Full year North American revenue growth of 89% to
Very strong start to Q1, strategic US-facing assets expected to drive record financial performance in 2022
2021 Financial Highlights
Fourth Quarter 2021 Financial Highlights
Business Highlights
“We grew our revenue in 2021 by 51% compared to the prior year, delivered an EBITDA margin of 43% and generated over
2022 Outlook
Based on currently available information, the Group estimates that, for the full year 2022:
2021 – 2023 Financial Targets |
||
|
|
|
Total Revenue Growth |
|
> Average 40% |
Adjusted EBITDA Margin1 |
|
> Average 40% |
Leverage2 |
|
< Net Debt to Adjusted EBITDA 2.5x3 |
1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
2 Leverage is defined as Net Debt as a proportion of Adjusted EBITDA.
3 Net Debt is defined as Borrowings less Cash and Cash Equivalents.
2021 vs. 2020 Financial Highlights |
||||||||||||||||
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, except for
|
|
|
|
|
|
|
|
|||||||
CONSOLIDATED STATEMENTS OF
|
|
|||||||||||||||
Revenue |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Operating expenses |
|
|
(30,931 |
) |
|
|
(16,849 |
) |
|
|
(14,082 |
) |
|
|
84 |
% |
Operating profit |
|
|
11,392 |
|
|
|
11,131 |
|
|
|
261 |
|
|
|
2 |
% |
Income before tax |
|
|
12,164 |
|
|
|
10,752 |
|
|
|
1,412 |
|
|
|
13 |
% |
Net income for the period attributable to the
|
|
|
12,453 |
|
|
|
15,151 |
|
|
|
(2,698 |
) |
|
|
(18 |
)% |
Net income per share attributable to ordinary
|
|
|
0.40 |
|
|
|
0.55 |
|
|
|
(0.15 |
) |
|
|
(27 |
)% |
Net income per share attributable to ordinary
|
|
|
0.37 |
|
|
|
0.49 |
|
|
|
(0.12 |
) |
|
|
(24 |
)% |
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, except Adjusted EBITDA Margin, unaudited) |
|
|
|
|
|
|
|
|||||||
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
18,356 |
|
|
|
14,608 |
|
|
|
3,748 |
|
|
|
26 |
% |
Adjusted EBITDA Margin |
|
|
43 |
% |
|
|
52 |
% |
|
n/m |
|
|
n/m |
|
||
Free Cash Flow |
|
|
8,423 |
|
|
|
10,804 |
|
|
|
(2,381 |
) |
|
|
(22 |
)% |
n/m = not meaningful
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New Depositing Customers (1) |
|
|
117 |
|
|
|
104 |
|
|
|
13 |
|
|
|
13 |
% |
Revenue
Total revenue increased 51% to
Our revenue disaggregated by market is as follows:
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
|
|
|
21,391 |
|
|
|
16,189 |
|
|
|
5,202 |
|
|
|
32 |
% |
Other |
|
|
10,800 |
|
|
|
5,252 |
|
|
|
5,548 |
|
|
|
106 |
% |
|
|
|
7,484 |
|
|
|
3,959 |
|
|
|
3,525 |
|
|
|
89 |
% |
Rest of the world |
|
|
2,648 |
|
|
|
2,580 |
|
|
|
68 |
|
|
|
3 |
% |
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were primarily driven by growth in revenue from the
Our revenue disaggregated by monetization is as follows:
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
Hybrid commission |
|
|
15,616 |
|
|
|
14,738 |
|
|
|
878 |
|
|
|
6 |
% |
Revenue share commission |
|
|
3,596 |
|
|
|
3,308 |
|
|
|
288 |
|
|
|
9 |
% |
CPA commission |
|
|
18,591 |
|
|
|
9,047 |
|
|
|
9,544 |
|
|
|
105 |
% |
Other revenue |
|
|
4,520 |
|
|
|
887 |
|
|
|
3,633 |
|
|
|
410 |
% |
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven primarily by additional Cost Per Acquisition, or CPA, commission and Other revenue. The increase in Other revenue was driven by bonuses related to achieving certain operator NDC performance targets and fixed fees.
