Canada
Gambling.com Group Reports Second Quarter 2022 Financial Results
Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a multi-award-winning performance marketing company and a leading provider of digital marketing services active in the global online gambling industry, today announced its operating and financial results for the second quarter ended June 30, 2022.
“We continued to execute on our strategy of rapidly growing our business in North America in the second quarter as the team delivered company-wide revenue growth of over 50% and North American revenue growth over 300%,” said Charles Gillespie, Chief Executive Officer and Co-founder of Gambling.com Group. “The strength of our business model was also on display, as we continued to deliver strong Adjusted EBITDA and Free Cash Flow despite the second quarter being the seasonally weakest and while investing in the organization to drive future growth. Our view remains that Gambling.com Group offers the best value proposition for online gambling operators’ investments in customer acquisition and we look forward to the second half of the year as we enter the heart of the North American fall and winter sports calendars.”
Second Quarter 2022 vs. Second Quarter 2021 Financial Highlights
(in thousands, USD, except per share data, unaudited)
|
|
Three Months Ended June 30, |
|
CHANGE |
||||||||
|
|
2022 |
|
2021 |
|
$ |
|
% |
||||
|
Revenue |
15,924 |
|
|
10,392 |
|
|
5,532 |
|
|
53 |
% |
|
Net income for the period attributable to the shareholders |
56 |
|
|
2,445 |
|
|
(2,389 |
) |
|
(98 |
)% |
|
Net income per share attributable to shareholders, diluted |
0.00 |
|
|
0.08 |
|
|
(0.08 |
) |
|
(100 |
)% |
|
Adjusted net income for the period attributable to shareholders |
3,065 |
|
|
2,445 |
|
|
620 |
|
|
25 |
% |
|
Adjusted net income per share attributable to shareholders, diluted |
0.09 |
|
|
0.08 |
|
|
0.01 |
|
|
9 |
% |
|
Adjusted EBITDA |
3,617 |
|
|
5,518 |
|
|
(1,901 |
) |
|
(34 |
)% |
|
Adjusted EBITDA Margin |
23 |
% |
|
53 |
% |
|
|
|
(30 |
)% |
|
|
Cash flow from operations |
3,460 |
|
|
4,738 |
|
|
(1,278 |
) |
|
(27 |
)% |
|
Free Cash Flow |
2,914 |
|
|
3,122 |
|
|
(208 |
) |
|
(7 |
)% |
Second Quarter 2022 Business Highlights
- North American revenue grew 342% to $6.2 million
- Delivered more than 57,000 new depositing customers
- Successful new market launch in Ontario
- Added Michael Quartieri to the Board of Directors, effective as of June 30, 2022
- Inclusion of GAMB shares in the Russell 3000 index and various sub-indexes
- Contribution from BonusFinder.com is ahead of plan
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “We delivered revenue and Adjusted EBITDA ahead of the street consensus and generated strong Free Cash Flow in the quarter. Revenue growth continued to be led by growth in North America in line with our strategic objectives, but we also saw strong trading in our more mature markets in the UK and Ireland despite the weakening of the GBP and EUR against the US dollar. Integration of our acquisitions from Q1 is tracking according to plan. The Company remains well capitalized and in a strong position to meet the financial outlook for the year and to continue to grow profitably beyond.”
2022 Outlook
For the fiscal year 2022, based on currently available information, the Company reiterates its fiscal 2022 guidance and estimates:
- Total revenue will be in the range of $71 million and $76 million; and
- Adjusted EBITDA will be in the range $22 million and $27 million.
Conference Call Details
|
Date/Time: |
Monday, August 29, 2022, at 4:30 pm EDT |
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|
Webcast: |
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|
U.S. Toll-Free Dial In: |
877-407-0890 |
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|
International Dial In: |
+1-201-389-0918 |
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To access, please dial in approximately 10 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.
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.
