Canada
Gambling.com Group Reports 2021 Financial Results
Gambling.com Group Limited, a leading provider of digital marketing services for the global online gambling industry, today announced its operating and financial results for the year and the fourth quarter ended December 31, 2021.
2021 Financial Highlights
- North American revenue grew 89% to $7.5 million compared to $4.0 million for the prior year
- Revenue of $42.3 million grew 51% compared to $28.0 million for the prior year
- Net income of $12.5 million, or $0.37 per diluted share, compared to a net income of $15.2 million, or $0.49 per diluted share, for the prior year
- Adjusted EBITDA of $18.4 million increased 26% compared to $14.6 million for the prior year, representing an Adjusted EBITDA margin of 43%1
- Free cash flow of $8.4 million decreased 22% compared to $10.8 million for the prior year1
Fourth Quarter 2021 Financial Highlights
- North American revenue grew 56% to $2.2 million compared to $1.4 million in the same period for the prior year
- Revenue of $10.3 million remained consistent to $10.3 million in the same period for the prior year
- Net income of $0.9 million, or $0.02 per diluted share, compared to a net income of $8.5 million, or $0.35 per diluted share, in the same period for the prior year
- Adjusted EBITDA of $2.3 million decreased 63% compared to $6.1 million in the same period for the prior year, representing an Adjusted EBITDA margin of 22%1
- Free cash flow of $(1.8 million) compared to $3.5 million for the prior year1
Business Highlights
- Completed successful public listing of ordinary shares on the Nasdaq Global Market in July 2021 under the ticker symbol “GAMB”
- Named the 2021 EGR Affiliate of the Year and 2021 SBC North America Casino Affiliate of the Year
- Delivered 117,000 new depositing customers in 2021 compared to 104,000 in 2020
- Launched several new U.S.- facing websites during 2021 and acquired an incredibly strong portfolio of U.S. specific domain names
- Announced the acquisition of RotoWire.com – a leader in U.S online fantasy sports – in December 2021 to leverage RotoWire’s high-quality traffic and drive substantial incremental sports betting affiliate revenue in the U.S., the acquisition was completed on January 1, 2022
- Announced media partnership with McClatchy in January 2022 to monetize the McClatchy portfolio of digital media assets through sports betting in 29 markets across 14 states
- Successfully entered the New York and Louisiana markets in January 2022
- Announced acquisition of BonusFinder.com in February 2022 to better position the Group for the upcoming market launch in Ontario and further strengthening the Group’s North American presence
“We grew our revenue in 2021 by 51% compared to the prior year, delivered an EBITDA margin of 43% and generated over $8 million of free cash flow as many other industry players struggled to find a path to sustainable profitability,” said Charles Gillespie, Chief Executive Officer and Co-founder of Gambling.com Group. “As we look towards 2022, we are encouraged by the strongest start to a year we have seen in our 15-year history. Helped by launches in New York and Louisiana, January was our best-single month performance ever – even before consolidating financial results from our recent acquisitions. Just in January, we have seen the total addressable market in North America expand by leaps and bounds and there is a clear path to additional state launches this year, along with the impending launch of Ontario next month. As B2C operators in the U.S. seek a path to sustainable profitability and evaluate their marketing spend going forward, we believe that the affiliate model is ideally positioned to provide operators with more effective, higher ROI investments where they can clearly attribute the source, profitability and lifetime value of a referred player. We view this shift as greatly benefitting the value of our performance marketing revenue model, and we are confident that these tailwinds support what we expect to be another year of record performance for the Group.”
2022 Outlook
Based on currently available information, the Group estimates that, for the full year 2022:
- Total revenue will be in the range of $71 million and $76 million; and
- Adjusted EBITDA will be in the range $22 million and $27 million1
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our expectation for another year of record revenue and Adjusted EBITDA is supported primarily by our premier domain portfolio and our growing presence in the U.S. achieved through continuous investments in U.S-facing assets. Organic growth in North America is complemented by our recent acquisitions of RotoWire.com and BonusFinder.com as well as our initiatives to further our leadership in the more established markets that we currently serve. As we have stated, our Adjusted EBITDA margin may deviate from target in the short-term as we strategically invest to strengthen our U.S. footprint, which is reflected in our 2022 outlook. Nonetheless, our profitability metrics remain among the very best in the industry, and our free cash flow generation more than covers our organic growth initiatives and the acquisition of domain names and other assets. We entered 2022 on strong financial footing and are off to the best start to a year in the Company history led by strong growth in North America. We grew total revenue profitably by 51% in 2021 and we look forward to accelerate that rate of profitable growth in 2022.”
