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Gambling.com Group Fourth Quarter Revenue Rises 107% to $21.3 Million

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Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a leading provider of digital marketing services for the global online gambling industry, today announced financial results for the fourth quarter and the full year periods ended December 31, 2022.

Fourth Quarter and Full Year 2022 vs. Fourth Quarter and Full Year 2021 Financial Highlights

(in thousands, USD, except per share data, unaudited)

Three Months Ended
December 31,

Change

Year Ended December 31,

Change

2022

2021

%

2022

2021

%

Revenue

21,349

10,291

107

%

76,507

42,323

81

%

Net income (loss) for the period attributable to shareholders (1)

(4,409

)

867

(609

)%

2,390

12,453

(81

)%

Net income (loss) per share attributable to shareholders, diluted (1)

(0.12

)

0.02

(687

)%

0.06

0.37

(86

)%

Adjusted net income (loss) for the period attributable to shareholders (1)

613

867

(29

)%

14,195

12,453

14

%

Adjusted net income (loss) per share attributable to shareholders, diluted (1)

0.02

0.02

%

0.37

0.37

%

Adjusted EBITDA

6,855

2,272

202

%

24,069

18,356

31

%

Adjusted EBITDA Margin

32

%

22

%

31

%

43

%

Cash flows generated by operating activities

6,188

1,177

426

%

18,755

13,997

34

%

Free Cash Flow

364

(1,811

)

(120

)%

9,467

8,423

12

%

(1) For the three months and year ended December 31, 2022 Adjusted Net Income and Adjusted Net income per share is exclusive of, and Net Income and Net Income per share is inclusive of Adjustments related to acquisitions of $5.0 million, or $0.12 per share, and $11.8 million, or $0.31 per share. 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.

Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group commented, “We ended 2022 extending our strong record of organic growth with quarterly revenue and Adjusted EBITDA reflecting another quarter of solid growth in our established markets and the continued strong ramp up of our North American operations. Fourth quarter 2022 revenue more than doubled year over year to $21.3 million, while our high-margin operating model helped drive a 202% increase in Adjusted EBITDA to $6.9 million. The fourth quarter results reflect a nearly 200% year-over-year and 21% quarterly sequential increase in new depositing customers to 82,000. Our investments in expanding our team, technology, and our portfolio of performance marketing websites continue to drive highly efficient and effective customer acquisition for online gambling operators. These factors, combined with our expansion into five new North American markets last year, helped drive an 81% increase in 2022 full year revenue to $76.5 million, a 31% improvement in Adjusted EBITDA to $24.1 million, and Free Cash Flow of $9.5 million.

“Gambling.com Group’s 364% year-over-year increase in fourth quarter North American revenue to $10.0 million reflects the continued benefit from strong performance in our newest markets, including solid results from our November launch in Maryland. Further, we have seen great performance out of the gate from our Ohio launch in January and our launch in Massachusetts earlier this month. Complementing our North American growth, we also continue to demonstrate the value and benefits of our performance marketing platform in the U.K. and Ireland, where we have operated for nearly ten years, as we generated a 54% year-over-year revenue growth to $8.1 million, an all-time record for the fourth consecutive quarter.

“Gambling.com Group is positioned for continued growth in 2023 and beyond as we strategically leverage our technology and portfolio of websites which this year will include the launch of the brand new Casinos.com website. Our previously announced media partnerships with McClatchy and Gannett also position us to further deliver on our growth expectations and for our clients. We expect to generate strong organic growth in 2023 despite no current expectations for any additional North American markets coming online. By leveraging our high-yielding operating model to drive consistent profitability, we are confident that the Company can continue to drive near- and long-term growth and further enhance value for our shareholders.”

Fourth Quarter 2022 and Recent Business Highlights

  • North American revenue grew 364% to $10.0 million
  • Delivered more than 82,000 new depositing customers
  • Successfully launched operations in Maryland
  • Acquired ultra-premium domain name Casinos.com
  • Repurchased 38,708 ordinary shares for an average price of $8.98 per share
  • Won the EGR Sports Affiliate of the Year award
  • Since the start of the year, launched operations in Ohio and Massachusetts
  • In February, entered into a strategic media partnership with Gannett Co., Inc., publisher of USA TODAY

Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our leading technology, domain names and websites, successful entry into new markets, and strong value proposition to our customers drove a more than 133% increase in new depositing customers in 2022, and yet another year of industry-leading revenue growth with continued strong profitability and cash generation. Looking ahead, we remain committed to delivering profitable growth and consistent positive operating cash flow. With our strong operating cash-flow and balance sheet, we have the financial flexibility to continue making return-focused investments in our business to deliver increased scale and attractive top-line and cashflow growth – all while maintaining strong profitability.”

2023 Outlook

The Company initiates full year 2023 guidance for revenue of $93 million to $97 million, and for Adjusted EBITDA of $32 million to $36 million. The Company’s guidance assumes:

  • No anticipation of going live in any additional North American markets for the balance of 2023
  • No benefit from any new acquisitions
  • New investments throughout 2023 for the development of Casinos.com as well as to service media partners including Gannett
  • An average EUR/USD exchange rate of 1.075 throughout 2023.

