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Gambling.com Group reports robust growth, plans acquisition

EditorRachael Rajan
Published 03/21/2024, 08:00 AM
© Reuters.

CHARLOTTE, N.C. - Gambling.com Group Limited (NASDAQ: GAMB), a prominent digital marketing service provider for the global online gambling industry, has disclosed record financial outcomes for the fourth quarter and the entire year ending December 31, 2023.

The company also announced an agreement to purchase Freebets.com and related assets, which is expected to positively contribute to the company's financial results upon completion. Furthermore, Gambling.com Group has provided guidance for its 2024 revenue and Adjusted EBITDA.

For the fourth quarter, the company reported a 52% increase in revenue to $32.5 million and a significant turnaround in net income to $6.4 million, compared to a loss in the same period of the previous year. For the full year, revenue surged by 42% to $108.7 million, net income climbed to $18.3 million, and Adjusted EBITDA grew by 53% to $36.7 million.

The company's growth was particularly strong in North America, where fourth-quarter revenue doubled and full-year revenue rose by 69%. This expansion was attributed to new state launches and increases in same-state sales, as well as flourishing media partnership initiatives. The recent introduction of online sports betting in North Carolina, Gambling.com Group's home state, also contributed to growth since its launch on March 11.

Looking ahead, Gambling.com Group forecasts 2024 revenue between $129 million and $133 million, with Adjusted EBITDA expected to be in the range of $44 million to $48 million. These projections are based on the current number of North American markets and do not account for additional markets or the benefits from the acquisition of Freebets.com and related assets.

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The acquisition of Freebets.com is set to close in early April, subject to standard closing conditions. Gambling.com Group anticipates that the new assets will generate approximately $10 million in revenue and $5 million in incremental Adjusted EBITDA for the nine months following the acquisition. The purchase will be funded through existing cash, borrowings under a new credit facility, and future cash flow.

Gambling.com Group's CEO, Charles Gillespie, expressed confidence in the company's position for continued growth in revenue, Adjusted EBITDA, and Free Cash Flow across all markets. The company's acquisition strategy is expected to further enhance shareholder value.

The information in this article is based on a press release statement from Gambling.com Group Limited.

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

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