Gambling.com Group achieves record Q4 despite North American slowdown

Adjusted EBITDA for the quarter was 39% higher at $14.7 million, representing a 42% margin, in line with its preliminary results released last month. Cash flow generated by operating activities was $13.7 million, a 93% increase from Q4 2023. 

The affiliate’s full-year revenue totalled $127.2 million, increasing 17% from the $108.9 million it achieved in 2023, while cash flows generated by operating activities surged to $37.6 million from $18.0 million, reflecting a 110% uplift. Adjusted EBITDA in FY24 reached $48.7 million with a 38% margin, a 33% growth from FY23’s $36.7 million. 

Q4 highlights

Despite strong revenue growth during the quarter, Gambling.com Group delivered over 145,000 NDCs to clients, a 9% year-on-year decrease from 159,000. According to the company, this was due to challenging comparisons vs Q4 2023, primarily due to ESPNBet’s launch in 17 US markets.

Total operating expenses increased 21% to $33.1 million as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets. 

Gross profit increased 21% to $33.1 million due to revenue growth and a $2.9 million year-on-year decrease in the cost of sales related to the affiliate’s media partnerships. The period also saw the accretive acquisition of Odds Holdings, the parent company of US betting tool subscription site OddsJam, for an initial $70 million in cash and $10 million in shares. 

Sector breakdown

Elias Mark, CFO at Gambling.com Group, commented the FY24 results reflected “the continued success of our strategies to optimize the returns from our global portfolio of owned and operated assets”, highlighting its “strong online casino growth” across geographical regions. However, the North American market and the sports betting sector remained challenging for the company. 

The group’s North American revenue in the final quarter slumped from $20.5 million in 2023 Q4 to $15.6 million, reflecting a 24% year-on-year decrease, a sharp contrast with the 103% growth it achieved in 2023 Q3. Full-year revenue in the market declined by 9% to $55.5 million from $60.8 million. It previously reported a slowdown in its North American revenue in 2024 Q3, growing by only 1%, which aligns with the challenges faced by other affiliates in the market. 

In comparison, its revenue in the UK and Ireland surged by 41% in Q4 to $10.6 million, while the rest of Europe saw a 106% increase to $6.4 million, and the rest of the world experienced a 92% rise to $2.8 million. 

The affiliate’s sports revenue in Q4 fell by 39% year-on-year to $9.1 million, whereas its casino revenue rose by 49% to $25.5 million during the quarter. Full-year revenue from sports dropped 18% to $33.3 million and increased 38% to $92.2 million in the casino sector. 

Performance marketing remains the affiliate’s largest revenue stream, generating $101.1 million in FY24, reflecting a 15% increase. Its subscription service rose by 9% to $8.4 million during the year, while advertising and other services grew by 35% to $17.7 million. 

2025 targets 

Charles Gillespie, CEO and co-founder of Gambling.com Group, said the affiliate anticipates “growth and continued market share gains in our performance marketing business across all geographic regions in 2025, including North America”. 

“The consolidation of Odds Holdings, Inc. from January 1st marks the start of the Company’s next phase of growth as we layer on sports data solutions to our existing, high-growth, high-margin business. Our competitive positioning is strong across the globe,” he added. 

The group expects FY2025 revenue to fall between $170 million to $174 million and adjusted EBITDA of $67 million to $69 million, excluding any benefits from sports betting legalisations in new US states, including the upcoming launch in Missouri in H2. The amount also accounts for incremental adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings.