Generates Q4 Net Income of $6.4 Million and
a 54% Increase in Adjusted EBITDA to $10.6 Million
2023 Full Year Revenue Increased 42% to
$108.7 Million; Net Income Rose to $18.3 Million and Adjusted
EBITDA Grew 53% to $36.7 Million
Enters into Definitive Agreement to Acquire
Freebets.com and Related Assets in a Highly Accretive
Transaction
Introduces 2024 Guidance for Revenue of $129
- $133 Million and Adjusted EBITDA of $44 - $48 Million
Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group”
or the “Company”), a leading provider of digital marketing services
for the global online gambling industry, today reported record
financial results for the fourth quarter and full year ended
December 31, 2023. The Company also announced a definitive
agreement to acquire Freebets.com and related assets in a
transaction that is expected to be immediately accretive to the
Company’s financial results upon closing. In addition, the Company
introduced 2024 revenue and Adjusted EBITDA guidance as detailed
below.
Fourth Quarter and Full Year 2023 vs.
Fourth Quarter and Full Year 2022 Financial Highlights
(USD in thousands, except per share data, unaudited)
Three Months Ended December
31,
Change
Year ended December
31,
Change
2023
2022
%
2023
2022
%
Revenue
32,530
21,349
52
%
108,652
76,507
42
%
Net income (loss) for the period
attributable to shareholders (1)
6,374
(4,409
)
245
%
18,260
2,390
664
%
Net income (loss) per share attributable
to shareholders, diluted (1)
0.16
(0.12
)
233
%
0.47
0.06
683
%
Net income margin (1)
20
%
(21
) %
17
%
3
%
Adjusted net income for the period
attributable to shareholders (1)(2)
6,808
613
1011
%
26,302
14,195
85
%
Adjusted net income per share attributable
to shareholders, diluted (1)(2)
0.18
0.02
800
%
0.68
0.37
84
%
Adjusted EBITDA (1)(2)
10,572
6,855
54
%
36,715
24,069
53
%
Adjusted EBITDA Margin (1)(2)
32
%
32
%
34
%
31
%
Cash flows (used in) generated by
operating activities
6,962
6,188
13
%
17,910
18,755
(5
)%
Free Cash Flow (2)
(118
)
364
(132
) %
16,185
9,467
71
%
__________
(1) For the three months ended December 31, 2023, Net income and
Net income per share include, and Adjusted net income and Adjusted
net income per share exclude, adjustments related to the Company's
2022 acquisitions of RotoWire and BonusFinder of $0.3 million, or
$0.01 per share. Similarly, these adjustments totaled $4.4 million,
or $0.13 per share, for the three months ended December 31, 2022.
For the year ended December 31, 2023, Net income and Net income per
share include, and Adjusted net income and Adjusted net income per
share exclude, adjustments related to the Company's 2022
acquisitions of RotoWire and BonusFinder of $7.7 million, or $0.21
per share. Similarly, these adjustments totaled $11.2 million, or
$0.31 per share, for the year ended December 31, 2022. See
“Supplemental Information - Non-IFRS Financial Measures” and the
tables at the end of this release for an explanation of the
adjustments. (2) Represents a non-IFRS measure. See “Supplemental
Information - Non-IFRS Financial Measures” and the tables at the
end of this release for reconciliations to the comparable IFRS
numbers.
Charles Gillespie, Chief Executive Officer and Co-Founder of
Gambling.com Group, commented, “Our fourth quarter results extended
our strong record of delivering high top-line growth and attractive
margins. With consistent execution over the years, and especially
over the past four years in North America, we have established one
of the strongest and highest-growth performance marketing
businesses in the online gambling industry. Our operating momentum
continued throughout 2023 and the undeniable power of our capital
efficient business is on full display in our full year results
which include a 42% increase in revenue to $108.7 million, a 53%
rise in Adjusted EBITDA to $36.7 million and 71% growth in Free
Cash Flow to $16.2 million.
