North America gains fuel 94% surge in Gambling.com Group revenue
Expansion into Kansas and strong performance of acquired assets sends affiliate’s North America revenue soaring 300%
Gambling.com Group has posted a 94% year-on-year (YoY) increase in revenue to $19.6m (£16.4m) for the third quarter.
Rising from $10.1m announced in Q3 2021, the affiliate’s success was driven by investment in the North American market, including its expansion into the sports betting state of Kansas.
The Nasdaq-listed company revealed that North America revenue surged 299% YoY to $9.1m for the three months from 1 July to 30 September.
Meanwhile, adjusted group EBITDA jumped 32% YoY to $6.41m. Gross profit rose by 88% YoY, reaching $19m. However, operating profit slipped to $156,000, down from $2.41m in 2021.
Gambling.com Group also delivered more than 68,000 new depositing customers in Q3, an increase of 152% on the same period last year.
The firm confirmed that BonusFinder.com, which was acquired earlier this year in a deal worth up to €60m, performed ahead of expectations and performance marketing revenues of DFS resource RotoWire.com accelerated.
These results led to a spike in Gambling.com share price, rising by 9.02% at close of play on Thursday to $10.52.
Focusing on the North America, CEO and co-founder Charles Gillespie said: “Our investments to expand the breadth and quality of our portfolio of performance marketing websites ahead of new North American market launches has positioned Gambling.com Group for strong performance from its first day of operations in each of these new markets.
“This growth reflects, in part, contributions from three new markets that have come online since Q3 2021, including a strong first month of operations in Kansas which opened on 1 September,” Gillespie added.
“We believe our similar investments in premium domains to address markets that we expect to come online over the next several quarters, including Ohio, Maryland and Massachusetts, position the company for similarly strong starts as these new markets formally launch.”
Gambling.com Group also posted its financial results for the year-to-date. When compared to the same period in 2021, revenue increased by 72.2% to $55.15m and gross profit at the close of September stood at $52.82m.
However, operating profit dropped by 79% to $2.18m, while net income attributable to shareholders also sank by 41% to $6.79m.
Gillespie commented: “In addition to leveraging our extraordinary North American growth opportunity, we continue to grow in more established markets, as reflected by our all-time record quarterly revenue in the UK and Ireland.
“Gambling.com Group’s strong performance in both new and mature markets provides clear evidence that our performance marketing platform helps online gambling operators address their critically important goal of investing in efficient and profitable customer acquisition that delivers easily attributable and quantifiable returns.
“Our consistently strong adjusted EBITDA and free cash flow, even as we continue to invest to drive further growth, is a key differentiator for Gambling.com Group,” Gillespie added.
“We will continue to benefit from our proprietary technology, which offers us competitive advantages, a significant pathway for near and long-term growth in North America, a track record of delivering consistent growth in our established markets and an operating model that drives profitability.”
Following the publication of these results, the firm reiterated full-year guidance of $71m-76m and adjusted EBITDA of $22m-27m.
Elias Mark, CFO at Gambling.com Group, remarked: “The company remains well capitalised and in a strong position to meet our 2022 full year outlook and to generate continued growth in 2023 and beyond.”