Gambling.com expands credit facility to $165 million

CHARLOTTE, N.C. - Gambling.com Group Limited (NASDAQ:GAMB), a provider of digital marketing services for the online gambling industry, has announced an amendment to its credit facility with Wells Fargo (NYSE:WFC) Bank, enhancing its financial capacity for future growth initiatives. The company, currently valued at $479 million, maintains a strong financial health rating according to InvestingPro analysis, with sufficient cash flows to cover interest payments and moderate debt levels.

The amendment increases the company’s credit facility from $100 million to $165 million, comprising a $90 million revolving credit facility and a $75 million term loan. Additionally, the amendment syndicates the credit across multiple lenders and extends the maturity date to February 28, 2028. The cap for uncommitted incremental facilities has also been raised from $10 million to $50 million. According to InvestingPro data, the company’s strong financial position is reflected in its impressive gross profit margins of 91.6% and robust revenue growth of 27.6% over the last twelve months.

Elias Mark, the Chief Financial Officer of Gambling.com Group, stated, "Expanding our credit facility to $165 million and securing a syndicate of lenders strengthens our financial position and enhances our ability to execute on growth initiatives." He emphasized that the increased flexibility will support the company’s organic expansion and strategic acquisitions, aiming to scale efficiently and drive shareholder value.

The joint lead arrangers for the credit facility amendment were Wells Fargo Securities, LLC, Axos Bank, and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company. The lenders under the Credit Facility include Wells Fargo, Axos Bank, First-Citizens Bank and Trust Company, Citibank, N.A., Texas Capital Bank, and Comerica (NYSE:CMA) Bank.

Gambling.com Group, founded in 2006, operates globally with a significant presence in the United States and Ireland. The Group offers digital marketing services across the online gambling industry, including iGaming, sports betting, and the fantasy sports industry, through its proprietary technology platform. It manages over 50 websites in more than 10 languages across 19 national markets and owns the OddsJam platform, which provides tools and services for sports betting.

This financial maneuver is based on a press release statement and reflects the company’s strategy to leverage its credit for expansion and strategic initiatives.

In other recent news, Gambling.com Group Ltd. reported fourth-quarter earnings that exceeded expectations, with both revenue and adjusted EBITDA surpassing consensus estimates. This strong performance has been acknowledged by Benchmark, which reaffirmed its Buy rating and increased the price target to $18.00. BTIG also maintained a Buy rating, setting a price target of $19.00, following the company’s pre-announcement of fourth-quarter 2024 earnings that beat estimates. The acquisition of Odds Holdings, valued at up to $160 million, has been well-received, with Truist Securities raising its price target to $18.00, citing a projected 20% increase in EBITDA for 2025.

Benchmark and BTIG have highlighted the company’s strong position in the iGaming sector, with BTIG noting the company’s success in gaining market share in the United States. Truist Securities expressed confidence in Gambling.com’s strategic execution and expects the Odds Holdings acquisition to significantly enhance the company’s financial growth. The company’s adherence to its 2025 guidance amidst these developments remains a focal point for investors.

Gambling.com’s recent acquisition strategy, including OddsJam and Freebets.com, is seen as integral to its growth plan. Analysts are closely monitoring regulatory changes in the U.S., which could impact the company’s operations. Investors are particularly attentive to the ongoing audit with Odds Holdings and its potential effects on future offerings.

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