Comparing the Earnings of Gambling Media Companies in 2023 by SlotsUp

As casino experts, the SlotsUp team has carefully researched to provide a thorough analysis of the financial performance and future plans of key players in the online gambling industry. We looked at the financial reports and future outlook of big companies like Catena Media, Gambling.com Group, Kindred Group, and Raketech Group. Our aim is to give useful insights into the online gambling market, helping stakeholders and investors make informed decisions. Learn more about SlotsUp, a trusted online platform that offers helpful information, including reviews of online casinos and slots, guides for casino games, and a list of trusted online casinos. If you want to try free slots in demo mode and find reliable online casinos, visit SlotsUp.

Catena Media

Catena Media, a prominent player in the online sports betting and casino gaming sector, recently released its year-end report for January to December 2023, outlining a challenging quarter marked by significant declines in revenue and profitability. Despite facing headwinds, the companies is strategically positioned to capitalize on future growth opportunities through extensive investments in technology and artificial intelligence (AI). This report analysis delves into the key highlights of Catena Media's performance, its strategic initiatives, and the outlook for the companies' future trajectory.

Source:  https://www.catenamedia.com/wp-content/uploads/2024/02/catena-media-plc-year-end-report-january--december-2023.pdf

The provided report outlines the financial performance of Catena Media for the year-end of January to December 2023, with a specific focus on the fourth quarter. Here are some key points of analysis:

1. Revenue Decline: Catena Media experienced a significant decrease in revenue, both in the fourth quarter and for the entire year, compared to the previous year. This decline is notable, indicating challenges in maintaining or growing their market share.
2. Profitability Challenges: The report indicates a sharp decline in adjusted EBITDA, resulting in decreased profitability. This is concerning as it suggests that despite efforts to increase revenue, the companies operating expenses may not be effectively managed.
3. Strategic Investments: Catena Media is making extensive investments in technology and artificial intelligence (AI) to position itself for future growth. These investments are substantial and are aimed at enhancing the companies's competitiveness and market position in the online sports betting and casino gaming sector.
4. Impact of Strategic Review: The completion of a strategic review led to divestments and restructuring efforts aimed at streamlining operations and focusing on core markets. This signals a shift in the company's strategic direction to adapt to changing market dynamics.
5. Market Challenges and Responses: The report highlights challenges in key markets such as North America and Latin America, including regulatory uncertainties and increased competition. Catena Media is responding by diversifying revenue streams and optimizing its cost structure.
6. Future Outlook: Despite the current challenges, Catena Media expresses confidence in its ability to resume organic growth in the second half of 2024. The company has set updated financial targets and outlined a strategic direction for 2024-2026, emphasizing technology investments, cost optimization, and a transition to a higher mix of revenue-share contracts.

"Catena Media is investing heavily in technology and AI to lead the online sports betting and casino gaming industry. Despite Q4 setbacks, our focus on innovation, including a new technical platform and AI-driven content production, aims to drive sustainable growth. With streamlined operations and a multichannel approach, we're confident in our ability to navigate market challenges and return to growth in the second half of this year."

Michael Daly, CEO

In summary, Catena Media's year-end report for 2023 highlights revenue and profitability declines amid market challenges. Despite this, the company is strategically investing in technology and AI while streamlining operations following a strategic review. Optimistic about future growth, Catena aims to resume organic growth in the latter half of 2024, focusing on cost optimization and transitioning to revenue-share contracts for sustainable growth in the online gaming sector.

Gambling Group

Gambling.com Group Limited (Nasdaq: GAMB) has demonstrated robust financial performance in the fourth quarter and full year of 2023, as reported in their recent financial statement. With a significant increase in revenue, net income, and adjusted EBITDA, the company has achieved record-breaking results, solidifying its position as a leading provider of digital marketing services in the global online gambling industry. Additionally, the company has announced strategic acquisitions and provided optimistic guidance for 2024, indicating a strong trajectory for continued growth and value creation. This introduction provides an overview of the key highlights from Gambling.com Group's recent report, emphasizing its impressive achievements and promising outlook for the future.

Fourth Quarter Revenue: Gambling.com Group reported a remarkable 52% increase in fourth-quarter revenue, reaching a record high of $32.5 million.