About Gambling.com Group Limited
Gambling.com Group Limited (Nasdaq: GAMB) is a multi-award-winning performance marketing company and a leading provider of digital marketing services active in the online gambling industry. Founded in 2006, the Group operates from offices in the United States, Ireland and Malta. Through its proprietary technology platform, the Group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com and RotoWire.com. As of July 31, 2022, the 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 release contains certain non-IFRS financial measures, such as Adjusted Net Income, 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 2022 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, 2021 with the US Securities and Exchange Commission (the “SEC”) on March 25, 2022, 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.
|
|
|||||||||||
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited) |
|||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
15,924 |
|
|
10,392 |
|
|
35,509 |
|
|
21,909 |
|
|
Cost of sales |
(495 |
) |
|
— |
|
|
(1,724 |
) |
|
— |
|
|
Gross profit |
15,429 |
|
|
10,392 |
|
|
33,785 |
|
|
21,909 |
|
|
Sales and marketing expenses |
(8,454 |
) |
|
(3,144 |
) |
|
(15,816 |
) |
|
(5,848 |
) |
|
Technology expenses |
(1,499 |
) |
|
(944 |
) |
|
(2,862 |
) |
|
(1,634 |
) |
|
General and administrative expenses |
(4,804 |
) |
|
(3,387 |
) |
|
(9,632 |
) |
|
(6,159 |
) |
|
Fair value movement on contingent consideration |
(2,849 |
) |
|
— |
|
|
(2,849 |
) |
|
— |
|
|
Movements in credit losses allowance and write-offs |
(72 |
) |
|
240 |
|
|
(597 |
) |
|
100 |
|
|
Operating profit (loss) |
(2,249 |
) |
|
3,157 |
|
|
2,029 |
|
|
8,368 |
|
|
Finance income |
3,491 |
|
|
394 |
|
|
4,319 |
|
|
552 |
|
|
Finance expense |
(1,056 |
) |
|
(524 |
) |
|
(1,307 |
) |
|
(761 |
) |
|
Income before tax |
186 |
|
|
3,027 |
|
|
5,041 |
|
|
8,159 |
|
|
Income tax charge |
(130 |
) |
|
(582 |
) |
|
(499 |
) |
|
(1,248 |
) |
|
Net income for the period attributable to the shareholders |
56 |
|
|
2,445 |
|
|
4,542 |
|
|
6,911 |
|
|
Other comprehensive (loss) income |
|
|
|
|
|
|
|
||||
|
Exchange differences on translating foreign currencies |
(6,559 |
) |
|
490 |
|
|
(7,928 |
) |
|
(1,202 |
) |
|
Total comprehensive (loss) income for the period attributable to the shareholders |
(6,503 |
) |
|
2,935 |
|
|
(3,386 |
) |
|
5,709 |
|
|
Net income per share attributable to shareholders, basic |
0.00 |
|
|
0.09 |
|
|
0.13 |
|
|
0.24 |
|
|
Net income per share attributable to shareholders, diluted |
0.00 |
|
|
0.08 |
|
|
0.13 |
|
|
0.22 |
|
|
Condensed Consolidated Statements of Financial Position (Unaudited) |
|||||
|
|
|||||
|
|
JUNE 30, 2022 |
|
DECEMBER 31, 2021 |
||
|
ASSETS |
|
|
|
||
|
Non-current assets |
|
|
|
||
|
Property and equipment |
644 |
|
|
569 |
|
|
Intangible assets |
83,076 |
|
|
25,419 |
|
|
Right-of-use assets |
1,896 |
|
|
1,465 |
|
|
Other non-current assets |
40 |
|
|
— |
|
|
Deferred tax asset |
6,104 |
|
|
7,028 |
|
|
Total non-current assets |
91,760 |
|
|
34,481 |
|
|
Current assets |
|
|
|
||
|
Trade and other receivables |
8,956 |
|
|
5,497 |
|
|
Cash and cash equivalents |
31,102 |
|
|
51,047 |
|
|
Total current assets |
40,058 |
|
|
56,544 |
|
|
Total assets |
131,818 |
|
|
91,025 |
|
|
EQUITY AND LIABILITIES |
|
|
