Gambling.com Group revenue jumps 18% in Q2 to reach new record high
Affiliate's stock surges 25% in early trading, as CEO Charles Gillespie says the affiliate sees a "clear path" to the goal of $100m in annual adjusted EBITDA
Gambling.com Group has posted an 18% year-on-year increase in Q2 revenue, hitting a new quarterly high of $30.5m.
The affiliate pointed to the “incredible power of high-intent audience” as a core driver for revenue growth in the three months to June 30.
Adjusted EBITDA also increased, rising 19% from $9.4m to $11.2m alongside a corresponding EBITDA margin of 37%.
The double-digit growth across the top-line and earnings has seen Gambling.com Group’s share price spike by almost 25% to $11 at the time of writing.
Meanwhile, total operating expenses declined to $20.8m, a 15% fall YoY. That decrease is attributed to the elimination of fair value movement in contingent consideration as well as a slight decrease in general expenses.
Gross profit leapt 16% to $29.1m as bosses insisted the future had a strong outlook after a positive first six months of the year.
Analysing the affiliate’s revenue growth by division, casino lead the charge with a total of $22.1m, a 26% rise YoY against $17.5m in revenue in Q2 2023.
However, sports betting revenue dipped 3% from $8.4m to $8.2m.
By region, North America contributed the lion’s share of the revenue, though operations Stateside were not as strong as Q2 2023, with revenue falling 8% to $12.6m.
Elsewhere, in the UK and Ireland, revenue rose to $9.9m, an 18% YoY increase, while other markets in Europe and the rest of the world also trended upwards.
Other standout highlights between April and June included the firm delivering more than 108,000 new depositing customers, a 19% YoY increase, while Gambling.com Group also sealed the acquisition of Freebets.com in the opening exchanges of the quarter.
The business also made a final deferred consideration payment of $13.6m relating to its acquisition of BonusFinder.
As a result of the strong display, the company has updated its 2024 full-year revenue and adjusted EBITDA guidance.
Gambling.com Group now expects a yearly revenue total of anywhere between $123m and $127m, while adjusted EBITDA is expected to land between $44m to $47m.
The guidance raise translates to a YoY revenue growth of 15% and adjusted EBITDA growth of 24%, respectively, at the midpoint.
This updated guidance has been issued under the assumption that no further North American markets go live online this year, nor will the group oversee any further M&A activity.
“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,” explained Gambling.com Group CEO Charles Gillespie.
“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 topline 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.”