Gambling.com Group Reports Fourth Quarter and Full-Year 2024 Results
2025 Guidance Mid-points Imply 35% and 40% Year-Over-Year Revenue and Adjusted EBITDA Growth
CHARLOTTE, N.C.--(BUSINESS WIRE)--March 20, 2025--
Gambling.com Group Limited (Nasdaq: GAMB) ("Gambling.com Group" or the "Company"), a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the fourth quarter and full-year ended December 31, 2024.
Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, "Our record fourth quarter and full-year results were driven by our team's prioritization of iGaming across the markets where we operate. Our team delivered outstanding performance in the quarter, especially when compared to the launch driven results in the prior-year period. We anticipate growth and continued market share gains in our performance marketing business across all geographic regions in 2025, including North America. The consolidation of Odds Holdings, Inc. from January 1st marks the start of the Company's next phase of growth as we layer on sports data solutions to our existing, high-growth, high-margin business. Our competitive positioning is strong across the globe."
"We capped an active and productive year during which we set the stage for continued strong growth in 2025 and beyond," said Mr. Gillespie. "In 2024, we extended our record of delivering full-year revenue, Adjusted EBITDA and Free Cash Flow growth with those metrics improving 17%, 33%, and 81%, respectively, year-over-year. In addition, we strengthened our product and market positioning organically as well as through the complementary, accretive acquisitions of Freebets.com and Odds Holdings. With the biggest and most talented team we have ever had and an enhanced product offering, we are making great progress towards our goal of reaching $100 million in annual Adjusted EBITDA."
Elias Mark, Chief Financial Officer of Gambling.com Group, added, "Fourth quarter revenue and Adjusted EBITDA increased 9% and 39% year-over-year, respectively, and over 80% of Adjusted EBITDA converted to free cash flow, reflecting the continued success of our strategies to optimize the returns from our global portfolio of owned and operated assets. As expected, we generated strong online casino growth across all our geographical regions, while our North American business continued to be resilient against challenging comparables. As reflected in our full-year guidance, we expect to generate significant year-over-year revenue and Adjusted EBITDA growth in 2025, and we are well-positioned to carry this operating momentum forward."
Financial Highlights Three Months Ended December 31, 2024 vs. Three Months Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
Three Months Ended December 31, Change
------------------------------------- --------
2024 2023 %
------------------ ----------------- --------
Revenue 35,308 32,530 9%
Net income for the period
attributable to
shareholders 7,933 6,372 24%
Net income per share
attributable to
shareholders, diluted 0.23 0.16 44%
Net income margin 22% 20%
Adjusted net income for
the period attributable
to shareholders (1) 12,172 8,622 41%
Adjusted net income per
share attributable to
shareholders, diluted
(1) 0.35 0.22 59%
Adjusted EBITDA (1) 14,736 10,569 39%
Adjusted EBITDA Margin
(1) 42% 32%
Cash flows generated by
operating activities 13,698 7,140 92%
Free Cash Flow (1) 13,162 6,511 102%
__________
(1) Represents a non-IFRS measure. See "Supplemental Information - Non-IFRS
Financial Measures" and the tables at the end of this release for
reconciliations to the comparable IFRS numbers.
Fourth Quarter 2024 and Recent Business Highlights
-- Delivered more than 145,000 new depositing customers ("NDCs")
-- Repurchased 486,312 shares at an average price of $9.80 per share
-- Won Casino Affiliate of the Year at the 2024 EGR Operator Awards
-- Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025
for initial consideration of $70 million in cash and $10 million in
shares
-- Expanded credit facility to $165 million with a new syndicate
Three Months Ended December 31, 2024 Results Compared to Three Months Ended December 31, 2023
Revenue rose 9% year-over-year to a record $35.3 million. The Company delivered more than 145,000 NDCs to clients, a 9% year-over-year decrease reflecting a challenging comparison primarily due to ESPNBet's launch in 17 markets in the 2023 fourth quarter period.
