Gambling.com’s “High Intent” Audience Secures 18% Jump in Revenue

Blaming a downturn in performance on Google updates and algos is a common litany in the affiliate industry. Yet, Gambling.com Group has broken away from the ranks of moaners and posted one of its strongest quarters to date.

The Group generated an 18% gain year-over-year in its Q2 results, with its revenue hitting $30.5 million during the reported period.

Gambling.com’s Business Resists Google Algorithmic Change

The company chalked this success up to what it described as a “high-intent audience,” meaning that the Group has been able to generate high-value traffic, convert new depositors, and retain them long enough to enjoy a continuous stream of proceeds. Gambling.com Group CEO Charles Gillespie has offered a few insights into his company’s operations:

“Our second quarter and year-to-date results highlight the incredible power of our high-intent audience and the clear value we create for our online gambling operator clients.”

However, the company’s feat is no less surprising at a time when rivals such as Catena have faltered and are still trying to rally themselves. Adjusted EBITDA has been increased for the period to $11.2m, with an EBITDA margin now locked at 37%.

Part of this success has to do not just with the company’s ability to live up to Google’s algos prerequisites and convert high-value traffic, but also with an internal cost-cutting that has seen the Group reduce its total operating expenses to $20.8m, or a 15% year-over-year drop.

In fact, it may have been this decision to trim expenses that have put Gambling.com Group in a strong position more so than anything else. Yet, a closer look at the company’s books suggests that the Group has been doing pretty good well across the board.

Gross profit increased to $29.1m, an increase of 16%. Affiliate revenue growth by division also inched up, with the casino segment leading the charge for a total of $22.1m in revenue, up 26% year-over-year. Somewhat predictably, however, the sports betting revenue dipped to $8.2m, an ever so slight decrease from $8.4 a year earlier.

First-Time Depositors Continue to Soar for Gambling.com Group

Overall, however, the company enjoyed gains in both North America (which inched up by 8% to $12.6m) and in the United Kingdom and Ireland which also posted $9.9m in revenue, or up 18%. The Group has also been able to generate a continuing stream of new depositors, with the months between April and June marked by 108,000 such accounts.

This leaves the company with a particularly good outlook for the year, putting the adjusted EBITDA for the year at anything between $44 million and $47 million. Annual revenue is well projected to hit $127 million by the end of the year as well.  

Gillespie wrapped up by saying that his company continues to look and identify new strategic opportunities while relying on its established business models.