Gambling.com Group announced a record quarter for the three months between July and September with revenue of $32.1 million, an increase of 37% from 2023.
Adjusted EBITDA for the company in Q3 grew by 108% year-on-year from $6.1 million (£4.8 million / €5.8 million) to $12.6 million. While Gambling.com Group’s cash flow generated by its operating activities rose by a sizeable 2189% to $14.9 million but was only recorded as a negative $715,000 in Q3 2023.
Bonus paid off
The surge in the comparison of the group’s cash flow is related to its 2022 acquisition of BonusFinder.com for $13.9 million with additional payments based on financial performance in 2022 and 2023, which could raise the total price of the sale to $47 million.
Gambling.com Group across its brands delivered over 116,000 new depositing customers during the quarter as well as increasing its gross profits by 43% to $30.4 million.
The cost of sales dropped by $500,000 related to the company’s media partnerships and total operating expenses for the affiliate increased by 25% to $20.8 million. The rise in operating expenses was due to increased people costs associated with team expansion and higher amortisation related to the acquisition of Freebets.com for between $37.5 million and $42.5 million.
Gambling.com Group grew its performance marketing by 38% in the quarter to $25.1 million, while subscription and content syndication experienced lower growth at 8% to $2.2 million, while advertising services rose by 53% up to $4.8 million.
Casino activities remained the affiliate group’s largest earner with a revenue of $24.8 million, an increase of 63% year-on-year. Sports however dropped by 14% from 2023 down to $6.8 million, and other sources saw growth of 37% to $453,000.
For the year-to-date financials, Gambling.com Group increased its revenue by 21% to $91.9 million, with adjusted EBITDA also up by 30% from 2023 to $34 million.
"Best-in-class execution"
“Our record third quarter and year-to-date results reflect our best-in-class execution in the affiliate sector to consistently grow market share around the world,” commented Charles Gillespie, CEO and co-founder of Gambling.com Group.
“The third quarter’s strong revenue growth and record adjusted EBITDA highlights Gambling.com Group’s position as an industry leader in creating value for both our shareholders and our online gambling operator clients.
“To complement our continued organic market share growth, we continue to evaluate opportunities adjacent to the core business to expand our footprint in the online gaming ecosystem as we progress towards our goal of $100 million in annual Adjusted EBITDA.”
While Elias Mark, Gambling.com Group CFO added that as expected the company attracted good NDCs across most regions. “As expected, we generated strong igaming NDC growth across all our geographical regions, while our North American business continued to be resilient against challenging comparables.
“As reflected in our raised full-year outlook, we expect to generate significant year-over-year revenue and adjusted EBITDA growth in 2024, and we are well-positioned to carry this operating momentum forward, particularly as the North American market is expected to return to growth next year.”
North American slowdown
The group only grew its North American revenue by 1% from 2023, in line with struggling metrics seen from other affiliates in the region. While UK and Ireland jumped by 43%, the rest of Europe by 192% and the rest of the world by 37%. The North American market still represented the large revenue proportion with $12.8 million, followed by the UK and Ireland with $9.8 million.
The company expects full-year revenue to come in between $125 million to $127 million with an adjusted EBITDA of $46.5 million to $48.5 million.