Gross profit increased 21% to $33.1 million, due to strong revenue growth and a $2.9 million year-over-year decrease in cost of sales related to the Company's media partnerships.
Total operating expenses increased 21% to $23.3 million, primarily as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets.
Net income attributable to shareholders increased $1.6 million to $7.9 million and net income per share was $0.23 compared to $0.16 in the prior year period. Adjusted net income rose 41% to $12.2 million and adjusted net income per share increased 59% to $0.35.
Adjusted EBITDA increased 39% to a record $14.7 million, reflecting an Adjusted EBITDA margin of 42% as compared to Adjusted EBITDA of $10.6 million and an Adjusted EBITDA margin of 32% in the prior-year period.
Operating cash flow of $13.7 million compared to $7.1 million in the prior-year period. Free cash flow grew 102% to $13.2 million reflecting growth in net income and Adjusted EBITDA and positive working capital movements in the quarter.
2025 Outlook
Gambling.com Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an adjusted EBITDA margin of 39.5%.
The Company's guidance assumes:
-- Incremental Adjusted EBITDA contributions of approximately $14.5 million
related to the acquisition of Odds Holdings, Inc. that was completed on
January 1, 2025.
-- No additional North American markets coming online over the balance of
2025. While online sports betting is expected to begin in Missouri in the
second half of 2025, the Company's guidance policy excludes any benefits
from new state launches until such time as a definitive start date is
announced by the appropriate regulatory body.
-- An average EUR/USD exchange rate of 1.07 throughout 2025.
Financial Highlights Full Year Ended December 31, 2024 vs. Full Year Ended December 31, 2023
(USD in thousands, except per share data, unaudited)
Year ended December 31, Change
----------------------------- --------
2024 2023 %
-------------- ------------- --------
Revenue 127,182 108,652 17%
Net income for the period
attributable to shareholders 30,679 18,260 68%
Net income per share attributable
to shareholders, diluted 0.84 0.47 79%
Net income margin 24% 17%
Adjusted net income for the
period attributable to
shareholders (1) 42,120 32,207 31%
Adjusted net income per share
attributable to shareholders,
diluted (1) 1.16 0.84 38%
Adjusted EBITDA (1) 48,691 36,715 33%
Adjusted EBITDA Margin (1) 38% 34%
Cash flows generated by operating
activities 37,638 17,910 110%
Free Cash Flow (1) 41,582 23,000 81%
__________
(1) Represents a non-IFRS measure. See "Supplemental Information - Non-IFRS
Financial Measures" and the tables at the end of this release for
reconciliations to the comparable IFRS numbers.
Conference Call Details
Date/Time: Thursday, March 20, 2025, at 8:00 a.m. ET
https://www.webcast-eqs.com/register/Gamb03
Webcast: 2025/en
U.S. Toll-Free Dial In: 877-407-0890
International Dial In: 1 201-389-0918
To access, please dial in approximately 10 minutes before the start of the call. An archived webcast of the conference call will also be available in the News & Events section of the Company's website at gambling.com/corporate/investors/news-events. Information contained on the Company's website is not incorporated into this press release.
About Gambling.com Group Limited
Gambling.com Group Limited (Nasdaq: GAMB) (the "Group") is a fast-growing provider of digital marketing services for the global online gambling industry. Founded in 2006, the Group has offices globally, primarily operating in the United States and Ireland. Through its proprietary technology platform, the Group publishes a portfolio of premier branded websites including Gambling.com, Bookies.com, Casinos.com, and RotoWire.com. Gambling.com Group owns and operates more than 50 websites in more than 10 languages across 19 national markets covering all aspects of the online gambling industry, including iGaming and sports betting, and the fantasy sports industry. The Group's OddsJam platform provides a suite of tools and services to assist consumer and enterprise s in sports betting.