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
Casino |
|
|
35,632 |
|
|
|
24,135 |
|
|
|
11,497 |
|
|
|
48 |
% |
Sports |
|
|
6,188 |
|
|
|
3,210 |
|
|
|
2,978 |
|
|
|
93 |
% |
Other |
|
|
503 |
|
|
|
635 |
|
|
|
(132 |
) |
|
|
(21 |
)% |
Total revenues |
|
|
42,323 |
|
|
|
27,980 |
|
|
|
14,343 |
|
|
|
51 |
% |
Revenue increases were driven by growth in revenue from casino and sports products.
Operating Expenses
|
|
YEAR ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD) |
|
|
|
|
|
|
|
|||||||
Sales and marketing expenses |
|
|
14,067 |
|
|
|
8,103 |
|
|
|
5,964 |
|
|
|
74 |
% |
Technology expenses |
|
|
3,947 |
|
|
|
2,503 |
|
|
|
1,444 |
|
|
|
58 |
% |
General and administrative expenses |
|
|
13,014 |
|
|
|
5,956 |
|
|
|
7,058 |
|
|
|
119 |
% |
Movements in credit losses allowance and write offs |
|
|
(97 |
) |
|
|
287 |
|
|
|
(384 |
) |
|
|
(134 |
)% |
Total operating expenses |
|
|
30,931 |
|
|
|
16,849 |
|
|
|
14,082 |
|
|
|
84 |
% |
Total operating expenses increased by
Sales and Marketing expenses totaled
Technology expenses totaled
General and Administrative expenses totaled
Earnings
Adjusted EBITDA increased by 26% to
Operating profit remained relatively constant at
Net income totaled
Free Cash-flow
Total cash generated from operations of
Balance Sheet |
||||||||||||||||
|
|
AS OF
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
(in thousands, USD) |
|
|
|
|
|
|
|
|||||||
CONSOLIDATED STATEMENTS OF FINANCIAL
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
|
51,047 |
|
|
|
8,225 |
|
|
|
42,822 |
|
|
|
521 |
% |
Working capital (2) |
|
|
46,714 |
|
|
|
10,059 |
|
|
|
36,655 |
|
|
|
364 |
% |
Total assets |
|
|
91,025 |
|
|
|
45,383 |
|
|
|
45,642 |
|
|
|
101 |
% |
Total borrowings |
|
|
5,944 |
|
|
|
5,960 |
|
|
|
(16 |
) |
|
|
(0 |
)% |
Total liabilities |
|
|
11,116 |
|
|
|
11,171 |
|
|
|
(55 |
) |
|
|
(0 |
)% |
Total equity |
|
|
79,909 |
|
|
|
34,212 |
|
|
|
45,697 |
|
|
|
134 |
% |
n/m = not meaningful
Cash balances as of
Total assets as of
Total equity as of
The increases in working capital, total assets, and total equity were driven primarily by the net proceeds received from the IPO and operating profit and net income generated by the Company.
Fourth Quarter 2021 vs. Fourth Quarter 2020 Financial Highlights |
||||||||||||||||
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, except for
|
|
|
|
|
|
|
|
|||||||
CONSOLIDATED STATEMENTS OF
|
|
|||||||||||||||
Revenue |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Operating expenses |
|
|
(9,668 |
) |
|
|
(5,897 |
) |
|
|
(3,771 |
) |
|
|
64 |
% |
Operating profit |
|
|
623 |
|
|
|
4,370 |
|
|
|
(3,747 |
) |
|
|
(86 |
)% |
Income before tax |
|
|
1,311 |
|
|
|
3,489 |
|
|
|
(2,178 |
) |
|
|
(62 |
)% |
Net income for the period attributable to the
|
|
|
867 |
|
|
|
8,541 |
|
|
|
(7,674 |
) |
|
|
(90 |
)% |
Net income per share attributable to ordinary
|
|
|
0.03 |
|
|
|
0.39 |
|
|
|
(0.36 |
) |
|
|
(92 |
)% |
Net income per share attributable to ordinary
|
|
|
0.02 |
|
|
|
0.35 |
|
|
|
(0.33 |
) |
|
|
(94 |
)% |
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD,
|
|
|
|
|
|
|
|
|||||||
NON-IFRS FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
2,272 |
|
|
|
6,115 |
|
|
|
(3,843 |
) |
|
|
(63 |
)% |
Adjusted EBITDA Margin |
|
|
22 |
% |
|
|
60 |
% |
|
n/m |
|
|
|
(38 |
)% |
|
Free Cash Flow |
|
|
(1,811 |
) |
|
|
3,533 |
|
|
|
(5,344 |
) |
|
|
(151 |
)% |
n/m = not meaningful
