Canada
Gambling.com Group Limited Reports Third Quarter 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services active exclusively in the global online gambling industry, today announced its operating and financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Revenue of $10.1 million grew 37% compared to $7.4 million in the same period for the prior year
- Net income of $4.7 million, or $0.13 per diluted share, compared to a net income of $2.3 million, or $0.08 per diluted share, in the same period for the prior year
- Adjusted EBITDA of $3.5 million decreased 14% compared to $4.0 million in the same period for the prior year, representing an Adjusted EBITDA margin of 34%1
- Free cash flow of $0.8 million decreased 81% compared to $3.9 million in the same period for the prior year2
Third Quarter 2021 Business Highlights
- Completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
- Announced appointment of Mr. Daniel D’Arrigo to Board of Directors
- Received temporary supplier license from the Arizona Department of Gaming to provide marketing services to licensed operators in the state and launched free-to-use comparison of legal online sports betting services on BetArizona.com
- Launches of Marylandbets.com, casinosource.nl and gambling.com/nl providing bettors in Maryland and the Netherlands with trusted and up to date gambling information to help them place safe and secure legal wagers
- Completed acquisition of domains suitable for targeting the US market
“Our financial performance in the third quarter remained strong as we grew revenue by 37% compared to the prior year and, despite the third quarter being the seasonally slowest quarter of the year, delivered an Adjusted EBITDA margin of 34%,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Importantly, after the quiet summer months of July and August, we delivered all-time-high revenue in September. With the launch of Arizona and the kickoff of the NFL season, we saw a significant uplift in U.S. revenue in September and our U.S. performance exceeded our internal expectations. Entering the quarter with good momentum we are encouraged by the start to our seasonally stronger fourth quarter. We remain highly focused on prudently growing the Company through both sustained organic growth and future accretive acquisitions which we continue to actively pursue”
1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this
release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
Third Quarter 2021 vs. Third Quarter 2020 Financial Highlights
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
|
|||||||||||||||
|
Revenue |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
|
Operating expenses |
|
|
(7,722 |
) |
|
$ |
(3,931 |
) |
|
$ |
(3,791 |
) |
|
|
96 |
% |
|
Operating profit |
|
|
2,401 |
|
|
|
3,475 |
|
|
|
(1,074 |
) |
|
|
(31 |
)% |
|
Income before tax |
|
|
2,694 |
|
|
|
2,609 |
|
|
|
85 |
|
|
|
3 |
% |
|
Net income for the period attributable to the |
|
$ |
4,675 |
|
|
$ |
2,303 |
|
|
$ |
2,372 |
|
|
|
103 |
% |
|
Net income per share attributable to ordinary |
|
|
0.14 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
75 |
% |
|
Net income per share attributable to ordinary |
|
|
0.13 |
|
|
|
0.08 |
|
|
|
0.05 |
|
|
|
63 |
% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
$ |
3,464 |
|
|
$ |
4,027 |
|
|
$ |
(563 |
) |
|
|
(14 |
)% |
|
Adjusted EBITDA Margin |
|
|
34 |
% |
|
|
54 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
754 |
|
|
|
3,917 |
|
|
|
(3,163 |
) |
|
|
(81 |
)% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
|
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
27 |
|
|
|
28 |
|
|
|
(1 |
) |
|
|
(4 |
)% |
(1) We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
|
|
|
AS OF |
|
AS OF |
|
CHANGE |
||
|
|
|
2021 |
|
2020 |
|
$ |
|
% |
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
(in thousands, USD) |
|
|
|
|
||
|
CONSOLIDATED STATEMENTS OF FINANCIAL |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$53,160 |
|
$8,225 |
|
$44,935 |
|
n/m |
|
Working capital (2) |
|
55,064 |
|
10,059 |
|
45,005 |
|
n/m |
|
Total assets |
|
91,648 |
|
45,383 |
|
46,265 |
|
n/m |
|
Total borrowings |
|
5,919 |
|
5,960 |
|
(41) |
|
n/m |
|
Total liabilities |
|
11,373 |
|
11,171 |
|
202 |
|
n/m |
|
Total equity |
|
80,275 |
|
34,212 |
|
46,063 |
|
n/m |
(2) Working capital is defined as total current assets minus total current liabilities.
n/m = not meaningful
Revenue
Total revenue in the third quarter increased 37% to $10.1 million compared to $7.4 million in the comparable period for the prior year. On a constant currency basis, revenue increased $2.3 million, or 30%. The increase was driven by improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs decreased 4% to 27,000 compared to 28,000 in the prior year.