|
2021 – 2023 Financial Targets |
||
|
|
|
|
|
Total Revenue Growth |
|
> Average 40% |
|
Adjusted EBITDA Margin1 |
|
> Average 40% |
|
Leverage2 |
|
< Net Debt to Adjusted EBITDA 2.5x3 |
1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2 Leverage is defined as Net Debt as a proportion of Adjusted EBITDA.
3 Net Debt is defined as Borrowings less Cash and Cash Equivalents.
|
2021 vs. 2020 Financial Highlights |
||||||||||||||||
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
|
|||||||||||||||
|
Revenue |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
|
Operating expenses |
|
|
(30,931 |
) |
|
|
(16,849 |
) |
|
|
(14,082 |
) |
|
|
84 |
% |
|
Operating profit |
|
|
11,392 |
|
|
|
11,131 |
|
|
|
261 |
|
|
|
2 |
% |
|
Income before tax |
|
|
12,164 |
|
|
|
10,752 |
|
|
|
1,412 |
|
|
|
13 |
% |
|
Net income for the period attributable to the |
|
|
12,453 |
|
|
|
15,151 |
|
|
|
(2,698 |
) |
|
|
(18 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.40 |
|
|
|
0.55 |
|
|
|
(0.15 |
) |
|
|
(27 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.37 |
|
|
|
0.49 |
|
|
|
(0.12 |
) |
|
|
(24 |
)% |
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except Adjusted EBITDA Margin, unaudited) |
|
|
|
|
|
|
|
|||||||
|
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
|
18,356 |
|
|
|
14,608 |
|
|
|
3,748 |
|
|
|
26 |
% |
|
Adjusted EBITDA Margin |
|
|
43 |
% |
|
|
52 |
% |
|
n/m |
|
|
n/m |
|
||
|
Free Cash Flow |
|
|
8,423 |
|
|
|
10,804 |
|
|
|
(2,381 |
) |
|
|
(22 |
)% |
n/m = not meaningful
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
|
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
117 |
|
|
|
104 |
|
|
|
13 |
|
|
|
13 |
% |
- We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
Revenue
Total revenue increased 51% to $42.3 million for the year ended December 31, 2021 compared to $28.0 million for the prior year. On a constant currency basis, revenue increased $13.4 million, or 46%. Revenue growth was organic. The increase was driven by both growth in NDCs and improved monetization of NDCs that we attribute to a combination of technology improvements and changes in product and market mix. NDCs increased 13% to 117,000 compared to 104,000 in the prior year.
Our revenue disaggregated by market is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
|
21,391 |
|
|
|
16,189 |
|
|
|
5,202 |
|
|
|
32 |
% |
|
Other Europe |
|
|
10,800 |
|
|
|
5,252 |
|
|
|
5,548 |
|
|
|
106 |
% |
|
North America |
|
|
7,484 |
|
|
|
3,959 |
|
|
|
3,525 |
|
|
|
89 |
% |
|
Rest of the world |
|
|
2,648 |
|
|
|
2,580 |
|
|
|
68 |
|
|
|
3 |
% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were primarily driven by growth in revenue from the U.K. and Ireland, Other Europe, and North America.
