Gambling.com Group Q3 results: Net income up 70%, revenue totals $32.1m

Gambling.com has reported its financial results for the third quarter of 2024. In total, revenue came to $32.1m, up 37% year-over-year, with an adjusted EBITDA of $12.6m, more than double the $6.1m reported this time last year. Gross profit came to $30.4m, up 43%.  

Operating profit followed in much the same vein as adjusted EBITDA, up 104% year-on-year to $9.6m. Income before tax totaled $9.1m, up 71%, with net income up 70% to $8.5m. Accounting for exchange differences on translating foreign currencies, this income shoots up to $12.8m; over $10m more than this time last year. 

Revenue by location 

Breaking down Gambling.com’s revenue by location, its North America segment produced the highest revenue at $12.8m. This is a slight decrease from the $12.9m reported this time last year, and is the only location segment to report a decline in revenue. UK and Ireland was the second highest contributor at $9.8m, up 43%, with the rest of Europe totaling $6.8m; the highest year-over-year increase of any segment, up 192%. The rest of the world made $2.7m, up 99%. 

Revenue by monetization type 

Performance marketing was the primary revenue driver of Gambling.com’s monetization types, making $25.1m of the $32.1m total. This reflects growth of 38% year-over-year, though surprisingly is not the highest growth rate in this category. That accolade would go to advertsing and other monetization, up 53% to $4.8m. Subscription and content syndication made $2.3m, up 8%. 

Revenue by vertical 

Looking at the verticals through which revenue was derived, casino revenue was both the largest contributor and vertical with the highest growth rate, making $24.8m, up 63%. Other revenue was up 34% to $453,000, though sports revenue took a decline year-over-year, down 14% to $6.8m.  

Expenses  

Gambling.com reported total expenses of $20.8m, accounting for the difference between gross profit and operating profit, which was up 25% year-over-year. The largest of these expenses was sales and marketing, which accounted for over half of Gambling.com’s expenses at $10.8m, which were up 25% year-over-year. General and admin expenses were also up 25%, totaling $6m. 

The largest jump in expense came from technology, which grew 43% to $3.6m. Movements in credit losses allowance and write-offs, however, went in the opposite direction, down from $650,000 last year to $360,000 this year.  

Third-quarter highlights 

During the quarter, Gambling.com delivered more than 116,000 new depositing customers (NDCs), up 35% year-over-year. The affiliate also repurchased 1,316,975 shares at an average price of $9.35 each, with an additional 486,000 shares purchased subsequent to the end of the third quarter at an average price of $9.80 each. 

Nine-month results 

Looking at the year so far, year-to-date revenue came to $91.9m, up 21% year-over-year, with a gross profit of $86.5m, up 20%. Operating profit came to $25.8m, up 90%, with net income for the period following similar growth at 91%, totalling $22.7m. 

Comments

On the results, CEO and Co-Founder Charles Gillespie said, “Our record third quarter and year-to-date results reflect our best-in-class execution in the affiliate sector to consistently grow market share around the world,” noting how the results highlight the affiliates ability to create “value for both our shareholders and our online gambling operator clients.”

Beth Turner

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