“Our fourth quarter and full year North American revenue
increased 103% and 69%, respectively. Growth was driven by new
state launches, strong increases in ‘same-state’ sales and our
blossoming media partnership initiatives. We are confident in our
ability to continue growing our North American market share this
year and we will also benefit from the recent launch of online
sports betting in our home state of North Carolina, where we are
off to a strong start since the market launched on March 11th.
“Gambling.com Group is positioned for continued revenue,
Adjusted EBITDA and Free Cash Flow growth in 2024 and beyond across
all of our markets. As significant shareholders, the founders and
senior management of Gambling.com Group remain fully aligned with
all owners and we are steadfastly committed to enhancing
shareholder value.”
Enters into Definitive Agreement to Acquire Freebets.com and
Related Assets
Gambling.com Group also announced today that it will expand its
presence across the United Kingdom and other European markets
through a definitive agreement to acquire Freebets.com and related
assets. Closing is expected at the beginning of April, subject to
customary closing conditions. Gambling.com Group anticipates that
these assets will produce revenue of approximately $10.0 million
and incremental Adjusted EBITDA of approximately $5.0 million
during the nine months from April to December 2024.
The Company will acquire these assets for a total consideration
of between $37.5 million and $42.5 million, consisting of $20.0
million paid on closing, $10.0 million paid on the six-month
anniversary of closing and between $7.5 million and $12.5 million
to be paid on the one-year anniversary of the closing subject to
the revenue performance of the assets during the remainder of 2024.
Gambling.com Group expects to fund the purchase price from existing
cash on hand, borrowings under the recently announced credit
facility and future cash flow.
“This acquisition will provide us with another big brand and
assets that complement our existing website portfolio in a number
of our key-focus markets, enabling us to drive further growth which
is both high margin and highly accretive,” said Charles Gillespie.
“By operating these assets on our technology platform, we expect to
unlock their full potential. We are confident that this latest
acquisition will create incremental shareholder value in the same
way we have done with previous acquisitions.”
Fourth Quarter 2023 and Recent Business
Highlights
- Grew North American revenue 103% to $20.3 million
- Delivered more than 159,000 new depositing customers
("NDCs")
- Strong contribution from Kentucky following launch in late
September
- Acquired European casino domains and related assets for $6.4
million
- Repurchased 205,727 shares for an average price of $9.70
- Won the iGB Casino Affiliate of the Year Award
- Launched operations in our home state of North Carolina on
March 11th
- Secured new $50 million credit facility with Wells Fargo Bank,
National Association
- Entered into a definitive agreement to acquire Freebets.com and
related assets
Elias Mark, Chief Financial Officer of Gambling.com Group,
added, “The strong value we create for our online gambling operator
partners is evident in the 56% increase in the number of NDCs we
sent to them in 2023. Consistent with our capital efficient DNA,
nearly all of our revenue growth in 2023 was organic(1) which we
again converted into Free Cash Flow at a very high percentage. We
are positioned to further our operating momentum in 2024 as the
mid-points of our revenue and Adjusted EBITDA outlook reflect
growth of 21% and 25%, respectively.”
(1) Organic growth refers to the percentage
change in revenue during a period compared to the same period in
the previous year. Organic growth is adjusted to exclude revenue
from businesses acquired during the preceding 12 months.
2024 Outlook
The Company announced its 2024 guidance as follows:
Low
Midpoint
High
FY 2023
Revenue (millions)
129
131
133
108.7
Adjusted EBITDA (millions)
44
46
48
36.7
The Company introduces full year 2024 guidance for revenue of
$129 million to $133 million and Adjusted EBITDA of $44 million to
$48 million.
The Company’s guidance assumes:
- Following the launch of sports betting in North Carolina on
March 11th, no additional North American markets coming online over
the balance of 2024
- No benefit from any new acquisitions, apart from approximately
$10 million in revenue and $5 million in incremental Adjusted
EBITDA related to the acquisition of Freebets.com and related
assets as described above
- An average EUR/USD exchange rate of 1.09 throughout 2024
Conference Call Details
Date/Time:
Thursday, March 21, 2024, at 8:00 a.m.