Our revenue disaggregated by market is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
$ |
4,483 |
|
|
$ |
4,311 |
|
|
$ |
172 |
|
|
|
4 |
% |
|
Other Europe |
|
|
2,718 |
|
|
|
1,162 |
|
|
|
1,556 |
|
|
|
134 |
% |
|
North America |
|
|
2,270 |
|
|
|
1,081 |
|
|
|
1,189 |
|
|
|
110 |
% |
|
Rest of the world |
|
|
652 |
|
|
|
852 |
|
|
|
(200 |
) |
|
|
(23 |
)% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were primarily driven by organic growth in our Other Europe and North American markets.
Our revenue disaggregated by monetization is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
$ |
2,808 |
|
|
$ |
3,847 |
|
|
$ |
(1,039 |
) |
|
|
(27 |
)% |
|
Revenue share commission |
|
|
829 |
|
|
|
794 |
|
|
|
35 |
|
|
|
4 |
% |
|
CPA commission |
|
|
5,455 |
|
|
|
2,535 |
|
|
|
2,920 |
|
|
|
115 |
% |
|
Other revenue |
|
|
1,031 |
|
|
|
230 |
|
|
|
801 |
|
|
|
348 |
% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were driven primarily by additional CPA commission and Other revenue. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
$ |
7,965 |
|
|
$ |
6,354 |
|
|
$ |
1,611 |
|
|
|
25 |
% |
|
Sports |
|
|
2,076 |
|
|
|
858 |
|
|
|
1,218 |
|
|
|
142 |
% |
|
Other |
|
|
82 |
|
|
|
194 |
|
|
|
(112 |
) |
|
|
(58 |
)% |
|
Total revenues |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
$ |
3,587 |
|
|
$ |
1,790 |
|
|
$ |
1,797 |
|
|
|
100 |
% |
|
Technology expenses |
|
|
1,123 |
|
|
|
663 |
|
|
|
460 |
|
|
|
69 |
% |
|
General and administrative expenses |
|
|
2,978 |
|
|
|
1,402 |
|
|
|
1,576 |
|
|
|
112 |
% |
|
Allowance for credit losses and write offs |
|
|
34 |
|
|
|
76 |
|
|
|
(42 |
) |
|
|
(55 |
)% |
|
Total operating expenses |
|
$ |
7,722 |
|
|
$ |
3,931 |
|
|
$ |
3,791 |
|
|
|
96 |
% |
n/m = not meaningful
Total operating expenses increased by $3.8 million to $7.7 million compared to $3.9 million in the prior year. On a constant currency basis, operating expenses increased by $3.5 million to $7.7 million compared to $4.2 million in the prior year. The increase was driven primarily by headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $3.6 million compared to $1.8 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount and professional services.
Technology expenses totaled $1.1 million compared to $0.7 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.0 million compared to $1.4 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA decreased by 14% to $3.5 million compared to $4.0 million in the prior year representing an Adjusted EBITDA margin of 34%. The decrease was driven primarily by increased operating expenses partly offset by increased revenue.
Operating profit in the third quarter decreased 31% to $2.4 million compared to $3.5 million in 2020. The decrease was driven primarily by a decrease in Adjusted EBITDA and an increase in share-based payments expense.
Net income in the third quarter totaled $4.7 million, or $0.13 per diluted share, compared to net income of $2.3 million, or $0.08 per diluted share, in the prior year. The increase was primarily driven by the recognition of deferred tax assets related to the transferred intangible assets.
Free Cash-flow
Total cash generated from operations of $1.4 million decreased 65% compared to $4.0 million in the prior year. The decrease was driven primarily by decreased adjusted EBITDA, the settlement of non-recurring IPO-related expenses and income tax payments. Free cash flow totaled $0.8 million compared to $3.9 million in the prior year. The decline was the result of decreased cash flow generated from operations and increased capital expenditures consisting primarily of the acquisition of domain names and capitalized development costs.
