Latest news with #CharlesGillespie
Business Wire
10 hours ago
- Business
- Business Wire
Gambling.com Group Announces the 2025 American Gambling Awards Program
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Group Limited (Nasdaq: GAMB), (' Group' or the 'Company'), a fast-growing provider of marketing and sports data services for the global online gambling industry, today announced the launch of the 2025 program of the American Gambling Awards. Nominations are now open, and the nomination form is available here. This year's program features a new category: Advisor of the Year. Established in 2019 as the first awards dedicated exclusively to the online gambling market in the United States, this annual event celebrates excellence and innovation in the industry. 'The American Gambling Awards were created to recognize the people and organizations driving progress in the U.S. online gambling industry,' said Charles Gillespie, Co-Founder and CEO of Group. 'Now in our fifth year, the program has evolved into an elite celebration of leadership, innovation, and excellence. We're proud to continue shining a spotlight on the individuals and companies pushing our industry forward.' Group's 2025 American Gambling Awards features 12 distinct categories, spotlighting top-performing sports betting and iGaming operators, industry service providers, policymakers, regulators, and other key figures shaping the American online gambling sector. This year's program introduces the reimagined Advisor of the Year category, replacing the previous Dealmaker of the Year award. It honors the organization whose strategic, financial, or legal advisory contributions have made the most lasting impact on the U.S. online gambling industry, recognizing leadership that shapes the sector's future beyond transactions alone. The nominations for each award category will be evaluated by a panel of 20 judges, each bringing extensive U.S.-specific experience. This esteemed panel features returning industry leaders from last year's American Gambling Awards, including Jason Robins, CEO of DraftKings; Amy Howe, CEO of FanDuel; and Adam Greenblatt, CEO of BetMGM. Their insights and discernment ensure a fair and thorough selection process, reflecting the highest standards of excellence in the field. Several new judges are joining this year's panel, bringing fresh perspectives and deep expertise to the selection process: Jay Deuskar, Co-Founder and CTO of PrizePicks; George Rover, Executive Director of the Responsible Gaming Affiliate Association (RGAA); Ryan Spoon, President of Yahoo Media Group; and Thomas Winter, the driving force behind Golden Nugget's online success and now a member of the Board of Directors at Rush Street Interactive. Each winner of the American Gambling Awards receives a Golden Eagle trophy engraved with their details. Produced by Society Awards – the firm that has produced awards for the Golden Globes® and Emmys® – the Golden Eagle trophy is an 11-inch, gold-plated, cast-pewter statuette of an American Bald Eagle, proudly resting in front of a pile of casino chips. Group will again host a celebratory dinner in New York City for winners, judges, and partners. Following the success of last year's memorable evening, the 2025 event will once again be held at Michelin-starred Italian restaurant Torrisi, one of New York's most in-demand and acclaimed restaurants. This exclusive gathering serves as the highlight of the awards program, celebrating another year of outstanding industry achievements in a truly unforgettable setting. Watch the 2024 sizzle reel to see highlights from last year's celebration. Nominations are now open across 12 categories: Online Sportsbook of the Year Online Casino of the Year Gaming Product of the Year Betting Product of the Year Platform Provider of the Year Data Service Provider of the Year Payment Service Provider of the Year Responsible Gaming Award *NEW* Advisor of the Year Policymaker of the Year Regulator of the Year C-Suite Gaming Executive of the Year Key dates include: August 8, 2025: Nominations due August 26, 2025: Finalists announced October 6, 2025: Winners announced November 19, 2025: Invitation-only celebration For more information, please visit the official awards: About Group Limited Group Limited (Nasdaq: GAMB) (the 'Group') is a fast-growing provider of marketing and sports data services for the global online gambling industry. Founded in 2006, the Group operates globally, primarily from offices in the United States and Ireland. The Group helps online gambling operators, including for iGaming and sports betting, acquire new customers in 19 national markets across more than ten languages through a portfolio of premier branded websites including and Under OddsJam, OpticOdds and RotoWire brands, the Group's sports data services assist consumers and powers enterprises to succeed in sports betting and fantasy sports.
Yahoo
15-05-2025
- Business
- Yahoo
Gambling.com Group Reports First Quarter Results Including Record Revenue and Adjusted EBITDA
Reiterates 2025 Full Year Guidance CHARLOTTE, N.C., May 15, 2025--(BUSINESS WIRE)-- Group Limited (Nasdaq: GAMB) (" Group" or the "Company"), a fast-growing provider of marketing and sports data services for the global online gambling industry, today reported financial results for the first quarter ended March 31, 2025. Charles Gillespie, Chief Executive Officer and Co-Founder of Group, commented, "We entered 2025 with our marketing business at all-time highs and with an expanded suite of sports data services having closed the acquisition of OddsJam and OpticOdds on January 1. Since the closing, we have made substantial progress on integrating these offerings into our overall business and the products are performing strongly as expected. With an enhanced sports data services platform, we now have meaningful recurring subscription revenue, which we expect to account for well over 20% of our 2025 revenue, bringing increased revenue visibility and a complimentary, high margin and high growth source of profit and cash flow. "We are reiterating our full year 2025 guidance despite the unpredictable macro environment, as our services address critical problems for all our customers and our industry is typically insulated from the gyrations of the global economy. We continue to expect 2025 to be another year of record revenue, Adjusted EBITDA and Free Cash Flow as we leverage the skills and expertise of our talented team with a larger product offering to drive growth across all our reporting regions. Each day we are moving closer to our goal of generating $100 million in annual Adjusted EBITDA." Elias Mark, Chief Financial Officer of Group, added, "Our first quarter results include record quarterly revenue of $40.6 million and Adjusted EBITDA of $15.9 million, reflecting year-over-year growth of 39% and 56%, respectively. With the solid start to the year, we remain confident in our full year outlook with the midpoints of our guidance for revenue of $172 million and $68 million in Adjusted EBITDA, representing year on year growth of 35% and 40%, respectively." Financial Highlights Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024(USD in thousands, except per share data, unaudited) Three Months Ended March 31, Change 2025 2024 % Revenue 40,635 29,215 39 % Net income for the period attributable to shareholders 11,236 7,299 54 % Net income per share attributable to shareholders, diluted 0.31 0.19 63 % Net income margin 28 % 25 % Adjusted net income for the period attributable to shareholders (1) 16,490 9,264 78 % Adjusted net income per share attributable to shareholders, diluted (1) 0.46 0.24 92 % Adjusted EBITDA (1) 15,864 10,159 56 % Adjusted EBITDA Margin (1) 39 % 35 % Cash flows generated by operating activities 11,415 8,806 30 % Free Cash Flow (1) 10,277 8,193 25 % __________(1) 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. First Quarter 2024 and Recent Business Highlights Delivered more than 138,000 new depositing customers ("NDCs") Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in ordinary shares Expanded credit facility to $165 million with a new syndicate Three Months Ended March 31, 2025 Results Compared to Three Months Ended March 31, 2024 Revenue rose 39% year-over-year to a record $40.6 million. Revenue from marketing services increased 13% year over year to $30.7 million as the Company delivered more than 138,000 NDCs to clients, a 29% increase over the prior-year period. Revenue from sports data services increased 405% year-over-year to $9.9 million, primarily due to the contribution of OddsJam and OpticOdds following the acquisition on January 1. Recurring subscription revenue represented 24% of total 2025 first quarter revenue. Gross profit increased 42% to $38.4 million, due to strong revenue growth while cost of sales was in line with the prior-year period reflecting lower cost of sales for media partnerships offset by the addition of cost of sales related to OddsJam and OpticOdds. Total operating expenses increased 49% to $28.4 million, primarily as a result of increased people costs and higher amortization related to the acquisition of and related assets on April 1, 2024 and the acquisition of Odds Holdings on January 1, 2025. Net income attributable to shareholders increased $3.9 million to $11.2 million and net income per share was $0.31 compared to $0.19 in the prior-year period. Adjusted net income rose 78% to $16.5 million and Adjusted net income per share increased 92% to $0.46. Adjusted EBITDA increased 56% to a record $15.9 million, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $10.2 million and an Adjusted EBITDA margin of 35% in the prior-year period. Operating cash flow grew 30% to $11.4 million. Free cash flow increased 25% to $10.3 million, reflecting growth in Adjusted EBITDA partly offset by working capital movements. 2025 Outlook Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an Adjusted EBITDA margin of 39.5%. The Company's guidance assumes: Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025. No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company's guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body. An average EUR/USD exchange rate of 1.10 throughout 2025. Conference Call Details Date/Time: Thursday, May 15, 2025, at 8:00 a.m. ET Webcast: 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 Information contained on the Company's website is not incorporated into this press release. About Group Limited Group Limited (Nasdaq: GAMB) (the "Group") is a fast-growing provider of marketing and sports data services for the global online gambling industry. Founded in 2006, the Group operates globally, primarily from offices in the United States and Ireland. The Group helps online gambling operators, including for iGaming and sports betting, acquire new customers in 19 national markets across more than ten languages through a portfolio of premier branded websites including and Under the OddsJam, OpticOdds and RotoWire brands, the Group's sports data services assist consumers and powers enterprises to succeed in sports betting and fantasy sports. 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 whether 2025 will be another year of record revenue, Adjusted EBITDA and Free Cash Flow, the percentage of 2025 revenue expected from recurring subscription revenue, whether we can achieve $100 million in annual Adjusted EBITDA, and our 2025 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 Group's annual report filed on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (the "SEC") on March 20, 2025, and 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. 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 (Unaudited)(USD in thousands, except per share amounts) The following table details the consolidated statements of comprehensive income for the three months ended March 31, 2025 and 2024 in the Company's reporting currency and constant currency. Reporting Currency Constant Currency Three Months Ended March 31, Change Change 2025 2024 % % Revenue 40,635 29,215 39 % 43 % Cost of sales (2,246 ) (2,233 ) 1 % 4 % Gross profit 38,389 26,982 42 % 47 % Sales and marketing expenses (15,163 ) (9,612 ) 58 % 63 % Technology expenses (5,193 ) (3,215 ) 62 % 67 % General and administrative expenses (7,675 ) (6,304 ) 22 % 26 % Movements in credit losses allowance and write-offs (329 ) 40 (923 )% (944 )% Operating profit 10,029 7,891 27 % 31 % Finance income 3,894 944 313 % 325 % Finance expenses (2,974 ) (454 ) 555 % 574 % Income before tax 10,949 8,381 31 % 35 % Income tax credit (charge) 287 (1,082 ) (127 )% (127 )% Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Other comprehensive income (loss) Exchange differences on translating foreign currencies 1,409 (2,594 ) (154 )% (156 )% Total comprehensive income for the period attributable to shareholders 12,645 4,705 169 % 177 % Consolidated Statements of Financial Position (Unaudited)(USD in thousands) MARCH 31, 2025 DECEMBER 31, 2024 ASSETS Non-current assets Property and equipment 2,063 1,833 Right-of-use assets 4,421 4,632 Intangible assets 248,143 130,811 Deferred tax asset 5,812 6,418 Total non-current assets 260,439 143,694 Current assets Trade and other receivables 23,969 21,160 Cash and cash equivalents 21,498 13,729 Total current assets 45,467 34,889 Total assets 305,906 178,583 EQUITY AND LIABILITIES Equity Share capital — — Capital reserve 89,160 78,037 Treasury shares (29,998 ) (29,998 ) Share-based compensation reserve 11,106 10,624 Foreign exchange translation deficit (9,403 ) (10,812 ) Retained earnings 86,573 75,337 Total equity 147,438 123,188 Non-current liabilities Lease liability 3,609 3,819 Deferred consideration 1,741 — Deferred tax liability 7,876 2,258 Contingent consideration 24,217 — Borrowings 78,114 19,582 Total non-current liabilities 115,557 25,659 Current liabilities Trade and other payables 7,640 10,205 Deferred income 5,366 2,616 Deferred consideration 11,176 11,277 Borrowings and accrued interest 10,402 3,349 Lease liability 1,278 1,213 Income tax payable 7,049 1,076 Total current liabilities 42,911 29,736 Total liabilities 158,468 55,395 Total equity and liabilities 305,906 178,583 Consolidated Statements of Cash Flows (Unaudited)(USD in thousands) Three months ended March 31, 2025 2024 Cash flow from operating activities Income before tax 10,949 8,381 Finance income, net (920 ) (490 ) Income tax (paid) reimbursed (753 ) 214 Adjustments for non-cash items: Depreciation and amortization 3,776 624 Movements in credit loss allowance and write-offs 329 (40 ) Share-based payment expense 1,409 837 Cash flows from operating activities before changes in working capital 14,790 9,526 Changes in working capital Trade and other receivables (2,207 ) 2,240 Trade and other payables (1,168 ) (2,960 ) Cash flows generated by operating activities 11,415 8,806 Cash flows from investing activities Acquisition of property and equipment (311 ) (72 ) Capitalization of internally developed intangibles (827 ) (541 ) Acquisition of subsidiaries, net of cash acquired (66,955 ) — Interest received from bank deposits 36 74 Payment of deferred consideration in relation to business combinations (300 ) (4,450 ) Cash flows used in investing activities (68,357 ) (4,989 ) Cash flows from financing activities Exercise of options 588 106 Treasury shares acquired — (3,084 ) Proceeds from borrowings 94,500 — Transaction costs related to borrowings (5,656 ) — Repayment of borrowings (23,381 ) — Interest payment attributable to third party borrowings (1,730 ) — Interest payment attributable to deferred consideration settled — (550 ) Principal paid on lease liability (213 ) (100 ) Interest paid on lease liability (74 ) (34 ) Cash flows generated from (used in) financing activities 64,034 (3,662 ) Net movement in cash and cash equivalents 7,092 155 Cash and cash equivalents at the beginning of the period 13,729 25,429 Net foreign exchange differences on cash and cash equivalents 677 (266 ) Cash and cash equivalents at the end of the period 21,498 25,318 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 March 31, Reporting Currency Change Constant Currency Change 2025 2024 % % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Weighted-average number of ordinary shares, basic 35,572,365 37,088,365 (4 )% (4 )% Net income per share attributable to shareholders, basic 0.32 0.20 60 % 63 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Weighted-average number of ordinary shares, diluted 36,219,725 38,175,047 (5 )% (5 )% Net income per share attributable to shareholders, diluted 0.31 0.19 63 % 63 % Disaggregated Revenue Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. Marketing Performance marketing. Performance marketing revenue consists of (i) CPA revenue from arrangements where we are paid exclusively by a single cash payment for each referred player, (ii) revenue share arrangements where we are paid exclusively by a share of the customer's net gambling revenue ("NGR") from the referred players, and (iii) hybrid revenue from arrangements where we are paid by both a CPA commission and a revenue share commission from the referred players. Advertising and other. Advertising, media and other revenue includes revenue from arrangements not based on the referred players and includes advertising on our platform and onboarding fees. Data Subscription. Data revenue consists of consumer and enterprise subscription revenue from data, data analytics and data syndication services. Three Months Ended March 31, Change 2025 2024 2025 vs 2024 Marketing 30,736 27,256 13 % Data 9,899 1,959 405 % Total revenues 40,635 29,215 39 % The Company presents revenue as disaggregated by market based on the location of end user as follows: Three Months Ended March 31, Change 2025 2024 2025 vs 2024 North America 20,979 14,816 42 % U.K. and Ireland 11,085 8,920 24 % Other Europe 5,935 3,861 54 % Rest of the world 2,636 1,618 63 % Total revenues 40,635 29,215 39 % The Company presents disaggregated revenue by monetization type as follows: Three Months Ended March 31, Change 2025 2024 2025 vs 2024 Performance marketing 25,731 23,373 10 % Subscription 9,899 1,959 405 % Advertising & other 5,005 3,883 29 % Total revenues 40,635 29,215 39 % The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows: Three Months Ended March 31, Change 2025 2024 2025 vs 2024 Casino 24,576 19,810 24 % Sports 15,384 9,137 68 % Other 675 268 152 % Total revenues 40,635 29,215 39 % 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 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 In the fourth quarter of 2024, we changed our definition of Adjusted net income, a non-IFRS financial measure, to net income attributable to shareholders adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, fair value movements related to contingent consideration, unwinding of deferred consideration, amortization expenses related to acquired businesses and assets, 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. Previously, Adjusted net income, a non-IFRS financial measure, was defined as net income attributable to shareholders excluding the fair value gain or loss related to contingent consideration, unwinding of deferred consideration, and certain employee bonuses related to acquisitions. We believe this more appropriately reflects the measurement of Adjusted net income as it includes adjustments for non-recurring items and significant non-cash items in addition to fair value movements related to contingent consideration and unwinding of deferred consideration. Adjusted net income per diluted share is a non-IFRS financial measure defined as Adjusted net income attributable to shareholders 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. The unwinding of deferred and contingent consideration during the three months ended March 31, 2025 is mainly associated with the unwinding of the discount applied to the valuation of deferred consideration for the acquisition of the Assets and the deferred and contingent consideration for the acquisition of Odds Holdings, Inc. completed January 1, 2025. The unwinding of deferred consideration and employee bonuses incurred until April 2024 relate to the Company's acquisition of Roto Sports and BonusFinder. See Note 5 of the consolidated financial statements for the year ended December 31, 2023 filed on March 21, 2024 for a description of the contingent and deferred considerations associated with our 2022 acquisitions. While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share 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 net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance. The following tables reconcile Adjusted net income and Adjusted net income per share, diluted from net income for the period attributable to the shareholders and net income per share attributed to shareholders, diluted as presented in the Consolidated Statements of Comprehensive Income and for the period specified (unaudited): Reporting Currency Constant Currency Three months ended March 31, Change Change 2025 2024 % % (USD in thousands) Revenue 40,635 29,215 39 % 43 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Net income margin 28 % 25 % Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Unwinding of deferred consideration (1) 684 253 170 % 178 % Deferred revenue fair value adjustment (1) 325 — 100 % 100 % Share-based payment and related expense (2) 1,409 837 68 % 73 % Acquisition related costs (2) 325 807 (60 )% (59 )% Amortization expense related to acquired businesses and assets (2) 2,800 173 1518 % 1567 % Tax effect of the adjusting costs (2) (289 ) (105 ) 175 % 183 % Adjusted net income for the period attributable to shareholders 16,490 9,264 78 % 83 % __________(1) There is no tax impact from unwinding of deferred consideration related to acquisition.