|
||
|
Equity |
|
|
|
||
|
Share capital |
— |
|
|
— |
|
|
Capital reserve |
63,711 |
|
|
55,953 |
|
|
Share options and warrants reserve |
2,901 |
|
|
2,442 |
|
|
Foreign exchange translation reserve |
(10,210 |
) |
|
(2,282 |
) |
|
Retained earnings |
28,550 |
|
|
23,796 |
|
|
Total equity |
84,952 |
|
|
79,909 |
|
|
Non-current liabilities |
|
|
|
||
|
Deferred consideration |
4,664 |
|
|
— |
|
|
Contingent consideration |
9,540 |
|
|
— |
|
|
Lease liability |
1,702 |
|
|
1,286 |
|
|
Deferred tax liability |
3,584 |
|
|
— |
|
|
Total non-current liabilities |
19,490 |
|
|
1,286 |
|
|
Current liabilities |
|
|
|
||
|
Trade and other payables |
5,343 |
|
|
3,291 |
|
|
Deferred consideration |
2,745 |
|
|
— |
|
|
Contingent consideration |
12,218 |
|
|
— |
|
|
Other liability |
165 |
|
|
— |
|
|
Borrowings |
6,107 |
|
|
5,944 |
|
|
Lease liability |
420 |
|
|
393 |
|
|
Income tax payable |
378 |
|
|
202 |
|
|
Total current liabilities |
27,376 |
|
|
9,830 |
|
|
Total liabilities |
46,866 |
|
|
11,116 |
|
|
Total equity and liabilities |
131,818 |
|
|
91,025 |
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
||||
|
Cash flow from operating activities |
|
|
|
|
|
|
|
||||
|
Income before tax |
186 |
|
|
3,027 |
|
|
5,041 |
|
|
8,159 |
|
|
Finance expenses (income), net |
(2,435 |
) |
|
130 |
|
|
(3,012 |
) |
|
209 |
|
|
Adjustments for non-cash items: |
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
1,952 |
|
|
634 |
|
|
3,778 |
|
|
1,216 |
|
|
Movements in credit loss allowance and write-offs |
71 |
|
|
(240 |
) |
|
597 |
|
|
(100 |
) |
|
Fair value movement on contingent consideration |
2,849 |
|
|
— |
|
|
2,849 |
|
|
— |
|
|
Share option charge |
885 |
|
|
245 |
|
|
1,609 |
|
|
1,063 |
|
|
Cash flows from operating activities before changes in working capital |
3,508 |
|
|
3,796 |
|
|
10,862 |
|
|
10,547 |
|
|
Changes in working capital |
|
|
|
|
|
|
|
||||
|
Trade and other receivables |
2,549 |
|
|
14 |
|
|
(2,639 |
) |
|
(1,243 |
) |
|
Trade and other payables |
(1,014 |
) |
|
1,464 |
|
|
304 |
|
|
2,710 |
|
|
Warrants repurchased |
(800 |
) |
|
— |
|
|
(800 |
) |
|
— |
|
|
Income tax paid |
(783 |
) |
|
(536 |
) |
|
(783 |
) |
|
(536 |
) |
|
Cash flows generated by operating activities |
3,460 |
|
|
4,738 |
|
|
6,944 |
|
|
11,478 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||
|
Acquisition of property and equipment |
(99 |
) |
|
(188 |
) |
|
(242 |
) |
|
(218 |
) |
|
Acquisition of intangible assets |
(447 |
) |
|
(1,428 |
) |
|
(2,516 |
) |
|
(1,741 |
) |
|
Acquisition of subsidiaries, net of cash acquired |
(4,114 |
) |
|
— |
|
|
(23,409 |
) |
|
— |
|
|
Cash flows used in investing activities |
(4,660 |
) |
|
(1,616 |
) |
|
(26,167 |
) |
|
(1,959 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
||||
|
Interest paid |
— |
|
|
— |
|
|
(120 |
) |
|
(121 |
) |
|
Principal paid on lease liability |
(79 |
) |
|
(49 |
) |
|
(165 |
) |
|
(95 |
) |
|
Interest paid on lease liability |
(45 |
) |
|
(47 |
) |
|
(95 |
) |
|
(96 |
) |
|
Cash flows used in financing activities |
(124 |
) |
|
(96 |
) |
|
(380 |
) |
|
(312 |
) |
|
Net movement in cash and cash equivalents |
(1,324 |
) |
|
3,026 |
|
|
(19,603 |
) |
|
9,207 |
|
|
Cash and cash equivalents at the beginning of the period |
33,069 |
|
|
14,035 |
|
|
51,047 |
|
|
8,225 |
|
|