ET
Webcast:
https://www.webcast-eqs.com/gamb20240314/en
U.S. Toll-Free Dial In:
877-407-0890
International Dial In:
1 201-389-0918
To access, please dial in approximately 10 minutes before the
start of the call. An archived webcast of the conference call will
also be available in the News & Events section of the Company’s
website at gambling.com/corporate/investors/news-events.
Information contained on the Company’s website is not incorporated
into this press release.
About Gambling.com Group Limited
Gambling.com Group Limited (Nasdaq: GAMB) (the "Group") is a
multi-award-winning performance marketing company and a leading
provider of digital marketing services active in the online
gambling industry. Founded in 2006, the Group has offices globally,
primarily operating in the United States and Ireland. Through its
proprietary technology platform, the Group publishes a portfolio of
premier branded websites including Gambling.com, Bookies.com,
Casinos.com and RotoWire.com. Gambling.com Group owns and operates
more than 50 websites in seven languages across 15 national markets
covering all aspects of the online gambling industry, including
iGaming and sports betting, and the fantasy sports industry.
Use of Non-IFRS Measures
This press release contains certain non-IFRS financial measures,
such as Adjusted Net Income, EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin, Free Cash Flow, and related ratios. See
“Supplemental Information - Non-IFRS Financial Measures” and the
tables at the end of this release for an explanation of the
adjustments and reconciliations to the comparable IFRS numbers.
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended, and the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, that relate to our
current expectations and views of future events. All statements
other than statements of historical facts contained in this press
release, including statements relating to our expectation of
continued growth in the North American market and other established
markets, benefits from the recent launch of online sports betting
in North Carolina, our ability to scale and optimize our media
partnerships, whether the acquisition of Freebets.com and related
assets is immediately accretive and creates additional shareholder
value, the 2024 revenue of Freebets.com and related assets, the
funding of the purchase price and whether the customary closing
conditions of the acquisition of Freebets.com and related assets
will be met, the expected continuation to benefit from near- and
long-term opportunities to deliver profitable organic growth,
whether our ability to leverage revenue drivers with our business
model will continue to increase shareholder value, availability of
additional, accretive acquisition opportunities, and our 2024
outlook, are all forward-looking statements. These statements
represent our opinions, expectations, beliefs, intentions,
estimates or strategies regarding the future, which may not be
realized. In some cases, you can identify forward-looking
statements by terms such as “believe,” “may,” “estimate,”
“continue,” “anticipate,” “intend,” “should,” “plan,” “expect,”
“predict,” “potential,” “could,” “will,” “would,” “ongoing,”
“future” or the negative of these terms or other similar
expressions that are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Forward-looking statements are based
largely on our current expectations and projections about future
events and financial trends that we believe may affect our
financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives and
financial needs. These forward-looking statements involve known and
unknown risks, uncertainties, contingencies, changes in
circumstances that are difficult to predict and other important
factors that may cause our actual results, performance, or
achievements to be materially and/or significantly different from
any future results, performance or achievements expressed or
implied by the forward-looking statement. Important factors that
could cause actual results to differ materially from our
expectations are discussed under “Item 3. Key Information - Risk
Factors” in Gambling.com Group’s annual report filed on Form 20-F
for the year ended December 31, 2022 with the U.S. Securities and
Exchange Commission (the “SEC”) on March 23, 2023, and Gambling.com
Group’s other filings with the SEC as such factors may be updated
from time to time. Any forward-looking statements contained in this
press release speak only as of the date hereof and accordingly
undue reliance should not be placed on such statements.
Gambling.com Group disclaims any obligation or undertaking to
update or revise any forward-looking statements contained in this
press release, whether as a result of new information, future
events or otherwise, other than to the extent required by
applicable law.
