Home > Finance > Gambling.com Group Q4 revenue rises 107% as US operations

Gambling.com Group Q4 revenue rises 107% as US operations

| By Dan Kleiner
Gambling.com Group reported revenue growth as the company increased its new depositing customers (NDC), team, technology and portfolio in the fourth quarter of 2022.
Finance growth

The company also posted a 80.7% increase in year-on-year revenue, earning $76.51m (£62.37m/€70.36m) in 2022 compared to $42.32m in 2021.

Charles Gillespie, Gambling.com Group chief executive and co-founder, said that growth for the company in established markets helped the affiliate to expand its operations in the US market.

“We ended 2022 extending our strong record of organic growth with quarterly revenue,” said Gillespie. “Our adjusted EBITDA reflected another quarter of solid growth in our established markets and the continued strong ramp up of our North American operations.”

He then went on to detail what the affiliate has achieved in its recent US launches in 2023. “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,” he said. “This is where we have operated for nearly ten years and have generated a 54% year-over-year revenue growth to $8.1m, an all-time record for the fourth consecutive quarter.”

2023 targets

Gillespie added that the company’s target for 2023 includes working with existing media partnerships and generating “strong organic growth” despite not planning to enter any new US markets.

“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,” said Gillespie.

“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,” he added. “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.”

Q4 results

Looking at the fourth quarter results in full, revenue was up 107% from 2021 with $21.35m from $10.29m.

However, the company made a net income loss in the quarter of $4.4m, a 609% decrease from 2021 with $867,000 of income. This is due to $5m and $11.8m acquisition payments the company made in the period.

The affiliate also announced $6.86m in adjusted EBITDA, with an adjusted EBITDA margin of 32% – a 10% rise from 2021.

Cash flow in the business increased significantly from $1.18m to $6.19, which represents a 426% increase.

The company in the quarter increased its North American revenue by 364% to $10m, as well as delivering 82,000 NDCs and launching operations in Maryland, US.

Full-year breakdown

Looking at the full year, revenue was up 81% to $76.5m.

This includes a recording of $73.55m in gross profit and an income before tax of $2.9m.

The company’s intangible assets also saw a spike from $25.42m to $88.52m, which can be placed at the acquisitions it made across the year.

Gambling.com acquired NDC Media, the publisher of BonusFinder.com, in a deal worth up to $67.6m in February 2022. The company also completed the deal for its $27.5m purchase of RotoWire in January 2022.

For the financial year, the company also reported EBITDA of $10.5m, a 31% decrease from 2021 with $15.23m, while adjusted EBITDA grew 31% to $24.1m

Recent strategic partnership

Recently, the affiliate company entered into a multi-year strategic partnership with US media group Gannett Co.

The deal will provide content for sports fans while leveraging Gannett’s reach across the US through the USA Today network.

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