Net foreign exchange differences on cash and cash equivalents |
(643 |
) |
|
107 |
|
|
(342 |
) |
|
(264 |
) |
|
Cash and cash equivalents at the end of the period |
31,102 |
|
|
17,168 |
|
|
31,102 |
|
|
17,168 |
|
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Unaudited Interim Condensed Consolidated Statement of Income for the period specified (USD in thousands, except share amounts, unaudited):
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
Net income for the period attributable to the shareholders |
56 |
|
2,445 |
|
4,542 |
|
6,911 |
|
Weighted-average number of ordinary shares, basic |
35,443,258 |
|
28,556,422 |
|
35,176,469 |
|
28,556,422 |
|
Net income per share attributable to shareholders, basic |
0.00 |
|
0.09 |
|
0.13 |
|
0.24 |
|
|
|
|
|
|
|
|
|
|
Net income for the period attributable to the shareholders |
56 |
|
2,445 |
|
4,542 |
|
6,911 |
|
Weighted-average number of ordinary shares, diluted |
36,057,597 |
|
31,401,166 |
|
36,131,524 |
|
31,401,166 |
|
Net income per share attributable to shareholders, diluted |
0.00 |
|
0.08 |
|
0.13 |
|
0.22 |
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 condensed 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. 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 operating performance from period to period as they removes the effect of the fair value gain or loss related to the contingent consideration which is not directly associated with our core operations. We expect to incur gains or losses related to the contingent consideration until April 2024. See Note 4 of the Unaudited Interim Condensed Consolidated Financial Statements for the period ended June 30, 2022 for a complete discussion of the contingent consideration.
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 Condensed Consolidated Statements of Comprehensive Income and for the period specified:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
(in thousands USD, except for share and per share data, unaudited) |
|
(in thousands USD, except for share and per share data, unaudited) |
||||
|
Net income for the period attributable to the shareholders |
56 |
|
2,445 |
|
4,542 |
|
6,911 |
|
Fair value movement on contingent consideration |
2,849 |
|
— |
|
2,849 |
|
— |
|
Unwinding of deferred consideration |
160 |
|
— |
|
160 |
|
— |
|
Adjusted net income for the period attributable to shareholders |
3,065 |
|
2,445 |
|
7,551 |
|
6,911 |
|
Weighted-average number of ordinary shares, basic |
35,443,258 |
|
28,556,422 |
|
35,176,469 |
|
28,556,422 |
|
Net income per share attributable to shareholders, basic |
0.00 |
|
0.09 |
|
0.13 |
|
0.24 |
|
Adjusted net income per share attributable to shareholders, basic |
0.09 |
|
0.09 |
|
0.21 |
|
0.24 |
|
Adjusted net income for the period attributable to shareholders |
3,065 |
|
2,445 |
|
7,551 |
|
6,911 |
|
Weighted-average number of ordinary shares, diluted |
36,057,597 |
|
31,401,166 |
|
36,131,524 |
|
31,401,166 |
|
Net income per share attributable to shareholders, diluted |
0.00 |
|
0.08 |
|
0.13 |
|
0.22 |
|
Adjusted net income per share attributable to shareholders, diluted |
0.09 |
|
0.08 |
|
0.21 |
|
0.22 |
