Gambling.com hit by wider losses in Q3
Published 21st November 2019
Revenue for the three months through to 30 September 2019 totalled €4.2m, up slightly from €4.1m in the corresponding period last year.
Earned revenue was up 16.4% from €3.5m to €4.1m this year, but paid revenue was down 81.4% to €110,000.
Some 77% of revenue in the third quarter was derived from locally regulated markets, an increase from 70% on last year, while new depositing customers were up 4% year-on-year to 18,411.
However, Gambling.com also reported a rise in operating costs for the quarter, with total spending up 33.5% from €2.9m to €3.8m.
Higher spending, coupled with minimal revenue growth, meant operating profit for the period slipped 67.1% from €1.2m in Q3 of 2018 to €337,000.
Loss before tax was €79,000, compared to a profit of €479,000 last year, while loss for the period stood at €57,000.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 66.2% from €1.4m to €470,000, while adjusted EBITDA excluding non-recurring costs slipped 59.9% to €610,000.
For the first nine months of 2019, revenue stood at €13.8m, 22% ahead of last year. Operating profit was down 10.0% to €2.7m, while profit before tax fell 80.3% to €1.2m.
Profit after tax dropped 98.1% from €5.9m to €1.1m, while EBTIDA was down 10.0% to €3.2m and adjusted EBITDA fell 20.1% to €3.4m.
“Q3 is always a seasonally lighter quarter, with fewer sporting events,” Gambling.com chief executive Charles Gillespie said. “This, together with the continuing market challenges (due to tax and regulatory changes) in the UK and Swedish markets resulted in a slower overall growth rate for the group in the third quarter.
“In addition, following a review of the PPC media buying strategy, the group spent at a much reduced rate in the quarter, in this area. When looking at the group’s core business of earned revenue (SEO and direct navigation), year-on-year growth across all markets was 16%.
“Earned revenue performance in the UK market remained steady year on year, despite substantial headwinds in the market.
“However, in our growth markets, including the US, KPI data continued to show very strong growth trends, and we remain extremely positive for future development in these markets.”