Our revenue disaggregated by monetization is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
|
15,616 |
|
|
|
14,738 |
|
|
|
878 |
|
|
|
6 |
% |
|
Revenue share commission |
|
|
3,596 |
|
|
|
3,308 |
|
|
|
288 |
|
|
|
9 |
% |
|
CPA commission |
|
|
18,591 |
|
|
|
9,047 |
|
|
|
9,544 |
|
|
|
105 |
% |
|
Other revenue |
|
|
4,520 |
|
|
|
887 |
|
|
|
3,633 |
|
|
|
410 |
% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven primarily by additional Cost Per Acquisition, or CPA, commission and Other revenue. The increase in Other revenue was driven by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
|
35,632 |
|
|
|
24,135 |
|
|
|
11,497 |
|
|
|
48 |
% |
|
Sports |
|
|
6,188 |
|
|
|
3,210 |
|
|
|
2,978 |
|
|
|
93 |
% |
|
Other |
|
|
503 |
|
|
|
635 |
|
|
|
(132 |
) |
|
|
(21 |
)% |
|
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
|
YEAR ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
|
14,067 |
|
|
|
8,103 |
|
|
|
5,964 |
|
|
|
74 |
% |
|
Technology expenses |
|
|
3,947 |
|
|
|
2,503 |
|
|
|
1,444 |
|
|
|
58 |
% |
|
General and administrative expenses |
|
|
13,014 |
|
|
|
5,956 |
|
|
|
7,058 |
|
|
|
119 |
% |
|
Movements in credit losses allowance and write offs |
|
|
(97 |
) |
|
|
287 |
|
|
|
(384 |
) |
|
|
(134 |
)% |
|
Total operating expenses |
|
|
30,931 |
|
|
|
16,849 |
|
|
|
14,082 |
|
|
|
84 |
% |
Total operating expenses increased by $14.1 million to $30.9 million compared to $16.8 million in the prior year. On a constant currency basis, operating expenses increased by $13.5 million, or 77%. The increase was driven primarily by increased headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $14.1 million compared to $8.1 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $4.0 million compared to $2.5 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $13.0 million compared to $6.0 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA increased by 26% to $18.4 million compared to $14.6 million in the prior year representing an Adjusted EBITDA margin of 43%. The increase was driven primarily by increased revenue partly offset by increased operating expenses.
Operating profit remained relatively constant at $11.4 million compared to $11.1 million in 2020. Operating profit in 2021 was affected by non-recurring costs related to the public offering and future acquisitions by $2.6 million, and share based payments costs by $ 2.0 million ($0.7 million and $0.4 million, respectively, in 2020).
Net income totaled $12.5 million, or $0.37 per diluted share, compared to net income of $15.2 million, or $0.49 per diluted share, in the prior year. Net income in 2020 was positively affected by the recognition of deferred tax assets of $5.4 million and gain from bonds’ redemption of $1.4 million ($1.8 million and zero, respectively, in 2021).
Free Cash-flow
Total cash generated from operations of $14.0 million increased 28% compared to $10.9 million in the prior year. The increase was driven primarily by increased adjusted EBITDA. Free cash flow totaled $8.4 million compared to $10.8 million in the prior year. The decline was the result of increased cash flow generated from operations offset by increased capital expenditures consisting primarily of the acquisition of domain names and capitalized development costs.
|
Balance Sheet |
||||||||||||||||
|
|
|
AS OF |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
(in thousands, USD) |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF FINANCIAL |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
|
51,047 |
|
|
|
8,225 |
|
|
|
42,822 |
|
|
|
521 |
% |
|
Working capital (2) |
|
|
46,714 |
|
|
|
10,059 |
|
|
|
36,655 |
|
|
|
364 |
% |
|
Total assets |
|
|
91,025 |
|
|
|
45,383 |
|
|
|
45,642 |
|
|
|
101 |
% |
|
Total borrowings |
|
|
5,944 |
|
|
|
5,960 |
|
|
|
(16 |
) |
|
|
(0 |
)% |
|
Total liabilities |
|
|
11,116 |
|
|
|
11,171 |
|
|
|
(55 |
) |
|
|
(0 |
)% |
|
Total equity |
|
|
79,909 |
|
|
|
34,212 |
|
|
|
45,697 |
|
|
|
134 |
% |
- Working capital is defined as total current assets minus total current liabilities.
n/m = not meaningful
Cash balances as of December 31, 2021 totaled $51.0 million, an increase of $42.8 million compared to $8.2 million as of December 31, 2020. Working capital as of December 31, 2021 totaled $46.7 million, an increase of $36.6 million compared to $10.1 million as of December 31, 2020.
Total assets as of December 31, 2021 were $91.0 million compared to $45.4 million as of December 31, 2020. Total borrowings, including accrued interest, remained constant at $5.9 million as of December 31, 2021 and 2020. Total liabilities decreased slightly as of December 31, 2021 to $11.1 million compared to $11.2 million as of December 31, 2020.
Total equity as of December 31, 2021 was $79.9 million compared to $34.2 million as of December 31, 2020.