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
Amount |
|
|
% |
|
||||
|
|
(in thousands, unaudited) |
|
|
|
|
|
|
|
|||||||
OTHER SUPPLEMENTAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New Depositing Customers (1) |
|
|
28 |
|
|
|
35 |
|
|
|
(7 |
) |
|
|
(20 |
)% |
Revenue
Total revenue in the fourth quarter remained relatively constant at
Our revenue disaggregated by market is as follows:
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
|
|
|
5,226 |
|
|
|
5,780 |
|
|
|
(554 |
) |
|
|
(10 |
)% |
Other |
|
|
2,260 |
|
|
|
2,299 |
|
|
|
(39 |
) |
|
|
(2 |
)% |
|
|
|
2,154 |
|
|
|
1,383 |
|
|
|
771 |
|
|
|
56 |
% |
Rest of the world |
|
|
651 |
|
|
|
805 |
|
|
|
(154 |
) |
|
|
(19 |
)% |
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Changes in revenue were driven by strong organic growth in our North American markets, offset by a decline in the
Our revenue disaggregated by monetization is as follows:
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
Hybrid commission |
|
|
2,935 |
|
|
|
5,557 |
|
|
|
(2,622 |
) |
|
|
(47 |
)% |
Revenue share commission |
|
|
744 |
|
|
|
1,004 |
|
|
|
(260 |
) |
|
|
(26 |
)% |
CPA commission |
|
|
5,202 |
|
|
|
3,271 |
|
|
|
1,931 |
|
|
|
59 |
% |
Other revenue |
|
|
1,410 |
|
|
|
435 |
|
|
|
975 |
|
|
|
224 |
% |
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue from CPA commission and Other revenue increased whereas revenue from hybrid and revenue share commission decreased. The changes in monetization were primarily a result of changes in market mix with a higher proportion of revenue from the
Our revenue disaggregated by product type from which it is derived is as follows:
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
Casino |
|
|
8,466 |
|
|
|
8,846 |
|
|
|
(380 |
) |
|
|
(4 |
)% |
Sports |
|
|
1,769 |
|
|
|
1,160 |
|
|
|
609 |
|
|
|
53 |
% |
Other |
|
|
56 |
|
|
|
261 |
|
|
|
(205 |
) |
|
|
(79 |
)% |
Total revenues |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
24 |
|
|
|
0 |
% |
Revenue increases were driven by growth in revenue from sports products offset by a decrease in casino and other revenue.
Operating Expenses
|
|
THREE MONTHS ENDED
|
|
|
CHANGE |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
||||
|
|
(in thousands USD, unaudited) |
|
|
|
|
|
|
|
|||||||
Sales and marketing expenses |
|
|
4,632 |
|
|
|
2,442 |
|
|
|
2,190 |
|
|
|
90 |
% |
Technology expenses |
|
|
1,190 |
|
|
|
798 |
|
|
|
392 |
|
|
|
49 |
% |
General and administrative expenses |
|
|
3,877 |
|
|
|
2,609 |
|
|
|
1,268 |
|
|
|
49 |
% |
Movements in credit losses allowance and write offs |
|
|
(31 |
) |
|
|
48 |
|
|
|
(79 |
) |
|
|
(165 |
)% |
Total operating expenses |
|
|
9,668 |
|
|
|
5,897 |
|
|
|
3,771 |
|
|
|
64 |
% |
Total operating expenses increased by
Sales and Marketing expenses totaled
Technology expenses totaled
General and Administrative expenses totaled
Earnings
Adjusted EBITDA decreased by 63% to
Operating profit in the fourth quarter decreased 86% to
Net income in the fourth quarter totaled
Conference Call Details
|
|
|
Date/Time: |
|
|
Webcast: |
|
|
|
|
877-407-0890 |
International Dial In: |
|
+1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. An accompanying slide presentation will be available in PDF format within the “News & Events” section of the Company’s website.
An archived webcast of the conference call will also be available in the News & Events section of the Company’s website at gambling.com/corporate/investors/news-events.
