Raises 2023 Revenue Guidance to $100-$104
Million and Adjusted EBITDA Guidance to $36-$40 Million; Mid-Points
Imply Revenue Growth of 33% and Adjusted EBITDA Growth of 58% over
the Full Year 2022
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 reported record
second quarter financial results for the three months ended June
30, 2023. The Company also increased its guidance for full-year
revenue and Adjusted EBITDA.
Second Quarter 2023 vs. Second Quarter
2022 Financial Highlights (USD in thousands, except per
share data, unaudited)
Three Months Ended June
30,
Change
2023
2022
%
Revenue
25,972
15,924
63
%
Net income for the period attributable to
shareholders (1)
278
56
396
%
Net income per share attributable to
shareholders, diluted (1)
0.01
0.00
100
%
Net income margin (1)
1
%
—
%
Adjusted net income for the period
attributable to shareholders (1)(2)
6,535
3,065
113
%
Adjusted net income per share attributable
to shareholders, diluted (1)(2)
0.17
0.08
113
%
Adjusted EBITDA (1)(2)
9,424
3,617
161
%
Adjusted EBITDA Margin (1)(2)
36
%
23
%
Cash flows generated by operating
activities
4,586
3,368
36
%
Free Cash Flow (2)
8,526
2,822
202
%
(1) For the three months ended June 30,
2023, Net income and Net income per share include, and Adjusted net
income and Adjusted net income per share exclude, adjustments
related to the Company's 2022 acquisitions of RotoWire and
BonusFinder of $6.1 million, or $0.17 per share. Similarly, these
adjustments totaled $3.0 million, or $0.08, per share for the three
months ended June 30, 2022. See “Supplemental Information -
Non-IFRS Financial Measures” and the tables at the end of this
release for an explanation of the adjustments.
(2) 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.
Charles Gillespie, Chief Executive Officer and Co-Founder of
Gambling.com Group, commented, “The business performed phenomenally
in the second quarter with record operating results reflecting
another quarter of significant organic revenue growth and strong
Free Cash Flow generation. The growth highlights our success in
scaling our North American operations as well as continued growth
in our more established markets. New depositing customers rose 60%
year-over-year to over 91,000, which helped drive a 63% revenue
increase to $26.0 million, 161% growth in Adjusted EBITDA to $9.4
million, and $8.5 million of Free Cash Flow.
“Despite North America already being our largest reporting
market, it still represents a significant growth opportunity for
Gambling.com Group and we remain very confident in our ability to
continue to increase market share in existing states as they
continue to grow. This expected growth will be complemented by an
overall expansion of the addressable market as new states such as
North Carolina and Kentucky come online with sports betting, and
iGaming is authorized in additional states. As we continue to scale
our North American operations, Gambling.com Group will benefit from
other attractive near- and long-term growth drivers, including
valuable media partnerships with leading domestic digital media
publishers, McClatchy and Gannett, and the significant long-term
global opportunity provided by the recently launched Casinos.com.
In addition, we are well positioned to continue growing in our more
established markets where we continue to take market share and have
signed our first international media partnership with The
Independent for the U.K. market.
“With each quarter of consistent profitable organic growth
delivered by Gambling.com Group, we are demonstrating the benefits
of what we believe to be the most attractive business model in the
industry as we leverage our many growth drivers and capital
efficiency. Our excellence in SEO and proprietary data science
allows us to consistently generate top-line growth, Adjusted EBITDA
margins that exceed 30%, and strong Free Cash Flow conversion. As a
result, we are confident Gambling.com Group will continue to create
added value for our shareholders, clients and our valued team
members.”