Consolidated Statements of Comprehensive
Income (Loss) (Unaudited) (USD in thousands, except per share
amounts)
The following table details the consolidated statements of
comprehensive income for the three and twelve months ended December
31, 2023 and 2022 in the Company's reporting currency and constant
currency.
Reporting Currency
Constant Currency
Reporting Currency
Constant Currency
Three Months Ended December
31,
Change
Change
Twelve Months Ended December
31,
Change
Change
2023
2022
%
%
2023
2022
%
%
Revenue
32,530
21,349
52
%
45
%
108,652
76,507
42
%
38
%
Cost of sales
(5,089
)
(629
)
709
%
668
%
(9,112
)
(2,959
)
208
%
198
%
Gross profit
27,441
20,720
32
%
26
%
99,540
73,548
35
%
31
%
Sales and marketing expenses
(9,687
)
(9,401
)
3
%
(2
(35,331
)
(33,740
)
5
%
1
%
Technology expenses
(3,058
)
(2,208
)
39
%
31
%
(10,287
)
(6,764
)
52
%
47
%
General and administrative expenses
(6,994
)
(5,201
)
34
%
28
%
(24,291
)
(19,519
)
24
%
21
%
Movements in credit losses allowance
468
102
359
%
337
%
(914
)
(796
)
15
%
11
%
Fair value movement on contingent
consideration
—
(4,317
)
(100
) %
(100
) %
(6,939
)
(10,852
)
(36
) %
(38
) %
Operating profit
8,170
(305
)
2779
%
(2637
) %
21,778
1,877
1060
%
1023
%
Finance income
620
—
100
%
100
%
634
2,322
(73
) %
(74
) %
Finance expenses
(2,577
)
(4,434
)
42
%
(45
) %
(2,271
)
(1,299
)
75
%
69
%
Income before tax
6,215
(4,739
)
231
%
(224
) %
20,141
2,900
595
%
572
%
Income tax (charge) credit
159
330
(52
) %
(54
) %
(1,881
)
(510
)
269
%
257
%
Net income for the period attributable
to shareholders
6,374
(4,409
)
245
%
(237
) %
18,260
2,390
664
%
640
%
Other comprehensive income
(loss)
Exchange differences on translating
foreign currencies
4,953
9,095
(46
) %
(48
) %
2,868
(4,793
)
(160
) %
(158
) %
Total comprehensive income (loss) for
the period attributable to shareholders
11,327
4,686
142
%
(129
) %
21,128
(2,403
)
979
%
952
%
Consolidated Statements of Financial
Position (Unaudited) (USD in thousands)
DECEMBER 31,
2023
DECEMBER 31,
2022
ASSETS
Non-current assets
Property and equipment
908
714
Right-of-use assets
1,460
1,818
Intangible assets
98,000
88,521
Deferred compensation cost
—
29
Deferred tax asset
7,134
5,832
Total non-current assets
107,502
96,914
Current assets
Trade and other receivables
21,938
12,222
Inventories
—
75
Cash and cash equivalents
25,429
29,664
Total current assets
47,367
41,961
Total assets
154,869
138,875
EQUITY AND LIABILITIES
Equity
Share capital
—
—
Capital reserve
74,166
63,723
Treasury shares
(3,107
)
(348
)
Share options and warrants reserve
7,414
4,411
Foreign exchange translation deficit
(4,207
)
(7,075
)
Retained earnings
44,658
26,398
Total equity
118,924
87,109
Non-current liabilities
Other payables
—
290
Deferred consideration
—
4,774
Contingent consideration
—
11,297
Lease liability
1,190
1,518
Deferred tax liability
2,008
2,179
Total non-current liabilities
3,198
20,058
Current liabilities
Trade and other payables
10,793
6,342
Deferred income
2,207
1,692
Deferred consideration
18,811
2,800
Contingent consideration
—
19,378
Other liability
308
226
Lease liability
533
554
Income tax payable
95
716
Total current liabilities
32,747
31,708
Total liabilities
35,945
51,766
Total equity and liabilities
154,869
138,875
Consolidated Statements of Cash Flows
(Unaudited) (USD in thousands)
Three Months Ended December
31,
Year ended December
31,
2023
2022
2023
2022
Cash flow from operating
activities
Income before tax
6,215
(4,739
)
20,141
2,900
Finance cost / (income), net
1,957
4,434
1,637
(1,023
)
Adjustments for non-cash items:
Depreciation and amortization
568
1,401
2,088
6,959