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA is a non-IFRS financial measure defined as earnings excluding net finance costs, income tax charge, depreciation, and amortization, effect of non-recurring items, significant non-cash items, share-based payment expense and other items that our board of directors believes do not reflect the underlying performance of the business. 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 as a measure of comparative operating performance from period to period as they 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 Adjusted EBITDA from net income for the period attributable to the equity holders as presented in the Condensed Consolidated Statements of Comprehensive Income and for the period specified:
|
|
Three Months Ended June 30, |
|
CHANGE |
|
Six Months Ended June 30, |
|
CHANGE |
||||||||||||||
|
|
2022 |
|
2021 |
|
$ |
|
% |
|
2022 |
|
2021 |
|
$ |
|
% |
||||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
||||||||||
|
Net income for the period attributable to the shareholders |
56 |
|
|
2,445 |
|
(2,389 |
) |
|
(98 |
)% |
|
4,542 |
|
|
6,911 |
|
(2,369 |
) |
|
(34 |
)% |
|
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Net finance costs (income) (1) |
(2,435 |
) |
|
130 |
|
(2,565 |
) |
|
n/m |
|
|
(3,012 |
) |
|
209 |
|
(3,221 |
) |
|
n/m |
|
|
Income tax charge |
130 |
|
|
582 |
|
(452 |
) |
|
(78 |
)% |
|
499 |
|
|
1,248 |
|
(749 |
) |
|
(60 |
)% |
|
Depreciation expense |
44 |
|
|
47 |
|
(3 |
) |
|
(6 |
)% |
|
87 |
|
|
82 |
|
5 |
|
|
6 |
% |
|
Amortization expense |
1,908 |
|
|
587 |
|
1,321 |
|
|
n/m |
|
|
3,691 |
|
|
1,134 |
|
2,557 |
|
|
n/m |
|
|
Share-based payments |
885 |
|
|
245 |
|
640 |
|
|
n/m |
|
|
1,609 |
|
|
1,063 |
|
546 |
|
|
51 |
% |
|
Fair value movement on contingent consideration |
2,849 |
|
|
— |
|
2,849 |
|
|
n/m |
|
|
2,849 |
|
|
— |
|
2,849 |
|
|
n/m |
|
|
Accounting and legal fees related to offering |
— |
|
|
392 |
|
(392 |
) |
|
n/m |
|
|
— |
|
|
898 |
|
(898 |
) |
|
n/m |
|
|
Bonuses related to the offering |
— |
|
|
1,090 |
|
(1,090 |
) |
|
n/m |
|
|
— |
|
|
1,090 |
|
(1,090 |
) |
|
n/m |
|
|
Acquisition related costs (2) |
180 |
|
|
— |
|
180 |
|
|
n/m |
|
|
454 |
|
|
— |
|
454 |
|
|
n/m |
|
|
Adjusted EBITDA |
3,617 |
|
|
5,518 |
|
(1,901 |
) |
|
(34 |
)% |
|
10,719 |
|
|
12,635 |
|
(1,916 |
) |
|
(15 |
)% |
|
________________ |
|
|
(1) |
Net finance (income) costs is comprised of finance income, and finance expense including unwinding of deferred consideration and foreign exchange gains (losses). |
|
(2) |
The acquisition costs are related to the business combinations of the Group. |
|
n/m = not meaningful |
|
Below is the Adjusted EBITDA Margin calculation for the period specified:
|
|
Three Months Ended June 30, |
|
CHANGE |
|
Six Months Ended June 30, |
|
CHANGE |
||||||||||||||||
|
|
2022 |
|
2021 |
|
$ |
|
% |
|
2022 |
|
2021 |
|
$ |
|
% |
||||||||
|
|
(in thousands, USD, unaudited) |
|
|
|
|
|
(in thousands, USD, unaudited) |
|
|
|
|
||||||||||||
|
Revenue |
15,924 |
|
|
10,392 |
|
|
5,532 |
|
|
53 |
% |
|
35,509 |
|
|
21,909 |
|
|
13,600 |
|
|
62 |
% |
|
Adjusted EBITDA |
3,617 |
|
|
5,518 |
|
|
(1,901 |
) |
|
(34 |
)% |
|
10,719 |
|
|
12,635 |
|
|
(1,916 |
) |
|
(15 |
)% |
|
Adjusted EBITDA Margin |
23 |
% |
|
53 |
% |
|
|
|
(30 |
)% |
|
30 |
% |
|
58 |
% |
|
|
|
(27 |
)% |
||
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 financial measure defined as cash flow from operating activities less capital expenditures, or CAPEX.