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
|
Fourth Quarter 2021 vs. Fourth Quarter 2020 Financial Highlights |
||||||||||||||||
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, except for |
|
|
|
|
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF |
|
|||||||||||||||
|
Revenue |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
|
Operating expenses |
|
|
(9,668 |
) |
|
|
(5,897 |
) |
|
|
(3,771 |
) |
|
|
64 |
% |
|
Operating profit |
|
|
623 |
|
|
|
4,370 |
|
|
|
(3,747 |
) |
|
|
(86 |
)% |
|
Income before tax |
|
|
1,311 |
|
|
|
3,489 |
|
|
|
(2,178 |
) |
|
|
(62 |
)% |
|
Net income for the period attributable to the |
|
|
867 |
|
|
|
8,541 |
|
|
|
(7,674 |
) |
|
|
(90 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.03 |
|
|
|
0.39 |
|
|
|
(0.36 |
) |
|
|
(92 |
)% |
|
Net income per share attributable to ordinary |
|
|
0.02 |
|
|
|
0.35 |
|
|
|
(0.33 |
) |
|
|
(94 |
)% |
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, |
|
|
|
|
|
|
|
|||||||
|
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted EBITDA |
|
|
2,272 |
|
|
|
6,115 |
|
|
|
(3,843 |
) |
|
|
(63 |
)% |
|
Adjusted EBITDA Margin |
|
|
22 |
% |
|
|
60 |
% |
|
n/m |
|
|
|
(38 |
)% |
|
|
Free Cash Flow |
|
|
(1,811 |
) |
|
|
3,533 |
|
|
|
(5,344 |
) |
|
|
(151 |
)% |
n/m = not meaningful
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
|
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
New Depositing Customers (1) |
|
|
28 |
|
|
|
35 |
|
|
|
(7 |
) |
|
|
(20 |
)% |
- We define New Depositing Customers, or NDCs, as unique referral of a player from our system to one of our customers that satisfied an agreed metric (typically making a deposit above a minimum threshold) with the customer, thereby triggering the right to a commission for us.
Revenue
Total revenue in the fourth quarter remained relatively constant at $10.3 million. On a constant currency basis, revenue remained relatively constant. NDCs decreased 20% to 28,000 compared to 35,000 in the prior year. We attribute the improved monetization of NDCs to a combination of technology improvements and changes in product and market mix.
Our revenue disaggregated by market is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
U.K. and Ireland |
|
|
5,226 |
|
|
|
5,780 |
|
|
|
(554 |
) |
|
|
(10 |
)% |
|
Other Europe |
|
|
2,260 |
|
|
|
2,299 |
|
|
|
(39 |
) |
|
|
(2 |
)% |
|
North America |
|
|
2,154 |
|
|
|
1,383 |
|
|
|
771 |
|
|
|
56 |
% |
|
Rest of the world |
|
|
651 |
|
|
|
805 |
|
|
|
(154 |
) |
|
|
(19 |
)% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Changes in revenue were driven by strong organic growth in our North American markets, offset by a decline in the U.K. and Ireland and, to a lesser extent, Other Europe and Rest of the world. U.K. and Ireland revenue was negatively affected by higher than usual volatility in organic search traffic. In the comparable period, U.K. and Ireland revenue was positively affected by increased demand coinciding with restrictive Covid-19 measures. Other Europe was negatively affected by regulatory changes in Germany implemented in July 2021 partly offset by growth in revenue from other European markets.
Our revenue disaggregated by monetization is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Hybrid commission |
|
|
2,935 |
|
|
|
5,557 |
|
|
|
(2,622 |
) |
|
|
(47 |
)% |
|
Revenue share commission |
|
|
744 |
|
|
|
1,004 |
|
|
|
(260 |
) |
|
|
(26 |
)% |
|
CPA commission |
|
|
5,202 |
|
|
|
3,271 |
|
|
|
1,931 |
|
|
|
59 |
% |
|
Other revenue |
|
|
1,410 |
|
|
|
435 |
|
|
|
975 |
|
|
|
224 |
% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue from CPA commission and Other revenue increased whereas revenue from hybrid and revenue share commission decreased. The changes in monetization were primarily a result of changes in market mix with a higher proportion of revenue from the U.S compared to the previous year. The increase in Other revenue was driven primarily by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Casino |
|
|
8,466 |
|
|
|
8,846 |
|
|
|
(380 |
) |
|
|
(4 |
)% |
|
Sports |
|
|
1,769 |
|
|
|
1,160 |
|
|
|
609 |
|
|
|
53 |
% |
|
Other |
|
|
56 |
|
|
|
261 |
|
|
|
(205 |
) |
|
|
(79 |
)% |
|
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue increases were driven by growth in revenue from sports products offset by a decrease in casino and other revenue.
