business continued to be resilient against challenging comparables. As reflected in our raised full year outlook, we expect to generate significant year-over-year revenue and Adjusted EBITDA growth in 2024, and we are well-positioned to carry this operating momentum forward, particularly as the North American market is expected to return to growth next year.”

Three Months Ended September 30, 2024 vs. Three Months Ended September 30, 2023 Financial Highlights
(USD in thousands, except per share data, unaudited)

	Three Months Ended September 30,				Change
	2024		2023		%
Revenue	32,118		23,458		37	%
Net income for the period attributable to shareholders ⁽¹⁾	8,509		5,013		70	%
Net income per share attributable to shareholders, diluted ⁽¹⁾	0.24		0.13		85	%
Net income margin⁽¹⁾	26	%	21	%
Adjusted net income for the period attributable to shareholders ⁽¹⁾⁽²⁾	8,905		5,407		65	%
Adjusted net income per share attributable to shareholders, diluted ⁽¹⁾⁽²⁾	0.25		0.14		79	%
Adjusted EBITDA ⁽¹⁾⁽²⁾	12,584		6,054		108	%
Adjusted EBITDA Margin ⁽¹⁾⁽²⁾	39	%	26	%
Cash flows generated by operating activities	14,936		(715	)	2189	%
Free Cash Flow ⁽²⁾	14,240		1,578		802	%

__________

(1) For the three months ended September 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 $0.4 million, or $0.01 per share. Similarly, these adjustments totaled $0.3 million, or $0.01 per share, for the three months ended September 30, 2023. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments.

(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.

Third Quarter 2024 and Recent Business Highlights

Delivered more than 116,000 new depositing customers (“NDCs”)
Repurchased 1,316,975 shares at an average price of $9.35 per share. Subsequent to the end of the third quarter, repurchased an additional 486,000 shares at an average price of $9.80 per share
Outstanding balance of $25.0 million of the $50.0 million credit facility as of September 30, 2024
Won Casino Affiliate of the Year at the 2024 EGR Operator Awards
Authorized an additional $10.0 million for the Company’s share repurchase program on November 13

Three Months Ended September 30, 2024 Results Compared to Three Months Ended September 30, 2023

Revenue rose 37% year-over-year to a third quarter record $32.1 million. The Company delivered more than 116,000 NDCs to clients, a 35% year-over-year increase.

Gross profit increased 43% to $30.4 million, primarily as a result of strong revenue growth and a $0.5 million decrease in cost of sales related to the Company’s media partnerships.

Total operating expenses increased 25% to $20.8 million, primarily as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets.

Net income attributable to shareholders increased $3.5 million to $8.5 million and net income per share was $0.24 compared to $0.13 in the prior year period. Adjusted net income rose 65% to $8.9 million and adjusted net income per share increased 79% to $0.25.

Adjusted EBITDA more than doubled to a quarterly record $12.6 million, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $6.1 million and an Adjusted EBITDA margin of 26%, year-over-year.

Operating cash flow of $14.9 million compared to negative $0.7 million, which in the prior year period included contingent consideration payments of $2.9 million related to the BonusFinder acquisition. Free cash flow grew to $14.2 million from $1.6 million primarily reflecting growth in net income and Adjusted EBITDA and positive working capital movements in the period.

2024 Outlook

Gambling.com Group today updated its 2024 full-year revenue and Adjusted EBITDA guidance. The Company now expects full year revenue of $125 million to $127 million and Adjusted EBITDA of $46.5 million to $48.5 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 16% and 29%, respectively. The Company’s updated outlook compares to the guidance provided on August 15, 2024 for revenue of $123 million to $127 million and Adjusted EBITDA of $44 million to $47 million.

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 $7.5 million, of which $5.4 million was incurred in the first nine months of 2024
An average EUR/USD exchange rate of 1.065 for the fourth quarter of 2024

Nine Months Ended September 30, 2024 vs. Nine Months Ended September 30, 2023 Financial Highlights
(USD in thousands, except per share data, unaudited)

	Nine Months Ended September 30,				Change
	2024		2023		%
Revenue	91,874		76,122		21	%
Net income for the period attributable to shareholders ⁽¹⁾	22,746		11,886		91	%
Net income per share attributable to shareholders, diluted ⁽¹⁾	0.62		0.31		100	%
Net income margin⁽¹⁾	25	%	16	%
Adjusted net income for the period attributable to shareholders ⁽¹⁾⁽²⁾	23,821		19,493		22	%
Adjusted net income per share attributable to shareholders, diluted ⁽¹⁾⁽²⁾	0.65		0.51		27	%
Adjusted EBITDA ⁽¹⁾⁽²⁾	33,955		26,146		30	%
Adjusted EBITDA Margin ⁽¹⁾⁽²⁾	37	%	34	%
Cash flows generated by operating activities	23,936		10,950		119	%
Free Cash Flow ⁽²⁾	28,417		16,694		70	%

__________

(1) For the nine months ended September 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 $1.1 million, or $0.03 per share. Similarly, these adjustments totaled $7.4 million, or $0.20 per share, for the nine months ended September 30, 2023. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments.