We believe Free Cash Flow is useful to our management 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 due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business 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 Unaudited Interim Condensed Consolidated Statement of Cash Flows for the period specified:
|
|
Three Months Ended June 30, |
|
CHANGE |
|
Six Months Ended June 30, |
|
CHANGE |
||||||||||||||||
|
|
2022 |
|
2021 |
|
$ |
|
% |
|
2022 |
|
2021 |
|
$ |
|
% |
||||||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
||||||||||||
|
Cash flows generated by operating activities |
3,460 |
|
|
4,738 |
|
|
(1,278 |
) |
|
(27 |
)% |
|
6,944 |
|
|
11,478 |
|
|
(4,534 |
) |
|
(40 |
)% |
|
Capital Expenditures (1) |
(546 |
) |
|
(1,616 |
) |
|
1,070 |
|
|
66 |
% |
|
(2,758 |
) |
|
(1,959 |
) |
|
(799 |
) |
|
(41 |
)% |
|
Free Cash Flow |
2,914 |
|
|
3,122 |
|
|
(208 |
) |
|
(7 |
)% |
|
4,186 |
|
|
9,519 |
|
|
(5,333 |
) |
|
(56 |
)% |
|
(1) |
Capital expenditures are defined as the acquisition of property and equipment and the acquisition of intangible assets. |
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The Canadian iGaming market has evolved from an emerging opportunity into one of the most competitive and innovative digital gaming arenas worldwide. Ontario’s regulated framework has paved the way for rapid expansion, attracting established international operators alongside ambitious newcomers that are carving out share through brand differentiation and data-driven acquisition.
Methodology: How Growth Was Measured
To understand which casino brands are gaining momentum and why, the award-winning Mr. Gamble Casino Trends Meter—a proprietary performance index powered by Semrush, Ahrefs, in-house click tracking, market benchmarks, and predictive analytics—analyzed year-over-year (YoY) performance from January–June 2024 versus January–June 2025. The results point to a vibrant, fiercely competitive landscape where execution, trust, and experience are the real drivers of sustained growth.
Brands Showing Standout Growth in 2025
Strong outperformance highlights different paths to scale
Wild Tokyo posted an extraordinary +134% YoY, showing how bold branding, a distinctive identity, and targeted acquisition can resonate with players seeking unique experiences. Clean yet edgy design, paired with robust SEO execution and engagement programs, helped the brand cut through a crowded market.
LuckyDays delivered +110% YoY by striking a balance between simplicity and substance. A minimalistic UX, a vast game library, and strong affiliate relationships have positioned it as a trusted destination for Canadian players.
BetVictor, a legacy operator with deep roots, recorded +107% YoY. Its evolution from traditional bookmaker to diversified iGaming powerhouse underscores how credibility and adaptability can translate into modern growth.
Agile mid-tier brands are also accelerating: SlotsMagic at +94% and Betibet at +88% demonstrate how focused SEO, analytics-led decision making, and smart promotional strategy can punch above weight.
Crypto-forward momentum and broader market depth
The joint rise of BetFury and SmokAce—both at +74%—signals growing acceptance of crypto and blockchain-based gaming among Canadian users, driven by transparency, fast payments, and a tech-forward ethos.
Meanwhile, Paripesa, Mond, and ComeOn maintained robust double-digit YoY growth, underscoring the market’s depth and diversity beyond a handful of headline names.
Market Maturity: Compliance, Trust, and UX Win
As more provinces explore regulated frameworks modeled on Ontario, competition is intensifying. The brands pulling ahead are those investing in compliance, transparency, and player satisfaction—prioritizing product quality and retention over short-term promotions.
“Players are becoming more selective, more informed, and more focused on trust,” says Paul Puolakka, CMO at Mr. Gamble. “We’re seeing a clear shift toward quality brands that prioritize experience, safety, and innovation—the ones achieving real, sustained growth.”
Puolakka adds: “Data doesn’t just tell us who’s growing—it shows us why. The operators succeeding in Canada are those that deeply understand their audience, use insights effectively, and build long-term value instead of chasing short-term hype.”
Trends Shaping the Next Phase of iGaming in Canada
- Branding + data-led acquisition let emerging brands challenge incumbents more effectively than ever.
- Crypto-friendly casinos are moving from niche to mainstream consideration for Canadian users.
- SEO, content strategy, and affiliate partnerships remain reliable, capital-efficient growth levers.
- Compliance, transparency, and UX are central to sustainable market share gains.
Looking Ahead
The fastest-growing casino brands capture more than impressive statistics—they reflect a market in transformation. With Wild Tokyo setting creative benchmarks and veterans like BetVictor and ComeOn proving that brand equity still matters, Canada’s iGaming sector is entering a phase defined by intelligent growth, regulatory maturity, and player empowerment.