Movements in credit loss allowance
(468
)
(102
)
914
796
Fair value movement on contingent
consideration
—
4,317
6,939
10,852
Share-based payment expense
817
814
3,607
3,214
Warrants repurchased
—
—
—
(800
)
Income tax paid
(2,063
)
(628
)
(3,826
)
(1,444
)
Payment of contingent consideration
—
—
(4,621
)
—
Payment of deferred consideration
—
—
(2,897
)
—
Cash flows from operating activities
before changes in working capital
7,026
5,497
23,982
21,454
Changes in working capital
Trade and other receivables
(3,260
)
(907
)
(10,387
)
(5,838
)
Trade and other payables
3,196
1,673
4,240
3,214
Inventories
—
(75
)
75
(75
)
Cash flows (used in ) generated by
operating activities
6,962
6,188
17,910
18,755
Cash flows from investing
activities
Acquisition of property and equipment
(157
)
—
(451
)
(330
)
Acquisition of intangible assets
(6,924
)
(5,824
)
(8,792
)
(8,958
)
Acquisition of subsidiaries, net of cash
acquired
—
—
—
(23,411
)
Interest received from bank deposits
90
—
259
—
Payment of deferred consideration
—
—
(4,933
)
—
Payment of contingent consideration
—
—
(5,557
)
—
Cash flows used in investing
activities
(6,991
)
(5,824
)
(19,474
)
(32,699
)
Cash flows from financing
activities
Exercise of share options
—
—
106
—
Treasury shares acquired
(1,813
)
(348
)
(2,572
)
(348
)
Repayment of borrowings
—
(6,000
)
—
(6,000
)
Interest payment attributable to third
party borrowings
—
(99
)
—
(458
)
Interest payment attributable to deferred
consideration settled
—
—
(110
)
—
Principal paid on lease liability
(98
)
(75
)
(402
)
(315
)
Interest paid on lease liability
(38
)
(47
)
(165
)
(189
)
Cash flows used in financing
activities
(1,949
)
(6,569
)
(3,143
)
(7,310
)
Net movement in cash and cash
equivalents
(1,978
)
(6,205
)
(4,707
)
(21,254
)
Cash and cash equivalents at the
beginning of the period
26,884
35,092
29,664
51,047
Net foreign exchange differences on
cash and cash equivalents
522
777
472
(129
)
Cash and cash equivalents at the end of
the period
25,429
29,664
25,429
29,664
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per
share as presented in the Consolidated Statement of Comprehensive
Income for the period specified, stated in USD thousands, except
per share amounts (unaudited):
Three Months Ended December
31,
Reporting Currency
Change
Constant Currency
Change
Year Ended December
31,
Reporting Currency
Change
Constant Currency
Change
2023
2022
%
%
2023
2022
%
%
Net income for the period attributable
to shareholders
6,374
(4,409
)
245
%
(237
) %
18,260
2,390
664
%
640
%
Weighted-average number of ordinary
shares, basic
37,403,888
36,467,299
3
%
3
%
37,083,262
35,828,204
4
%
4
%
Net income per share attributable to
shareholders, basic
0.17
(0.12
)
242
%
(231
) %
0.49
0.07
600
%
600
%
Net income for the period attributable
to shareholders
6,374
(4,409
)
245
%
(237
) %
18,260
2,390
664
%
640
%
Weighted-average number of ordinary
shares, diluted
38,879,038
37,289,010
4
%
4
%
38,542,166
38,212,108
1
%
1
%
Net income per share attributable to
shareholders, diluted
0.16
(0.12
)
233
%
(233
) %
0.47
0.06
683
%
683
%
Supplemental Information
Rounding
We have made rounding adjustments to some of the figures
included in the discussion and analysis of our financial condition
and results of operations together with our consolidated financial
statements and the related notes thereto. Accordingly, numerical
figures shown as totals in some tables may not be an arithmetic
aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and
non-IFRS financial measures in analyzing and assessing the overall
performance of the business and for making operational
decisions.