(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, November 14, 2024, at 8:00 a.m. ET
Webcast:	webcast-eqs.com/gamb20241114/en
U.S. Toll-Free Dial In:	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 the United States and Ireland. Through its proprietary technology platform, the Group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com, Casinos.com, and RotoWire.com. Gambling.com Group owns and operates more than 50 websites in seven languages across 15 national markets covering all aspects of the online gambling industry, including iGaming and sports betting, and the fantasy sports industry.

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 U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to our further expansion of our footprint in the online gaming ecosystem, whether we can achieve $100 million in annual Adjusted EBITDA, whether the North American market returns to growth in 2025, and our 2024 outlook, are all forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” “could,” “will,” “would,” “ongoing,” “future” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance, or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual results to differ materially from our expectations are discussed under “Item 3. Key Information – Risk Factors” in Gambling.com Group’s annual report filed on Form 20-F for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission (the “SEC”) on March 21, 2024, and Gambling.com Group’s other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Gambling.com Group disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.

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 nine months ended September 30, 2024 and 2023 in the Company’s reporting currency and constant currency.

	Reporting Currency						Constant Currency		Reporting Currency						Constant Currency
	Three Months Ended September 30,				Change		Change		Nine Months Ended September 30,				Change			Change
	2024		2023		%		%		2024		2023		%			%
Revenue	32,118		23,458		37	%	35	%	91,874		76,122		21	%		21	%
Cost of sales	(1,683	)	(2,136	)	(21	)%	(22	)%	(5,351	)	(4,023	)	33	%		33	%
Gross profit	30,435		21,322		43	%	41	%	86,523		72,099		20	%		20	%
Sales and marketing expenses	(10,815	)	(8,636	)	25	%	24	%	(31,021	)	(25,644	)	21	%		21	%
Technology expenses	(3,616	)	(2,525	)	43	%	41	%	(10,044	)	(7,229	)	39	%		39	%
General and administrative expenses	(6,041	)	(4,831	)	25	%	23	%	(18,582	)	(17,297	)	7	%		8	%
Movements in credit losses allowance and write-offs	(360	)	(615	)	(41	)%	(42	)%	(1,061	)	(1,382	)	(23	)%		(23	)%
Fair value movement on contingent consideration	—		—		—	%	—	%	—		(6,939	)	(100	)%		(100	)%
Operating profit	9,603		4,715		104	%	101	%	25,815		13,608		90	%		90	%
Finance income	551		968		(43	)%	(44	)%	1,725		1,674		3	%		3	%
Finance expenses	(1,052	)	(373	)	182	%	179	%	(2,396	)	(1,356	)	77	%		77	%
Income before tax	9,102		5,310		71	%	69	%	25,144		13,926		81	%		81	%
Income tax charge	(593	)	(297	)	100	%	97	%	(2,398	)	(2,040	)	18	%		18	%
Net income for the period attributable to shareholders	8,509		5,013		70	%	68	%	22,746		11,886		91	%		92	%
Other comprehensive income (loss)
Exchange differences on translating foreign currencies	4,309		(2,777	)	(255	)%	(253	)%	794		(2,085	)	(138	)%		(138	)%
Total comprehensive income for the period attributable to shareholders	12,818		2,236		473	%	466	%	23,540		9,801		140	%		140	%


Consolidated Statements of Financial Position (Unaudited)
(USD in thousands)

	SEPTEMBER 30, 2024		DECEMBER 31, 2023
ASSETS
Non-current assets
Property and equipment	1,884		908
Right-of-use assets	5,062		1,460
Intangible assets	138,398		98,000
Deferred tax asset	6,792		7,134
Total non-current assets	152,136		107,502
Current assets
Current tax asset	229		—
Trade and other receivables	20,447		21,938
Cash and cash equivalents	15,723		25,429
Total current assets	36,399		47,367
Total assets	188,535		154,869
EQUITY AND LIABILITIES
Equity
Share capital	—		—
Capital reserve	76,821		74,166
Treasury shares	(25,233	)	(3,107	)
Share-based compensation reserve	9,755		7,414
Foreign exchange translation deficit	(3,413	)	(4,207	)
Retained earnings	67,404		44,658
Total equity	125,334		118,924
Non-current liabilities
Lease liability	4,169		1,190
Deferred tax liability	2,258		2,008
Borrowings	21,524		—
Total non-current liabilities	27,951		3,198
Current liabilities
Trade and other payables	7,979		10,793
Deferred income	2,499		2,207
Deferred consideration	17,451		18,811
Contingent consideration	2,652		—
Borrowings and accrued interest	2,922		—
Other liability	—		308
Lease liability	1,246		533
Income tax payable	501		95
Total current liabilities	35,250		32,747
Total liabilities	63,201		35,945
Total equity and liabilities	188,535		154,869


Consolidated Statements of Cash Flows (Unaudited)
(USD in thousands)

	Three months ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cash flow from operating activities
Income before tax	9,102		5,310		25,144		13,926
Finance expense (income), net	501		(596	)	671		(318	)