As the industry continues to evolve, the Mr. Gamble Casino Trends Meter remains a useful compass for players, affiliates, and operators navigating this fast-changing landscape.
The post Canadian iGaming Growth Trends 2025: Data, Strategy, and the Brands Defining the Market appeared first on European Gaming Industry News.
Reading Time: 2 minutes
Ezugi, an innovative live dealer casino supplier known for pushing the boundaries of live gaming, retention, and distribution solutions, is proud to announce a new partnership with PokerStars, the world’s largest online poker site.
Through this partnership, PokerStars’ players in the UK and Ontario will gain access to Ezugi’s standout portfolio, including Revolution Roulette, Ultimate Roulette, Unlimited Blackjack and Lucky 7 online casino games.
PokerStars, launched in 2001, is one of the world’s leading online poker and casino brands and operates as part of Flutter Entertainment. It has grown to become the largest poker site globally, offering the widest selection of online games and hosting prestigious live tournaments.
Formed in 2012, Ezugi is a global live casino provider with a focus on meeting operator and player needs with best-of-breed localised content. The Ezugi games portfolio includes a wide range of live dealer games, many of which are unique. Ezugi became part of Evolution in 2018 and continues to build on its reputation for providing unique and innovative games and solutions for online casino and retail betting shop operators.
Gilad Ben-Ami, Chief Executive Officer at Ezugi, said: “PokerStars’ players already enjoy a wide range of live casino and online slot games from Evolution brands such as Evolution, NetEnt, Red Tiger and Big Time Gaming. Now Ezugi is delighted and honoured to add even more choice for PokerStars’ players with our own innovative games.”
Ben-Ami continued: “The release of Ezugi games to PokerStars clearly demonstrates the rich variety and innovative features of the Ezugi games portfolio. Ultimate Roulette is a unique multiplier Roulette that blends circus-themed fun and TV game show excitement; Revolution Roulette puts a unique spin on classic Roulette by adding special multiplier pockets to the wheel; Unlimited Blackjack allows an unlimited number of players to play at the table, while also featuring Auto-Split functionality and a choice of four side bets – Perfect Pairs, 21+3, Perfect 11 and Ten20; and Lucky 7 is a very popular game with its origins in the Indian subcontinent – a fast-paced, simple and exciting Hi-Lo card game.”
Ben-Ami concluded: “We are confident that PokerStars’ players will love playing these games and we look forward to adding more Ezugi titles for them in the future.”
The post Ezugi partners with PokerStars to further extend live casino game choice for players appeared first on European Gaming Industry News.
After A Review Of Canada’s Gambling Landscape, RoboCat Casino Was Awarded The “Best Online Casino In Canada 2025” Based On 8,000+ Games, Responsible Gambling and Fast Payouts
Vancouver, Sept. 24, 2025 (GLOBE NEWSWIRE) — 
RoboCat Casino, an award-winning online casino with presence on Europe, Australia, New Zealand, UK, USA and LATAM, was recently awarded the title of “Best Online Casino in Canada 2025” after a comprehensive review of the online gambling industry in the country, performed by experienced iGaming specialists.
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In addition, the Canadian online casino also offers over 8,000 real money games from the best providers in the world, putting the best online slots, blackjack, poker, baccarat, craps, crash, plinko, live dealer, lotto and bingo games at the disposal of online players and bettors in Canada.
“The mission of our team is to help players find the best sites for gambling online so they can enjoy an exciting, rewarding and safe online gaming experience” – “… and we found that RoboCat is on top of all the other online casinos in Canada, because it delivers more value in all the areas that matter for online players and bettors”.
A Comprehensive Review Focused on the Player
The team that performed the review and research revealed that they focused it on the player, hence they targeted the following areas:
- License
- Fairness
- Quality of Games
- Quality of Bonuses and Promotions
- Payment Methods and Banking Experience
- Online Security
- Mobile Experience
- Quality of Sportsbook
- KYC
- Limits for Deposits and Withdrawals
- Customer Support Service
The team used these key elements to develop the criteria for selecting, reviewing, and comparing the top online casinos in Canada, ultimately choosing RoboCat Casino as the best real money gambling platform for 2025.
The team explained that RoboCat was named ‘Best Online Casino in Canada 2025’ due to its outstanding performance across all evaluated criteria.