Use of Non-IFRS Measures
This press release contains certain non-IFRS financial measures, such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, and related ratios. 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.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that relate to our current expectations and views of future events. All statements other than statements of historical facts contained in this press release, including statements relating to our further expansion of our footprint in the online gaming ecosystem, our continued market share gains in our performance marketing business across all geographic regions. whether we can achieve $100 million in annual Adjusted EBITDA, whether the North American market returns to growth in 2025, and our 2025 outlook, are all forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which may not be realized. In some cases, you can identify forward-looking statements by terms such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," "could," "will," "would," "ongoing," "future" or the negative of these terms or other similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, contingencies, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance, or achievements to be materially and/or significantly different from any future results, performance or achievements expressed or implied by the forward-looking statement. Important factors that could cause actual results to differ materially from our expectations are discussed under "Item 3. Key Information - Risk Factors" in Gambling.com Group's annual report filed on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (the "SEC") on March 20, 2025, and Gambling.com Group's other filings with the SEC as such factors may be updated from time to time. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Gambling.com Group disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Consolidated Statements of Comprehensive Income (Unaudited)
(USD in thousands, except per share amounts)
The following table details the consolidated statements of comprehensive income for the three and twelve months ended December 31, 2024 and 2023 in the Company's reporting currency and constant currency.
Constant Constant
Reporting Currency Currency Reporting Currency Currency
--------------------------- ---------- ---------------------------- ----------
Three Months
Ended December Year ended
31, Change Change December 31, Change Change
----------------- -------- ---------- ------------------ -------- ----------
2024 2023 % % 2024 2023 % %
------- ------ -------- ---------- ------- ------- -------- ----------
Revenue 35,308 32,530 9% 10% 127,182 108,652 17% 18%
Cost of sales (2,185) (5,089) (57)% (57)% (7,536) (9,112) (17)% (17)%
------- ------ ------- -------
Gross profit 33,123 27,441 21% 22% 119,646 99,540 20% 21%
Sales and
marketing
expenses (10,876) (9,687) 12% 13% (41,897) (35,331) 19% 19%
Technology
expenses (3,905) (3,058) 28% 29% (13,949) (10,287) 36% 36%
General and
administrative
expenses (9,064) (6,994) 30% 31% (27,645) (24,291) 14% 14%
Movements in
credit losses
allowance and
write-offs 581 468 24% 25% (480) (914) (47)% (47)%
Fair value
movement on
contingent
consideration -- -- --% --% -- (6,939) (100)% (100)%
------- ------ ------- -------
Operating
profit 9,859 8,170 21% 22% 35,675 21,778 64% 65%
Finance income 57 620 (91)% (91)% 1,570 634 148% 149%
Finance
expenses (910) (2,577) (65)% (64)% (3,095) (2,271) 36% 37%
------- ------ ------- -------
Income before
tax 9,006 6,213 45% 46% 34,150 20,141 70% 70%
Income tax
charge (1,073) 159 (775)% (778)% (3,471) (1,881) 85% 85%
------- ------ ------- -------
Net income for
the period
attributable
to
shareholders 7,933 6,372 25% 26% 30,679 18,260 68% 69%
======= ====== ======= =======
Other
comprehensive
income (loss)
Exchange
differences on
translating
foreign
currencies (7,399) 4,953 (249)% (251)% (6,605) 2,868 (330)% (331)%
------- ------ ------- -------
Total
comprehensive
income for the
period
attributable