Adjustments for non-cash items:
Depreciation and amortization	1,801		495		4,046		1,520
Movements in credit loss allowance and write-offs	360		615		1,061		1,382
Fair value movement on contingent consideration	—		—		—		6,939
Share-based payment expense	1,180		696		3,737		2,790
Income tax paid	(131	)	26		(1,571	)	(1,763	)
Payment of deferred consideration	—		(2,897	)	(7,156	)	(2,897	)
Payment of contingent consideration	—		—		—		(4,621	)
Cash flows from operating activities before changes in working capital	12,813		3,649		25,932		16,958
Changes in working capital
Trade and other receivables	535		(5,235	)	571		(7,127	)
Trade and other payables	1,588		858		(2,567	)	1,044
Inventories	—		13		—		75
Cash flows generated by operating activities	14,936		(715	)	23,936		10,950
Cash flows from investing activities
Acquisition of property and equipment	(274	)	(90	)	(1,188	)	(294	)
Acquisition of intangible assets	(469	)	—		(21,074	)	(388	)
Capitalization of internally developed intangibles	(422	)	(514	)	(1,487	)	(1,480	)
Interest received from bank deposits	14		90		118		169
Payment of deferred consideration	—		(2,543	)	(10,044	)	(4,933	)
Payment of contingent consideration	—		—		—		(5,557	)
Cash flows used in investing activities	(1,151	)	(3,057	)	(33,675	)	(12,483	)
Cash flows from financing activities
Exercise of options	697		106		1,254		106
Treasury shares acquired	(12,445	)	—		(22,195	)	(759	)
Repayment of borrowings	(20,560	)	—		(20,560	)	—
Proceeds from borrowings	27,560		—		45,560		—
Transaction costs related to borrowings	—		—		(847	)	—
Interest payment attributable to third party borrowings	(371	)	—		(545	)	—
Interest payment attributable to deferred consideration settled	—		—		(1,382	)	(110	)
Principal paid on lease liability	(229	)	(105	)	(483	)	(304	)
Interest paid on lease liability	(83	)	(40	)	(172	)	(127	)
Cash flows generated by (used in) financing activities	(5,431	)	(39	)	630		(1,194	)
Net movement in cash and cash equivalents	8,354		(3,811	)	(9,109	)	(2,727	)
Cash and cash equivalents at the beginning of the period	7,523		31,311		25,429		29,664
Net foreign exchange differences on cash and cash equivalents	(154	)	(616	)	(597	)	(53	)
Cash and cash equivalents at the end of the period	15,723		26,884		15,723		26,884

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 September 30,		Reporting Currency Change		Constant Currency Change		Nine Months Ended September 30,		Reporting Currency Change		Constant Currency Change
	2024	2023	%		%		2024	2023	%		%
Net income for the period attributable to shareholders	8,509	5,013	70	%	68	%	22,746	11,886	91	%	92	%
Weighted-average number of ordinary shares, basic	35,592,252	37,402,935	(5	)%	(5	)%	36,466,391	36,988,690	(1	)%	(1	)%
Net income per share attributable to shareholders, basic	0.24	0.13	85	%	71	%	0.62	0.32	94	%	94	%

Net income for the period attributable to shareholders	8,509	5,013	70	%	68	%	22,746	11,886	91	%	92	%
Weighted-average number of ordinary shares, diluted	35,833,767	38,711,429	(7	)%	(7	)%	36,750,150	38,176,200	(4	)%	(4	)%
Net income per share attributable to shareholders, diluted	0.24	0.13	85	%	85	%	0.62	0.31	100	%	100	%

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 September 30,		Change		Nine Months Ended September 30,		Change
	2024	2023	2024 vs 2023		2024	2023	2024 vs 2023
North America	12,803	12,903	(1	)%	39,877	40,407	(1	)%
UK and Ireland	9,800	6,858	43	%	28,631	23,749	21	%
Other Europe	6,770	2,320	192	%	16,557	7,902	110	%
Rest of the world	2,745	1,377	99	%	6,809	4,064	68	%
Total revenues	32,118	23,458	37	%	91,874	76,122	21	%

The Company presents disaggregated revenue by monetization type as follows:

	Three Months Ended September 30,		Change		Nine Months Ended September 30,		Change
	2024	2023	2024 vs 2023		2024	2023	2024 vs 2023
Performance marketing	25,082	18,232	38	%	72,674	60,769	20	%
Subscription & content syndication	2,272	2,104	8	%	6,176	5,678	9	%
Advertising & other	4,764	3,122	53	%	13,024	9,675	35	%
Total revenues	32,118	23,458	37	%	91,874	76,122	21	%

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 September 30,		Change		Nine Months Ended September 30,		Change
	2024	2023	2024 vs 2023		2024	2023	2024 vs 2023
Casino	24,835	15,190	63	%	66,707	49,803	34	%
Sports	6,830	7,930	(14	)%	24,156	25,518	(5	)%
Other	453	338	34	%	1,011	801	26	%
Total revenues	32,118	23,458	37	%	91,874	76,122	21	%

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 and contingent consideration during the three and nine months ended September 30, 2024 is mainly associated with the unwinding of the discount applied to the valuation of deferred and contingent 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 Roto Sports 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 September 30,				Change		Change		Nine Months Ended September 30,				Change			Change
	2024		2023		%		%		2024		2023			%		%
Revenue	32,118		23,458		37	%	35	%	91,874		76,122			21	%	21	%
Net income for the period attributable to shareholders	8,509		5,013		70	%	68	%	22,746		11,886			91	%	92	%
Net income margin	26	%	21	%					25	%	16	%

