Gambling.com announces upturn for Q4 and full year 23

Lea Hogg March 22, 2024

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Gambling.com announces upturn for Q4 and full year 23

Gambling.com Group Limited (Nasdaq: GAMB), a leader in digital marketing for the online gambling world, has announced a remarkable financial upturn for the fourth quarter and the entirety of 2023. The final quarter saw revenues peak at an unprecedented $32.5 million, a 52 percent leap from the previous year. This surge was mirrored in the net income, which hit $6.4 million, and Adjusted EBITDA, which climbed by 54 percent to $10.6 million.

Throughout 2023, the company’s revenue rose by 42 percent to $108.7 million, with net income reaching $18.3 million and Adjusted EBITDA growing by 53 percent to $36.7 million. North America was a significant contributor, with revenue increases of 103 percent in Q4 and 69 percent across the year, fuelled by new state launches, enhanced ‘same-state’ sales, and expanding media partnerships.

Q4 highlights

Revenue Growth: North American revenue surged by 103%, reaching $20.3 million.
Customer Acquisition: Successfully attracted over 159,000 new depositing customers (NDCs).
Kentucky’s Impact: Notable revenue boost post-launch in late September from Kentucky.
European Expansion: Acquired European casino domains and assets for $6.4 million.
Share Buyback: Repurchased?205,727 shares?at an average of?$9.70?each.
Local Launch: Commenced operations in our home state of North Carolina on?11 March.
Financial Backing: Secured a new $50 million credit facility with Wells Fargo Bank.
Acquisition: Finalized the acquisition of Freebets.com and associated assets.

Strategic expansion through acquisition

In a bold move to expand its market reach and shareholder value, Gambling.com Group has entered into a definitive agreement to acquire Freebets.com and related assets. This strategic acquisition is set to generate an estimated $10.0 million in revenue and $5.0 million in Adjusted EBITDA from April to December 2024. The total consideration for the acquisition is set between $37.5 million and $42.5 million, to be financed through existing cash, credit facilities, and future cash flows.

Future Outlook and Leadership Vision

Looking forward, Gambling.com Group forecasts a 2024 revenue of $129 million to $133 million and Adjusted EBITDA of $44 million to $48 million. This projection is based on the current market without factoring in potential new online gambling markets in North America, except for the recent launch in North Carolina, and includes revenue from the Freebets.com acquisition.

CEO Charles Gillespie (in picture above), and CFO Elias Mark have both expressed confidence in the company’s growth trajectory, emphasizing a commitment to capital efficiency and shareholder value. The company’s strategic direction and financial health suggest a promising future in the evolving online gambling industry.