Gambling.Com Group Ltd ((GAMB)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Gambling.com Group Ltd. painted a picture of strong financial performance and optimistic growth prospects. The company has been bolstered by strategic acquisitions and market expansion, despite facing challenges in North American sports revenue and media partnership traffic. Overall, the sentiment was positive, reflecting confidence in the company’s core business and strategic initiatives.
Record Quarterly and Full-Year Financial Performance
Gambling.com Group achieved impressive financial results, with record revenue of $35.3 million and adjusted EBITDA of $14.7 million in the fourth quarter of 2024. The full-year figures were equally strong, with revenue and adjusted EBITDA increasing by 17% and 33%, respectively. This performance underscores the company’s robust financial health and operational efficiency.
Strategic Acquisitions and Growth Prospects
The acquisitions of OddsJam and OpticOdds have expanded Gambling.com Group’s product portfolio, promising a 20% growth in incremental adjusted EBITDA from these businesses. These strategic moves are expected to enhance the company’s market position and drive future growth.
Strong Organic and Market Share Growth
Looking ahead, the company anticipates a 35% increase in revenue and a 40% rise in adjusted EBITDA in 2025. This growth is expected to be fueled by expanded product offerings and market share gains, highlighting the company’s strong organic growth trajectory.
Increased Revenue from Subscriptions
Recurring subscription revenue is projected to account for over 20% of total group revenue in 2025, largely due to the acquisitions of OddsJam and OpticOdds. This shift towards subscription-based revenue is set to provide a stable and predictable income stream.
Robust Performance in Core Affiliate Business
The core affiliate business reported its best quarter in the company’s 19-year history, with significant growth in iGaming revenue across various regions. This performance highlights the strength and resilience of the company’s core operations.
Decline in North American Sports Revenue
Despite overall strong performance, the company experienced a 9% decline in North American sports revenue, attributed to reduced state launch activity and lower media partnership revenue. This decline presents a challenge that the company will need to address moving forward.
Challenges in Traffic from Media Partnerships
Gambling.com Group anticipates a substantial decrease in traffic from media partnerships, which poses a headwind to revenue growth. The company will need to find alternative strategies to mitigate this impact.
Impact of Regulatory Changes in Brazil
Regulatory changes in Brazil have posed challenges for Gambling.com Group, affecting its affiliate business operations in the region. Navigating these regulatory hurdles will be crucial for maintaining growth in this market.
Forward-Looking Guidance
The company provided optimistic guidance for 2025, projecting a 35% growth in full-year revenue and a 40% increase in adjusted EBITDA. This growth is expected to be driven by the recent acquisitions and strong performance in the core affiliate business. Additionally, the company is optimistic about organic growth in sports betting, particularly in North America, and plans to capitalize on new opportunities in recently regulated markets.
In summary, the earnings call for Gambling.com Group Ltd. reflected a strong financial performance and a positive outlook for future growth. Despite some challenges, the company’s strategic acquisitions and robust core business provide a solid foundation for continued success. Investors and stakeholders can look forward to the company’s growth prospects in the coming year.