About
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the
Consolidated Statements of Comprehensive Income and (Loss) (USD in thousands, except per share amounts) |
||||||||||||||||
|
|
THREE MONTHS ENDED
|
|
|
YEAR ENDED
|
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
|
|
(unaudited) |
|
|
|
|
|
|
|
|||||||
Revenue |
|
|
10,291 |
|
|
|
10,267 |
|
|
|
42,323 |
|
|
|
27,980 |
|
Sales and marketing expenses |
|
|
(4,632 |
) |
|
|
(2,442 |
) |
|
|
(14,067 |
) |
|
|
(8,103 |
) |
Technology expenses |
|
|
(1,190 |
) |
|
|
(798 |
) |
|
|
(3,947 |
) |
|
|
(2,503 |
) |
General and administrative expenses |
|
|
(3,877 |
) |
|
|
(2,609 |
) |
|
|
(13,014 |
) |
|
|
(5,956 |
) |
Movements in credit losses allowance and write offs |
|
|
31 |
|
|
|
(48 |
) |
|
|
97 |
|
|
|
(287 |
) |
Operating profit |
|
|
623 |
|
|
|
4,370 |
|
|
|
11,392 |
|
|
|
11,131 |
|
(Losses) gains on financial liability at fair value through
|
|
|
— |
|
|
|
(393 |
) |
|
|
— |
|
|
|
1,417 |
|
Finance income |
|
|
1,145 |
|
|
|
(25 |
) |
|
|
2,581 |
|
|
|
303 |
|
Finance expense |
|
|
(457 |
) |
|
|
(463 |
) |
|
|
(1,809 |
) |
|
|
(2,099 |
) |
Income before tax |
|
|
1,311 |
|
|
|
3,489 |
|
|
|
12,164 |
|
|
|
10,752 |
|
Income tax (charge) benefit |
|
|
(444 |
) |
|
|
5,052 |
|
|
|
289 |
|
|
|
4,399 |
|
Net income for the period attributable to the
|
|
|
867 |
|
|
|
8,541 |
|
|
|
12,453 |
|
|
|
15,151 |
|
Other comprehensive (loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Exchange differences on translating foreign currencies |
|
|
(1,825 |
) |
|
|
1,730 |
|
|
|
(4,812 |
) |
|
|
2,480 |
|
Total comprehensive (loss) income for the period
|
|
|
(958 |
) |
|
|
10,271 |
|
|
|
7,641 |
|
|
|
17,631 |
|
Net income per share attributable to ordinary
|
|
|
0.03 |
|
|
|
0.39 |
|
|
|
0.40 |
|
|
|
0.55 |
|
Net income per share attributable to ordinary
|
|
|
0.02 |
|
|
|
0.35 |
|
|
|
0.37 |
|
|
|
0.49 |
|
Consolidated Statements of Financial Position (USD in thousands) |
||||||||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
||
Non-current assets |
|
|
|
|
|
|
||
Property and equipment |
|
|
569 |
|
|
|
515 |
|
Intangible assets |
|
|
25,419 |
|
|
|
23,560 |
|
Right-of-use assets |
|
|
1,465 |
|
|
|
1,799 |
|
Deferred tax asset |
|
|
7,028 |
|
|
|
5,778 |
|
Total non-current assets |
|
|
34,481 |
|
|
|
31,652 |
|
Current assets |
|
|
|
|
|
|
||
Trade and other receivables |
|
|
5,497 |
|
|
|
5,506 |
|
Cash and cash equivalents |
|
|
51,047 |
|
|
|
8,225 |
|
Total current assets |
|
|
56,544 |
|
|
|
13,731 |
|
Total assets |
|
|
91,025 |
|
|
|
45,383 |
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Share capital |
|
|
— |
|
|
|
64 |
|
Capital reserve |
|
|
55,953 |
|
|
|
19,979 |
|
Share options and warrants reserve |
|
|
2,442 |
|
|
|
296 |
|
Foreign exchange translation reserve |
|
|
(2,282 |
) |
|
|
2,530 |
|
Retained earnings |
|
|
23,796 |
|
|
|
11,343 |
|
Total equity |
|
|
79,909 |
|
|
|
34,212 |
|
Non-current liabilities |
|
|
|
|
|
|
||
Borrowings |
|
|
— |
|
|
|
5,937 |
|
Lease liability |
|
|
1,286 |
|
|
|
1,562 |
|
Total non-current liabilities |
|
|
1,286 |
|
|
|
7,499 |
|
Current liabilities |
|
|
|
|
|
|
||
Trade and other payables |
|
|
3,291 |
|
|
|
2,428 |
|
Borrowings and accrued interest |
|
|
5,944 |
|
|
|
23 |
|
Lease liability |
|
|
393 |
|
|
|
413 |
|
Income tax payable |
|
|
202 |
|
|
|
808 |
|
Total current liabilities |
