Gambling,com Group has reported a €2.8m (£2.5m/$3.3m) net profit for its third quarter after a strong performance from its organic traffic services helped to drive revenue up 52.2% year-on-year.
Revenue for the three months to September 30 amounted to €6.3m, compared to €4.2m in the corresponding period last year.
Gambling,com Group said earned revenue from organic traffic sources – covering search engine optimisation and direct navigation – reached €6.3m in Q3, up 56.0% on the previous year.
However, paid revenue from bought traffic sources fell 75.0% and comprised of legacy payments only, as paid traffic remained paused in Q3 after first being halted in Q1.
Revenue derived from locally regulated markets accounted for 68.0% of total revenue in the quarter.
The affiliate also noted that earnings before interest, tax, depreciation and amortisation (EBITDA) for Q3 rocketed by 604.3% to €3.3m, while EBITDA excluding non-recurring costs jumped 441.0% year-on-year to €3.3m.
“Our technology platforms that went live earlier in the year have significantly improved both commercial metrics across our sites and operational efficiencies,” Gambling.com chief executive Charles Gillespie (pictured) said.
“As a result, we are now in a position to scale investment in product and marketing with a particular focus on the fast-growing US markets and the expansion of our sports offering.
“The organisation has proven that it is capable of delivering outstanding results while working remotely. This gives us the confidence to increase the pace of hiring even while adhering to restrictive public health measures.”
Looking at costs for the period and total operating expenses were cut by 18.9% to €3.1m.
Gambling,com Group benefitted from a saving of €141,000 by not spending on paid revenue, and though staff costs edged up, other operating expenses fell 29.5% to €951,000.
This resulted in an operating profit of €3.2m, up 856.4% from €337,000 at the same point in 2019. When also accounting for finance costs, including €308,000 in interest on borrowing, profit before tax was €3.1m, compared to a €79,000 loss last year.
Gambling.com paid €283,000 in income tax in Q3 and also included a €44,000 deferred tax payment, meaning total tax paid was €327,000. As such, net profit for the period came to €2.8m, a significant improvement on Q3 2019’s €57,000 loss.
Looking at the year-to-date performance, revenue in the nine months to the end of September was €15.8m, up 14.5% from €13.8m at the same point last year. Earned revenue was up 22.0% to €15.5m but paid revenues fell 78.0% to €240,000.
EBITDA jumped 118.8% year-on-year to €7.0m and adjusted EBTDA excluding non-recurring costs also climbed 114.7% to €7.3m. Total operating costs were down 18.0% to €9.1m.
Operating profit improved 148.2% to €6.7m and Gambling.com was also able to benefit from €906,000 in finance income, meaning profit before tax reached €7.6m, up 533.3% on last year.
Gambling.com paid €698,000 in income tax and €68,000 in deferred tax charges, which left a comprehensive profit of €6.8m for the period, up 385.7% from €1.1m at the same point in 2019.
“We have seen exceptional organic growth over the last two quarters and exited Q3 with our strongest momentum yet,” Gillespie said.
“I am confident our increasingly robust technical and product foundation will enable us to continue to deliver market-leading organic growth over the coming months and years.”