Operating Expenses
|
|
|
THREE MONTHS ENDED |
|
|
CHANGE |
|
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
Sales and marketing expenses |
|
|
4,632 |
|
|
|
2,442 |
|
|
|
2,190 |
|
|
|
90 |
% |
|
Technology expenses |
|
|
1,190 |
|
|
|
798 |
|
|
|
392 |
|
|
|
49 |
% |
|
General and administrative expenses |
|
|
3,877 |
|
|
|
2,609 |
|
|
|
1,268 |
|
|
|
49 |
% |
|
Movements in credit losses allowance and write offs |
|
|
(31 |
) |
|
|
48 |
|
|
|
(79 |
) |
|
|
(165 |
)% |
|
Total operating expenses |
|
|
9,668 |
|
|
|
5,897 |
|
|
|
3,771 |
|
|
|
64 |
% |
Total operating expenses increased by $3.8 million to $9.7 million compared to $5.9 million in the prior year. On a constant currency basis, operating expenses increased by $3.6 million, or 58%. The increase was driven primarily by headcount across Sales and Marketing, Technology, and General and Administrative functions as we invest in the Company’s organic growth initiatives as well as increased administrative expenses associated with operating as a public company.
Sales and Marketing expenses totaled $4.6 million compared to $2.4 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount.
Technology expenses totaled $1.2 million compared to $0.8 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount partially offset by capitalized development costs.
General and Administrative expenses totaled $3.9 million compared to $2.6 million in the prior year. The increase was driven primarily by increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses.
Earnings
Adjusted EBITDA decreased by 63% to $2.3 million compared to $6.1 million in the prior year representing an Adjusted EBITDA margin of 22%. The decrease was driven by increased operating expenses.
Operating profit in the fourth quarter decreased 86% to $0.6 million compared to $4.4 million in 2020. The decrease was driven primarily by a decrease in Adjusted EBITDA and an increase in share-based payments expense.
Net income in the fourth quarter totaled $0.9 million, or $0.02 per diluted share, compared to net income of $8.5 million, or $0.35 per diluted share, in the prior year. Net income in the forth quarter 2021 was positively affected by a USD/Euro foreign currency exchange gain of $1.1 million (zero in 2020). While net income in the fourth quarter of 2020 was positively affected by the recognition of deferred tax assets of $5.4 million (deferred tax asset reduction of $0.2 million in 2021).
ComeOn Group announced a significant milestone in its sportsbook expansion journey with the addition of sportsbook to their offering in Ontario following the successful acquisition of the required permits. This addition represents a strategic advancement in the Groups sportsbook growth trajectory where they are set to double its sportsbook business in the coming years.
ComeOn Group is one of 51 active operators in Ontario. The Ontario market has experienced robust growth since its launch, reaching C$6.7 billion in revenue in 2023.* By 2029, the market is forecasted to grow by a total of 29%, with 2024 expected to close with a 20% increase.
ComeOn keeps investing in its sportsbook business acceleration that is powered by its proprietary sportsbook platform and in-house risk management and trading team. As a multi product vertical operator, ComeOn is striving to give its customer base a safe and exciting entertainment destination and this approach is now expanded to their Ontario audience.
Juergen Reutter, Chief Executive Officer at ComeOn Group, said: “We are very excited about the opportunities this new milestone opens up for us. As a casino-led operator it represents a key part of our sportsbook strategy to double our business in the coming years. Like in any of our other markets, we are striving for a differentiated sportsbook entertainment experience that is powered by our in-house technology. Our goal is to deliver top-tier entertainment to our players while fostering safe and innovative gaming experiences.”
