When releasing the second quarter results for the three months ending June 30, 2024, the affiliate marketing group stated that it now expects full-year revenue to be between £123 million and £127 million, with adjusted EBITDA between $44 million and $47 million. In May, after the acquisition of Freebets was completed, Gambling.com's forecast figures were between £118 million and £122 million and £40 million to £44 million respectively. The new forecast's midpoint indicates a 15% increase in full-year revenue and a 24% increase in adjusted EBITDA.
The group reiterated its long-term goal of achieving an annual adjusted EBITDA of $100 million.
Second quarter revenue grew 18% year-over-year to $30.5 million. The revenue growth was primarily due to the addition of Freebets, which the group agreed to acquire for up to $42.5 million.
In these three months, the group delivered over 108,000 new depositing customers (NDC), a 19% increase year-over-year. The group noted that although the previous quarter benefited from exceptionally strong growth in US sports betting NDCs, this was not the case this year, yet the achievement was still made.
Gross profit grew 16% to $29.1 million, which included an increase of $0.5 million in sales costs related to group media partnerships.
Total operating expenses decreased 15% to $20.8 million, reflecting the elimination of contingent consideration fair value adjustments. General and administrative expenses decreased by 9%, but were partially offset by increases in sales and marketing expenses (23%) and technology expenses (26%).
Adjusted EBITDA grew 19% to $11.2 million, with a profit margin of 37%.
Gambling.com CEO praises its performance
This quarter, the company repurchased 833,770 shares at an average price of $8.17 per share. Other expenditures included an initial payment of $20 million related to the acquisition of Freebets and a final payment of $13.6 million for BonusFinder.
CEO Charles Gillespie stated: "Our performance in the second quarter and year-to-date highlights the strong power of our high-intent audience and the clear value we create for online gambling operator clients. Our team has the ability to dynamically manage owned and operated assets to quickly respond to changes in the operating environment, which was fully demonstrated in the strong revenue and adjusted EBITDA growth this quarter and will continue to benefit us in the future.
"As we continue to execute at a high level, expand our influence in the online gambling ecosystem, and leverage industry growth opportunities, we continue to see a clear path to achieving our annual adjusted EBITDA goal of $100 million. Our extensive stock repurchase activity in the first half of the year highlights our confidence in the future of the business."
Successful acquisition of Freebets in 2023
Gambling.com completed the acquisition of Freebets.com in April. The purchase price will be between $37.5 million and $42.5 million, depending on future revenue performance.
Gambling.com stated at the time that it expected Freebets.com to generate an additional $10 million in revenue this year, as well as an incremental $5 million in adjusted EBITDA.
Revenue in 2023 grew 42.1% to $108.7 million. Highlights for the group in 2023 included the launch of the Casinos.com domain. It also established a new partnership with the UK media publisher The Independent.
Along with revenue growth, net profit was $21.1 million, compared to a loss of $2.4 million in 2022. Additionally, full-year adjusted EBITDA grew 52.3% to $36.7 million.
When Gambling.com released its 2023 data in March, it set the revenue forecast for 2024 at $129 million to $133 million. This figure is slightly higher than the "revised" 2024 figures announced today, but earlier than the lower forecast proposed in May.
