Gambling.com Group Q1 revenues leap on US growth
US-focused affiliate firm sees EBITDA margins tick down as it invests in recruiting new staff
Gambling.com Group today reported a revenue increase of 52% to €5.2m for the first quarter of 2019.
The US-focused affiliate firm’s organic growth rate hit 50%, while adjusted EBITDA for the period totalled €1.8m, increasing by 33% from the same period last year.
Net cash generated from operating activities in Q1 reached €1.1m, while new depositing customers (NDCs) increased by 66% to 26,525.
Q1 revenue was boosted after Gambling.com Group received the green light to expand its rev share deals with betting operators in New Jersey.
Gambling.com Group CEO Charles Gillespie said: “We are investing for the future with a particular focus on US-focused product development by rapidly scaling its product and technology teams.
Gambling.com Group CEO Charles Gillespie
“This has put downward pressure on EBITDA margins as compared to last year. The Group ended the quarter with 117 full-time resources.
“Sustained, high organic growth of the type that the Group has been delivering simply requires investment in the business and in particular in people,” he added.
This was reinforced by the average number of employees at Gambling.com Group in the first quarter hitting 101, up from 35 on the same period in 2018.
The affiliate firm also said the April rise in the UK’s Remote Gaming Duty tax to 21% had “dampened UK growth prospects somewhat”.
On the tricky start to the Swedish market, Gillespie added: “We have seen our Swedish assets perform well in terms of NDC production but with a commensurate decrease in player value.”