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Wealthsimple and Kalshi Partner to Bring Prediction Markets to Canada

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Wealthsimple announced the release of Wealthsimple Predict, providing retail investors the ability to trade event contracts on Kalshi. The standalone application is scheduled to launch this summer. Through the app, users will have access to approximately 4000 Kalshi event-based contracts in categories Wealthsimple is authorized to offer in the Canadian market, specifically climate, financial markets, and economic indicators.

“Prediction markets are the fastest-growing segment of global financial markets, letting traders turn an opinion into a position on the factors that shape our world – where inflation is headed, what happens to rates, or how the year unfolds. Until now, Canadians have had limited access. Wealthsimple Predict gives Canadians a clean, well-designed way to access these markets, with education and guardrails built in from day one,” said Brett Huneycutt, co-founder and Chief Product Officer, Wealthsimple.

“Kalshi was founded on a simple belief: views on the future should have markets, and those markets should be available to everyone. That’s why we’re partnering with Wealthsimple, Canada’s leading financial innovator – to give everyday investors in Canada access to fair, secure, and regulated prediction markets,” said Alex Cuoci, Kalshi.

In March, the Canadian Investment Regulatory Organization (CIRO) authorized Wealthsimple to offer event and forecast contract trading, also known as prediction markets. These contracts are regulated as futures contracts (derivatives). The approval covers contracts with a 30-day settlement period or longer, within the categories of economic indicators, financial markets, and climate. Wealthsimple is the second investment dealer to receive regulatory approval from CIRO for prediction markets.

To access trading through Wealthsimple Predict, new clients must complete a standard Know Your Client (KYC) process. Education is built into every stage of the experience, including a guided orientation of a client’s first trade. The app also shows users key disclosures and definitions, including trading risk reminders, contract resolution information, notices that positions can be sold at any time, and liquidity risk warnings on lower-activity markets. Wealthsimple Predict will only be available to Canadian residents.

Kalshi is authorized to operate in the US as an event contracts exchange, with federal authority from the Commodity Futures Trading Commission (CFTC), the regulatory authority for the U.S. derivatives market. Prediction markets follow the same regulatory framework applied to other financial assets traded in the US, such as equities, bonds, and traditional derivatives, with clear rules for price formation, settlement, and governance.

The post Wealthsimple and Kalshi Partner to Bring Prediction Markets to Canada appeared first on Americas iGaming & Sports Betting News.

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MediaTroopers lines up eight operator partners ahead of Alberta launch

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MediaTroopers said it is preparing to launch in Alberta’s regulated gaming market on July 13, as Canada’s next regulated commercial gaming market opens.

The digital marketing and customer acquisition firm said it plans to enter Alberta alongside eight “premium operator” clients, which it said are also preparing for their own market entries. MediaTroopers did not name the operators.

The company said its Alberta offering will mirror its work in Ontario, including localized acquisition strategies, compliance-focused marketing, regional player education, and market-tailored performance campaigns.

MediaTroopers also said it has seen “strong interest” from Alberta players through pre-registration activity, without providing figures.

“Alberta represents an exciting next step for regulated iGaming in Canada, and Media Troopers is ready to support operators from day one,” said Shmulik Segal, CEO of Media Troopers. “Our experience in Ontario has given us a strong understanding of what it takes to enter a new Canadian market successfully, from compliance and localization to scalable player acquisition. With eight of our premium clients already preparing for launch and early pre-registration traction underway, we see Alberta as a market with tremendous potential.”

The post MediaTroopers lines up eight operator partners ahead of Alberta launch appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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MediaTroopers Makes Preparations for Upcoming Alberta Launch with Eight Premium Operator Partners

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MediaTroopers, the leading digital marketing and customer acquisition firm, has announced that preparations are underway for its upcoming launch in Alberta’s regulated gaming market, scheduled to go live on July 13. As part of those preparations, MediaTroopers will enter the province with eight of its premium operator clients, who are already preparing for their own entries.

With the launch of Canada’s second regulated commercial gaming market, Alberta has quickly become one of the most anticipated market opportunities for operators looking to expand. MediaTroopers has already cemented itself as a reliable partner in Ontario’s regulated market, supporting operators in one of North America’s most competitive markets, and it will bring that same expertise as it enters Alberta.

Much like Ontario, MediaTroopers will continue to support operators in Alberta with localized acquisition strategies, compliance-focused marketing, regional player education, and market-tailored performance-driven campaigns.

MediaTroopers has already seen strong interest from Alberta players through pre-registration activity. With eight of its premium clients also preparing to go live, the company expects to play a pivotal role in helping other licensed operators to build up brand visibility and recognition among players in the region from day one.

With its launch in Alberta, MediaTroopers remains committed to supporting sustainable, responsible, and compliant growth across Canada’s regulated market.

 

“Alberta represents an exciting next step for regulated iGaming in Canada, and Media Troopers is ready to support operators from day one,” said Shmulik Segal, CEO of Media Troopers. “Our experience in Ontario has given us a strong understanding of what it takes to enter a new Canadian market successfully, from compliance and localization to scalable player acquisition. With eight of our premium clients already preparing for launch and early pre-registration traction underway, we see Alberta as a market with tremendous potential.”

The post MediaTroopers Makes Preparations for Upcoming Alberta Launch with Eight Premium Operator Partners appeared first on Americas iGaming & Sports Betting News.

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