Gambling.com Shares Up In Pre-market On Returning To Q4 Profit, Revenue Outlook

(RTTNews) - Gambling.com Group Limited (GAMB), a provider of digital marketing services for the iGaming and sports betting, Thursday reported a profit for the fourth quarter compared with a loss in the previous-year period driven by more than 50 percent growth in revenue. While the quarterly revenue beat the estimates, earnings missed. Shares of Gambling.com were up more than 10 percent in pre-market at $10.08.

Additionally, the company announced its decision to acquire sports betting service, Freebets.com, and related assets. The transaction is expected to be immediately add to the company's financial results.

Gambling.com posted net income of $6.37 million or $0.16 per share for the fourth quarter, compared with net loss of $4.41 million or $0.12 per share in the same quarter a year ago.

Excluding one-time items, earnings were $6.81 million or $0.18 per share. On average, analysts polled by Thomson-Reuters expected the company to report earnings of $0.19 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 52 percent to $32.53 million from $21.35 million last year. The consensus estimate was for $27.69 million.

The Freebets.com acquisition implies a consideration of between $37.5 million and $42.5 million, consisting of $20.0 million to be paid on closing, $10.0 million at the six-month anniversary of closing and between $7.5 million and $12.5 million on the one-year anniversary of the closing subject to the revenue performance of the assets during the rest of 2024. Closing of the deal is expected at the beginning of April.

"By operating these assets on our technology platform, we expect to unlock their full potential. We are confident that this latest acquisition will create incremental shareholder value in the same way we have done with previous acquisitions," said Charles Gillespie.

Looking ahead, the company sees fiscal 2024 revenue to be in the range of $129 million - $133 million. Analysts are expecting revenue of $120.61 million.

Gambling.com shares had closed at $9.13, up 2.24 percent on Wednesday. The stock has been trading in the range of $8.39 - $14.83 in the last 1 year.