Gambling.com reported preliminary figures for fiscal year 2024 today Let’s quickly look at them and compare them with g2m, as I believe Gambling.com is perhaps the closest peer, also in terms of size.
- $Gamb’s revenue was $127.1 million and $g2m’s was €124.6 million.
- $Gamb’s operating profit (EBITDA) was $48 million and $g2m’s was €55.7 million.
- Gambling’s revenue guidance midpoint is $172 million and EBITDA is $68 million, of which $14.5 million comes from the acquired Odds Holdings. If we assume Oddsjam’s revenue to be approximately $30 million, organic revenue growth is about 12% and EBITDA growth is roughly at the same level.
- $g2m guided for double-digit organic growth and assumed stable margins. With 12% growth, revenue would be approximately €140 million and EBITDA approximately €63 million.
- We can see that organic growth is very similar, and $g2m has better margins. The valuation difference between these peers is interesting. $g2m’s EV is approximately €360 million and $gamb’s is about $630 million (assuming approximately $100 million in debt, which should become clear from tomorrow’s full report).
- $g2m’s EV/EBITDA is approximately 5.5 and $gamb’s is about 9.2.
As can be seen from the valuation, these growth companies are not receiving undue affection. I haven’t found any fundamental reasons for the valuation difference between the two, so I continue to watch g2m’s sluggishness, hoping the gap will close.