Affiliate network Gambling.com has lauded the re-regulated Swedish market’s early going, as the organisation reported across the board increases during its latest set of financial results.
Reporting a 63 per cent full year revenue rise to €16.23m (2017: €9.97), boosted by a Q4 performance which saw an 81 per cent increase to €4.94 (2017: €2.73), it was stressed that “as of January 1, 2019 the Swedish market is locally regulated and taxed. We have seen our Swedish assets perform well in terms of NDC productions, but also seen a commensurate decrease in player value”.
Gambling.com also tentatively addressed US operations and the Department of Justice Wire Act re-Interpretation which has threatened severe implications, adding “The United States Department of Justice released an opinion which re-interpreted the Department’s own opinion on the Wire Act from 2011. The ramifications of the new opinion are not yet clear but could create headwinds for the roll-out of regulated online gambling in the United States.”
With Charles Gillespie, Gambling.com chief executive, explaining: “The legal standing of the updated opinion is highly contentious, has been vigorously attacked by former DOJ officials, politicians, legislators, attorneys general and the mainstream media, and already faces multiple court challenges.
“We see the long-term effects of the new opinion being limited, but the short-term impact will be a headwind on states looking at regulating sports betting this year.”
Gillespie also addressed the company largest market, with a slight knock-on effect expected to be felt as a result of recent developments: “As previously announced The United Kingdom’s 2019 budget included a provision to increase remote gaming duty from 15 per cent to 21 per cent, effective April 1, 2019. The increase represents a small headwind in terms of player values in the United Kingdom, the group’s largest market. “
EBITDA for 2018’s Q4 totalled €1.44m, a 93 per cent jump from €750,000, helping its full year figure reach €4.98m, a 69 per cent rise from €2.95m, with new depositing customers increasing 140 and 106 per cent for the quarter and year respectively, reaching 24,838 and 74,838.
Gillespie added: “The group delivered, again, a record quarter in terms of revenue, EBITDA and adjusted EBITDA as a result of substantial, ongoing organic revenue growth amounting to 62% for the fourth quarter and 37% for the full year.”
Gambling.com was yesterday announced as having agreed a partnership deal with SBC for the highly anticipated Betting on Sports America trade conference, 22-25 April, at the Meadowlands Expo Center in New Jersey.