Gambling.com Group announces €2.8m profit in Q3
The group has announced that their revenue for the three months leading up to September 30th amounted to €6.3m, compared to €4.2m during this same time last year, resulting in a whopping €2.1m increase. This does not come as a surprise, however, for the group’s third quarter was successful in terms of organic traffic.
The revenue collected from organic traffic sources such as direct navigation and search engine optimization reached €6.3m in Q3, an increase of 56.0% from the previous year. On the other hand, paid revenue from bought traffic sources fell by 75% and consisted mainly of legacy payments, as paid traffic remained paused in Q3 after its halt in Q1.
Additionally, revenue derived from locally regulated markets made up 68% of total revenue in the quarter.
It was also noted that earnings before interest, tax, depreciation and amortization (EBITDA) for Q3 had seen an increase of 604.3% to €3.3m.
“Our technology platforms that went live earlier in the year have significantly improved both commercial metrics across our sites and operational efficiencies,” Gambling.com chief executive Charles Gillespie said.
“As a result, we are now in a position to scale investment in product and marketing with a particular focus on the fast-growing US markets and the expansion of our sports offering. The organization has proven that it is capable of delivering outstanding results while working remotely. This gives us the confidence to increase the pace of hiring even while adhering to restrictive public health measures.”
Total operating expenses were cut by 18.9% to €3.1m.
The Gambling.com Group saved about €141,000 by not spending on paid revenue, and though staff costs skyrocketed, other operating expenses fell by around 29.5%, equivalent to €951,000.
The result was an operating profit of €3.2m, up 856.4% from €337,000 at the same time in 2019.
In Q3, Gambling.com paid €283,000 in income tax and also included a €44,000 deferred tax payment, and as such, total tax paid came down to €327,000. As such, net profit for the period came to €2.8m, a major rise from Q3 2019’s €57,000 loss.
Revenue until the end of September was €15.8m, up by 14.5% from €13.8m at the same point last year looking at the year-to-date performance. Earned revenue was up 22% to €15.5m but paid revenues fell 78% to €240,000.
EBITDA jumped 118.8% year-on-year to €7.0m and adjusted EBTDA excluding non-recurring costs also climbed 114.7% to €7.3m. Total operating costs were down 18.0% to €9.1m.
Operating profit increased by 148.2% to €6.7m, therefore Gambling.com was also able to benefit from €906,000 in finance income, which indicates that profit before tax reached €7.6m, up 533.3% on last year.
The company paid €698,000 in income tax and €68,000 in deferred tax charges, which left a comprehensive profit of €6.8m for the period, up 385.7% from €1.1m at the same point in 2019.
“We have seen exceptional organic growth over the last two quarters and exited Q3 with our strongest momentum yet, I am confident our increasingly robust technical and product foundation will enable us to continue to deliver market-leading organic growth over the coming months and years.” Said Gillespie.