Completing its first full trading quarter as a Global Nasdaq enterprise, Gambling.com Group has recorded Q3 group revenues of $10.1 million, up 37% on corresponding 2020 results of $7.4 million.
Though registering a 4% decline in new depositing customers (NDCs) to 27,000, revenue performance was optimised by the “improved monetisation of customers through new technologies improving its product mix and make-up”.
Period highlights saw Gambling.com increase its North American revenues by 110% to $2.27 million (Q32020: $1.08m), with the group stating that its position would be further strengthened by several upcoming US domain launches.
Meanwhile, in Europe the Gambling.com UK&IRE publishing network continued to maintain growth, registering a 4% increase in revenues to $4.5 million (Q32020: $4.5m). The publisher will continue to diversify its European portfolio with the launches of casinosource.nl and gambling.nl for the regulated Dutch KOA marketplace.
The improved trading result saw the group declare a headline net income of $4.7 million, doubling its 2020 comparatives of $2.3 million.
However, period trading saw it double its operating expenditure to $7.7 million, absorbing numerous administrative costs associated with operating a public company. The firm cited “increased wages and salary expenses associated with increased headcount, professional services, and insurance expenses”.
Despite the increased turnover, Q3 Adjusted EBITDA decreased by 14% to $3.5 million compared to $4.0 million in the prior year representing an EBITDA trading margin of 34%
Closing its Q3 trading update, the company declared operating profits of $2.4 million, down 31% on 2020 like-for-like comparatives of $3.5 million.
Providing a business outlook, Gambling.com underscored its significantly strengthened balance sheet, providing the company an enlarged working capital from $8.2 million to $53 million as of the end of Q3 trading.
“Our financial performance in the third quarter remained strong as we grew revenue by 37% compared to the prior year and, despite the third quarter being the seasonally slowest quarter of the year, delivered an Adjusted EBITDA margin of 34%,” said Charles Gillespie, Chief Executive Officer and co-founder.
“We are encouraged by the start to our seasonally stronger fourth quarter. We remain highly focused on prudently growing the Company through both sustained organic growth and future accretive acquisitions which we continue to actively pursue.”