(2) Tax effect of adjusting costs is computed based on acquisition related costs and certain amortization charges related to acquired businesses and assets using effective tax rate for each period. Reporting Currency Constant Currency Three months ended March 31, Change Change 2025 2024 % % Net income per share attributable to shareholders, basic 0.32 0.20 60 % 63 % Effect of adjustments for unwinding on deferred, basic 0.02 0.01 100 % 100 % Effect of adjustments for deferred revenue fair value adjustment, basic 0.01 0.00 100 % 100 % Effect of adjustments for share-based payment and related expense, basic 0.04 0.02 100 % 100 % Effect of adjustments for acquisition related costs, basic 0.01 0.02 (50 )% (50 )% Effect of adjustments for amortization expense related to acquired businesses and assets, basic 0.08 0.00 100 % 100 % Effect of tax adjustments, basic (0.01 ) 0.00 (100 )% (100 )% Adjusted net income per share attributable to shareholders, basic 0.46 0.25 84 % 92 % Net income per share attributable to ordinary shareholders, diluted 0.31 0.19 63 % 63 % Adjusted net income per share attributable to shareholders, diluted 0.46 0.24 92 % 92 % 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 and Adjusted EBITDA from net income attributable to shareholders for the period as presented in the Consolidated Statements of Comprehensive Income for the period specified (unaudited): Reporting Currency Constant Currency Three Months Ended March 31, Change Change 2025 2024 % % (USD in thousands) Net income for the period attributable to shareholders 11,236 7,299 54 % 59 % Add back (deduct): Interest expenses on borrowings and lease liability 2,078 34 6012 % 6197 % Interest income (36 ) (74 ) (51 )% (51 )% Income tax charge (287 ) 1,082 (127 )% (127 )% Depreciation expense 126 70 80 % 85 % Amortization expense 3,650 554 559 % 580 % EBITDA 16,767 8,965 87 % 93 % Share-based payment and related expense 1,409 837 68 % 74 % Deferred revenue fair value adjustment 325 — 100 % 100 % Unwinding of deferred consideration 684 253 170 % 179 % Foreign currency translation losses (gains), net (3,768 ) (719 ) 424 % 441 % Other finance results 122 16 663 % 663 % Acquisition related costs (1) 325 807 (60 )% (58 )% Adjusted EBITDA 15,864 10,159 56 % 61 % __________(1) The acquisition costs are related to historical and contemplated 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 Three Months Ended March 31, Change Change 2025 2024 % % (USD in thousands, except margin) Revenue 40,635 29,215 39 % 43 % Adjusted EBITDA 15,864 10,159 56 % 61 % Adjusted EBITDA Margin 39 % 35 % 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 less capital expenditures. In the second quarter of 2024, we changed our definition of Free Cash Flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not asset acquisitions were excluded from capital expenditures. We believe that this more appropriately reflects the measurement of Free Cash Flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions. 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 payments and other obligations or payments made for 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 Statements of Cash Flows for the period specified (unaudited): Three Months Ended March 31, Change 2025 2024 % (in thousands USD, unaudited) Cash flows generated by operating activities 11,415 8,806 30 % Adjustment for items presenting in investing activities: Capital Expenditures (1): Acquisition of property and equipment (311 ) (72 ) 332 % Capitalization of internally developed intangibles (827 ) (541 ) 53 % Free Cash Flow 10,277 8,193 25 % __________(1) Capital expenditures for Free Cash Flow are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions, as described above. View source version on Contacts For further information, please contact:Investors: Peter McGough, Group, investors@ Richard Land, Norberto Aja, JCIR, GAMB@ 212-835-8500Media: Christine Doh, Group; media@ Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Gambling.com Group Reports Fourth Quarter and Full-Year 2024 Results
2025 Guidance Mid-points Imply 35% and 40% Year-Over-Year Revenue and Adjusted EBITDA Growth CHARLOTTE, N.C., March 20, 2025--(BUSINESS WIRE)-- Group Limited (Nasdaq: GAMB) (" Group" or the "Company"), a fast-growing provider of digital marketing services for the global online gambling industry, today reported financial results for the fourth quarter and full-year ended December 31, 2024. Charles Gillespie, Chief Executive Officer and Co-Founder of Group, commented, "Our record fourth quarter and full-year results were driven by our team's prioritization of iGaming across the markets where we operate. Our team delivered outstanding performance in the quarter, especially when compared to the launch driven results in the prior-year period. We anticipate growth and continued market share gains in our performance marketing business across all geographic regions in 2025, including North America. The consolidation of Odds Holdings, Inc. from January 1st marks the start of the Company's next phase of growth as we layer on sports data solutions to our existing, high-growth, high-margin business. Our competitive positioning is strong across the globe." "We capped an active and productive year during which we set the stage for continued strong growth in 2025 and beyond," said Mr. Gillespie. "In 2024, we extended our record of delivering full-year revenue, Adjusted EBITDA and Free Cash Flow growth with those metrics improving 17%, 33%, and 81%, respectively, year-over-year. In addition, we strengthened our product and market positioning organically as well as through the complementary, accretive acquisitions of and Odds Holdings. With the biggest and most talented team we have ever had and an enhanced product offering, we are making great progress towards our goal of reaching $100 million in annual Adjusted EBITDA." Elias Mark, Chief Financial Officer of Group, added, "Fourth quarter revenue and Adjusted EBITDA increased 9% and 39% year-over-year, respectively, and over 80% of Adjusted EBITDA converted to free cash flow, reflecting the continued success of our strategies to optimize the returns from our global portfolio of owned and operated assets. As expected, we generated strong online casino growth across all our geographical regions, while our North American business continued to be resilient against challenging comparables. As reflected in our full-year guidance, we expect to generate significant year-over-year revenue and Adjusted EBITDA growth in 2025, and we are well-positioned to carry this operating momentum forward." Financial Highlights Three Months Ended December 31, 2024 vs. Three Months Ended December 31, 2023 (USD in thousands, except per share data, unaudited) Three Months Ended December 31, Change 2024 2023 % Revenue 35,308 32,530 9 % Net income for the period attributable to shareholders 7,933 6,372 24 % Net income per share attributable to shareholders, diluted 0.23 0.16 44 % Net income margin 22 % 20 % Adjusted net income for the period attributable to shareholders (1) 12,172 8,622 41 % Adjusted net income per share attributable to shareholders, diluted (1) 0.35 0.22 59 % Adjusted EBITDA (1) 14,736 10,569 39 % Adjusted EBITDA Margin (1) 42 % 32 % Cash flows generated by operating activities 13,698 7,140 92 % Free Cash Flow (1) 13,162 6,511 102 % __________ (1) 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. Fourth Quarter 2024 and Recent Business Highlights Delivered more than 145,000 new depositing customers ("NDCs") Repurchased 486,312 shares at an average price of $9.80 per share Won Casino Affiliate of the Year at the 2024 EGR Operator Awards Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in shares Expanded credit facility to $165 million with a new syndicate Three Months Ended December 31, 2024 Results Compared to Three Months Ended December 31, 2023 Revenue rose 9% year-over-year to a record $35.3 million. The Company delivered more than 145,000 NDCs to clients, a 9% year-over-year decrease reflecting a challenging comparison primarily due to