to
shareholders 534 11,325 (95)% (95)% 24,074 21,128 14% 15%
======= ====== ======= =======
Consolidated Statements of Financial Position (Unaudited)
(USD in thousands)
DECEMBER 31, DECEMBER 31,
2024 2023
------------- ---------------
ASSETS
Non-current assets
Property and equipment 1,833 908
Right-of-use assets 4,632 1,460
Intangible assets 130,811 98,000
Deferred tax asset 6,418 7,134
------------ ------------
Total non-current assets 143,694 107,502
------------ ------------
Current assets
Trade and other receivables 21,160 21,938
Cash and cash equivalents 13,729 25,429
------------ ------------
Total current assets 34,889 47,367
------------ ------------
Total assets 178,583 154,869
============ ============
EQUITY AND LIABILITIES
Equity
Share capital -- --
Capital reserve 78,037 74,166
Treasury shares (29,998) (3,107)
Share-based compensation reserve 10,624 7,414
Foreign exchange translation deficit (10,812) (4,207)
Retained earnings 75,337 44,658
------------ ------------
Total equity 123,188 118,924
------------ ------------
Non-current liabilities
Lease liability 3,819 1,190
Deferred tax liability 2,258 2,008
Borrowings 19,582 --
------------ ------------
Total non-current liabilities 25,659 3,198
------------ ------------
Current liabilities
Trade and other payables 10,205 10,793
Deferred income 2,616 2,207
Deferred consideration 11,277 18,811
Other liability -- 308
Borrowings and accrued interest 3,349 --
Lease liability 1,213 533
Income tax payable 1,076 95
------------ ------------
Total current liabilities 29,736 32,747
------------ ------------
Total liabilities 55,395 35,945
------------ ------------
Total equity and liabilities 178,583 154,869
============ ============
Consolidated Statements of Cash Flows (Unaudited)
(USD in thousands)
Three months ended Year ended
December 31, December 31,
-------------------- --------------------
2024 2023 2024 2023
--------- ------- ------- -------
Cash flow from
operating activities
Income before tax 9,006 6,213 34,150 20,141
Finance expense
(income), net 853 1,957 1,525 1,637
Adjustments for
non-cash items:
Depreciation and
amortization 1,756 568 5,802 2,088
Movements in credit
loss allowance and
write-offs $(581.SI)$ (468) 480 914
Fair value movement on
contingent
consideration -- -- -- 6,939
Share-based payment
expense 1,215 997 4,953 3,607
Income tax paid (331) (2,063) (1,901) (3,826)
Payment of contingent
consideration in
relation to business
combinations -- -- -- (4,621)
Payment of deferred
consideration in
relation to business
combinations -- -- (7,156) (2,897)
--------- ------- ------- -------
Cash flows from
operating activities
before changes in
working capital 11,918 7,204 37,853 23,982
--------- ------- ------- -------
Changes in working
capital
Trade and other
receivables (670) (3,260) (98) (10,387)
Trade and other
payables 2,450 3,196 (117) 4,240
Inventories -- -- -- 75
--------- ------- ------- -------
Cash flows generated
by operating
activities 13,698 7,140 37,638 17,910
--------- ------- ------- -------
Cash flows from
investing activities
Acquisition of
property and
equipment (137) (157) (1,326) (451)
Acquisition of
intangible assets -- (6,452) (21,074) (6,815)
Capitalization of
internally developed
intangibles (399) (472) (1,886) (1,977)
Interest received from
bank deposits 20 90 137 259
Payment of deferred
consideration in
relation to business
combinations -- -- (10,154) (4,933)
Payment of deferred
consideration for
intangible assets (9,539) (9,539) --
Payment of contingent
consideration in
relation to business
combinations -- -- -- (5,557)
--------- ------- ------- -------
Cash flows used in
investing activities (10,055) (6,991) (43,842) (19,474)
--------- ------- ------- -------
Cash flows from
financing activities
Exercise of options 265 -- 1,521 106
Issue of ordinary
shares 218 -- 218 --
Treasury shares
acquired (4,883) (1,813) (27,078) (2,572)
Proceeds from
borrowings -- -- 45,560 --
Transaction costs
related to
borrowings -- -- (847) --
Repayment of
