Gambling.com raises 2024 forecast after record quarter

In releasing its Q2 results for the three months to 30 June 2024, the affiliate marketing group said it now expects full-year revenue of $123m-£127m and adjusted EBITDA of $44m-£47m. In May, after the Freebets acquisition had already completed, Gambling.com predicted figures of $118m-£122m and $40m-£44m respectively. The midpoints of the new forecasts suggest full-year revenue growth of 15% and adjusted EBITDA growth of 24%.

The group reiterated its long-term goal of generating annual adjusted EBITDA of $100m.

Revenue during Q2 was up 18% year-on-year to $30.5m. It was boosted by the addition of Freebets, which the group agreed to acquire for up to $42.5m.

During the three months, the group delivered more than 108,000 new depositing customers (NDCs) to clients, an increase of 19% year-over-year. It said this was achieved even as the prior period benefited from unusually strong growth in US sports betting NDCs, which did not recur this year.

Gross profit increased 16% to $29.1m, including a $0.5m increase in cost of sales related to the group’s media partnerships.

Total operating expenses decreased 15% to $20.8m, reflecting the elimination of fair value movement in contingent consideration. There was a 9% decrease in general and administrative expenses, partially offset by increases in sales and marketing (23%) and technology expenses (26%).

Adjusted EBITDA grew by 19% to $11.2m, with margin at 37%.

During the course of the quarter, the business repurchased 833,770 shares at an average price of $8.17 per share. Other outgoings included an initial $20m payment related to the Freebets acquisition and the final payment of $13.6m for BonusFinder.

Chief executive Charles Gillespie said: “Our second quarter and year-to-date results highlight the incredible power of our high-intent audience and the clear value we create for our online gambling operator clients. Our team’s proven ability to dynamically manage our owned and operated assets to quickly address changes to the operating environment was evident in the second quarter’s strong top line and adjusted EBITDA growth, and will continue to benefit us in the future.

“As we continue to execute at a high level, expand our footprint in the online gambling ecosystem and leverage industry growth opportunities, we continue to see a clear path towards our goal of $100m in annual adjusted EBITDA. Our significant share repurchase activity in the first half of this year underscores our confidence in the future of the business.”

Freebets purchase built on 2023 success

Gambling.com completed its acquisition of Freebets.com in April. The cost will be between $37.5m and $42.5m, dependent on future revenue performance.

Gambling.com said at the time it expects Freebets.com to generate an additional $10.0m in revenue during the current year, as well as $5.0m in incremental adjusted EBITDA.

Revenue increased by 42.1% in 2023 to $108.7m. Stand-out highlights for the group in 2023 included the launch of the Casinos.com domain. It also struck up a new partnership with UK media publisher The Independent.

Accompanying a rise in revenue was net profit of $21.1m, in contrast to a $2.4m loss in 2022. In addition, adjusted EBITDA for the year was 52.3% higher at $36.7m.

Gambling.com set a revenue forecast of between $129m and $133m for 2024 when releasing its 2023 figures in March. This was slightly above the “raised” 2024 figure announced today, but before the lower forecast outlined in May.