Net income for the period attributable to shareholders	8,509		5,013		70	%	68	%	22,746		11,886			91	%	92	%
Fair value movement on contingent consideration (1)	—		—		—	%	—	%	—		6,939			(100	)%	(100	)%
Unwinding of deferred consideration (1)	396		316		25	%	23	%	1,075		425			153	%	153	%
Employees’ bonuses related to acquisition⁽¹⁾	—		78		(100	)%	(100	)%	—		243			(100	)%	(100	)%
Adjusted net income for the period attributable to shareholders	8,905		5,407		65	%	63	%	23,821		19,493			22	%	22	%
Net income per share attributable to shareholders, basic	0.24		0.13		85	%	71	%	0.62		0.32			94	%	94	%
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		—	%	—	%	0.03		0.01			200	%	200	%
Effect of adjustments for bonuses related to acquisition, basic	0.00		0.00		—	%	—	%	0.00		0.01			(100	)%	(100	)%
Adjusted net income per share attributable to shareholders, basic	0.25		0.14		79	%	67	%	0.65		0.53			23	%	23	%
Net income per share attributable to ordinary shareholders, diluted	0.24		0.13		85	%	85	%	0.62		0.31			100	%	100	%
Adjusted net income per share attributable to shareholders, diluted	0.25		0.14		79	%	79	%	0.65		0.51			27	%	27	%

__________

(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 September 30,				Change		Change		Nine Months Ended September 30,				Change			Change
	2024		2023		%		%		2024		2023			%			%
	(USD in thousands)								(USD in thousands)
Net income (loss) for the period attributable to shareholders	8,509		5,013		70	%	68	%	22,746		11,886			91	%		92	%
Add back (deduct):
Interest expenses on borrowings and lease liability	450		40		1025	%	1000	%	929		127			631	%		637	%
Interest income	(14	)	(90	)	(84	)%	(85	)%	(118	)	(169	)		(30	)%		(30	)%
Income tax charge	593		297		100	%	97	%	2,398		2,040			18	%		18	%
Depreciation expense	111		63		76	%	73	%	252		183			38	%		38	%
Amortization expense	1,690		432		291	%	287	%	3,794		1,337			184	%		184	%
EBITDA	11,339		5,755		97	%	95	%	30,001		15,404			95	%		95	%
Share-based payment and related expense	1,180		696		70	%	67	%	3,737		2,790			34	%		34	%
Fair value movement on contingent consideration	—		—		—	%	—	%	—		6,939			(100	)%		(100	)%
Unwinding of deferred consideration	396		316		25	%	23	%	1,075		425			153	%		153	%
Foreign currency translation losses (gains), net	(385	)	(878	)	(56	)%	(57	)%	(1,308	)	(775	)		69	%		69	%
Other finance results	54		17		218	%	218	%	93		74			26	%		27	%
Secondary offering related costs	—		—		—	%	—	%	—		733			(100	)%		(100	)%
Acquisition related costs ⁽¹⁾	—		70		(100	)%	(100	)%	357		313			14	%		14	%
Employees’ bonuses related to acquisition	—		78		(100	)%	(100	)%	—		243			(100	)%		(100	)%
Adjusted EBITDA	12,584		6,054		108	%	105	%	33,955		26,146			30	%		30	%

__________

(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 Currency		Reporting Currency							Constant Currency
	Three Months Ended September 30,				Change		Change		Nine Months Ended September 30,				Change			Change
	2024		2023		%		%		2024		2023			%			%
	(USD in thousands, except margin)								(in thousands USD, except margin)
Revenue	32,118		23,458		37	%	35	%	91,874		76,122			21	%		21	%
Adjusted EBITDA	12,584		6,054		108	%	105	%	33,955		26,146			30	%		30	%
Adjusted EBITDA Margin	39	%	26	%					37	%	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, the Company changed its 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 assets acquisitions were excluded from capital expenditures. The Company believes that 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 September 30,				Change		Nine Months Ended September 30,				Change
	2024		2023		%		2024		2023		%
	(in thousands USD, unaudited)						(USD in thousands, unaudited)
Cash flows generated by operating activities	14,936		(715	)	2189	%	23,936		10,950		119	%
Adjustment for items presented in operating activities:
Payment of contingent consideration	—		—		—	%	—		4,621		(100	)%
Payment of deferred consideration	—		2,897		(100	)%	7,156		2,897		147	%
Adjustment for items presenting in investing activities:
Capital Expenditures ⁽¹⁾	(696	)	(604	)	15	%	(2,675	)	(1,774	)	51	%
Free Cash Flow	14,240		1,578		802	%	28,417		16,694		70	%

__________

(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 nine months ended September 30, 2024 and 2023 exclude $21.1 million (related to the Freebets.com and other asset acquisitions) and $0.4 million, respectively.

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Financial reports

Optimove US Gaming Pulse Report – March 2025

Published

5 days ago

April 14, 2025

Peter Tolan

Reading Time: 5 minutes

Executive Summary – Optimove US Gaming Pulse Report (March 2025)

The March 2025 report analyzes data from over 3.2 million U.S. players and 21 million global players to benchmark performance across casino and sports betting.