ESPNBet's launch in 17 markets in the 2023 fourth quarter period. Gross profit increased 21% to $33.1 million, due to strong revenue growth and a $2.9 million year-over-year decrease in cost of sales related to the Company's media partnerships. Total operating expenses increased 21% to $23.3 million, primarily as a result of increased people costs and higher amortization related to the acquisition of and related assets. Net income attributable to shareholders increased $1.6 million to $7.9 million and net income per share was $0.23 compared to $0.16 in the prior year period. Adjusted net income rose 41% to $12.2 million and adjusted net income per share increased 59% to $0.35. Adjusted EBITDA increased 39% to a record $14.7 million, reflecting an Adjusted EBITDA margin of 42% as compared to Adjusted EBITDA of $10.6 million and an Adjusted EBITDA margin of 32% in the prior-year period. Operating cash flow of $13.7 million compared to $7.1 million in the prior-year period. Free cash flow grew 102% to $13.2 million reflecting growth in net income and Adjusted EBITDA and positive working capital movements in the quarter. 2025 Outlook Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an adjusted EBITDA margin of 39.5%. The Company's guidance assumes: Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025. No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company's guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body. An average EUR/USD exchange rate of 1.07 throughout 2025. Financial Highlights Full Year Ended December 31, 2024 vs. Full Year Ended December 31, 2023 (USD in thousands, except per share data, unaudited) Year ended December 31, Change 2024 2023 % Revenue 127,182 108,652 17 % Net income for the period attributable to shareholders 30,679 18,260 68 % Net income per share attributable to shareholders, diluted 0.84 0.47 79 % Net income margin 24 % 17 % Adjusted net income for the period attributable to shareholders (1) 42,120 32,207 31 % Adjusted net income per share attributable to shareholders, diluted (1) 1.16 0.84 38 % Adjusted EBITDA (1) 48,691 36,715 33 % Adjusted EBITDA Margin (1) 38 % 34 % Cash flows generated by operating activities 37,638 17,910 110 % Free Cash Flow (1) 41,582 23,000 81 % __________ (1) 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. Conference Call Details Date/Time: Thursday, March 20, 2025, at 8:00 a.m. ET Webcast: 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 Information contained on the Company's website is not incorporated into this press release. About Group Limited Group Limited (Nasdaq: GAMB) (the "Group") is a fast-growing provider of digital marketing services for the global 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 and Group owns and operates more than 50 websites in more than 10 languages across 19 national markets covering all aspects of the online gambling industry, including iGaming and sports betting, and the fantasy sports industry. The Group's OddsJam platform provides a suite of tools and services to assist consumer and enterprise s in sports betting. 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 further expansion of our footprint in the online gaming ecosystem, our continued market share gains in our performance marketing business across all geographic regions. whether we can achieve $100 million in annual Adjusted EBITDA, whether the North American market returns to growth in 2025, and our 2025 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 Group's annual report filed on Form 20-F for the year ended December 31, 2024 with the U.S. Securities and Exchange Commission (the "SEC") on March 20, 2025, and 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. 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 (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, 2024 and 2023 in the Company's reporting currency and constant currency. Reporting Currency ConstantCurrency Reporting Currency ConstantCurrency Three Months EndedDecember 31, Change Change Year endedDecember 31, Change Change 2024 2023 % % 2024 2023 % % Revenue 35,308 32,530 9 % 10 % 127,182 108,652 17 % 18 % Cost of sales (2,185 ) (5,089 ) (57 )% (57 )% (7,536 ) (9,112 ) (17 )% (17 )% Gross profit 33,123 27,441 21 % 22 % 119,646 99,540 20 % 21 % Sales and marketing expenses (10,876 ) (9,687 ) 12 % 13 % (41,897 ) (35,331 ) 19 % 19 % Technology expenses (3,905 ) (3,058 ) 28 % 29 % (13,949 ) (10,287 ) 36 % 36 % General and administrative expenses (9,064 ) (6,994 ) 30 % 31 % (27,645 ) (24,291 ) 14 % 14 % Movements in credit losses allowance and write-offs 581 468 24 % 25 % (480 ) (914 ) (47 )% (47 )% Fair value movement on contingent consideration — — — % — % — (6,939 ) (100 )% (100 )% Operating profit 9,859 8,170 21 % 22 % 35,675 21,778 64 % 65 % Finance income 57 620 (91 )% (91 )% 1,570 634 148 % 149 % Finance expenses (910 ) (2,577 ) (65 )% (64 )% (3,095 ) (2,271 ) 36 % 37 % Income before tax 9,006 6,213 45 % 46 % 34,150 20,141 70 % 70 % Income tax charge (1,073 ) 159 (775 )% (778 )% (3,471 ) (1,881 ) 85 % 85 % Net income for the period attributable to shareholders 7,933 6,372 25 % 26 % 30,679 18,260 68 % 69 % Other comprehensive income (loss) Exchange differences on translating foreign currencies (7,399 ) 4,953 (249 )% (251 )% (6,605 ) 2,868 (330 )% (331 )% Total comprehensive income for the period attributable to shareholders 534 11,325 (95 )% (95 )% 24,074 21,128 14 % 15 % Consolidated Statements of Financial Position (Unaudited) (USD in thousands) DECEMBER 31, 2024 DECEMBER 31, 2023 ASSETS Non-current assets Property and equipment 1,833 908 Right-of-use assets 4,632 1,460 Intangible assets 130,811 98,000 Deferred tax asset 6,418 7,134 Total non-current assets 143,694 107,502 Current assets Trade and other receivables 21,160 21,938 Cash and cash equivalents 13,729 25,429 Total current assets 34,889 47,367 Total assets 178,583 154,869 EQUITY AND LIABILITIES Equity Share capital — — Capital reserve 78,037 74,166 Treasury shares (29,998 ) (3,107 ) Share-based compensation reserve 10,624 7,414 Foreign exchange translation deficit (10,812 ) (4,207 ) Retained earnings 75,337 44,658 Total equity 123,188 118,924 Non-current liabilities Lease liability 3,819 1,190 Deferred tax liability ... 2,258 2,008 Borrowings 19,582 — Total non-current liabilities 25,659 3,198 Current liabilities Trade and other payables 10,205 10,793 Deferred income 2,616 2,207 Deferred consideration 11,277 18,811 Other liability — 308 Borrowings and accrued interest 3,349 — Lease liability 1,213 533 Income tax payable 1,076 95 Total current liabilities 29,736 32,747 Total liabilities 55,395 35,945 Total equity and liabilities 178,583 154,869 Consolidated Statements of Cash Flows (Unaudited) (USD in thousands) Three months endedDecember 31, Year endedDecember 31, 2024 2023 2024 2023 Cash flow from operating activities Income before tax 9,006 6,213 34,150 20,141 Finance expense (income), net 853 1,957 1,525 1,637 Adjustments for non-cash items: Depreciation and amortization 1,756 568 5,802 2,088 Movements in credit loss allowance and write-offs (581 ) (468 ) 480 914 Fair value movement on contingent consideration — — — 6,939 Share-based payment expense 1,215 997 4,953 3,607 Income tax paid (331 ) (2,063 ) (1,901 ) (3,826 ) Payment of contingent consideration in relation to business combinations — — — (4,621 ) Payment of deferred consideration in relation to business combinations — — (7,156 ) (2,897 ) Cash flows from operating activities before