Second Quarter 2023 and Recent Business
Highlights
- Grew North American revenue 115% to $13.4 million
- Delivered more than 91,000 new depositing customers
- Entered into first international media partnership with The
Independent, one of the U.K.’s largest digital media publishers
with more than 20 million unique monthly users
- Negotiated a final, deferred consideration payment of €18
million related the acquisition of BonusFinder in exchange for the
early termination of the earn-out period, providing the Company
with the ability to accelerate the realization of synergies
- Repurchased 77,683 ordinary shares at an average price of $9.83
per share
Elias Mark, Chief Financial Officer of Gambling.com Group,
added, “The operating leverage we generated on 63% year-over-year
revenue growth and 161% Adjusted EBITDA growth in the second
quarter grew Free Cash Flow growth of 202% to $8.5 million. As a
result, we have significant flexibility to simultaneously continue
to strategically invest in growth opportunities, including the
buildout of Casinos.com and the development of our media
partnerships, and to evaluate strategic transactions that we
believe create new shareholder value. Reflecting our strong
operating results through the first six months of the year, which
outperformed our expectations, and our confidence for continued
strong performance over the balance of 2023, we are raising our
full year revenue and Adjusted EBITDA outlook with the mid-point of
the new ranges representing year-over-year growth of 33% and 58%,
respectively.”
2023 Outlook
The Company raised its full-year 2023 revenue guidance to
between $100 million and $104 million, and Adjusted EBITDA guidance
to between $36 million and $40 million. The Company’s guidance
assumes:
- Kentucky goes live on September 28th with online sports
betting
- Beyond Kentucky, no online sports betting or iGaming going live
in any additional North American markets for the balance of
2023
- No contribution from any new acquisitions
- New investments throughout 2023 for the development of
Casinos.com and support to our media partners, including Gannett,
McClatchy and The Independent
- An average EUR/USD exchange rate of 1.095 throughout the
remainder of 2023
First Half 2023 vs. First Half 2022
Financial Highlights (USD in thousands, except per share
data, unaudited)
Six Months Ended June
30,
Change
2023
2022
%
Revenue
52,664
35,509
48
%
Net income for the period attributable to
shareholders (1)
6,873
4,542
51
%
Net income per share attributable to
shareholders, diluted (1)
0.18
0.12
50
%
Net income margin (1)
13
%
13
%
Adjusted net income for the period
attributable to shareholders (1)(2)
14,086
7,551
87
%
Adjusted net income per share attributable
to shareholders, diluted (1)(2)
0.37
0.21
76
%
Adjusted EBITDA (1)(2)
20,097
10,719
87
%
Adjusted EBITDA Margin (1)(2)
38
%
30
%
Cash flows generated by operating
activities
11,669
6,944
68
%
Free Cash Flow (2)
14,732
4,186
252
%
(1) For the six months ended June
30, 2023, Net income and Net income per share include, and Adjusted
net income and Adjusted net income per share exclude, adjustments
related to the Company's 2022 acquisitions of RotoWire and
BonusFinder of $7.0 million, or $0.19 per share. Similarly, these
adjustments totaled $3.0 million, or $0.09, per share for the six
months ended June 30, 2022. See “Supplemental Information -
Non-IFRS Financial Measures” and the tables at the end of this
release for an explanation of the adjustments.
(2) 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, August 17, 2023, at
8:00 a.m. ET
Webcast:
https://www.webcast-eqs.com/gamb20230817/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
multi-award-winning performance marketing company and a leading
provider of digital marketing services active in the 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 seven languages across 15 national markets
covering all aspects of the online gambling industry, including
iGaming and sports betting, and the fantasy sports industry.
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 expectation of
continued growth in the North American market and other established
markets, whether strategic transactions will create new shareholder
value, and our 2023 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, 2022 with the U.S. Securities and
Exchange Commission (the “SEC”) on March 23, 2023, 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 (Loss) (Unaudited) (USD in thousands, except per share
amounts)
The following table details the consolidated statements of
comprehensive income for the three and six months ended June 30,
2023 and 2022 in the Company's reporting currency and constant
currency.