borrowings -- -- (21,060) --
Interest payment
attributable to third
party borrowings (342) -- (888) --
Interest payment
attributable to
deferred
consideration settled
in relation to
business
combinations -- -- (1,272) (110)
Interest payment
attributable to
deferred
consideration settled
for intangible
assets (461) -- (461) --
Principal paid on
lease liability (205) (98) (688) (402)
Interest paid on lease
liability (78) (38) (249) (165)
--------- ------- ------- -------
Cash flows used in
financing activities (5,486) (1,949) (5,244) (3,143)
--------- ------- ------- -------
Net movement in cash
and cash equivalents (1,843) (1,800) (11,448) (4,707)
--------- ------- ------- -------
Cash and cash
equivalents at the
beginning of the
period 15,723 26,884 25,429 29,664
Net foreign exchange
differences on cash
and cash equivalents (151) 345 (252) 472
--------- ------- ------- -------
Cash and cash
equivalents at the
end of the period 13,729 25,429 13,729 25,429
========= ======= ======= =======
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Consolidated Statement of Comprehensive Income for the period specified, stated in USD thousands, except per share amounts (unaudited):
Reporting Constant Reporting Constant
Three Months Ended Currency Currency Year ended Currency Currency
December 31, Change Change December 31, Change Change
---------------------- ----------- ---------- ---------------------- ----------- ----------
2024 2023 % % 2024 2023 % %
---------- ---------- ----------- ---------- ---------- ---------- ----------- ----------
Net income for
the period
attributable to
shareholders 7,933 6,372 24% 26% 30,679 18,260 68% 69%
Weighted-average
number of
ordinary shares,
basic 34,747,779 37,403,888 (7)% (7)% 36,034,115 37,083,262 (3)% (3)%
Net income per
share
attributable to
shareholders,
basic 0.23 0.17 35% 35% 0.85 0.49 73% 73%
Net income for
the period
attributable to
shareholders 7,933 6,372 24% 26% 30,679 18,260 68% 69%
Weighted-average
number of
ordinary shares,
diluted 35,188,864 38,879,038 (9)% (9)% 36,337,349 38,542,166 (6)% (6)%
Net income per
share
attributable to
shareholders,
diluted 0.23 0.16 44% 44% 0.84 0.47 79% 79%
Disaggregated Revenue
Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors.
The Company presents revenue as disaggregated by market based on the location of end user as follows:
Three Months
Ended December Year ended
31, Change December 31, Change
---------------- ----------------
2024 vs 2024 vs
2024 2023 2023 2024 2023 2023
------ -------- --------- ------- ------- ----------
North
America 15,632 20,516 (24)% 55,500 60,755 (9)%
UK and
Ireland 10,555 7,495 41% 39,179 31,347 25%
Other
Europe 6,366 3,086 106% 22,463 10,994 104%
Rest of
the
world 2,755 1,433 92% 10,040 5,556 81%
------ -------- ------- -------
Total
revenues 35,308 32,530 9% 127,182 108,652 17%
====== ======== ======= =======
The Company presents disaggregated revenue by monetization type as follows:
Three Months
Ended December Year ended
31, Change December 31, Change
---------------- ----------------
2024 vs 2024 vs
2024 2023 2023 2024 2023 2023
------ -------- ---------- ------- ------- ----------
Performance
marketing 28,404 27,000 5% 101,078 87,824 15%
Subscription 2,191 2,009 9% 8,367 7,652 9%
Advertising &
other 4,713 3,521 34% 17,737 13,176 35%
------ -------- ------- -------
Total
revenues 35,308 32,530 9% 127,182 108,652 17%
====== ======== ======= =======
The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows:
Three Months
Ended December Year ended
31, Change December 31, Change
---------------- ----------------
2024 vs 2024 vs
2024 2023 2023 2024 2023 2023
------ -------- --------- ------- ------- ----------
Casino 25,505 17,081 49% 92,224 66,869 38%
Sports 9,135 14,933 (39)% 33,282 40,634 (18)%
Other 668 516 29% 1,676 1,149 46%
------ -------- ------- -------
Total
revenues 35,308 32,530 9% 127,182 108,652 17%
====== ======== ======= =======
Supplemental Information
Rounding
We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.