|
|
9,830 |
|
|
|
3,672 |
|
Total liabilities |
|
|
11,116 |
|
|
|
11,171 |
|
Total equity and liabilities |
|
|
91,025 |
|
|
|
45,383 |
|
Consolidated Statements of Cash Flows (USD in thousands) |
||||||||
|
|
THREE MONTHS ENDED
|
|
YEAR ENDED
|
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(unaudited) |
|
|
|
|
||
Cash flow from operating activities |
|
|
|
|
|
|
|
|
Income before tax |
|
1,311 |
|
3,489 |
|
12,164 |
|
10,752 |
Finance (income) expenses, net |
|
(688) |
|
488 |
|
(772) |
|
1,796 |
Losses (gains) on financial instruments valuation |
|
— |
|
393 |
|
— |
|
(1,417) |
Adjustments for non-cash items: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
600 |
|
650 |
|
2,401 |
|
2,227 |
Movements in credit loss allowance and write offs |
|
(31) |
|
48 |
|
(97) |
|
287 |
Other operating loss |
|
— |
|
— |
|
70 |
|
— |
Share option charge |
|
529 |
|
371 |
|
1,995 |
|
315 |
Income tax paid |
|
(807) |
|
(434) |
|
(2,092) |
|
(642) |
Cash flows from operating activities before changes in
|
|
914 |
|
5,005 |
|
13,669 |
|
13,318 |
Changes in working capital |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
192 |
|
(2,015) |
|
(549) |
|
(3,053) |
Trade and other payables |
|
70 |
|
603 |
|
877 |
|
629 |
Cash flows generated by operating activities |
|
1,177 |
|
3,593 |
|
13,997 |
|
10,894 |
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Acquisition of property and equipment |
|
(78) |
|
(14) |
|
(305) |
|
(46) |
Acquisition of intangible assets |
|
(2,910) |
|
(46) |
|
(5,269) |
|
(44) |
Cash flows used in investing activities |
|
(2,988) |
|
(60) |
|
(5,574) |
|
(90) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Issue of ordinary shares and share warrants |
|
— |
|
2,955 |
|
35,910 |
|
3,483 |
Equity issue costs |
|
— |
|
(14) |
|
— |
|
(55) |
Proceeds from issuance of financial instruments |
|
— |
|
6,000 |
|
— |
|
6,000 |
Financial instruments issuance costs |
|
— |
|
(94) |
|
— |
|
(89) |
Repayment of notes and bonds |
|
— |
|
(14,397) |
|
— |
|
(17,352) |
Interest paid |
|
(124) |
|
(997) |
|
(509) |
|
(1,656) |
Warrants repurchased |
|
— |
|
— |
|
— |
|
(133) |
Principal paid on lease liability |
|
(66) |
|
(49) |
|
(225) |
|
(198) |
Interest paid on lease liability |
|
(45) |
|
(56) |
|
(188) |
|
(201) |
Cash flows (used in) generated by financing activities |
|
(235) |
|
(6,652) |
|
34,988 |
|
(10,201) |
Net movement in cash and cash equivalents |
|
(2,046) |
|
(3,119) |
|
43,411 |
|
603 |
Cash and cash equivalents at the beginning of the
|
|
53,160 |
|
10,851 |
|
8,225 |
|
6,992 |
Net foreign exchange differences on cash and cash
|
|
(67) |
|
493 |
|
(589) |
|
630 |
Cash and cash equivalents at the end of the period |
|
51,047 |
|
8,225 |
|
51,047 |
|
8,225 |
Supplemental Information
Constant Currency
Changes in our financial results include the impact of changes in foreign currency exchange rates. We provide “constant currency” analysis, as if EUR-USD exchange rate had remained constant period-over-period, to enhance the comparability of our results. When we use the term “constant currency,” we adjust for the impact related to the translation of our condensed consolidated financial statements from EUR to USD by translating financial data for the prior year using the same foreign currency exchange rates that we used to translate financial data for the current year.
