Digital marketing services provider for the global, regulated gambling industry, Gambling.com Group, is planning to launch an initial public offering round on the NASDAQ stock exchange. For now, the group’s intentions haven’t been detailed.
Gambling.com Readies Up for the IPO
Gambling.com Group has already presented a registration statement to the Securities and Exchange Commission in the United States of America. According to what’s been revealed, the shares will be put on the market under the “GAMB” abbreviation. However, Gambling.com Group has announced neither how many shares it will be putting on sale nor what the pricing for the initial public offering will be.
As a point of reference, Gambling.com Group’s shares had a net tangible book value of $0.37 at the end of the previous year, according to experts. At least for now, Gambling.com group doesn’t plan on providing dividends to shareholders as the company will be using its income strictly for its own purposes.
The Money to Reinforce the Growing Business
Gambling.com plans to use the funds from the initial public offering to reinforce its business as a whole. It will improve its working capital and cover expenses. Additionally, some money might be used for important investments that will benefit the company.
The group’s decision to launch a funding round was inspired by the growth in revenue Gambling.com has experienced in the last few years. The business reported that its total income increased by about $9 million from 2019 to 2020 (from $19m to $28m).
In the same time period, Gambling.com’s general and administrative expenses went up by a little less than $2 million. However, the business reported almost $3 million less marketing expenses. Finance expenses decreased from $2.5 million to $2.1 million. Financial income increased more than twice (from $140,000 to $303,000).
With all that in mind, it can be calculated that Gambling.com had an impressive operating profit boost between 2019 and 2020. For 2019, it was about $1.4 million and grew almost tenfold to $11.1 million. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) sit at $3.7 million for 2019 and $14.6 million for 2020.
From the above data, it becomes apparent that the Gambling.com group had a difficult year in 2019. However, business seems to be pickup up for the company: while 2019 marked a net loss of $1.9 million, in the next year, Gambling.com’s net income skyrocketed to $15.2 million. In the same year, it also expanded to Tennessee and Illinois after acquiring approval for sports betting services.
Depending on how the initial public offering goes and how the funding is handled, it is possible that Gambling.com Group’s revenues will increase even more in the future.