changes in working capital 11,918 7,204 37,853 23,982 Changes in working capital Trade and other receivables (670 ) (3,260 ) (98 ) (10,387 ) Trade and other payables 2,450 3,196 (117 ) 4,240 Inventories — — — 75 Cash flows generated by operating activities 13,698 7,140 37,638 17,910 Cash flows from investing activities Acquisition of property and equipment (137 ) (157 ) (1,326 ) (451 ) Acquisition of intangible assets — (6,452 ) (21,074 ) (6,815 ) Capitalization of internally developed intangibles (399 ) (472 ) (1,886 ) (1,977 ) Interest received from bank deposits 20 90 137 259 Payment of deferred consideration in relation to business combinations — — (10,154 ) (4,933 ) Payment of deferred consideration for intangible assets (9,539 ) (9,539 ) — Payment of contingent consideration in relation to business combinations — — — (5,557 ) Cash flows used in investing activities (10,055 ) (6,991 ) (43,842 ) (19,474 ) Cash flows from financing activities Exercise of options 265 — 1,521 106 Issue of ordinary shares 218 — 218 — Treasury shares acquired (4,883 ) (1,813 ) (27,078 ) (2,572 ) Proceeds from borrowings — — 45,560 — Transaction costs related to borrowings — — (847 ) — Repayment of borrowings — — (21,060 ) — Interest payment attributable to third party borrowings (342 ) — (888 ) — Interest payment attributable to deferred consideration settled in relation to business combinations — — (1,272 ) (110 ) Interest payment attributable to deferred consideration settled for intangible assets (461 ) — (461 ) — Principal paid on lease liability (205 ) (98 ) (688 ) (402 ) Interest paid on lease liability (78 ) (38 ) (249 ) (165 ) Cash flows used in financing activities (5,486 ) (1,949 ) (5,244 ) (3,143 ) Net movement in cash and cash equivalents (1,843 ) (1,800 ) (11,448 ) (4,707 ) Cash and cash equivalents at the beginning of the period 15,723 26,884 25,429 29,664 Net foreign exchange differences on cash and cash equivalents (151 ) 345 (252 ) 472 Cash and cash equivalents at the end of the period 13,729 25,429 13,729 25,429 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 EndedDecember 31, ReportingCurrencyChange ConstantCurrencyChange Year endedDecember 31, ReportingCurrencyChange ConstantCurrencyChange 2024 2023 % % 2024 2023 % % Net income for the period attributable to shareholders 7,933 6,372 24 % 26 % 30,679 18,260 68 % 69 % Weighted-average number of ordinary shares, basic 34,747,779 37,403,888 (7 )% (7 )% 36,034,115 37,083,262 (3 )% (3 )% Net income per share attributable to shareholders, basic 0.23 0.17 35 % 35 % 0.85 0.49 73 % 73 % Net income for the period attributable to shareholders 7,933 6,372 24 % 26 % 30,679 18,260 68 % 69 % Weighted-average number of ordinary shares, diluted 35,188,864 38,879,038 (9 )% (9 )% 36,337,349 38,542,166 (6 )% (6 )% Net income per share attributable to shareholders, diluted 0.23 0.16 44 % 44 % 0.84 0.47 79 % 79 % Disaggregated Revenue Revenue is disaggregated based on how the nature, amount, timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company presents revenue as disaggregated by market based on the location of end user as follows: Three Months EndedDecember 31, Change Year endedDecember 31, Change 2024 2023 2024 vs 2023 2024 2023 2024 vs 2023 North America 15,632 20,516 (24 )% 55,500 60,755 (9 )% UK and Ireland 10,555 7,495 41 % 39,179 31,347 25 % Other Europe 6,366 3,086 106 % 22,463 10,994 104 % Rest of the world 2,755 1,433 92 % 10,040 5,556 81 % Total revenues 35,308 32,530 9 % 127,182 108,652 17 % The Company presents disaggregated revenue by monetization type as follows: Three Months EndedDecember 31, Change Year endedDecember 31, Change 2024 2023 2024 vs 2023 2024 2023 2024 vs 2023 Performance marketing 28,404 27,000 5 % 101,078 87,824 15 % Subscription 2,191 2,009 9 % 8,367 7,652 9 % Advertising & other 4,713 3,521 34 % 17,737 13,176 35 % Total revenues 35,308 32,530 9 % 127,182 108,652 17 % The Company also tracks its revenues based on the product type from which it is derived. Revenue disaggregated by product type was as follows: Three Months EndedDecember 31, Change Year endedDecember 31, Change 2024 2023 2024 vs 2023 2024 2023 2024 vs 2023 Casino 25,505 17,081 49 % 92,224 66,869 38 % Sports 9,135 14,933 (39 )% 33,282 40,634 (18 )% Other 668 516 29 % 1,676 1,149 46 % Total revenues 35,308 32,530 9 % 127,182 108,652 17 % 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 In the fourth quarter of 2024, we changed our definition of adjusted net income, a non-IFRS financial measure, to net income attributable to equity holders adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense, fair value movements related to contingent consideration, unwinding of deferred consideration, amortization expenses related to acquired businesses and assets, 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. Previously, adjusted net income, a non-IFRS financial measure was 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. We believe this more appropriately reflects the measurement of Adjusted Net Income as it includes adjustments for non-recurring items and significant non-cash items in addition to fair value movements related to contingent consideration and unwinding of deferred consideration. 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 non-recurring items, significant non-cash items, fair value movements related to the contingent consideration, unwinding of deferred consideration, and acquisition related expenses. See Note 2 of the consolidated financial statements for the year ended December 31, 2024 filed on March 20, 2025 for a description of the contingent and deferred considerations associated with our acquisitions. While we use Adjusted net income and Adjusted net income per share as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that Adjusted net income and Adjusted net income per share are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of Adjusted net income and Adjusted net income per share 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 net income and Adjusted net income per share as compared to IFRS results are that Adjusted net income and Adjusted net income per share as we define them may not be comparable to similarly titled measures used by other companies in our industry and that Adjusted net income and Adjusted net income per share may exclude financial information that some investors may consider important in evaluating our performance. Below is a reconciliation to Adjusted net income attributable to equity holders and Adjusted net income per share 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 and for the period specified stated in the Company's reporting currency and constant currency (unaudited): Reporting Currency ConstantCurrency Reporting Currency ConstantCurrency Three months endedDecember 31, Change Change Year endedDecember 31, Change Change 2024 2023 % % 2024 2023 % % Revenue 35,308 32,530 9 % 10 % 127,182 108,652 17 % 18 % Net income for the period attributable to shareholders 7,933 6,372 24 % 26 % 30,679 18,260 68 % 69 % Net income margin 22 % 20 % 24 % 17 % Net income for the period attributable to shareholders 7,933 6,372 24 % 26 % 30,679 18,260 68 % 69 % Share-based payment and related expense (2) 1,215 997 22 % 23 % 4,953 3,787 31 % 31 % Fair value movement on contingent consideration (1) — — — % — % — 6,939 (100 )% (100 )% Unwinding of deferred consideration (1) 213 309 (31 )% (30 )% 1,289 735 75 % 76 % Employees' bonuses related to acquisition(1) — 