Reporting Currency
Constant
Currency
Reporting Currency
Constant
Currency
Three Months Ended
June 30,
Change
Change
Six months ended
June 30,
Change
Change
2023
2022
%
%
2023
2022
%
%
Revenue
25,972
15,924
63
%
60
%
52,664
35,509
48
%
49
%
Cost of sales
(896
)
(495
)
81
%
77
%
(1,887
)
(1,724
)
9
%
10
%
Gross profit
25,076
15,429
63
%
59
%
50,777
33,785
50
%
51
%
Sales and marketing expenses
(8,403
)
(8,454
)
(1
)%
(2
)%
(16,441
)
(15,816
)
4
%
4
%
Technology expenses
(2,447
)
(1,499
)
63
%
60
%
(4,670
)
(2,862
)
63
%
64
%
General and administrative
expenses
(7,286
)
(4,804
)
52
%
49
%
(13,067
)
(9,632
)
36
%
36
%
Movements in credit losses
allowance
(118
)
(72
)
64
%
60
%
(767
)
(597
)
28
%
29
%
Fair value movement on contingent
consideration
(6,087
)
(2,849
)
114
%
110
%
(6,939
)
(2,849
)
144
%
145
%
Operating profit
(loss)
735
(2,249
)
133
%
132
%
8,893
2,029
338
%
340
%
Finance income
606
3,491
(83
)%
(83
)%
706
4,319
(84
)%
(84
)%
Finance expenses
(420
)
(1,056
)
(60
)%
(61
)%
(983
)
(1,307
)
(25
)%
(24
)%
Income before tax
921
186
395
%
385
%
8,616
5,041
71
%
72
%
Income tax charge
(643
)
(130
)
395
%
386
%
(1,743
)
(499
)
249
%
251
%
Net income for the period
attributable to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Other comprehensive income
(loss)
Exchange differences on
translating foreign currencies
(676
)
(6,559
)
(90
)%
(90
)%
692
(7,928
)
(109
)%
(109
)%
Total comprehensive income for
the period attributable to shareholders
(398
)
(6,503
)
94
%
94
%
7,565
(3,386
)
323
%
325
%
Consolidated Statements of
Financial Position (Unaudited)
(USD in thousands)
JUNE 30,
2023
DECEMBER 31,
2022
ASSETS
Non-current assets
Property and equipment
805
714
Right-of-use assets
1,615
1,818
Intangible assets
89,928
88,521
Deferred compensation cost
—
29
Deferred tax asset
6,220
5,832
Total non-current assets
98,568
96,914
Current assets
Trade and other receivables
13,249
12,222
Inventories
13
75
Cash and cash equivalents
31,311
29,664
Total current assets
44,573
41,961
Total assets
143,141
138,875
EQUITY AND LIABILITIES
Equity
Share capital
—
—
Capital reserve
73,952
63,723
Treasury shares
(1,107
)
(348
)
Share options and warrants reserve
6,009
4,411
Foreign exchange translation reserve
(6,383
)
(7,075
)
Retained earnings
33,271
26,398
Total equity
105,742
87,109
Non-current liabilities
Other payables
—
290
Deferred consideration
—
4,774
Contingent consideration
—
11,297
Lease liability
1,347
1,518
Deferred tax liability
2,212
2,179
Total non-current liabilities
3,559
20,058
Current liabilities
Trade and other payables
6,896
6,342
Deferred income
1,784
1,692
Deferred consideration
23,380
2,800
Contingent consideration
—
19,378
Other liability
282
226
Lease liability
542
554
Income tax payable
956
716
Total current liabilities
33,840
31,708
Total liabilities
37,399
51,766
Total equity and liabilities
143,141
138,875
Consolidated Statements of
Cash Flows (Unaudited)
(USD in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Cash flow from operating
activities
Income before tax
921
186
8,616
5,041
Finance expenses (income), net
(187
)
(2,435
)
277
(3,012
)
Adjustments for non-cash items:
Depreciation and amortization
480
1,952
1,025
3,778
Movements in credit loss allowance
118
72
767
597
Fair value movement on contingent
consideration
6,087
2,849
6,939
2,849
Share-based payment expense
1,253
885
2,099
1,609
Warrants repurchased
—
(800
)
—
(800
)
Income tax paid
(1,899
)
(783
)
(1,789
)
(783
)
Payment of contingent consideration
(4,621
)
—
(4,621
)
—
Cash flows from operating activities
before changes in working capital
2,152
1,926
13,313
9,279
Changes in working capital
Trade and other receivables
1,971
2,456
(1,892
)
(2,639
)
Trade and other payables
401
(1,014
)
186
304
Inventories
62
—
62
—
Cash flows generated by operating
activities
4,586
3,368
11,669
6,944
Cash flows from investing
activities
Acquisition of property and equipment
(51
)
(99
)
(204
)
(242
)
Acquisition of intangible assets
(630
)
(447
)
(1,354
)
(2,516
)
Acquisition of subsidiaries, net of cash
acquired
—
(4,114
)
—
(23,409
)
Payment of deferred consideration
—
—
(2,390
)
—
Payment of contingent consideration
(5,557
)
—
(5,557
)
—
Cash flows used in investing
activities
(6,238
)
(4,660
)
(9,505
)
(26,167
)
Cash flows from financing
activities
Treasury shares acquired
(759
)
—
(759
)
—
