Canada
Gambling.com Group Limited Reports Third Quarter 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services active exclusively in the global online gambling industry, today announced its operating and financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Highlights
- Revenue of $10.1 million grew 37% compared to $7.4 million in the same period for the prior year
- Net income of $4.7 million, or $0.13 per diluted share, compared to a net income of $2.3 million, or $0.08 per diluted share, in the same period for the prior year
- Adjusted EBITDA of $3.5 million decreased 14% compared to $4.0 million in the same period for the prior year, representing an Adjusted EBITDA margin of 34%1
- Free cash flow of $0.8 million decreased 81% compared to $3.9 million in the same period for the prior year2
Third Quarter 2021 Business Highlights
- Completed successful public listing of common shares on the Nasdaq Global Market under the ticker symbol “GAMB”
- Announced appointment of Mr. Daniel D’Arrigo to Board of Directors
- Received temporary supplier license from the Arizona Department of Gaming to provide marketing services to licensed operators in the state and launched free-to-use comparison of legal online sports betting services on BetArizona.com
- Launches of Marylandbets.com, casinosource.nl and gambling.com/nl providing bettors in Maryland and the Netherlands with trusted and up to date gambling information to help them place safe and secure legal wagers
- Completed acquisition of domains suitable for targeting the US market
“Our financial performance in the third quarter remained strong as we grew revenue by 37% compared to the prior year and, despite the third quarter being the seasonally slowest quarter of the year, delivered an Adjusted EBITDA margin of 34%,” said Charles Gillespie, Chief Executive Officer and co-founder of Gambling.com Group. “Importantly, after the quiet summer months of July and August, we delivered all-time-high revenue in September. With the launch of Arizona and the kickoff of the NFL season, we saw a significant uplift in U.S. revenue in September and our U.S. performance exceeded our internal expectations. Entering the quarter with good momentum we are encouraged by the start to our seasonally stronger fourth quarter. We remain highly focused on prudently growing the Company through both sustained organic growth and future accretive acquisitions which we continue to actively pursue”
1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this
release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
Third Quarter 2021 vs. Third Quarter 2020 Financial Highlights
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THREE MONTHS ENDED |
|
|
CHANGE |
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||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
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|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
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|||||||||||||||
|
Revenue |
|
$ |
10,123 |
|
|
$ |
7,406 |
|
|
$ |
2,717 |
|
|
|
37 |
% |
|
Operating expenses |
|
|
(7,722 |
) |
|
$ |
(3,931 |
) |
|
$ |
(3,791 |
) |
|
|
96 |
% |
|
Operating profit |
|
|
2,401 |
|
|
|
3,475 |
|
|
|
(1,074 |
) |
|
|
(31 |
)% |
|
Income before tax |
|
|
2,694 |
|
|
|
2,609 |
|
|
|
85 |
|
|
|
3 |
% |
|
Net income for the period attributable to the |
|
$ |
4,675 |
|
|
$ |
2,303 |
|
|
$ |
2,372 |
|
|
|
103 |
% |
|
Net income per share attributable to ordinary |
|
|
0.14 |
|
|
|
0.08 |
|
|
|
0.06 |
|
|
|
75 |
% |
|
Net income per share attributable to ordinary |
|
|
0.13 |
|
|
|
0.08 |
|
|
|
0.05 |
|
|
|
63 |
% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
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|
CHANGE |
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||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
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||||
|
|
|
(in thousands USD, unaudited) |
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|
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|
|||||||
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NON-IFRS FINANCIAL MEASURES |
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|
|
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|
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|
||||
|
Adjusted EBITDA |
|
$ |
3,464 |
|
|
$ |
4,027 |
|
|
$ |
(563 |
) |
|
|
(14 |
)% |
|
Adjusted EBITDA Margin |
|
|
34 |
% |
|
|
54 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
754 |
|
|
|
3,917 |
|
|
|
(3,163 |
) |
|
|
(81 |
)% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
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|
CHANGE |
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||||||||||
|
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|
2021 |
|
|
2020 |
|
|
Amount |
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% |
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||||
|
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|
(in thousands, unaudited) |
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|
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|
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OTHER SUPPLEMENTAL DATA |
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|
|
|
|
|
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|
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|
||||
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New Depositing Customers (1) |
|
|
27 |
|
|
|
28 |
|
|
|
(1 |
) |
|
|
(4 |
)% |
(1) We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
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AS OF |
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AS OF |
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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:
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|
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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NetGaming, a fast-growing online casino content supplier, is proud to announce its launch in Ontario with Rush Street Interactive, Inc., a leading online casino and sports betting company in the United States, Canada and Latin America. This strategic collaboration marks a significant milestone for NetGaming as it continues to expand its footprint across regulated North American markets.