“RoboCat offers over 8,000 games from nearly 100 top-class providers, which is the largest library of real money games in Canada nowadays” – “offering such an outstanding number of high-quality games allows RoboCat to bring its customers a significantly better online gaming experience, especially for online slots players”.
“Regarding bonuses, RoboCat Casino is the most generous platform in Canada because it offers a big welcome bonus, plenty of weekly and weekend reload bonuses which reward players with free money and free spins, extra rewards of free spins, cashback, rakeback, amongst other benefits that other Canadian online casinos fail to deliver”.
The team shared their comments for all the evaluated criteria regarding RoboCat, offering a complete overview on why they elected this brand as the best platform for real money gambling in Canada:
- License: License issued by the Offshore Finance Authority of The State of Anjouan
- Fairness: Audited by independent third-party auditing firms
- Quality of Games: 8,000+ real money games from industry-leading providers such as NetEnt, Evolution, Microgaming, Habanero and Jumpman
- Quality of Bonuses and Promotions: 100% extra on first deposit + 200 Free Spins; reload bonuses, cashback, free bets, rakeback and free spins rewards. Featuring low wagering requirements
- Payment Methods and Banking Experience: Instant deposits, fast payouts, plenty of payment methods including credit cards, debit cards, trending digital wallet currencies, FundID and Interac
- Online Security: Uses military-grade encryption, has a dedicated online security team, secured servers, no history of data leaks or breaches
- Mobile Experience: Offers an HTML5-powered mobile website available on all browsers, runs on Android and iOS flawlessly
- Quality of Sportsbook: Offers over 35 sports and esports with high odds and exclusive bonuses such as free bets, deposit bonuses, reload bonuses and cashback
- KYC: Easy to fulfill KYC procedures, no requirement to complete KYC as a new user or to get first withdrawal approved
- Limits for Deposits and Withdrawals: Unlimited limit for deposits and withdrawals up to $10,000 per day. The casino can increase the limits for high rollers
- Customer Support Service: Available via live chat, email and phone. Fast answer time and professional customer support team
The team expressed their happiness in finding an online casino which can offer Canadian players and bettors the online betting and gambling experience they deserved: “RoboCat scores high in all the areas that matter, offering an outstanding, exciting, safe and fair experience”.
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RoboCat Casino Actively Promotes and Enforces Responsible Gambling
The team explained that they considered the commitment to responsible gambling as an important factor in their comprehensive review of the industry: “A platform can deliver everything players want, but if they fail to protect players and promote responsible gambling, we take it out of our ranking… because gambling must be fun but also safe”.
RoboCat Casino is equipped with technology and a dedicated team which can detect problematic gambling patterns, providing affected players with prompt solutions and assistance.
The online casino also offers tools and features to limit the spending on their platform, granting players the possibility to control their online gambling activities.
The specialists also confirmed that RoboCat Casino provides a self-exclusion feature, with 24/7 customer support available to assist players in closing their accounts if needed.
“The era of unregulated online gambling is over. Today, safety comes first—one of the key reasons we chose RoboCat as Canada’s top online casino for 2025. They prioritise player protection and take responsible gambling seriously.”
“RoboCat Is The Best Brand in 2025, But Let’s See If They Retain Their Place in 2026”
“After making this in-depth review, analysis and research, we found out RoboCat is the best online casino brand for Canadian players in 2025” – “… but you know, the online gambling industry is extremely fast-paced. You have new brands every single month, and they’re competing fiercely against each other. Therefore, we are going to revisit our research and perform a new analysis in 2026, to see if RoboCat remains the best online casino in Canada or if another brand is going to take its place” – concluded Angel K.
To celebrate this award, RoboCat has released a new welcome bonus of 100% extra on the first deposit + 200 Free Spins + 1 surprise bonus, which new players can redeem below:
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Disclaimer
This article contains affiliate links. If you purchase through these links, a commission may be earned at no additional cost to you. The information provided is for informational purposes only and is not investment, financial, medical, or legal advice. Readers should verify details independently and consult qualified professionals before making any purchasing or financial decisions
CONTACT: Live Chat: https://casinos.cc/robocat-casino/support/ Email: [email protected]
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