Gambling.com Group reports strong start to second quarter

26 June 2020

Affiliate marketing specialist Gambling.com Group has hailed a strong start to the second quarter of its financial year that has seen revenue for April and May rise 21.8% year-on-year.

The business explained that search performance had continued to improve throughout the quarter to date, with May described as a record month in terms of revenue, earnings, casino new depositing customers (NDCs) and organic NDCs.

This, it said, had continued into June.

For April and May, revenue amounted to €3.8m (£3.4m/$4.3m), with adjusted earnings before interest, tax, deprecation and amortisation jumping 176.5% to €2.2m.

The search performance has continued to improve. The Group delivered a record month in May 2020 in terms of revenue, EBITDA, casino NDCs and organic NDCs.

“Thus far in Q2 we have seen increased demand from both our clients and consumers as well as healthy search performance and improved monetization through better technological solutions,” Gambling.com Group chief executive Charles Gillespie said.

“I thank our team for coming together virtually under challenging circumstances to deliver a record performance.”

The business’ net interest bearing debt came in at €7.2m as of 31 May, almost half of the total owed at the same point in 2019, when it stood at €14.2m.

Having implemented temporary cost reduction measures during April and May to help the business weather the novel coronavirus (Covid-19) pandemic, Gambling.com Group has now reversed these mitigating actions. As such, it no longer expects to save €300,000, as anticipated when it announced the measures in March this year.

At that point it warned of the impact of Covid-19 on the business, saying that the suspension of sporting action would have a “meaningful negative result” on operations.

It went on to see revenue decline 28.2% to €3.8m in the first quarter of the year. However, Gillespie pointed out at the time that the underlying business was in “great shape” as a result of enhanced operational capabilities and the launch of new technology platforms.

While EBITDA for the three months ended 31 March was down significantly, net profit increased 80.2% to €1.6m, thanks to fair value gains for its 2021 bond.

Gambling.com Group will release its results for the full second quarter, the three months to 30 June, on 19 August.