Interest payment attributable to third
party borrowings
—
—
—
(120
)
Interest payment attributable to deferred
consideration settled
—
—
(110
)
—
Principal paid on lease liability
(94
)
(79
)
(199
)
(165
)
Interest paid on lease liability
(40
)
(45
)
(87
)
(95
)
Cash flows used in financing
activities
(893
)
(124
)
(1,155
)
(380
)
Net movement in cash and cash
equivalents
(2,545
)
(1,416
)
1,009
(19,603
)
Cash and cash equivalents at the
beginning of the period
33,564
33,069
29,664
51,047
Net foreign exchange differences on
cash and cash equivalents
292
(551
)
638
(342
)
Cash and cash equivalents at the end of
the period
31,311
31,102
31,311
31,102
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:
Three Months Ended
June 30,
Reporting
Currency
Change
Constant
Currency
Change
Six Months Ended
June 30,
Reporting
Currency
Change
Constant
Currency
Change
2023
2022
%
%
2023
2022
%
%
Net income for the period attributable
to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Weighted-average number of ordinary
shares, basic
37,082,794
35,443,258
5
%
5
%
36,757,214
35,176,469
4
%
4
%
Net income per share attributable to
shareholders, basic
0.01
0.00
100
%
100
%
0.19
0.13
46
%
46
%
Net income for the period attributable
to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Weighted-average number of ordinary
shares, diluted
38,462,183
36,534,091
5
%
5
%
38,123,560
36,608,017
4
%
4
%
Net income per share attributable to
shareholders, diluted
0.01
0.00
100
%
100
%
0.18
0.12
50
%
50
%
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
Adjusted net income is a non-IFRS financial measure 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. 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 of the fair value gain or loss related to the
contingent consideration, unwinding of deferred consideration, and
certain employee bonuses, all associated with our acquisitions,
during the limited period where these items are incurred. We expect
to incur gains or losses related to the contingent consideration
and expenses related to the unwinding of deferred consideration and
employee bonuses until December 2023. See Note 5 of the
consolidated financial statements for the three months ended June
30, 2023 for a description of the contingent and deferred
considerations associated with our acquisitions.
Below is a reconciliation to Adjusted net income attributable to
equity holders and Adjusted net income per share, diluted 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
(Loss) and for the period specified stated in the Company's
reporting currency and constant currency:
Reporting Currency
Constant
Currency
Reporting Currency
Constant
Currency
Three Months Ended
June 30,
Change
Change
Six Months Ended
June 30,
Change
Change
2023
2022
%
%
2023
2022
%
%
Revenue
25,972
15,924
63
%
60
%
52,664
35,509
48
%
49
%
Net income for the period attributable
to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Net income margin
1
%
—
%
13
%
13
%
Net income for the period attributable
to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Fair value movement on contingent
consideration (1)
6,087
2,849
114
%
110
%
6,939
2,849
144
%
145
%
Unwinding of deferred consideration
(1)
55
160
(66
)%
(66
)%
109
160
(32
)%
(31
)%
Employees' bonuses related to acquisition
(1)
115
0
100
%
100
%
165
0
100
%
100
%
Adjusted net income for the period
attributable to shareholders
6,535
3,065
113
%
109
%
14,086
7,551
87
%
87
%
Net income per share attributable to
shareholders, basic
0.01
0.00
100
%
100
%
0.19
0.13
46
%
46
%
Effect of adjustments for fair value
movements on contingent consideration, basic
0.16
0.08
100
%
100
%
0.19
0.08
138
%
138
%
Effect of adjustments for unwinding on
deferred consideration, basic
0.00
0.00
—
%
—
%
0.00
0.00
—
%
—
%
Effect of adjustments for bonuses related
to acquisition, basic
0.00
0.00
—
%
—
%
0.00
0.00
—
%
—
%
Adjusted net income per share
attributable to shareholders, basic
0.18
0.09
100
%
100
%
0.38
0.21
81
%
81
%
Net income per share attributable to
ordinary shareholders, diluted
0.01
0.00
100
%
100
%
0.18
0.12
50
%
50
%
Adjusted net income per share attributable
to shareholders, diluted
0.17
0.08
113
%
89
%
0.37
0.21
76
%
76
%
(1) There is no tax impact from fair value
movement on contingent consideration, unwinding of deferred
consideration or employee bonuses related to acquisition.