Adjusted Net Income and Adjusted Net Income Per Share
In the fourth quarter of 2024, we changed our definition of adjusted net income, a non-IFRS financial measure, to net income attributable to equity holders adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, fair value movements related to contingent consideration, unwinding of deferred consideration, amortization expenses related to acquired businesses and assets, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Previously, adjusted net income, a non-IFRS financial measure was defined as net income attributable to equity holders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. We believe this more appropriately reflects the measurement of Adjusted Net Income as it includes adjustments for non-recurring items and significant non-cash items in addition to fair value movements related to contingent consideration and unwinding of deferred consideration.
Adjusted net income per diluted share is a non-IFRS financial measure defined as adjusted net income attributable to equity holders divided by the diluted weighted average number of common shares outstanding.
We believe adjusted net income and adjusted net income per diluted share are useful to our management as a measure of comparative performance from period to period as these measures remove the effect non-recurring items, significant non-cash items, fair value movements related to the contingent consideration, unwinding of deferred consideration, and acquisition related expenses. See Note 2 of the consolidated financial statements for the year ended December 31, 2024 filed on March 20, 2025 for a description of the contingent and deferred considerations associated with our acquisitions.
While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share from net income for the period attributable to the equity holders and net income per share attributed to ordinary shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income and for the period specified stated in the Company's reporting currency and constant currency (unaudited):
Constant Constant
Reporting Currency Currency Reporting Currency Currency
-------------------------------- ---------- ---------------------------------- ----------
Three months ended Year ended
December 31, Change Change December 31, Change Change
---------------------- -------- ---------- ------------------------ -------- ----------
2024 2023 % % 2024 2023 % %
------ ------ -------- ---------- ------- ------- -------- ----------
Revenue 35,308 32,530 9% 10% 127,182 108,652 17% 18%
Net income for
the period
attributable
to
shareholders 7,933 6,372 24% 26% 30,679 18,260 68% 69%
Net income
margin 22% 20% 24% 17%
Net income for
the period
attributable
to
shareholders 7,933 6,372 24% 26% 30,679 18,260 68% 69%
Share-based
payment and
related
expense (2) 1,215 997 22% 23% 4,953 3,787 31% 31%
Fair value
movement on
contingent
consideration
(1) -- -- --% --% -- 6,939 (100)% (100)%
Unwinding of
deferred
consideration
(1) 213 309 (31)% (30)% 1,289 735 75% 76%
Employees'
bonuses
related to
acquisition(1) -- 125 (100)% (100)% -- 368 (100)% (100)%
Secondary
offering
related costs -- -- --% --% -- 733 (100)% (100)%
Employees'
bonuses
related to
offering -- 201 (100)% (100)% -- 201 (100)% (100)%
Acquisition
related costs 1,907 508 275% 279% 2,151 821 162% 163%
Other
transaction
related costs -- -- --% --% 110 -- 100% 100%
Amortization
expense
related to
acquired
businesses and
assets 998 133 650% 656% 3,246 461 604% 607%
Tax effect of
the adjusting
costs (94) (23) 309% 309% (308) (98) 214% 214%
------ ------ ------- -------
Adjusted net
income for the
period
attributable
to
shareholders 12,172 8,622 41% 42% 42,120 32,207 31% 31%
------ ------ ------- -------
Net income per
share
attributable
to
shareholders,
basic 0.23 0.17 35% 35% 0.85 0.49 73% 73%
Effect of
adjustments
for
share-based
payment and
related
expense,
basic 0.03 0.03 --% --% 0.14 0.10 40% 40%
Effect of
adjustments
for fair value
movements on
contingent
consideration,
basic 0.00 0.00 --% --% 0.00 0.19 (100)% (100)%
Effect of
adjustments
for unwinding
on deferred
consideration,
basic 0.01 0.01 --% --% 0.04 0.02 100% 100%
Effect of
adjustments
for bonuses
related to
acquisition,
basic 0.00 0.00 --% --% 0.00 0.01 (100)% (100)%
Effect of
adjustments
for secondary
offering
related costs,
basic 0.00 0.00 --% --% 0.00 0.02 (100)% (100)%
Effect of
adjustments
for employees'
bonuses
related to
offering,
basic 0.00 0.01 (100)% (100)% 0.00 0.01 (100)% (100)%
Effect of
adjustments
for
acquisition