1. Net Income and Adjusted EBITDA: In the fourth quarter, the company generated a net income of $6.4 million, marking a substantial achievement. Adjusted EBITDA also surged by 54% to $10.6 million.
2. Full Year 2023 Performance: The company showcased robust growth throughout 2023, with revenue climbing by 42% to $108.7 million. Net income for the year rose to $18.3 million, and adjusted EBITDA saw a significant increase of 53% to $36.7 million.
3. Acquisition of Freebets.com: Gambling.com Group announced a definitive agreement to acquire Freebets.com and related assets, expecting the transaction to be immediately accretive upon closing. The acquisition is anticipated to enhance revenue by approximately $10.0 million and boost adjusted EBITDA by around $5.0 million during the nine months from April to December 2024.
4. 2024 Revenue and Adjusted EBITDA Guidance: The company introduced its revenue guidance for 2024, expecting it to range between $129 million and $133 million. Additionally, adjusted EBITDA guidance for 2024 was provided, ranging from $44 million to $48 million.
5. Operational Highlights: Several operational achievements were highlighted, including a 103% increase in North American revenue for the fourth quarter, the acquisition of European casino domains and related assets, and the launch of operations in North Carolina. Additionally, the company secured a new $50 million credit facility with Wells Fargo Bank.
6. Financial Metrics: The company emphasized the creation of value for its online gambling operator partners, evidenced by a 56% increase in the number of new depositing customers sent to them in 2023. Furthermore, nearly all revenue growth in 2023 was organic, leading to significant free cash flow generation.
7. 2024 Outlook: Gambling.com Group expressed confidence in its ability to sustain revenue, adjusted EBITDA, and free cash flow growth in 2024 and beyond across all markets.

Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented:

“Gambling.com Group is positioned for continued revenue, Adjusted EBITDA and Free Cash Flow growth in 2024 and beyond across all of our markets. As significant shareholders, the founders and senior management of Gambling.com Group remain fully aligned with all owners and we are steadfastly committed to enhancing shareholder value”

In conclusion, Gambling.com Group Limited (Nasdaq: GAMB) has achieved remarkable financial results for the fourth quarter and full year of 2023, with substantial increases in revenue, net income, and adjusted EBITDA. The company's strategic acquisitions and optimistic guidance for 2024 highlight its strong trajectory for continued growth and value creation. With impressive operational achievements and a promising outlook, Gambling.com Group is well-positioned for sustained success in the global online gambling industry.

Kindred Group

Kindred, a prominent online gambling operator, has recently disclosed its fiscal year 2023 financial results. The report highlights significant revenue and EBITDA growth, tempered by a decline in earnings per share. This overview delves into Kindred's performance across various operational aspects, including revenue composition, strategic initiatives, market dynamics, and regulatory challenges.

Source: https://www.kindredgroup.com/contentassets/86ac0f38aab944bf8829300c4276e57b/kindred-group-plc--full-year-report-january--december-2023-unaudited.pdf

1. Kindred's Revenue: Kindred reported a revenue of  GBP 312.9 (305.5) million, marking a significant increase of 2%.
2. EBITDA Growth: Underlying EBITDA surged to GBP 204.5m, representing a remarkable increase of 58%.
3. Earnings per Share: Despite the positive revenue and EBITDA growth, earnings per share experienced a decrease of 59% to GBP 0.22.
4. Locally Regulated Markets: Gross winnings revenue from locally regulated markets rose to 82%, up from 79% in the previous year (2022).
5. Employee Growth: The number of employees increased by 5% to 2,453, compared to 2,332 in 2022.
6. High-Risk Customers: Gross winnings revenue from high-risk customers decreased slightly to 3.1% in Q4 2023, down from 3.3% in Q4 2022.
7. Strategic Review and Acquisition: Kindred initiated a strategic review resulting in a public cash offer for acquisition in January 2024, with the acquisition expected to be completed in Q4 2024.
8. Market Performance: Kindred highlighted successful market entries in the Netherlands and the UK, while acknowledging challenges in Belgium and Sweden.
9. Financial Targets: Kindred aims to achieve an underlying EBITDA of GBP 250 million by the end of 2024, building on the success of meeting its target of GBP 200 million in 2023.
10. Regulatory Environment: Kindred emphasized the importance of navigating complex local regulations, with 82% of its revenue coming from locally regulated markets in 2023.
11. Regulatory Framework: Kindred highlighted the evolving regulatory landscape, with differentiated regulatory frameworks across markets, requiring operators to adapt to dynamic environments.

CEO Nils Andén comments on the fourth quarter of 2023

”During 2023, we provided guidance of GBP 200 million in underlying EBITDA, and I am very pleased that we have delivered on that target. Our performance demonstrates that Kindred is able to grow profitably within highly regulated markets. During 2023, 82 per cent of Gross winnings revenue was generated from locally regulated markets”

In summary, Kindred's fiscal year 2023 results showcase notable revenue and EBITDA growth but also reveal a decrease in earnings per share. The company's strategic initiatives and market performance reflect its resilience amidst regulatory challenges and shifting market dynamics. Looking ahead, Kindred aims to sustain growth while navigating regulatory complexities and capitalizing on evolving market trends.