Key Insights:

U.S. Players Spend More: U.S. bettors deposited an average of $538 over the past 12 months — 2.6x higher than the global average.
Casino Activity Climbs: U.S. casino bettors grew 37% March year-over-year, with average monthly bets reaching $8,511 (6.4x the global average), boosted by state expansions like Rhode Island.
Sports Betting Spikes with NFL Season: Bettor volume rose 32% in September compared to the baseline. U.S. average monthly sports bet: $1,010 (vs. $404 globally).
Global Players More Engaged: Global players are active more days per month (+13%) and retain better (70% vs. 65% monthly average).

Conclusion:

Report Metrics:While the U.S. market demonstrates higher player spend and betting volume, global markets show stronger engagement and retention. Continued U.S. growth is closely tied to seasonal events and expanding iGaming legalization, while future success will depend on improving long-term engagement and retention strategies.

Source: Betting trends in United States compared to the global benchmark in the trailing 12 months (March 2024-2025)
Database: A 12-month average of 3,270,596 active players per month in the US and 21,308,702 globally.

Category: Average Deposit Amount

Key finding: Average Deposit Amounts Greatest in the US

In monthly average total deposit amounts, the US consistently outpaces the global average, maintaining values more than twice as high throughout the year.

The US average peaked at $602 in August 2024 and again in March 2025, while the lowest point was $466 in February 2025. (The 12-month average was $538.)

Global deposit amounts remained relatively stable, fluctuating between $193 and $225, ending at $206 in March 2025.

A graph of a number of columnsAI-generated content may be incorrect.

Definition of Average Deposit Amount: The average deposit amount is calculated by taking the total sum of all deposits and dividing it by the number of Sports and Casino bettors (players) who have made at least one deposit.

Category: Total Monthly Casino Betting Amount & Number of Casino Bettors Growth

Key findings: The US has been leading in both betting amount and number of casino bettors’ growth since August 2024

Throughout the period, the US consistently outpaced global averages, with an average of $8,511 per bettor through the period compared to $1,327 globally. US ending at $8,536 in March 2025 while the global average stands on $1,329.

In number of casino bettors’ growth, the US market saw significant growth, rising from the March 2024 baseline of 100% to 137% (37% growth) by March 2025. Global growth was more moderate, increasing to 116% over the same period. The most notable growth for the US occurred between August 2024 and January 2025, peaking at 142%.

Legalization of online casino gaming in the US has influenced the growth trends among casino bettors, Rhode Island is the most recent state legalized, having launched its iGaming casinos platform in March 2024.

A graph of a graph showing the average casino betting amountAI-generated content may be incorrect.

Definition of Total Monthly Casino Bet Amount: The average casino bet amount is the total sum of all casino bets and divided by the number of bettors who have placed at least one casino bet.

A graph showing the difference between the us and the usaAI-generated content may be incorrect.

Definition of Casino Bettors Growth Trend: calculated by dividing the total number of casino bettors each month by the number of casino bettors in March 2024, which serves as the baseline (100%).

Category: Total Monthly Sports Betting Amount & Number of Sport Bettors Growth

Key finding: The US consistently outpaced global averages in monthly average sports bet amounts, with a strong seasonality effect observed in the number of sport bettors starting in September, coinciding with the beginning of the NFL season.

Throughout the period, the US consistently outpaced global averages in monthly average sports bet amounts. The US average peaked at $1,166 in March 2024, dipped mid-year, and rebounded to $1,150 by March 2025.

In contrast, the global average remained steady, fluctuating between $362 and $452, and closing at $391 in March 2025.

In terms of the number of sport bettors, the US market experienced a sharp increase starting in September 2024, aligning with the start of the NFL season. Growth surged to 132% in September, peaking at 144% in November, and closing at 112% in March 2025.

Global growth remained more stable, gradually increasing from 100% to 108% over the same period.

A graph of different colored barsAI-generated content may be incorrect.

Definition of Total Monthly Sport Bet Amount: The average sport betting amount is the total sum of all sports bets and divided by the number of bettors who have placed in least one sport bet.

A graph showing the difference between sports and sportsAI-generated content may be incorrect.

The Sport Bettors Growth Trend: calculated by dividing the total number of sport bettors each month by the number of sport bettors in March 2024, which serves as the baseline (100%).

Category: Average Number of Activity Days per Active Customer

Key finding: global market consistently maintained a higher engagement level than the US.

Unlike trends in casino and sports betting, the global market consistently maintained a higher engagement level than the US, with 13% more activity days on average per active customer throughout the period.
The global average began at 8.71 days in March 2024 and rose slightly to 9.03 days by March 2025, maintaining a relatively stable trend.
In contrast, the US started at 7.02 days, picked to 8.08 days in March 2025, with a notable low point of 6.82 days in February 2025.

A graph showing the average number of activity days per active playerAI-generated content may be incorrect.

Definition of Average Activity Days: The average number of activity days is the total number of activity days divided by the number of bettors who have at least one activity day.

Category: Average Active Retention Rate

Key finding: Although retention rates remained relatively close, the global market consistently outperformed the US

While retention rates between the US and global markets remained close throughout the period, the global rate consistently outperformed the US in most months.
The global average began at 72% in March 2024 and ended at 73% in March 2025, showing stable performance.

Over the period, US average was 65% compared to the global average of 70%.