125 (100 )% (100 )% — 368 (100 )% (100 )% Secondary offering related costs — — — % — % — 733 (100 )% (100 )% Employees' bonuses related to offering — 201 (100 )% (100 )% — 201 (100 )% (100 )% Acquisition related costs 1,907 508 275 % 279 % 2,151 821 162 % 163 % Other transaction related costs — — — % — % 110 — 100 % 100 % Amortization expense related to acquired businesses and assets 998 133 650 % 656 % 3,246 461 604 % 607 % Tax effect of the adjusting costs (94 ) (23 ) 309 % 309 % (308 ) (98 ) 214 % 214 % Adjusted net income for the period attributable to shareholders 12,172 8,622 41 % 42 % 42,120 32,207 31 % 31 % Net income per share attributable to shareholders, basic 0.23 0.17 35 % 35 % 0.85 0.49 73 % 73 % Effect of adjustments for share-based payment and related expense, basic 0.03 0.03 — % — % 0.14 0.10 40 % 40 % Effect of adjustments for fair value movements on contingent consideration, basic 0.00 0.00 — % — % 0.00 0.19 (100 )% (100 )% Effect of adjustments for unwinding on deferred consideration, basic 0.01 0.01 — % — % 0.04 0.02 100 % 100 % Effect of adjustments for bonuses related to acquisition, basic 0.00 0.00 — % — % 0.00 0.01 (100 )% (100 )% Effect of adjustments for secondary offering related costs, basic 0.00 0.00 — % — % 0.00 0.02 (100 )% (100 )% Effect of adjustments for employees' bonuses related to offering, basic 0.00 0.01 (100 )% (100 )% 0.00 0.01 (100 )% (100 )% Effect of adjustments for acquisition related costs, basic 0.05 0.01 400 % 400 % 0.06 0.02 200 % 200 % Effect of adjustments for other transaction related costs, basic 0.00 0.00 — % — % 0.00 0.00 — % — % Effect of adjustments for amortization expense related to acquired businesses and assets, basic 0.03 0.00 100 % 100 % 0.09 0.01 800 % 800 % Effect of tax adjustments, basic — 0.00 100 % 100 % (0.01 ) 0.01 (200 )% (100 )% Adjusted net income per share attributable to shareholders, basic 0.35 0.23 52 % 52 % 1.17 0.87 34 % 36 % Net income per share attributable to ordinary shareholders, diluted 0.23 0.16 44 % 44 % 0.84 0.47 79 % 79 % Adjusted net income per share attributable to shareholders, diluted 0.35 0.22 59 % 59 % 1.16 0.84 38 % 40 % __________ (1) There is no tax impact from fair value movement on contingent consideration, unwinding of deferred consideration or employee bonuses related to acquisition. (2) Tax effect of adjusting costs is computed on share based payment and related expenses; secondary offering costs and related bonuses to employees; acquisition related costs and amortization charges related to acquired businesses and assets using effective tax rate for each period. Adjusted net income attributable to shareholders presented above for the three months and the year ended December 31, 2023 has been recast by $1.8 million and $5.9 million, respectively, to adjust for the impact of share-based payment and related expense, secondary offering related costs, employees' bonuses relating to offering, acquisition related costs, amortization expense related to acquired businesses and assets and the related tax effect of the adjusting costs, as applicable 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 ConstantCurrency Reporting Currency ConstantCurrency Three Months EndedDecember 31, Change Change Year endedDecember 31, Change Change 2024 2023 % % 2024 2023 % % (USD in thousands) (USD in thousands) Net income for the period attributable to shareholders 7,933 6,372 24 % 26 % 30,679 18,260 68 % 69 % Add back (deduct): Interest expenses on borrowings and lease liability 581 38 1429 % 1429 % 1,509 165 815 % 820 % Interest income (20 ) (90 ) (78 )% (78 )% (137 ) (259 ) (47 )% (47 )% Income tax charge 1,073 (159 ) (775 )% (778 )% 3,471 1,881 85 % 85 % Depreciation expense 124 63 97 % 100 % 376 246 53 % 53 % Amortization expense 1,632 505 223 % 226 % 5,426 1,842 195 % 196 % EBITDA 11,323 6,729 68 % 70 % 41,324 22,135 87 % 88 % Share-based payment and related expense 1,215 997 22 % 23 % 4,953 3,787 31 % 31 % Fair value movement on contingent consideration — — — % — % — 6,939 (100 )% (100 )% Unwinding of deferred consideration 213 309 (31 )% (30 )% 1,289 735 75 % 76 % Foreign currency translation losses (gains), net (7 ) 1,699 (100 )% (100 )% (1,316 ) 923 (243 )% (243 )% Other finance results 85 1 8400 % 8400 % 180 73 147 % 148 % Secondary offering related costs — — — % — % — 733 (100 )% (100 )% Employee bonuses related to the offering — 201 (100 )% (100 )% — 201 (100 )% (100 )% Other transaction related costs — — — % — % 110 — 100 % 100 % Acquisition related costs (1) 1,907 508 275 % 279 % 2,151 821 162 % 163 % Employees' bonuses related to acquisition — 125 (100 )% (100 )% — 368 (100 )% (100 )% Adjusted EBITDA 14,736 10,569 39 % 41 % 48,691 36,715 33 % 33 % __________ (1) The acquisition costs are related to historical and contemplated 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 ConstantCurrency Reporting Currency ConstantCurrency Three Months EndedDecember 31, Change Change Year endedDecember 31, Change Change 2024 2023 % % 2024 2023 % % (USD in thousands,except margin) (in thousands USD,except margin) Revenue 35,308 32,530 9 % 10 % 127,182 108,652 17 % 18 % Adjusted EBITDA 14,736 10,569 39 % 41 % 48,691 36,715 33 % 33 % Adjusted EBITDA Margin 42 % 32 % 38 % 34 % 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 less capital expenditures. In the second quarter of 2024, we changed our definition of free cash flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not asset acquisitions were excluded from capital expenditures. We believe this more appropriately reflects the measurement of free cash flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions. 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 payments and other obligations or payments made for 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 EndedDecember 31, Change Year endedDecember 31, Change 2024 2023 % 2024 2023 % (in thousands USD,unaudited) (USD in thousands,unaudited) Cash flows generated by operating activities 13,698 7,140 92 % 37,638 17,910 110 % Adjustment for items presented in operating activities: Payment of contingent consideration — — — % — 4,621 (100 )% Payment of deferred consideration — — — % 7,156 2,897 147 % Adjustment for items presenting in investing activities: Capital Expenditures (1): Acquisition of property and equipment (137 ) (157 ) (13 )% (1,326 ) (451 ) 194 % Capitalization of internally developed intangibles (399 ) (472 ) (15 )% (1,886 ) (1,977 ) (5 )% Free Cash Flow 13,162 6,511 102 % 41,582 23,000 81 % __________ (1) Capital expenditures are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions, as described above. Accordingly, capital expenditures presented above for the year ended December 31, 2023 have been recast to exclude cash flows related to acquisition of intangible assets $6.9 million. View source version on Contacts For further information: Investors: Peter McGough, Group, investors@ Richard Land, Norberto Aja, JCIR, GAMB@ 212-835-8500 Media: Eddie Motl, Group, media@ Sign in to access your portfolio
Yahoo
19-02-2025
- Business
- Yahoo
Gambling.com Group Announces Preliminary Record 2024 Fourth Quarter Revenue of Approximately $35.2 Million, Net Income of Approximately $7.8 Million and Adjusted EBITDA of Approximately $14.7 Million