Balance Sheet
Cash balances as of September 30, 2021 totaled $53.2 million, an increase of $45.0 million compared to $8.2 million as of December 31, 2020. Working capital as of September 30, 2021 totaled $55.1 million, an increase of $45.0 million compared to $10.1 million as of December 31, 2020.
Total assets as of September 30, 2021 were $91.6 million compared to $45.4 million as of December 30, 2020. Total borrowings, including accrued interest, totaled $5.9 million compared to $6.0 million as of December 31, 2020. Total liabilities were $11.4 million compared to $11.2 million as of December 31, 2020.
Total equity as of September 30, 2021 was $80.3 million compared to $34.2 million as of December 31, 2020.
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
2021 – 2023 Financial Targets
|
|
|
|
|
Total Revenue Growth |
|
> Average 40% |
|
Adjusted EBITDA Margin3 |
|
> Average 40% |
|
Leverage4 |
|
< Net Debt to Adjusted EBITDA 2.5x5 |
2021 Outlook
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our third quarter results came in a bit above our expectations and after slow summer trading our financial performance accelerated in September to close out the quarter with the best month in the Company’s history. Our Adjusted EBITDA margin of 34% in the quarter was healthy despite a seasonally slow quarter and investments in scaling the organization for organic growth initiatives and operating as a public company. This is consistent with our prior guidance that our near-term margins may deviate from our average 40% target as we invest in our organic growth plan and pursue our M&A strategy. For the full year, we are reiterating our expectation to achieve both above 40% year-on-year organic revenue growth and approximately 40% Adjusted EBITDA margin. We remain in a very strong financial position after the IPO last quarter which offers us significant optionality going forward to execute our growth plan and each of our capital allocation priorities.”
Conference Call Details
|
|
|
|
|
Date/Time: |
|
Thursday, November 18, 2021, at 9:00 am EST |
|
Webcast: |
|
https://www.webcast-eqs.com/gamb20211118/en |
|
U.S. Toll-Free Dial In: |
|
877-407-0890 |
|
International Dial In: |
|
+1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format within the “News & Events” section of the Company’s website.
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BetConstruct
BetConstruct Becomes the First iGaming Company to Offer Both B2B and B2C Licenses in Canada through Affiliate Entity
BetConstruct, a global pioneer in iGaming and sports betting solutions, has announced a significant milestone in the gaming industry. Through its affiliate entity, BetConstruct has become the first iGaming company authorized to facilitate the issuance of both Business-to-Business (B2B) and Business-to-Consumer (B2C) licenses. This remarkable achievement was made possible by obtaining a direct license authorization from the Tobique First Nation in Canada.
The Tobique First Nation, renowned for its innovative and forward-thinking regulatory approach, has entrusted BetConstruct’s affiliate entity with the authority to oversee applications and facilitate the issuance of licenses from its jurisdiction. This partnership underscores shared values of innovation, transparency, and a commitment to responsible gaming practices.
This historic development places BetConstruct at the forefront of the Canadian iGaming market, redefining the opportunities available to gaming operators. By leveraging its affiliate entity’s licensing capabilities, BetConstruct empowers businesses to navigate a streamlined and transparent regulatory environment, unlocking new opportunities for growth and innovation.
“At BetConstruct, we’ve always strived to push the boundaries of what’s possible in iGaming. This landmark achievement with the Tobique First Nation reflects our unwavering dedication to creating opportunities for our partners while upholding the highest standards of responsibility and integrity in gaming,” said Vigen Badalyan, Co-Founder of BetConstruct.
The issuance of dual licenses under the watchful eye of BetConstruct’s affiliate not only highlights BetConstruct’s commitment to supporting its partners but also reinforces the company’s role as a trusted leader in the global iGaming landscape.
This milestone signals a new era for regulated iGaming, as BetConstruct takes bold steps to establish a robust ecosystem for operators and consumers alike. With its direct license authorization from the Tobique First Nation, BetConstruct is setting a new standard for innovation, consumer protection, and sustainable growth in Canada and beyond.
The post BetConstruct Becomes the First iGaming Company to Offer Both B2B and B2C Licenses in Canada through Affiliate Entity appeared first on Gaming and Gambling Industry in the Americas.
