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Employees facing increased financial stress in week before payday

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fastPAYE finds that almost 78% of UK workers are living payday to payday; anxiety likely to affect staff performance in the gaming sector

Almost half of UK workers who get paid monthly experience heightened money-related worries in the run up to payday, according to research by fastPAYE, the flexible wage application for the modern workforce.

Of those surveyed by the company, which launched a revolutionary wage management system last month that enables betting and casino businesses to pay staff wages on demand, 46% said that their financial concerns increased in the week before receiving their monthly wage packet.

This stress can lead to reliance on high interest credit options to tide workers over, with most people turning to credit cards to see them through the prolonged pay period. More than half of respondents admitted to using one often and at least 20% of those turn to plastic every month.

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Overdrafts also provide a fallback with 40% going into the red as payday approaches, while a fifth of employees which took part in the research resort to costly payday loans that can have significant financial consequences.

Credit acquired is most spent on groceries according to the survey, shortly followed by bills, leisure activities and house repairs as workers living payday to payday struggle to cover unexpected costs when they arise.

Backed by sister company ShopWorks, a staff management system provider to some of the biggest gaming and betting brands including Betfred, PaddyPower, Gauselmann, Novomatic, Mecca and Grosvenor, fastPAYE’s research emphasises the impact of the four to five-week pay gap can have on employee financial wellbeing.

Commenting on the findings, Ian Hogg, chairman of fastPAYE, said: “The number of people going through financial anxiety because of the outdated monthly wage system often relied on by the gaming sector is concerning, especially considering that with new technology this stress can be lessened.

“Whether you’re a casino and betting company or a large retailer, if a staff member has money-related worries it is likely to affect their performance in the workplace. But by giving employees early access to a proportion of their earned wages, businesses can give workers greater control over their finances and in turn help to harness a happier workforce.”

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fastPAYE launched in January this year to provide a cost-efficient, flexible alternative to the outdated monthly wage system. The application enables businesses to offer salary drawdowns based on completed shifts before payday, and since the fastPAYE model isn’t a loan, it charges no interest.

The company has a strong heritage in the gaming sector through ShopWorks, which has years of experience working in the industry, together with the technical expertise and understanding to address operators’ staff recruitment and retention challenges.

Financial reports

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

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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.”

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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.

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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.

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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

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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.

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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 %

 

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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.

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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

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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.

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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.

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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):

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  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.

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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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Boyd Interactive

Play’n GO announces landmark partnership with Resorts Digital Gaming

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Play’n GO, the world’s leading casino entertainment provider, has today announced its latest US operator partnership, with Resorts Digital Gaming, in the state of New Jersey.

Resorts Digital Gaming was acquired by Boyd Interactive in September 2024, and this announcement sees the group’s players on the www.resortscasino.com and www.mohegansuncasino.com brands in New Jersey gain access to a multitude of classic Play’n GO game titles, such as the legendary Book of Dead, Rise of Merlin, and Rise of Olympus.

Play’n GO entered New Jersey in September 2022, shortly after first launching in the US via the state of West Virginia in July of that year. It has since seen its games live in Michigan, Pennsylvania, and most recently, Connecticut.

Magnus Olsson, Chief Commercial Officer at Play’n GO, commented “New Jersey has been of crucial importance to our US operations for over two years now, so it is with great pleasure that we make this announcement in conjunction with Resorts Digital Gaming.

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“The company joins together two instantly recognizable operator brands, and the addition of Play’n GO’s games will be of enormous mutual benefit. We confidently describe ourselves as the world’s leading casino entertainment provider, and partnerships like this one are of great importance to us in establishing that idea. We’re excited to see this partnership flourish.”

Jim Ryan, Chief Executive Officer at Boyd Interactive, added “The whole Resorts Digital Gaming team is excited to bring Play’n GO games to our players. Play’n GO is one of the world’s leading iGaming brands, and we’re confident that our players are as excited as we are to see those Play’n GO titles on both www.resortscasino.com and www.mohegansuncasino.com.”

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Balkans

EGT’s Supreme Green Selection made its successful debut in Bulgaria

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Supreme Green Selection, the latest multigame in EGT’s portfolio, had its debut installation in Bulgaria. The gaming establishments of the leading operator Inbet throughout the country now offer the mix which is available in General Series’ slot cabinets.

Supreme Green Selection is a part of EGT’s latest multigame series Supreme Selection. This mix features 50 exciting titles, including popular games like Rise of Ra, Amazons’ Battle, and Burning Hot, along with new additions such as Rainbow Hot, Mighty Heracle, and Book of Artifacts. They all present players with various themes, eye-catching designs, and many attractive bonuses.

Biserka Draganova, Sales Manager for The Balkans and Egypt at EGT, commented: “I am very happy that we accomplished the first installation of Supreme Green Selection in the gaming halls of the local leader Inbet. The mix has a new interface, different from the other multigames in our portfolio, and allows players to select game according to the category they prefer. It also includes user-friendly updates, making it easier to scroll through and select your preferred games. When presented at this year’s ICE London, Supreme Green Selection immediately caught the attention of operators, players, and industry experts, and its first good results are already a fact. I am confident that the mix will become one of the favorite products of Inbet’s customers.”

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Mihail Hadzhiev, Casino Manager at Inbet, also gave positive feedback on the performance of Supreme Green Selection. He stated: “The selection of titles in the multigame is excellent as they keep players engaged for a long time, and during their next visit, our clients are looking for these slots again.” Mr. Hadzhiev added: “We can’t wait to try the other multigame from the series Mega Supreme Fruits Selection, as well as the new Bell Link Boost jackpot.”

The post EGT’s Supreme Green Selection made its successful debut in Bulgaria appeared first on European Gaming Industry News.

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