related costs,
basic 0.05 0.01 400% 400% 0.06 0.02 200% 200%
Effect of
adjustments
for other
transaction
related costs,
basic 0.00 0.00 --% --% 0.00 0.00 --% --%
Effect of
adjustments
for
amortization
expense
related to
acquired
businesses and
assets, basic 0.03 0.00 100% 100% 0.09 0.01 800% 800%
Effect of tax
adjustments,
basic -- 0.00 100% 100% (0.01) 0.01 (200)% (100)%
------ ------ ------- -------
Adjusted net
income per
share
attributable
to
shareholders,
basic 0.35 0.23 52% 52% 1.17 0.87 34% 36%
------ ------ ------- -------
Net income per
share
attributable
to ordinary
shareholders,
diluted 0.23 0.16 44% 44% 0.84 0.47 79% 79%
Adjusted net
income per
share
attributable
to
shareholders,
diluted 0.35 0.22 59% 59% 1.16 0.84 38% 40%
__________
(1) There is no tax impact from fair value movement on contingent
consideration, unwinding of deferred consideration or employee bonuses related
to acquisition.
(2) Tax effect of adjusting costs is computed on share based payment and
related expenses; secondary offering costs and related bonuses to employees;
acquisition related costs and amortization charges related to acquired
businesses and assets using effective tax rate for each period.
Adjusted net income attributable to shareholders presented above for the three months and the year ended December 31, 2023 has been recast by $1.8 million and $5.9 million, respectively, to adjust for the impact of share-based payment and related expense, secondary offering related costs, employees' bonuses relating to offering, acquisition related costs, amortization expense related to acquired businesses and assets and the related tax effect of the adjusting costs, as applicable
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings excluding interest, income tax (charge) credit, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, foreign exchange gains (losses), fair value of contingent consideration, and other items that our board of directors believes do not reflect the underlying performance of the business, including acquisition related expenses, such as acquisition related costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management team as a measure of comparative operating performance from period to period as those measures remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.
While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to EBITDA, Adjusted EBITDA from net income for the period attributable to shareholders as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited):
Constant Constant
Reporting Currency Currency Reporting Currency Currency
---------------------------------- ---------- ---------------------------------- ----------
Three Months Ended Year ended
December 31, Change Change December 31, Change Change
------------------------ -------- ---------- ------------------------ -------- ----------
2024 2023 % % 2024 2023 % %
------- ------- -------- ---------- ------- ------- -------- ----------
(USD in thousands) (USD in thousands)
Net income for
the period
attributable
to
shareholders 7,933 6,372 24% 26% 30,679 18,260 68% 69%
Add back
(deduct):
Interest
expenses on
borrowings
and lease
liability 581 38 1429% 1429% 1,509 165 815% 820%
Interest
income (20) (90) (78)% (78)% (137) (259) (47)% (47)%
Income tax
charge 1,073 (159) (775)% (778)% 3,471 1,881 85% 85%
Depreciation
expense 124 63 97% 100% 376 246 53% 53%
Amortization
expense 1,632 505 223% 226% 5,426 1,842 195% 196%
------- ------- ------- -------
EBITDA 11,323 6,729 68% 70% 41,324 22,135 87% 88%
------- ------- ------- -------
Share-based
payment and
related
expense 1,215 997 22% 23% 4,953 3,787 31% 31%
Fair value
movement on
contingent
consideration -- -- --% --% -- 6,939 (100)% (100)%
Unwinding of
deferred
consideration 213 309 (31)% (30)% 1,289 735 75% 76%
Foreign
currency
translation
losses
(gains), net (7) 1,699 (100)% (100)% (1,316) 923 (243)% (243)%
Other finance
results 85 1 8400% 8400% 180 73 147% 148%
Secondary
offering
related
costs -- -- --% --% -- 733 (100)% (100)%
Employee
bonuses
related to
the offering -- 201 (100)% (100)% -- 201 (100)% (100)%
Other
transaction
related
costs -- -- --% --% 110 -- 100% 100%
Acquisition
related costs
(1) 1,907 508 275% 279% 2,151 821 162% 163%
Employees'
bonuses
related to
acquisition -- 125 (100)% (100)% -- 368 (100)% (100)%
------- ------- ------- -------
Adjusted
EBITDA 14,736 10,569 39% 41% 48,691 36,715 33% 33%
======= ======= ======= =======
__________
(1) The acquisition costs are related to historical and contemplated business
combinations of the Group.