Constant currency metrics should not be considered in isolation or as a substitute for reported results prepared in accordance with IFRS. Refer to “Results of Operations” for Management’s discussion of the constant currency impact for these periods. For foreign exchange rates used, refer to “Note 3 Significant Accounting Policies,” within the Notes to the Condensed Consolidated Financial Statements.
Rounding
We have made rounding adjustments to some of the figures included in the discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and the related notes thereto. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.
Non-IFRS Financial Measures
Management uses several financial measures, both IFRS and non-IFRS financial measures in analyzing and assessing the overall performance of the business and for making operational decisions.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
EBITDA is a non-IFRS financial measure defined as earnings excluding net finance costs, income tax charge, depreciation, and amortization. Adjusted EBITDA is a non-IFRS financial measure defined as EBITDA adjusted to exclude the effect of non-recurring items, significant non-cash items, share-based payment expense and other items that our board of directors believes do not reflect the underlying performance of the business. Adjusted EBITDA Margin is a non-IFRS measure defined as Adjusted EBITDA as a percentage of revenue.
We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are useful to our management as a measure of comparative operating performance from period to period as they remove the effect of items not directly resulting from our core operations including effects that are generated by differences in capital structure, depreciation, tax effects and non-recurring events.
While we use EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as tools to enhance our understanding of certain aspects of our financial performance, we do not believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are substitutes for, or superior to, the information provided by IFRS results. As such, the presentation of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS. The primary limitations associated with the use of EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as compared to IFRS results are that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin as we define them may not be comparable to similarly titled measures used by other companies in our industry and that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin may exclude financial information that some investors may consider important in evaluating our performance.
Below is a reconciliation to EBITDA and Adjusted EBITDA from net income for the period attributable to the equity holders as presented in the Condensed Consolidated Statements of Comprehensive Income and for the period specified:
|
|
THREE MONTHS
|
|
CHANGE |
|
YEAR
|
|
CHANGE |
||||||||
|
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
|
|
(in thousands USD,
|
|
|
|
|
|
(in thousands USD,
|
|
|
|
|
||||
Net income for the period
|
|
867 |
|
8,541 |
|
(7,674) |
|
(90)% |
|
12,453 |
|
15,151 |
|
(2,698) |
|
(18)% |
Add Back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance (income) costs (1) |
|
(688) |
|
881 |
|
(1,569) |
|
(178)% |
|
(772) |
|
379 |
|
(1,151) |
|
(304)% |
Income tax charge (benefit) |
|
444 |
|
(5,052) |
|
5,496 |
|
(109)% |
|
(289) |
|
(4,399) |
|
4,110 |
|
(93)% |
Depreciation expense |
|
52 |
|
33 |
|
19 |
|
58% |
|
176 |
|
123 |
|
53 |
|
43% |
Amortization expense |
|
548 |
|
617 |
|
(69) |
|
(11)% |
|
2,225 |
|
2,104 |
|
121 |
|
6% |
EBITDA |
|
1,223 |
|
5,020 |
|
(3,797) |
|
(76)% |
|
13,793 |
|
13,358 |
|
435 |
|
3% |
Share-based payments |
|
529 |
|
371 |
|
158 |
|
43% |
|
1,995 |
|
371 |
|
1,624 |
|
438% |
Accounting and legal fees related to the offering (2) |
|
— |
|
724 |
|
(724) |
|
n/m |
|
963 |
|
724 |
|
239 |
|
33% |
Employees’ bonuses related to the offering (2) |