As part of the launch, Ontario players on BetRivers can now enjoy a diverse portfolio of NetGaming titles, known for their high-quality graphics, immersive gameplay, and unique themes. Standout games such as Zeus’s Thunderbolt, Bison Gold, and Fireball Inferno are among the first to go live, with additional titles set to follow soon.
This partnership is just the beginning. NetGaming plans to extend its collaboration with Rush Street Interactive into Michigan, New Jersey, Pennsylvania, Delaware, and Mexico over the coming months.
Pallavi Deshmukh, CEO of NetGaming, commented: “We are thrilled to go live with Rush Street Interactive, a powerhouse operator with a strong presence and loyal player base. This launch marks a significant milestone in our
North American expansion strategy and underscores our commitment to delivering exceptional gaming experiences tailored to local player preferences across the region.”
Richard Schwartz, CEO of Rush Street Interactive, commented: “We are pleased to partner with NetGaming to bring innovative, premium games to our players in Ontario. This collaboration aligns with our strategy to offer world-class
entertainment through engaging, action-packed online casino games. We look forward to expanding this partnership into additional regulated markets in the months ahead.”
This strategic partnership highlights both companies’ dedication to providing high- quality, innovative, and responsible entertainment to players in regulated markets.
The post NetGaming Goes Live in Ontario with Rush Street Interactive via BetRivers Platform appeared first on Gaming and Gambling Industry in the Americas.
Casinosfiables announced that they have redesigned their existing site – https://casinosfiables.ca/ to better address current user demands.
Although the site’s functionality aligns with modern industry standards, the redesign is a step in the right direction and could very well give a competitive edge.
The changes addressed certain functionality concerns and aligned with ever-changing user preferences and behavior.
• Seamless page transition – The overall performance of the site improved, so pages loaded faster, despite the addition of new elements.
• Integrated social media buttons – Buttons that lead to social media pages became more visible, so it is easier for readers to complete engagement incentives that granted them affiliate-exclusive rewards or promo codes.
• More valuable insights – Previously, charts and ratings were only explained in separate reviews. The new roundup charts and ratings had a dropdown feature that provided more insights or clarity behind the rating.
• Relevant search filters – Some trends or categories that targeted user intent weren’t visible in the previous version. The updated version introduced new categories that better reflected player preferences, or included roundups based on casino features (e.g., cashback, no wager promos, game providers) that weren’t at the forefront previously.
• Author pages – Readers who had similar opinions and game preferences to the site’s authors gained the ability to find other texts from those authors. Each casino expert received a dedicated page listing all of their publications.
The changes were finalized over the past few months. The team pushed these updates in batches rather than a single big update.
The post User-Centric Redesign for Casinosfiables.ca appeared first on Gaming and Gambling Industry in the Americas.
BCLC
Vancouver Resident Purchased Winning $40 Million Lotto Max Ticket While Quenching Sparkling Water Craving
Phuc Duc (Daniel) Chau loves the Bubly brand of sparkling water and stopped in a convenience store to purchase a can. Chau likes to buy lottery tickets based on a gut feeling, and due to the employee’s bubbly nature while he purchased his Bubly, Chau also purchased a Lotto Max ticket for the May 23, 2025 draw.
It was this ticket that ended up scoring Chau a whopping $40-million jackpot.
“I was at work when I found out,” recalled Chau of the moment he realized he won. “I was going through my bag to find a cough drop, but I saw that I had two lottery tickets in my bag and decided to scan the tickets, but I needed to update the [BCLC Lotto!] app first. The first ticket I didn’t win anything, but the second said $40 million. I have never seen that many zeroes in my life, ever. I dropped my phone and then called BCLC right away!”
At the time of the prize claim, the Vancouver resident hadn’t yet shared the news of his win.
“My partner doesn’t know yet! I want to share the news with them in a special way.”
Chau shared that his dream has always been to travel the world. “There are so many places I want to go to, so I haven’t fully decided!”
When asked if he will quit his job, he said, “I haven’t decided, but I want to continue to support my community in a different way.”
On how it feels to be a multimillionaire?
“It means a lot to me. It opens up an opportunity for me to give back to my family, community and the world all around me. It’s not meaningful unless you can share this with those who need it.”
Chau purchased the winning ticket at the 7-Eleven on Imperial Street and Boundary Road in Burnaby.
So far in 2025, B.C. lottery players have redeemed more than $146 million from Lotto Max. Lotto Max is a nationwide lottery game drawn on Tuesdays and Fridays after 7:30 p.m. (PST).
Players can purchase tickets at lottery retailers or at PlayNow.com. Winning numbers and group release forms can be found online at www.bclc.com. Players can check their lottery tickets anytime, anywhere on iOS and Android devices.
BCLC offers socially responsible gambling entertainment while generating income to benefit all British Columbians. Players can visit PlayNow.com to learn how to set time and money limits.
The post Vancouver Resident Purchased Winning $40 Million Lotto Max Ticket While Quenching Sparkling Water Craving appeared first on Gaming and Gambling Industry in the Americas.
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