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:
Reporting Currency
Constant
Currency
Reporting Currency
Constant
Currency
Three Months Ended
June 30,
Change
Change
Six Months Ended
June 30,
Change
Change
2023
2022
%
%
2023
2022
%
%
(USD in thousands)
(USD in thousands)
Net income for the period attributable
to shareholders
278
56
396
%
388
%
6,873
4,542
51
%
52
%
Add back (deduct):
Interest expenses on borrowings and lease
liability
44
185
(76
)%
(77
)%
87
355
(75
)%
(75
)%
Income tax charge
643
130
395
%
386
%
1,743
499
249
%
251
%
Depreciation expense
63
44
43
%
41
%
120
87
38
%
39
%
Amortization expense
417
1,908
(78
)%
(79
)%
905
3,691
(75
)%
(75
)%
EBITDA
1,445
2,323
(38
)%
(39
)%
9,728
9,174
6
%
7
%
Share-based payment expense
1,253
885
42
%
39
%
2,099
1,609
30
%
31
%
Fair value movement on contingent
consideration
6,087
2,849
114
%
110
%
6,939
2,849
144
%
145
%
Unwinding of deferred consideration
55
160
(66
)%
(66
)%
109
160
(32
)%
(32
)%
Foreign currency translation losses
(gains), net
(303
)
(2,833
)
(89
)%
(90
)%
24
(3,606
)
(101
)%
(101
)%
Other finance results
18
53
(66
)%
(67
)%
57
79
(28
)%
(27
)%
Secondary offering related costs
733
—
100
%
100
%
733
—
100
%
100
%
Acquisition related costs (1)
21
180
(88
)%
(89
)%
243
454
(46
)%
(46
)%
Employees' bonuses related to
acquisition
115
—
100
%
100
%
165
—
100
%
100
%
Adjusted EBITDA
9,424
3,617
161
%
156
%
20,097
10,719
87
%
89
%
(1) The acquisition costs are
related to historical and potential 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:
Reporting Currency
Constant
Currency
Reporting Currency
Constant
Currency
Three Months Ended
June 30,
Change
Change
Six Months Ended
June 30,
Change
Change
2023
2022
%
%
2023
2022
%
%
(USD in thousands, except
margin)
(in thousands USD, except
margin)
Revenue
25,972
15,924
63
%
60
%
52,664
35,509
48
%
49
%
Adjusted EBITDA
9,424
3,617
161
%
156
%
20,097
10,719
87
%
89
%
Adjusted EBITDA Margin
36
%
23
%
38
%
30
%
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 adjusted for non-recurring
items within operating cash flow less capital expenditures.
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 service and other obligations or payments made
for business 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:
Three Months Ended
June 30,
Change
Six Months Ended
June 30,
Change
2023
2022
%
2023
2022
%
(in thousands USD,
unaudited)
(USD in thousands,
unaudited)
Cash flows generated by operating
activities
4,586
3,368
36
%
11,669
6,944
68
%
Payment of contingent consideration
4,621
—
100
%
4,621
—
100
%
Capital Expenditures (1)
(681
)
(546
)
25
%
(1,558
)
(2,758
)
44
%
Free Cash Flow
8,526
2,822
202
%
14,732
4,186
252
%
(1) Capital expenditures are
defined as the acquisition of property and equipment and the
acquisition of intangible assets, and excludes cash flows related
to business combinations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230817810464/en/
Investors: Peter McGough, Gambling.com Group,
investors@gdcgroup.com Richard Land, Norberto Aja, JCIR,
GAMB@jcir.com, 212-835-8500
Media: Jordan Bieber, 5W Public Relations,
gdc@5wpr.com
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