Gambling.com reaffirms 2022 guidance as Q2 revenue climbs 53% to beat analyst estimates

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The launch of Ontario’s regulated market and growth in the US iGaming sector helped Nasdaq-listed affiliate Gambling.com Group generate $15.9m revenue in Q2 2022, an increase of 53.2% over the prior-year comparative period.

Of the total revenue, $6.2m came from North American markets, up 342% over Q2 2021, when North American revenue stood at just $1.4m. 

Gambling.com Group said growth in the region was driven by its entry into the regulated Ontario sports betting and iGaming market in April, and by online casino growth in relevant US states given the reduced availability of professional North American sporting events in Q2 when compared to other quarters in the calendar.

This meant some $9.7m in revenue came from markets outside North America, up from around $9.0m in Q2 2021. 

While it did not provide a detailed geographic breakdown of its revenue, Gambling.com said growth was also driven by a strong performance in the UK and Ireland, where revenue climbed 24% year-on-year despite material currency headwinds.

The business sent some 57,000 new depositing customers to operators during the quarter, more than double the 26,000 sent in Q2 2021.

Gambling.com’s business model consists of a combined localised, national and international approach.

The firm drives operator traffic through international sites including its flagship Gambling.com brand and recently acquired BonusFinder.com and Casino Source, while running national US-focused brands including Bookies.com and TopUSCasinos. 

Gambling.com Group CEO Charles Gillespie: “Our view remains that Gambling.com Group offers the best value proposition for online gambling operators’ investments in customer acquisition and we look forward to the second half of the year as we enter the heart of the North American fall and winter sports calendars.”

It also holds strategic US media assets and partnerships with organisations such as daily fantasy specialist RotoWire – which it acquired in January 2022 – and news media business McClatchy, with which Gambling.com holds a strategic sports betting partnership.

The business also holds several state-targeted assets including the New York-focused Empire Stakes and New York Bets, as well as other localised state offerings Bet Virginia, Bet Arizona and Illinois Bet.

Looking to the future, the business is prepared to enter the US states with regulated market launches expected shortly through its Bet Kansas, Bet Ohio, Bet Massachusetts and Bet Maryland brands.

Group adjusted EBITDA for the quarter came to $3.6m at a margin of 23%, a decrease of 34.5% compared to the $5.5m generated at a 53% margin in Q2 2021.

Gambling.com said the reduction in its adjusted EBITDA margin was the result of increased operating expenses from its investment in the organisation intended to drive organic growth, in addition to the lower margin profile of its acquired RotoWire business.

“We continued to execute on our strategy of rapidly growing our business in North America in the second quarter as the team delivered company-wide revenue growth of over 50% and North American revenue growth over 300%,” said Charles Gillespie, co-founder and CEO of Gambling.com Group. 

Gambling.com Group CFO Elias Mark: “Integration of our acquisitions from Q1 is tracking according to plan. The company remains well capitalised and in a strong position to meet the financial outlook for the year and to continue to grow profitably beyond.”

“The strength of our business model was also on display, as we continued to deliver strong adjusted EBITDA and free cash flow despite the second quarter being the seasonally weakest and while investing in the organisation to drive future growth. 

“Our view remains that Gambling.com Group offers the best value proposition for online gambling operators’ investments in customer acquisition and we look forward to the second half of the year as we enter the heart of the North American fall and winter sports calendars.”

Following on from its Q2 financial results, Gambling.com reiterated its earnings guidance for full-year 2022 of between $71m and $76m and adjusted EBITDA between $22m and $27m.

Elias Mark, CFO of Gambling.com Group, added: “We delivered revenue and adjusted EBITDA ahead of the street consensus and generated strong free cash flow in the quarter. 

“Revenue growth continued to be led by growth in North America in line with our strategic objectives, but we also saw strong trading in our more mature markets in the UK and Ireland, despite the weakening of the GBP and EUR against the US dollar. 

“Integration of our acquisitions from Q1 is tracking according to plan. The company remains well capitalised and in a strong position to meet the financial outlook for the year and to continue to grow profitably beyond.”

About the author

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Conor Mulheir

Conor entered the gaming industry in 2018 producing high-level live event content for audiences in London, Amsterdam and São Paulo. From 2020, he went on to report news and commission exclusive content for various gaming media brands before joining iGaming NEXT as editor in January 2022.

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