A graph showing the average customer retention rateAI-generated content may be incorrect.

Definition of Active Retention Rate: The percentage of bettors who were active in the preceding month and remained active in the current month.

The post Optimove US Gaming Pulse Report – March 2025 appeared first on European Gaming Industry News.

Financial reports

Sportradar Outlines Growth Strategy and Financial Outlook at Investor Day

Published

3 weeks ago

April 1, 2025

Peter Tolan

sportradar-outlines-growth-strategy-and-financial-outlook-at-investor-day

Reading Time: 8 minutes

Provides financial targets including expectation to grow revenue at a 15% CAGR through 2027, while expanding Adjusted EBITDA margin and Free cash flow conversion by 700 basis points

Sportradar Group AG (NASDAQ: SRAD) (“Sportradar” or the “Company”), the leading global sports technology company, will today host an Investor Day to present the Company’s growth strategy and financial outlook.

Chief Executive Officer Carsten Koerl, Chief Financial Officer Craig Felenstein, and other members of the Sportradar leadership team will provide an in-depth look into the Company’s priorities and growth opportunities. The event will also feature a fire-side chat with Adam Silver, NBA Commissioner and Gary Bettman, NHL Commissioner, as well as presentations from Jason Robins, Co-Founder and CEO of DraftKings and George Daskalakis, Co-Founder and CEO of Kaizen Gaming, owner of the Betano sportsbook brand.

Speakers will highlight Sportradar’s competitive advantages and the key elements of its growth strategy, which will enable it to continue driving significant value for partners, clients and shareholders, including:

At an inflection point for multi-year value creation. With industry leading scale, unmatched competitive advantages, and major sports rights secured for the long-term, the Company is at an inflection point to drive sustainable revenue growth while significantly expanding margins and cash generation.
Mission-critical leadership. The Company has an unrivaled position at the center of the sports ecosystem serving over 2,100 clients and partners worldwide. Its unmatched depth, breadth and scale in content rich data, diverse product portfolio and expansive distribution network create high barriers to entry.
Large and growing core sports betting opportunity. With a global addressable sports betting market expected to grow at a double-digit CAGR over the next four years, the Company is benefitting from strong market tailwinds and the convergence of the sports, betting and media industries.
A track record of product innovation to drive take rate. The Company is well-positioned to outpace industry growth and capture a growing share of in-play betting thanks to a market-leading product portfolio designed to deeply engage sports fans, combined with a commercial strategy focused on addressing clients’ evolving needs.
Opportunities from adjacent markets. The Company will continue to look at opportunities in adjacent markets, including leveraging its existing 360-degree marketing services capabilities in the adjacent online casino market, opening up a potential $2 billion serviceable addressable market (SAM).
Leverage technology and AI to drive efficiency and innovation. A robust tech stack and deep AI capabilities enable the Company to improve efficiencies, accelerate innovation and provide an opportunity to lower growth barriers for partners and clients in the sports ecosystem.

Sportradar expects to deliver exceptional financial performance over the next three years translating to the following 2027 targets:

Revenue of at least €1.7 billion, representing a 15% CAGR.
Adjusted EBITDA¹ of at least €455 million, representing a 27% CAGR.
Adjusted EBITDA¹ margin expansion of 700 basis points.
Free cash flow¹ of approximately €275 million, increasing free cash flow conversion¹ to at least 60% by 2027.

_{¹Non-IFRS measure; see the section below captioned “Non-IFRS Financial Measures” for more details.}

Carsten Koerl, Sportradar Chief Executive Officer, said: “We look forward to sharing our vision and strategy for driving sustainable, long-term growth at our Investor Day. As the market leader in sports technology, Sportradar is uniquely positioned at the center of the sports ecosystem. With our leading scale, unparalleled global distribution network and history of innovation we are confident in our ability to continue our strong momentum and deliver tremendous value for our clients, partners and shareholders.”

The full agenda and a live stream of the presentations, beginning at 9 am EST, can be found on the Sportradar Investor Relations website and dedicated Investor Day website. A replay will be available after the event concludes.

Non-IFRS Financial Measures

We have provided in this press release financial information that has not been prepared in accordance with IFRS, including Adjusted EBITDA, Adjusted EBITDA margin, Free cash flow, and Free cash flow conversion. We use these non-IFRS financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to IFRS measures, in evaluating our ongoing operational performance. We believe that the use of these non-IFRS financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-IFRS financial measures to investors.

Non-IFRS financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with IFRS.

“Adjusted EBITDA” represents earnings for the period from continuing operations adjusted for finance income and finance costs, income tax expense or benefit, depreciation and amortization (excluding amortization of capitalized sport rights licenses), foreign currency gains or losses, and other items that are non-recurring or not related to the Company’s revenue-generating operations, including share-based compensation, impairment charges or income, management restructuring costs, non-routine litigation costs, losses related to equity-accounted investee (SportTech AG), and professional fees for the Sarbanes-Oxley Act of 2002 and enterprise resource planning implementations.

