Gambling.com Group, which recently listed on the NASDAQ exchange, released its second quarter operating and financial results for the three months ended June 30, 2021, posting $10.4 million in revenue.
Gambling.com Sees Revenue Growth
The first public report of the provider of marketing services for the online gambling industry since its listing on the NASDAQ exchange in July revealed revenue in the second quarter grew by 66% compared to the reading of $6.3 million released in Q2 2020.
Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our Adjusted EBITDA margins, we are among the most profitable names in the online gambling industry.”Charles Gillespie, CEO and Co-Founder, Gambling.com Group
Gambling.com attributed the continued growth in the quarter primarily to its casino assets, which generated referral sales of $9 million, up 63% compared to the same period in the year prior.
Accordingly, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) came out 46% higher, at $5.5 million, compared to the $3.8 million in the second quarter of 2020, while EBITDA margin was 53%.
Operating Costs on the Rise
The company reported an increase in expenses across the board. Operating expenses went up from $3 million in Q2 2020 to $7.2 million in Q2 2021, sales and marketing expenses nearly doubled to $3.1 million driven by the increase in salaries. Wages due to the increased headcount, technology expenses went up to $0.9 million from $0.5 million in the year prior, while general and administrative costs jumped nearly four times to $3.4 million, driven mainly by the IPO cost.
Operating profit decreased by 3% from $3.3 million in the second quarter of last year, to $3.2 million in the reported quarter, due to the impact on non-recurring expenses amounting to approximately $1.5 million related to the IPO.
The online marketing services provider accounted for $2.4 million of net income, reversing the net loss of $0.4 million in the respective three-month period in the previous year. When measured against the number of outstanding shares, Q2 2021 net income equals $0.08 per diluted share, as opposed to $0.02 loss per share in Q2 2020.
Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilize our best-in-class technology platform to support their increasingly important customer acquisition initiatives.”Charles Gillespie, CEO and Co-Founder, Gambling.com Group
A significant achievement in Q2 2021 was that Gambling.com’s sports publishing unit passed the $1-million mark in sales for the first time, offering a new source of revenue diversification.
As of June 30, 2021, the company reported cash balances of $17.2 million, working capital of $17.2 million, assets of $55.1 million and liabilities of $14.1 million, as opposed to $8.2 million of cash, $10.1 million in working capital, $45.4 million in assets and $11.2 million in liabilities as of December 31, 2020.