Below is the Adjusted EBITDA Margin calculation for the period specified stated in the Company's reporting currency and constant currency (unaudited):
Constant Constant
Reporting Currency Currency Reporting Currency Currency
---------------------------------- ---------- ---------------------------------- ----------
Three Months Ended Year ended
December 31, Change Change December 31, Change Change
------------------------ -------- ---------- ------------------------ -------- ----------
2024 2023 % % 2024 2023 % %
------- --- ------ -------- ---------- ------- ------- -------- ----------
(USD in thousands, (in thousands USD,
except margin) except margin)
Revenue 35,308 32,530 9% 10% 127,182 108,652 17% 18%
Adjusted
EBITDA 14,736 10,569 39% 41% 48,691 36,715 33% 33%
Adjusted
EBITDA
Margin 42% 32% 38% 34%
In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward-looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.
Free Cash Flow
Free Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities less capital expenditures. In the second quarter of 2024, we changed our definition of free cash flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not asset acquisitions were excluded from capital expenditures. We believe this more appropriately reflects the measurement of free cash flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions.
We believe Free Cash Flow is useful to our management team as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures because the measure does not deduct the payments required for debt payments and other obligations or payments made for acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Consolidated Statement of Cash Flows for the period specified in the Company's reporting currency (unaudited):
Three Months Ended Year ended
December 31, Change December 31, Change
------------------ -------- ---------------------- --------
2024 2023 % 2024 2023 %
---------- ------ -------- ------------ -------- --------
(in thousands USD, (USD in thousands,
unaudited) unaudited)
Cash flows
generated by
operating
activities 13,698 7,140 92% 37,638 17,910 110%
Adjustment for
items presented
in operating
activities:
Payment of
contingent
consideration -- -- --% -- 4,621 (100)%
Payment of
deferred
consideration -- -- --% 7,156 2,897 147%
Adjustment for
items
presenting in
investing
activities:
Capital
Expenditures
(1):
Acquisition of
property and
equipment (137) (157) (13)% (1,326) (451) 194%
Capitalization
of internally
developed
intangibles (399) (472) (15)% (1,886) (1,977) (5)%
------ ----- ------- -------
Free Cash Flow 13,162 6,511 102% 41,582 23,000 81%
====== ===== ======= === =======
__________
(1) Capital expenditures are defined as the acquisition of property and
equipment, and capitalized research and development costs, and excludes cash
flows related to acquisitions accounted for as business combinations and asset
acquisitions, as described above. Accordingly, capital expenditures presented
above for the year ended December 31, 2023 have been recast to exclude cash
flows related to acquisition of intangible assets $6.9 million.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250320612695/en/
CONTACT: For further information:
Investors: Peter McGough, Gambling.com Group, investors@gdcgroup.com
Richard Land, Norberto Aja, JCIR, GAMB@jcir.com, 212-835-8500
Media: Eddie Motl, Gambling.com Group, media@gdcgroup.com
(END) Dow Jones Newswires
March 20, 2025 07:00 ET (11:00 GMT)
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