Canada
Great Canadian Entertainment and Petroglyph Development Group Announce Closing of the Acquisition of Casino Nanaimo and Elements Casino Victoria
Great Canadian Entertainment and Petroglyph Development Group Ltd. announced that PDG has closed the previously announced acquisitions of Casino Nanaimo and Elements Casino Victoria from Great Canadian, in historic transactions for both parties. PDG is a wholly owned corporation of Snuneymuxw First Nation (the “Nation”) and is dedicated to realizing the economic potential of the Nation.
The transactions, originally announced on June 24, 2024, for Casino Nanaimo and September 10, 2024, for Elements Casino Victoria, have received all required approvals from the regulatory authorities.
“We are thrilled to have completed these transactions. An incredible amount of work has been undertaken by our corporate team, our on-site teams at both properties, and PDG to achieve this successful closing. I am grateful for their efforts, as well as everyone at the B.C. Lottery Corporation and the Gaming Policy Enforcement Branch, who were thoughtful, diligent, and thorough in facilitating these closings,” said Matt Anfinson, Chief Executive Officer of Great Canadian.
“We look forward to working closely with PDG during the transition period to support the continued successful operation of Casino Nanaimo and Elements Casino Victoria,” Anfinson added.
“We celebrate the closing of our two casino acquisitions and our continued progress toward building a strong Snuneymuxw economy. For decades, Snuneymuxw leadership has worked tirelessly toward this moment, recognizing the connection between a strong economy, self-determination, and the foundation of nationhood. Today, we honour the achievements of those who came before us by securing businesses that will strengthen our Nation for generations to come. Thank you to the PDG and Great Canadian teams for your exceptional work. We look forward to a rewarding partnership with the B.C. Lottery Corporation, driving economic growth for the Nation and Province,” said Chief Mike Wyse.
Erralyn Joseph, President of PDG, said: “This measured acquisition marks an important milestone for PDG as we continue growing a corporate enterprise that reinvests directly into the prosperity of our Nation. With a strong operating plan focused on risk mitigation and yielding sizable returns, PDG continues to generate sustainable wealth for Snuneymuxw. With every step we are realizing our socio-economic potential and influence at a local, national, and global level. On behalf of the Board of Directors, we are pleased to share this news and remain committed to advancing economic growth in support of all residents connected to Snuneymuxw territory.”
“Acquiring these assets marks a pivotal shift for Snuneymuxw and Vancouver Island. This transition will fuel the Island’s economy, strengthening the Snuneymuxw Nation and ensuring the benefits stay local,” said Ian Simpson, Chief Executive Officer of PDG.
The post Great Canadian Entertainment and Petroglyph Development Group Announce Closing of the Acquisition of Casino Nanaimo and Elements Casino Victoria appeared first on Gaming and Gambling Industry in the Americas.
The Ottawa Black Bears announced an extensive partnership agreement with PowerPlay Online Sportsbook and Casino that will see the company’s logo featured on the club’s home and away jerseys.
In addition to the jersey partnership, PowerPlay will also have branding elements inside the goal crease, behind the bench, on the LED display ring, and along the rinkboards for Black Bears home games at Canadian Tire Centre. As part of the deal, PowerPlay also becomes the exclusive sportsbook and online casino partner for the Ottawa Black Bears.
“We are thrilled to have PowerPlay on board for our inaugural season with such a comprehensive partnership agreement. Their investment with the Black Bears represents a foundational agreement for our lacrosse club. And we’re proud to wear their logo alongside ours as we launch our franchise,” said Chelsea McDermott, Vice President of Business Operations for the Ottawa Black Bears.
“We are excited to bring PowerPlay’s bold, community-driven spirit to Ottawa-Gatineau, partnering with the Black Bears as they establish themselves as a force in lacrosse. This partnership celebrates a sport deeply tied to Canada’s heritage and competitive energy. Together, we’ll ignite passion, energize fans, and deliver excitement all season long,” said Thomas Vermeulen, Marketing Director for PowerPlay.
The post Ottawa Black Bears Announce Partnership Deal with PowerPlay appeared first on Gaming and Gambling Industry in the Americas.
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