Gambling.com Group said it exceeded expectations as it posted revenue of $23.5m during the three months to 30 September. That figure was up 19% compared to Q3 2022.
While adjusted EBITDA was down year-on-year, the gambling affiliate group reaffirmed that this metric is expected to grow by 50% during 2023.
North American sport is a winner for Gambling.com
While it did not issue region-by-region results, the group said North American revenue was up 42% year-on-year to $12.9m. Growth was attributed to a break-out performance from its media partnerships at the start of the fall sports season. Following this growth, the North American region now accounts for 54% of revenue for the owner of Bookies.com and RotoWire.com. This share was at 46% in Q3 2022.
Gambling.com Group added that these North American gains were partially offset by a moderation in UK and Ireland. This came following seven consecutive quarters of average revenue growth of 28%. However, it is confident growth opportunities will remain strong, including the expected benefit from the partnership with The Independent.
Revenue growth was boosted by a 26% increase in new depositing customers to surpass 86,000. This, the group said, came despite Q3 traditionally being a seasonally slow quarter. The period was also boosted by the launch of new affiliate site Casinos.com in July.
Charles Gillespie, CEO and co-founder, said: “Our third quarter results highlight our consistent performance driven by robust organic growth in North America.
“Our ability to quickly scale our strategic media partnerships complements the growth from our influential owned websites. This results in consistent year-over-year market share gains in existing states even as we face tougher comparisons given the significant organic growth we have already achieved.”
Gambling.com on track to meet forecasts
While revenue exceeded forecasts in Q3, the group said adjusted EBITDA was in line with expectations. This metric was down 6% year-on-year to $6.1m, with margin at 26% compared to 33% a year ago.
Gross profit of $21.3m was up 12% year-on-year despite an increase in cost of sales. The biggest two areas of operational expenditure – sales and marketing and administration – were both close to being flat year-on-year.
Revenue growth and its disciplined focus on capital efficiency generated Free Cash Flow for the first nine months of $16.3m. This already exceeds its full-year 2022 level.
Revenue is up 38% year-on-year to $76.1m for the first nine months of the year. Adjusted EBITDA of $26.1m is up by 52%. Revenue and adjusted EBITDA are forecast to grow by more than 30% and 50%, respectively.”
Looking ahead, Gillespie added: “Gambling.com Group is expected to continue to benefit from many near- and long-term opportunities to deliver profitable organic growth. These include further market share gains in existing markets, the benefit from expected future expansions of igaming and online sports betting in new markets in North America and around the world, our ability to scale and optimise our media partnerships and further growth in our more established European markets.
“We expect that our ability to leverage these revenue drivers with our business model, which generates attractive adjusted EBITDA margins and strong Free Cash Flow conversion, will continue to increase shareholder value.”
Original article: https://igamingbusiness.com/marketing-affiliates/affiliates/gambling-com-group-exceeds-revenue-targets-in-q3/