|
— |
|
— |
|
— |
|
n/m |
|
1,085 |
|
— |
|
1,085 |
|
n/m |
Acquisition related costs (3) |
|
520 |
|
— |
|
520 |
|
n/m |
|
520 |
|
— |
|
520 |
|
n/m |
Costs related to lease termination |
|
— |
|
— |
|
— |
|
n/m |
|
— |
|
155 |
|
(155) |
|
n/m |
Adjusted EBITDA |
|
2,272 |
|
6,115 |
|
(3,843) |
|
(63)% |
|
18,356 |
|
14,608 |
|
3,748 |
|
26% |
n/m = not meaningful
Below is the Adjusted EBITDA Margin calculation for the period specified:
|
|
THREE MONTHS ENDED
|
|
CHANGE |
|
YEAR ENDED
|
|
CHANGE |
||||||||
|
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
|
|
(in thousands USD,
|
|
|
|
|
|
(in thousands USD,
|
|
|
|
|
||||
Revenue |
|
10,291 |
|
10,267 |
|
24 |
|
0% |
|
42,323 |
|
27,980 |
|
14,343 |
|
51% |
Adjusted EBITDA |
|
2,272 |
|
6,115 |
|
(3,843) |
|
(63)% |
|
18,356 |
|
14,608 |
|
3,748 |
|
26% |
Adjusted EBITDA Margin |
|
22% |
|
60% |
|
n/m |
|
(38)% |
|
43% |
|
52% |
|
n/m |
|
(9)% |
n/m = not meaningful
In regard to forward looking non-IFRS guidance, we are not able to reconcile the forward looking non-IFRS Adjusted EBITDA measure to the closest corresponding IFRS measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items including, but not limited to, fair value movements, share-based payments for future awards, acquisition-related expenses and certain financing and tax items.
Free Cash Flow
Free Cash Flow is a non-IFRS financial measure defined as cash flow from operating activities less capital expenditures, or CAPEX.
We believe Free Cash Flow is useful to our management as a measure of financial performance as it measures our ability to generate additional cash from our operations. While we use Free Cash Flow as a tool to enhance our understanding of certain aspects of our financial performance, we do not believe that Free Cash Flow is a substitute for, or superior to, the information provided by IFRS metrics. As such, the presentation of Free Cash Flow is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with IFRS.
The primary limitation associated with the use of Free Cash Flow as compared to IFRS metrics is that Free Cash Flow does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Free Cash Flow as we define it also may not be comparable to similarly titled measures used by other companies in the online gambling affiliate industry.
Below is a reconciliation to Free Cash Flow from cash flows generated by operating activities as presented in the Condensed Consolidated Statement of Cash Flows for the period specified:
|
|
THREE MONTHS ENDED
|
|
CHANGE |
|
YEAR ENDED
|
|
CHANGE |
||||||||
|
|
2021 |
|
2020 |
|
$ |
|
% |
|
2021 |
|
2020 |
|
$ |
|
% |
|
|
(in thousands USD,
|
|
|
|
|
|
(in thousands USD,
|
|
|
|
|
||||
Cash flows generated by operating
|
|
1,177 |
|
3,593 |
|
(2,416) |
|
(67)% |
|
13,997 |
|
10,894 |
|
3,103 |
|
28% |
Capital Expenditures |
|
(2,988) |
|
(60) |
|
(2,928) |
|
n/m |
|
(5,574) |
|
(90) |
|
(5,484) |
|
n/m |
Free Cash Flow |
|
(1,811) |
|
3,533 |
|
(5,344) |
|
(151)% |
|
8,423 |
|
10,804 |
|
(2,381) |
|
(22)% |
n/m = not meaningful
Earnings Per Share
Below is a reconciliation of basic and diluted earnings per share as presented in the Condensed Consolidated Statement of Income for the period specified:
|
|
THREE MONTHS ENDED
|
|
YEAR ENDED
|
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(in thousands USD, except for share and per share data, unaudited) |
||||||
Net income for the period attributable
|
|
867 |
|
8,541 |
|
12,453 |
|
15,151 |
Weighted-average number of ordinary shares, basic |
|
33,806,422 |
|
22,020,056 |
|
30,886,559 |
|
27,595,446 |
Net income per share attributable to
|
|
0.03 |
|
0.39 |
|
0.40 |
|
0.55 |
Net income for the period attributable
|
|
867 |
|
8,541 |
|
12,453 |
|
15,151 |
Weighted-average number of ordinary shares, diluted |
|
36,712,375 |
|
24,446,668 |
|
33,746,536 |
|
30,879,550 |
Net income per share attributable to
|
|
0.02 |
|
0.35 |
|
0.37 |
|
0.49 |
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