Introduces 2025 Guidance for Revenue of $170 to $174 Million and Adjusted EBITDA of $67 to $69 Million Will Report 2024 Fourth Quarter and Full Year Results on March 20 and Host Conference Call and Webcast CHARLOTTE, N.C., February 19, 2025--(BUSINESS WIRE)-- Group Limited (Nasdaq: GAMB) (" Group" or the "Company"), a fast-growing provider of digital marketing services for the global online gambling industry, today provided select preliminary financial results for the fourth quarter and full year periods ended December 31, 2024. In addition, the Company introduced 2025 revenue and Adjusted EBITDA guidance as detailed below. Preliminary 2024 Fourth Quarter Results: Total revenue of approximately $35.2 million Net Income of approximately $7.8 million Adjusted EBITDA of approximately $14.7 million, representing an Adjusted EBITDA margin of 42%1 Cash flow generated by operating activities of approximately $13.6 million Free Cash Flow of approximately $13.1 million1 Preliminary 2024 Full Year Results: Total revenue of approximately $127.1 million Net Income of approximately $30.5 million Adjusted EBITDA of approximately $48.5 million, representing an Adjusted EBITDA margin of 38%1 Cash flow generated by operating activities of approximately $37.6 million Free Cash Flow of approximately $41.5 million1 "Our preliminary, record 2024 fourth quarter and full year results surpassed expectations due to our relentless focus on execution and the ability of our global portfolio of websites to continuously drive valuable, high intent traffic to our customers in a capital efficient manner," said Group co-founder and CEO, Charles Gillespie. "Our operating performance continues to be led by the strong growth trajectory and attractive unit economics of iGaming revenue across all our operating regions. As reflected in our initial revenue and Adjusted EBITDA guidance for 2025, we are confident that our great positioning will drive yet another year of record performance with impressive continued revenue, Adjusted EBITDA and Free Cash Flow growth." The preliminary unaudited results provided in this release are derived from preliminary internal financial reports and are subject to revision based on the Company's procedures and controls associated with the completion of its 2024 fourth quarter and full year financial reporting. ____________________________ Represents non-IFRS information. See "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. 2025 OutlookThe Company today also introduced full year 2025 guidance for revenue of between $170 million and $174 million and Adjusted EBITDA of between $67 million and $69 million. The Company's guidance assumes: Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company's guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body. An average EUR/USD exchange rate of 1.05 throughout 2025. 2024 Fourth Quarter Conference Call and Webcast Group will release its 2024 fourth quarter and full year results before the market opens on Thursday, March 20, 2025, and host a conference call and simultaneous webcast at 8:00 AM ET that day. During the call, Group Chief Executive Officer and Co-Founder, Charles Gillespie, and Chief Financial Officer, Elias Mark, will review the Group's financial results and provide a business update, followed by a question-and-answer session. Conference Call / Webcast Details Date/Time: Thursday, March 20, 2025, at 8:00 a.m. ET Webcast: 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 Information contained on the Company's website is not incorporated into this press release. About Group Group Limited (Nasdaq: GAMB) (the "Group") is a fast-growing provider of digital marketing services for the global 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 and Group owns and operates more than 50 websites in 10 languages across 15 national markets covering all aspects of the online gambling industry, including iGaming and sports betting, and the fantasy sports industry. The Group's OddsJam platform provides a suite of tools and services to assist consumers and enterprises in sports betting. Use of Non-IFRS MeasuresThis press release contains certain non-IFRS financial measures, such as 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 StatementsThis 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 preliminary full year 2024 results and the financial performance, forecasts, and outlook for 2025, 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 Group's annual report filed on Form 20-F for the year ended December 31, 2023 with the U.S. Securities and Exchange Commission (the "SEC") on March 21, 2024, and 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. 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. Supplemental Information RoundingWe 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 MeasuresManagement 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. EBITDA, Adjusted EBITDA and Adjusted EBITDA MarginEBITDA 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 (in millions USD, unaudited): Quarter EndedDecember 31, 2024 Year EndedDecember 31, 2024 Net income for the period attributable to the shareholders 7.8 30.5 Add Back: Interest expense on borrowings and lease liability 0.6 1.5 Interest income — (0.1) Income tax charge 1.1 3.5 Amortization and depreciation expense 1.8 5.8 EBITDA 11.3 41.2 Share-based payment and related expense 1.2 4.9 Fair value movement on contingent consideration — — Unwinding of deferred consideration 0.2 1.3 Foreign currency translation (gains) losses — (1.3) Other finance results 0.1 0.2 Acquisition related costs 1.9 2.1 Other transaction related costs — 0.1 Adjusted EBITDA 14.7 48.5 Below is the Adjusted EBITDA Margin calculation for the period (in millions USD, unaudited): Quarter EndedDecember 31, 2024 Year EndedDecember 31, 2024 Revenue 35.2 127.1 Adjusted EBITDA 14.7 48.5 Adjusted EBITDA Margin 42% 38% 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 FlowFree Cash Flow is a non-IFRS liquidity financial measure defined as cash flow from operating activities less capital expenditures. In the second quarter of 2024, the Company changed its definition of free cash flow to exclude from capital expenditures the cash flows related to asset acquisitions, in addition to cash flows related to business combinations. Previously, cash flows related to business combinations but not asset acquisitions were excluded from capital expenditures. The Company believes that this more appropriately reflects the measurement of free cash flow as it includes capital expenditures related to internal development, ongoing maintenance and acquisition of property and equipment in the ordinary course of business but excludes discretionary acquisitions. 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 payments and other obligations or payments made for 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 (in millions USD, unaudited): Quarter EndedDecember 31, 2024 Year EndedDecember 31, 2024 Cash flows generated by operating activities 13.6 37.6 Adjustment for items presented in operating activities: Payment of deferred consideration — 7.1 Adjustment for items presenting in investing activities: Capital Expenditures (1) (0.5 ) (3.2 ) Free Cash Flow 13.1 41.5 (1) Capital expenditures are defined as the acquisition of property and equipment, and capitalized research and development costs, and excludes cash flows related to acquisitions accounted for as business combinations and asset acquisitions, as described above. View source version on Contacts Investors: Peter McGough, Group, investors@ Richard Land, Norberto Aja, JCIR, GAMB@ 212-835-8500 Media: Eddie Motl, Group, media@ Sign in to access your portfolio