License fees relating to sport rights are a key component of how we generate revenue and one of our main operating expenses. Only licenses that meet the recognition criteria of IAS 38 are capitalized. The primary distinction for whether a license is capitalized or not capitalized is the contracted length of the applicable license. Therefore, the type of license we enter into can have a significant impact on our results of operations depending on whether we are able to capitalize the relevant license. As such, our presentation of Adjusted EBITDA reflects the full costs of our sport right’s licenses. Management believes that, by including amortization of sport rights in its calculation of Adjusted EBITDA, the result is a financial metric that is both more meaningful and comparable for management and our investors while also being more indicative of our ongoing operating performance.

We present Adjusted EBITDA because management believes that some items excluded are non-recurring in nature and this information is relevant in evaluating the results relative to other entities that operate in the same industry. Management believes Adjusted EBITDA is useful to investors for evaluating Sportradar’s operating performance against competitors, which commonly disclose similar performance measures. However, Sportradar’s calculation of Adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Adjusted EBITDA is not intended to be a substitute for any IFRS financial measure.

Items excluded from Adjusted EBITDA include significant components in understanding and assessing financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as an alternative to, or a substitute for, profit for the period, revenue or other financial statement data presented in our consolidated financial statements as indicators of financial performance. We compensate for these limitations by relying primarily on our IFRS results and using Adjusted EBITDA only as a supplemental measure.

“Adjusted EBITDA margin” is the ratio of Adjusted EBITDA to revenue.

The Company is unable to provide a reconciliation of Adjusted EBITDA to profit (loss) for the period or Adjusted EBITDA margin to profit (loss) for the period as a percentage of revenue (in each case the most directly comparable IFRS financial measure), on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, foreign exchange gains and losses. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.

We consider Free cash flow and Free cash flow conversion to be liquidity measures that provide useful information to management and investors about the amount of cash generated by the business after the purchase of property and equipment, the purchase of intangible assets and payment of lease liabilities, which can then be used, among other things, to invest in our business and make strategic acquisitions, as well as our ability to convert our earnings to cash. A limitation of the utility of Free cash flow and Free cash flow conversion as measures of liquidity is that they do not represent the total increase or decrease in our cash balance for the year.

“Free cash flow” represents net cash from operating activities adjusted for payments for lease liabilities, acquisition of property and equipment, and acquisition of intangible assets.
“Free cash flow conversion” represents Free cash flow as a percentage of Adjusted EBITDA.

The Company is unable to provide a reconciliation of Free cash flow to net cash from operating activities or Free cash flow conversion to net cash from operating activities as a percentage of profit for the period from continuing operations (in each case the most directly comparable IFRS financial measure), on a forward-looking basis without unreasonable effort because items that impact this IFRS financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, changes in working capital, the timing of customer payments, the timing and amount of tax payments, and other non-recurring or unusual items. Such information may have a significant, and potentially unpredictable, impact on the Company’s future financial results.

Safe Harbor for Forward-Looking Statements

Certain statements in this presentation may constitute “forward-looking” statements and information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 that relate to our current expectations and views of future events, including, without limitation, statements regarding future financial or operating performance, planned activities and objectives, anticipated growth resulting therefrom, market opportunities, strategies and other expectations, and our guidance and outlook, including targets for 2027 performance. In some cases, these forward-looking statements can be identified by words or phrases such as “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “seek,” “believe,” “estimate,” “predict,” “potential,” “projects”, “continue,” “contemplate,” “confident,” “possible” or similar words. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the following: economy downturns and political and market conditions beyond our control, including the impact of the Russia/Ukraine and other military conflicts such as acts or war or terrorism and foreign exchange rate fluctuations; pandemics could have an adverse effect on our business; dependence on our strategic relationships with our sports league partners; effect of social responsibility concerns and public opinion on responsible gaming requirements on our reputation; potential adverse changes in public and consumer tastes and preferences and industry trends; potential changes in competitive landscape, including new market entrants or disintermediation; potential inability to anticipate and adopt new technology, including efficiencies achieved through the use of artificial intelligence; potential errors, failures or bugs in our products; inability to protect our systems and data from continually evolving cybersecurity risks, security breaches or other technological risks; potential interruptions and failures in our systems or infrastructure; difficulties in our ability to evaluate, complete and integrate acquisitions (including the IMG ARENA acquisition) successfully; our ability to comply with governmental laws, rules, regulations, and other legal obligations, related to data privacy, protection and security; ability to comply with the variety of unsettled and developing U.S. and foreign laws on sports betting; dependence on jurisdictions with uncertain regulatory frameworks for our revenue; changes in the legal and regulatory status of real money gambling and betting legislation on us and our customers; our inability to maintain or obtain regulatory compliance in the jurisdictions in which we conduct our business; our ability to obtain, maintain, protect, enforce and defend our intellectual property rights; our ability to obtain and maintain sufficient data rights from major sports leagues, including exclusive rights; any material weaknesses identified in our internal control over financial reporting; inability to secure additional financing in a timely manner, or at all, to meet our long-term future capital needs; and other risk factors set forth in the section titled “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024, and other documents filed with or furnished to the SEC, accessible on the SEC’s website at sec.gov and on our website at investors.sportradar.com. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. One should not put undue reliance on any forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

The post Sportradar Outlines Growth Strategy and Financial Outlook at Investor Day appeared first on European Gaming Industry News.