Adjusted Net Income and Adjusted Net Income Per Share
Adjusted net income is a non-IFRS financial measure defined as
net income attributable to equity holders excluding the fair value
gain or loss related to contingent consideration, unwinding of
deferred consideration, and certain employee bonuses related to
acquisitions. Adjusted net income per diluted share is a non-IFRS
financial measure defined as adjusted net income attributable to
equity holders divided by the diluted weighted average number of
common shares outstanding.
We believe adjusted net income and adjusted net income per
diluted share are useful to our management as a measure of
comparative performance from period to period as these measures
remove the effect of the fair value gain or loss related to the
contingent consideration, unwinding of deferred consideration, and
certain employee bonuses, all associated with our acquisitions,
during the limited period where these items are incurred. We expect
to incur expenses related to the unwinding of deferred
consideration and employee bonuses until April 2024. See Note 5 of
the consolidated financial statements for the year ended December
31, 2023 for a description of the contingent and deferred
considerations associated with our acquisitions.
Below is a reconciliation to Adjusted net income attributable to
equity holders and Adjusted net income per share, diluted from net
income for the period attributable to the equity holders and net
income per share attributed to ordinary shareholders, diluted as
presented in the Consolidated Statements of Comprehensive Income
(Loss) and for the period specified stated in the Company's
reporting currency and constant currency (unaudited):
Reporting Currency
Constant Currency
Reporting Currency
Constant Currency
Three months ended December
31,
Change
Change
Year ended December
31,
Change
Change
2023
2022
%
%
2023
2022
%
%
Revenue
32,530
21,349
52
%
45
%
108,652
76,507
42
%
38
%
Net income (loss) for the period
attributable to shareholders
6,374
(4,409
)
245
%
(237
) %
18,260
2,390
664
%
640
%
Net income margin
20
%
(21
) %
17
%
3
%
Net income (loss) for the period
attributable to shareholders
6,374
(4,409
)
245
%
(237
) %
18,260
2,390
664
%
640
%
Fair value movement on contingent
consideration (1)
—
4,317
(100
) %
(100
) %
6,939
10,852
(36
) %
(38
) %
Unwinding of deferred consideration
(1)
309
77
301
%
277
%
735
325
126
%
119
%
Employees' bonuses related to
acquisition(1)
125
628
(80
) %
(81
) %
368
628
(41
) %
(43
) %
Adjusted net income for the period
attributable to shareholders
6,808
613
1011
%
939
%
26,302
14,195
85
%
79
%
Net income per share attributable to
shareholders, basic
0.17
-0.12
242
%
(231
) %
0.49
0.07
600
%
600
%
Effect of adjustments for fair value
movements on contingent consideration, basic
0.00
0.12
(100
) %
(100
) %
0.19
0.30
(37
) %
(39
) %
Effect of adjustments for unwinding on
deferred consideration, basic
0.01
0.01
—
%
—
%
0.02
0.01
100
%
100
%
Effect of adjustments for bonuses related
to acquisition, basic
0.00
0.01
—
%
—
%
0.01
0.02
(50
) %
(50
) %
Adjusted net income per share
attributable to shareholders, basic
0.18
0.02
800
%
800
%
0.71
0.40
78
%
73
%
Net income per share attributable to
ordinary shareholders, diluted
0.16
-0.12
233
%
(233
) %
0.47
0.06
683
%
683
%
Adjusted net income per share attributable
to shareholders, diluted
0.18
0.02
800
%
800
%
0.68
0.37
84
%
79
%
__________
(1) There is no tax impact from fair value movement on
contingent consideration, unwinding of deferred consideration or
employee bonuses related to acquisition.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings
excluding interest, income tax (charge) credit, depreciation, and
amortization. Adjusted EBITDA is a non-IFRS financial measure
