Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Gambling.com Group acquires Freebets.com to boost European presence

EditorNatashya Angelica
Published 04/02/2024, 05:43 PM
GAMB
-

CHARLOTTE, N.C. - Gambling.com Group Limited (NASDAQ:GAMB), a key player in online gambling affiliate marketing, has completed the acquisition of Freebets.com and related assets, a move expected to significantly enhance its European market presence.

The transaction, which closed today, is projected to contribute approximately $10 million in revenue and $5 million in adjusted EBITDA for the remainder of 2024.

The strategic acquisition cost Gambling.com Group between $37.5 million and $42.5 million, with an initial payment of $20 million at closing. Additional payments include $10 million due six months post-closing and a contingent sum ranging from $7.5 million to $12.5 million, to be paid on the one-year anniversary, dependent on the new assets' revenue performance throughout 2024.

Charles Gillespie, CEO and Co-Founder of Gambling.com Group, emphasized the importance of European markets in the industry, despite the attention on U.S. gambling expansion. He expressed confidence that this acquisition would shift the dynamics of power within the European online gambling affiliate market and accelerate growth across both established and new markets in Europe.

The deal also brings new team members into the fold, who will benefit from the company's technology platform and performance culture.

Gambling.com Group, founded in 2006, manages a diverse portfolio of more than 50 websites across 15 national markets, including Gambling.com, Bookies.com, and Casinos.com. With a focus on iGaming, sports betting, and fantasy sports, the group operates primarily in the United States and Ireland.

The company's forward-looking statements regarding the anticipated revenue and EBITDA contributions from Freebets.com, as well as the potential market impact of the acquisition, are based on current expectations.

These statements are subject to various risks and uncertainties, and actual results may differ materially. Gambling.com Group's recent annual report and other SEC filings provide detailed information on these risk factors.

This strategic acquisition is based on a press release statement and reflects Gambling.com Group's commitment to strengthening its position and expanding its reach in the European online gambling affiliate market.

InvestingPro Insights

In light of Gambling.com Group Limited's (NASDAQ:GAMB) recent strategic acquisition, investors may find the following InvestingPro data points and tips particularly enlightening. The company's market capitalization currently stands at $342.82 million, with a trailing twelve-month price-to-earnings (P/E) ratio adjusted for the last quarter of 2023 at 13.09.

This suggests a valuation that may catch the eye of value-oriented investors, especially when considering the company's impressive gross profit margin of 91.61% over the same period.

One notable InvestingPro Tip for Gambling.com Group is its strong balance sheet, as it holds more cash than debt. This financial stability is a positive indicator for investors, particularly in an industry that can be affected by regulatory changes and market fluctuations.

Moreover, the company's gross profit margins have been lauded as impressive, which is reflected in the nearly 92% gross profit margin reported in the last twelve months as of Q1 2023. This high margin is indicative of the company's operational efficiency and pricing power within the online gambling affiliate market.

Still, it is important to note that three analysts have revised their earnings downwards for the upcoming period, which could signal potential headwinds or a conservative outlook on the company's near-term earnings potential. Despite this, Gambling.com Group is anticipated to be profitable this year, as per analyst predictions.

For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 5 more tips available for Gambling.com Group on InvestingPro. To enhance your investment decision-making, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.