Gambling.com Group Defies Industry Trends with Strong Q2 Results

16.08.2024

Gambling.com Group stands out among other affiliate businesses, posting one of its strongest quarters to date. The company reported an 18% year-over-year revenue growth, bringing in $30.5 million during the second quarter of 2024.

Resilience in the Face of Algorithmic Changes

Unlike other affiliates struggling with the impact of Google’s algorithmic updates, Gambling.com Group attributes its success to its “high-intent audience.”

This means that the company has been able to attract valuable traffic, convert new depositors, and maintain customer engagement, leading to consistent revenue streams. Charles Gillespie, CEO of Gambling.com Group, highlighted this, stating: “Our second quarter and year-to-date results highlight the incredible power of our high-intent audience and the clear value we create for our online gambling operator clients.”

This resilience comes at a time when competitors like Catena have struggled, with Gambling.com distinguishing itself not only through superior traffic conversion but also through efficient cost management.

Cost-Cutting Measures Fuel Profitability

One of the key drivers of the Group’s success was its decision to reduce operating expenses, which fell by 15% year-over-year to $20.8 million.

This internal cost reduction has fortified the company’s profitability, contributing to an increase in Adjusted EBITDA to $11.2 million, resulting in an EBITDA margin of 37%.

Gambling.com Group’s overall performance saw significant improvements across various divisions:

  • Gross profit climbed to $29.1 million, a 16% increase.
  • Affiliate revenue from the casino segment led the way, growing by 26% year-over-year to hit $22.1 million.
  • The sports betting segment saw a slight decline, dipping to $8.2 million from $8.4 million a year earlier, though this was a minor impact in the broader context of the Group’s success.

Growth in Key Markets

The company’s strong quarter was not limited to one market. It saw notable gains across its two main regions:

  • North America posted an 8% increase in revenue, totaling $12.6 million.
  • The United Kingdom and Ireland showed an 18% growth, with revenue reaching $9.9 million.

In terms of customer acquisition, the Group saw continued momentum, with 108,000 new depositors between April and June, positioning the company well for sustained growth.