*Source – H2GC H2 Ontario Data 25.10.2024 (excl. Lottery)
BCLC
INTRALOT Announces New Project with the British Columbia Lottery Corporation for Online Lottery Platform
INTRALOT S.A. has announced the undertaking of a new project between the British Columbia Lottery Corporation (BCLC), the sole lottery operator for the Government of British Columbia in Canada, and INTRALOT Inc., its US subsidiary, for the provision of an online lottery platform. The project also includes the digitalization of the existing land-based network.
The solution will be based on the Player X platform, part of the Lotos X ecosystem, and adds to the company’s overall partnership with BCLC, which has been extended until 2028.
INTRALOT is a leading player in a changing world of gaming. With significant experience in looking forward and anticipating emerging trends, the company provides future-proof solutions to regulated lottery and gaming operators around the world.
Relax Gaming, the iGaming aggregator and supplier of unique content, has significantly enhanced its presence in the Ontario market through an agreement with leading Canadian operator, PointsBet.
This partnership reinforces Relax Gaming’s aim to become a standout provider across North America, having already gained early success in Ontario. Relax became one of the first suppliers to deliver content to the region’s players in March 2022, debuting with over 120 games across multiple operators.
PointsBet pride themselves as one of Canada’s leading operators offering unmatched speed, ease of use, and a comprehensive array of pre-game and in-play sports betting options. This is complemented by a top-tier online casino which will now be boosted with the integration of Relax’s portfolio of slots and live dealer options.
With its authentic Canadian approach, PointsBet prioritises technology that minimises external dependencies to maintain control over its platform and has a commitment to responsible gambling best practices, ensuring a safe and secure environment for all players.
Martin Stålros, CEO at Relax Gaming, said: “Since we launched in Ontario we have enjoyed tremendous success, with our content hitting the sweet spot for the broad range of players in the Canadian province. This partnership with PointsBet will strengthen our presence in the market as the region’s leading operator integrates our rich content portfolio which will engage its player base.”
Scott Vanderwel, Chief Executive Officer at PointsBet, added: “Relax Gaming has established a strong reputation across North America and in Ontario in particular. The impressive range of content that will be integrated into our platform will increase engagement within our online platform and we are delighted to be able to provide more immersive experiences to our audiences.”
Established as one of the industry’s leading B2B suppliers, Relax Gaming was awarded GGA’s Product Launch of the Year in February 2023 for Dream Drop Jackpots. Money Train 3 names the 2023 CasinoBeats Game Developer Awards amongst its 6 Slot of the Year titles, while the brand also won the award for Skill Games Supplier at the 2023 EGR B2B Awards along with the Innovation in Mobile award at the 2023 SBC Awards.
Relax Gaming provides more than 4,000 online casino games, from its high-performing proprietary slots to a significant, varied library of content from hand-picked third-party studios via its partnership programmes.
Saroca Unveils the Transformational Leadership Program for 2025
Week 47/2024 slot games releases
EGT Digital is shortlisted in 5 categories of BEGE Awards 2024
EGT is a finalist in several categories of BEGE Awards 2024
EGT’s latest innovations to shine at the 15th edition of BEGE Expo
MGM Resorts Teams with USO and American Airlines for 14th Annual Salute to the Troops at Mandalay Bay
Evoplay enters Czech market with exclusive Fortuna collaboration
EveryMatrix launches EveryMatrix Effect campaign
Spinomenal celebrates Halloween with Book of the Cursed release
QiH Group completes C-suite hiring spree with new CFO appointment
-
gaming2 years agoODIN by 4Players: Immersive, state-of-the-art in-game audio launches into the next generation of gaming
-
EEG iGaming Directory8 years ago
iSoftBet continues to grow with new release Forest Mania
-
News7 years ago
Softbroke collaborates with Asia Live Tech for the expansion of the service line in the igaming market
-
News6 years ago
Super Bowl LIII: NFL Fans Can Bet on the #1 Sportsbook Review Site Betting-Super-Bowl.com, Providing Free Unbiased and Trusted News, Picks and Predictions
-
iGaming Industry7 years ago
Rick Meitzler appointed to the Indian Gaming Magazine Advisory Board for 2018
-
News6 years ago
REVEALED: Top eSports players set to earn $3.2 million in 2019
-
iGaming Industry7 years ago
French Senator raises Loot Boxes to France’s Gambling Regulator
-
News7 years ago
Exclusive Interview with Miklos Handa (Founder of the email marketing solutions, “MailMike.net”), speaker at Vienna International Gaming Expo 2018