Financial reports

ZEAL sets new records for new customers, revenue and EBITDA in its anniversary year 2024

Published

3 weeks ago

March 26, 2025

Peter Tolan

zeal-sets-new-records-for-new-customers,-revenue-and-ebitda-in-its-anniversary-year-2024

Reading Time: 4 minutes

Milestone of one million new customers per year reached for the first time
Group revenue grows by 62% to € 188.2 million
EBITDA almost doubled to € 61.9 million
Expectations for new charity lottery Traumhausverlosung (English: Dream House Raffle) exceeded
Squeeze-out of LOTTO24 AG successfully completed

ZEAL Network SE, the online market leader for lotteries in Germany, published its 2024 annual report today, reporting record figures for several key performance indicators. Group revenue increased by 62% to € 188.2 million (2023: € 116.1 million). At € 61.9 million, EBITDA was almost twice as high as in the previous year (2023: € 32.9 million).

“In our anniversary year 2024, we achieved a record triple in our business development in terms of new customers, revenue and EBITDA. In addition to the biggest growth in our core business since the company was founded, we have established ourselves as a pioneer in the German market with the launch of our Traumhausverlosung (English: Dream House Raffle),” comments Helmut Becker, CEO of ZEAL. “For the third year in a row, our subsidiary LOTTO24 AG has produced more record winners than any other provider in Germany. Our success is also good news for the good cause – with € 382 million in 2024, ZEAL has generated the highest sum in the company’s history for social and community projects.”

“Thanks to targeted marketing measures and very successful new customer acquisition in an exceptionally good jackpot year, we reached the milestones of one million new customers and one billion in lottery billings for the first time. We are proud to have achieved the highest revenue in our company’s history. At the same time, we were able to demonstrate the enormous profitability and scalability of our business model with a record EBITDA,” says Sebastian Bielski, CFO of ZEAL.

Revenue in the German lottery business grows by 59 %

ZEAL’s outstanding revenue performance is largely due to strong revenue growth in lotteries. Due to a very positive jackpot situation and successful marketing measures, the average number of active customers (1,436 thousand) rose by 25%. At the same time, billings from lotteries exceeded one billion euros for the first time at € 1,080.4 million (2023: € 843.3 million). The gross margin rose by 3.1 percentage points to 15.6% due to a price increase in ticket fees in June 2024 and a change in the product mix. The parallel increase in billings and gross margin led to significant revenue growth in the lottery business of 59% to € 168.3 million (2023: € 105.7 million). ZEAL also improved its online market share by 2.4 percentage points from 41.4% to 43.8%.

Earnings almost doubled thanks to marketing efficiency and scaling effects

ZEAL achieved a record 1,259 thousand new customers in 2024, more than double the previous year’s figure (2023: 597 thousand). Thanks to more efficient marketing measures, the successful acquisition of new customers led to a year-on-year decrease in acquisition costs per registered new customer (cost per lead, CPL) of 23% to € 35.16 (2023: € 45.52).

Other operating expenses increased by 58% to € 98.0 million (2023: € 62.0 million). This was largely due to strategic marketing expenses, which rose by 58% to € 56.9 million (2023: € 36.0 million), but at a significantly lower rate than the more than doubling of new customer growth. The growth and diversification of the business led to a 54% increase in the direct costs of business operations to € 18.5 million (2023: € 12.0 million). The increase in indirect operating costs to € 22.6 million (2023: € 14.0 million) was due to external consulting services and a provision of € 2.2 million connected to the squeeze-out of LOTTO24 AG.

Despite the higher costs, ZEAL was able to increase EBITDA disproportionately by 88% to € 61.9 million (2023: € 32.9 million) thanks to efficiency gains and scaling effects of the business model in relation to the strong revenue growth. At € 53.7 million, EBIT more than doubled compared to the previous year’s figure (2023: € 23.6 million).

The Executive Board and Supervisory Board will propose to the Annual General Meeting on May 21, 2025 the payment of a dividend for the 2024 financial year of € 2.40 per share (2023: € 1.10), consisting of an ordinary dividend of € 1.30 and a special dividend of € 1.10. This means a total distribution to shareholders of around € 50.6 million (2023: € 23.8 million).

Dream House Raffle another highlight of the financial year

In 2024, ZEAL has launched the first charity lottery in Germany to raffle off an existing property. The first raffle of a dream house on the Baltic Sea exceeded all expectations for this product innovation and led to around 14 million tickets being sold between August and October. ZEAL was able to generate around € 1.8 million for charitable causes with the first house raffle alone, including more than € 1.2 million for the main charity partner DKMS.

Squeeze-out of LOTTO24 AG completed

With the acquisition of the remaining shares of LOTTO24 AG in 2024, ZEAL reached an important milestone in the optimization of the Group structure. The squeeze-out was completed on October 8, 2024 and the profit and loss transfer and domination agreement between ZEAL Network SE and LOTTO24 AG was entered in the commercial register on 21 November 2024.

Outlook for 2025

For the 2025 financial year, ZEAL plans to further expand its market leadership in Germany as an online provider of lottery products and to further scale its games offering and the Traumhausverlosung (English: Dream House Raffle). Depending on the general conditions and assuming an average jackpot development, the company expects revenue in the 2025 financial year to be in the range of € 195 million to € 205 million and EBITDA in the range of € 55 million to € 60 million.

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