Revenue for the three months to September 30 amounted to €6.3m, compared to €4.2m in the corresponding period last year. Gambling,com Group reported a 56.0% increase in earned revenue from organic traffic sources in Q3, reaching €6.3m, which includes search engine optimization and direct navigation. However, paid revenue from bought traffic sources dropped by 75.0%, consisting only of legacy payments. Paid traffic remained on hold throughout Q3, following its suspension in Q1. A significant portion of total revenue in the quarter, 68.0%, came from locally regulated markets. Earnings before interest, tax, depreciation, and amortization (EBITDA) for Q3 skyrocketed by 604.3% to €3.3m, while EBITDA excluding non-recurring costs surged by 441.0% to €3.3m compared to the previous year.
Regarding technology platforms, their implementation earlier in the year led to substantial improvements in commercial metrics and operational efficiencies across the Gambling.com Group’s sites. This has allowed for increased investment in product and marketing, with a specific focus on the rapidly expanding US markets and the expansion of their sports offering. Despite remote work restrictions, the organization has demonstrated its ability to deliver exceptional results, providing the confidence to accelerate hiring.
Costs for the period were optimized, with total operating expenses reduced by 18.9% to €3.1m. The suspension of paid revenue contributed to a savings of €141,000, while staff costs increased slightly. Other operating expenses fell by 29.5% to €951,000. As a result, there was a significant increase in operating profit for Q3, amounting to €3.2m, an 856.4% rise from last year’s €337,000. Including finance costs such as €308,000 in interest on borrowing, the profit before tax amounted to €3.1m, a substantial improvement compared to last year’s €79,000 loss. The organization paid €283,000 in income tax and included a €44,000 deferred tax payment, resulting in a total tax payment of €327,000. Consequently, the net profit for the period reached €2.8m, a significant improvement from Q3 2019’s €57,000 loss.
Looking at the year-to-date performance, revenue for the nine months ended September was €15.8m, representing a 14.5% increase from the same period last year. Earned revenue grew by 22.0% to €15.5m, while paid revenues declined by 78.0% to €240,000. EBITDA saw a substantial increase of 118.8% year-on-year to €7.0m, and adjusted EBITDA excluding non-recurring costs also rose by 114.7% to €7.3m. Total operating costs decreased by 18.0% to €9.1m. Operating profit significantly improved to €6.7m, a 148.2% increase compared to last year. Additionally, Gambling.com benefited from €906,000 in finance income, resulting in a profit before tax of €7.6m, a 533.3% surge from the previous year. The organization paid €698,000 in income tax and €68,000 in deferred tax charges, culminating in a comprehensive profit of €6.8m for the period, a rise of 385.7% compared to €1.1m at the same point in 2019.
Gillespie expressed confidence in the remarkable organic growth witnessed in the last two quarters, expecting the increasingly robust technical and product foundation to sustain market-leading organic growth in the months and years ahead.