defined as EBITDA adjusted to exclude the effect of non-recurring
items, significant non-cash items, share-based payment expense,
foreign exchange gains (losses), fair value of contingent
consideration, and other items that our board of directors believes
do not reflect the underlying performance of the business,
including acquisition related expenses, such as acquisition related
costs and bonuses. Adjusted EBITDA Margin is a non-IFRS measure
defined as Adjusted EBITDA as a percentage of revenue.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful
to our management team as a measure of comparative operating
performance from period to period as those measures remove the
effect of items not directly resulting from our core operations
including effects that are generated by differences in capital
structure, depreciation, tax effects and non-recurring events.
While we use Adjusted EBITDA and Adjusted EBITDA Margin as tools
to enhance our understanding of certain aspects of our financial
performance, we do not believe that Adjusted EBITDA and Adjusted
EBITDA Margin are substitutes for, or superior to, the information
provided by IFRS results. As such, the presentation of Adjusted
EBITDA and Adjusted EBITDA Margin is not intended to be considered
in isolation or as a substitute for any measure prepared in
accordance with IFRS. The primary limitations associated with the
use of Adjusted EBITDA and Adjusted EBITDA Margin as compared to
IFRS results are that Adjusted EBITDA and Adjusted EBITDA Margin as
we define them may not be comparable to similarly titled measures
used by other companies in our industry and that Adjusted EBITDA
and Adjusted EBITDA Margin may exclude financial information that
some investors may consider important in evaluating our
performance.
Below is a reconciliation to EBITDA, Adjusted EBITDA from net
income for the period attributable to shareholders as presented in
the Consolidated Statements of Comprehensive Income and for the
period specified (unaudited):
Reporting Currency
Constant Currency
Reporting Currency
Constant Currency
Three Months Ended December
31,
Change
Change
Year ended December
31,
Change
Change
2023
2022
%
%
2023
2022
%
%
(USD in thousands)
(USD in thousands)
Net income (loss) for the period
attributable to shareholders
6,374
(4,409
)
(245
) %
(237
) %
18,260
2,390
664
%
640
%
Add back (deduct):
Interest expenses on borrowings and lease
liability
38
150
(75
) %
(76
) %
165
646
(74
) %
(75
) %
Income tax charge
(159
)
(330
)
(52
) %
(52
) %
1,881
510
269
%
257
%
Depreciation expense
63
43
47
%
41
%
246
190
29
%
26
%
Amortization expense
505
1,358
(63
) %
(65
) %
1,842
6,769
(73
) %
(74
) %
EBITDA
6,821
(3,188
)
(314
) %
(303
) %
22,394
10,505
113
%
106
%
Share-based payment expense
997
814
22
%
16
%
3,787
3,214
18
%
14
%
Fair value movement on contingent
consideration
—
4,317
(100
) %
(100
) %
6,939
10,852
(36
) %
(38
) %
Unwinding of deferred consideration
309
77
301
%
281
%
735
325
126
%
119
%
Foreign currency translation losses
(gains), net
1,699
4,293
(60
) %
(62
) %
923
(2,097
)
(144
) %
(143
) %
Interest income from bank deposits
(90
)
—
100
%
100
%
(259
)
—
100
%
100
%
Other finance results
1
(86
)
(101
) %
(101
) %
73
103
(29
) %
(31
) %
Secondary offering related costs
—
—
100
%
—
%
733
—
100
%
100
%
Acquisition related costs (1)
508
—
100
%
100
%
821
539
52
%
47
%
Employees' bonuses related to
acquisition
125
628
(80
) %
100
%
368
628
(41
) %
(43
) %
Employee bonuses related to the public
offerings
201
—
100
%
100
%
201
—
100
%
100
%
Adjusted EBITDA
10,572
6,855
54
%
47
%
36,715
24,069
53
%
48
%
__________
(1) The acquisition costs are related to historical and
potential business combinations of the Group.
