Gambling.com Group’s second quarter revenue increased, but the group’s chief financial officer said it was ‘cautious’ as it meant the business posted losses due to foreign currency ‘headwinds’ .
Total business revenue increased to $15.9 million from $10.3 million the year before. Chief Financial Officer Ellis Mark noted that rather than slowing demand amid rising inflation, businesses continue to experience large levels of habituation.
“Given the macroeconomic headlines in Europe and North America, I think it’s wise to mention that consumer demand for online gambling hasn’t declined over the years,” Mark said.
“We are monitoring and will continue to closely monitor consumer behavior in Europe and North America as the fall and winter sports seasons develop.
“In our view, the demand for performance marketing services for the online gambling industry remains strong.
The UK and Ireland remained the Group’s largest source of revenue, increasing 24.1% to $6.7 million.
However, North America lagged slightly behind as revenue from the region reached $6.2 million, more than four times the total from the second quarter of 2021.
Revenue from the rest of Europe decreased 26.2% to $2.1 million, while revenue from other regions increased 20.0% to $902,000.
By product type, performance marketing continued to dominate revenue, up 30.3% to $12.3 million. Revenue from the new channel, subscriptions, is now $744,000. Advertising and other revenue increased over 150% to $2.9 million.
Finally, when revenue was broken down by type of gambling product advertised, casinos increased 33.0% to $12 million, while sports betting revenue more than tripled to $3.8 million.
However, operating expenses grew faster than revenues, more than doubling to $17.7 million. Sales and marketing expenses were the biggest expense, up 169.1% to $8.5 million for him, about half of which was due to labor costs.
Technical costs were $1.5 million and administrative costs were $4.8 million. In addition, the business faced new costs of $2.8 million related to changes in the fair value of contingent payments the Group may make as a result of its acquisition of BonusFinder.
Gillespie said BonusFinder has “exceeded plans” since the acquisition.
As a result, the group reported an operating loss of $2.2 million, compared with a profit of $3.2 million in the previous year.
After $3.5 million worth of finance-related income and $1.1 million of finance-related expenses, the Group posted a pre-tax profit of $186,000.
You paid $56,000 in taxes and made a profit of $130,000.
However, after also factoring in exchange rate fluctuations, the business reported a loss of $6.5 million attributable to shareholders.
Mark added that while the business remains confident in its ability to generate revenue, currency fluctuations may continue to be a challenge.
“We are positive about the second half of the year, but cautious about having to make up for lost earnings from currency headwinds,” he said.
“We continue to see inflationary pressures, but as they grow, we are working to mitigate these headwinds by increasing the proportion of our operating expenses to more cost-effective jurisdictions.”