Raketech Group 

The income report for Raketech Group provides a snapshot of the company's financial performance in Q4 2023 and the full year. With a focus on revenue growth, profitability, and strategic outlook, the report offers insights into Raketech's position in the market and its plans for the future.

Source: https://raketech.com/wp-content/uploads/2024/02/Raketech_Q4_2023.pdf

Q4 2023 Financial Highlights:

Revenues in Q4 2023: EUR 22.8 million (compared toEUR 21.5 million in Q3 2023)

EBITDA: EUR 6.0 million (compared to EUR 6.4 million), primarily impacted by softer development in Sweden.

Operating profit: EUR 2.8 million (compared to EUR 4.3 million), affected by increased non-cash affecting amortisation and depreciation.

Free cash flow: Increased to EUR 4.8 million (compared to EUR 2.2 million).

Dividend Proposal and Outlook:

Dividend proposal: EUR 0.10 per share (an increase of 6% from last year).

Guidance for 2024: EBITDA expected between EUR 24-26 million, free cash flow estimated between EUR 22-24 million before cash settlements of the Casumba earnout of EUR 18.3 million.

Revenues in January 2024: EUR 7.3 million (compared to EUR 5.0 million).

Financial Performance during Q4 2023:

Revenues: Revenues amounted to EUR 22.8 million, representing an increase of 6.05% compared to revenue of EUR 21.5 million in Q3 2023, as analyzed by SlotsUp.

EBITDA margin: 26.3% (compared to 40.7% in Q4 2022).

Cash and cash equivalents at the end of the quarter: EUR 13.5 million (compared to EUR 8.1 million).

Financial Performance during Full Year 2023:

Revenues: EUR 77.7 million (compared to EUR 52.6 million), representing an increase of 47.6%.

EBITDA: EUR 23.6 million (compared to EUR 20.1 million).

Cash and cash equivalents at the end of the year: EUR 13.5 million (compared to EUR 8.1 million).

"As Acting CEO of Raketech, my goal is clear: to sustain long-term growth, revive underperforming segments, and boost profitability. In Q4, our revenues reached EUR 22.8 million, driven by a 45.3% organic growth, primarily from sub-affiliation. Despite challenges in our Swedish casino sites, Casumba and other key assets performed well. We're optimizing strategies and products for improved results this year.

Sub-affiliation reported significant revenue growth, while our US operations are being restructured for digitalization. Although our initial affiliation strategy for Tipster assets didn't meet expectations, we're optimistic about future progress.

Looking ahead, January revenues remained strong, and we project an EBITDA of EUR 24-26 million for 2024. The proposed dividend increase reflects our commitment to shareholders. As Acting CEO, I'm dedicated to driving further value by enhancing sales processes and exploring growth opportunities."

Johan Svensson, Acting CEO

In summary, Raketech Group's income report for Q4 2023 and the full year reflects robust revenue growth, driven by strong performance in sub-affiliation and affiliation marketing. Despite some regional challenges, the company has increased free cash flow and proposes a dividend, indicating confidence in its financial health. Looking ahead, Raketech anticipates continued growth in 2024, albeit with a cautious eye on regulatory risks and operational challenges. Overall, the report showcases Raketech's resilience and strategic focus on delivering shareholder value in a dynamic market.

Conclusion 

In comparing the earnings of gambling media campaigns in 2023, it's evident that each company faced unique challenges and opportunities within the online gambling industry.

Catena Media experienced a decline in revenue and profitability, attributed to market headwinds and operational challenges. However, the company remains optimistic about future growth prospects, fueled by extensive investments in technology and AI. With a focus on innovation and strategic initiatives, Catena aims to resume organic growth in the latter half of 2024.

On the other hand, Gambling.com Group achieved remarkable financial results, with significant increases in revenue, net income, and adjusted EBITDA. The company's strategic acquisitions and optimistic guidance for 2024 position it for continued growth and value creation in the global online gambling industry.

Kindred Group showcased notable revenue and EBITDA growth but experienced a decrease in earnings per share. Despite regulatory challenges and market dynamics, Kindred remains focused on sustaining growth and navigating complex local regulations.

Raketech Group reported robust revenue growth, primarily driven by strong performance in sub-affiliation and affiliation marketing. Despite regional challenges, the company projects continued growth in 2024, supported by enhanced sales processes and exploration of growth opportunities.

In terms of who earned more, Gambling.com Group demonstrated the highest financial performance, followed by Raketech Group, Catena Media, and Kindred Group. However, each company has distinct prospects for 2024, with Catena Media and Raketech Group focusing on innovation and technology investments, Gambling.com Group pursuing strategic acquisitions, and Kindred Group navigating regulatory complexities while aiming for sustained growth.