Below is the Adjusted EBITDA Margin calculation for the period
specified stated in the Company's reporting currency and constant
currency (unaudited):
Reporting Currency
Constant Currency
Reporting Currency
Constant Currency
Three Months Ended December
31,
Change
Change
Year ended December
31,
Change
Change
2023
2022
%
%
2023
2022
%
%
(USD in thousands, except
margin)
(in thousands USD, except
margin)
Revenue
32,530
21,349
52
%
45
%
108,652
76,507
42
%
38
%
Adjusted EBITDA
10,572
6,855
54
%
47
%
36,715
24,069
53
%
48
%
Adjusted EBITDA Margin
32
%
32
%
34
%
31
%
In regard to forward looking non-IFRS guidance, we are not able
to reconcile the forward-looking non-IFRS Adjusted EBITDA measure
to the closest corresponding IFRS measure without unreasonable
efforts because we are unable to predict the ultimate outcome of
certain significant items including, but not limited to, fair value
movements, share-based payments for future awards,
acquisition-related expenses and certain financing and tax
items.
Free Cash Flow
Free Cash Flow is a non-IFRS liquidity financial measure defined
as cash flow from operating activities adjusted for payments
related to contingent and deferred consideration included within
operating cash flow less capital expenditures.
We believe Free Cash Flow is useful to our management team as a
measure of financial performance as it measures our ability to
generate additional cash from our operations. While we use Free
Cash Flow as a tool to enhance our understanding of certain aspects
of our financial performance, we do not believe that Free Cash Flow
is a substitute for, or superior to, the information provided by
IFRS metrics. As such, the presentation of Free Cash Flow is not
intended to be considered in isolation or as a substitute for any
measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow
as compared to IFRS metrics is that Free Cash Flow does not
represent residual cash flows available for discretionary
expenditures because the measure does not deduct the payments
required for debt service and other obligations or payments made
for business acquisitions. Free Cash Flow as we define it also may
not be comparable to similarly titled measures used by other
companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows
generated by operating activities as presented in the Consolidated
Statement of Cash Flows for the period specified in the Company's
reporting currency (unaudited):
Three Months Ended December
31,
Change
Year ended December
31,
Change
2023
2022
%
2023
2022
%
(in thousands USD,
unaudited)
(USD in thousands,
unaudited)
Cash flows generated by operating
activities
6,962
6,188
13
%
17,910
18,755
(5
)
Adjustment for items presented in
operating activities:
Payment of contingent consideration
—
—
—
%
4,621
—
100
%
Payment of deferred consideration
—
—
—
%
2,897
—
100
%
Adjustment for items presenting in
investing activities:
Capital Expenditures (1)
(7,081
)
(5,824
)
22
%
(9,243
)
(9,288
)
—
%
Free Cash Flow
(118
)
364
(132
) %
16,185
9,467
71
%
__________
(1) Capital expenditures are defined as the acquisition of
property and equipment and the acquisition of intangible assets,
and excludes cash flows related to business combinations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240321872995/en/
For further information, please contact:
Investors: Peter McGough, Gambling.com Group,
investors@gdcgroup.com Richard Land, Norberto Aja, JCIR,
GAMB@jcir.com, 212-835-8500
Media: Eddie Motl, Gambling.com Group,
media@gdcgroup.com
Gambling com (NASDAQ:GAMB)
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