Gambling.com Group has entered into a financial agreement with Wells Fargo Bank, securing a $50 million credit arrangement.
This deal comprises a $25.0 million revolving credit facility and an equal amount in a term loan facility, set to mature on March 19, 2027.
Wells Fargo may approve an incremental increase of up to $10.0 million to this facility.
The purpose behind this financial maneuver, as stated by the group, is to bolster general corporate undertakings and to manage deferred consideration payments.
Furthermore, the credit is expected to support potential expansion opportunities.
Gambling.com Group’s CFO, Elias Mark, emphasized the significance of this new credit facility, noting its potential to enhance the company’s financial stability and flexibility.
Mark highlighted the group’s consistent success in revenue, Adjusted EBITDA, and cash flow growth, stating, “This new credit facility enhances our already strong balance sheet and liquidity.
Thereby, it provides additional financial flexibility as we pursue both organic and inorganic growth opportunities that can further scale the business and generate incremental value for our shareholders.”
This announcement precedes the group’s full-year financial results for 2023, which are eagerly anticipated tomorrow, March 21.
In its last quarterly update for Q3, Gambling.com Group reported a 19% increase in revenue to $23.5 million, surpassing previous expectations and indicating a robust financial performance.
The year-to-date figures up to September revealed a 38% rise in revenue, amounting to $76.1 million, with projections suggesting a 30% annual increase.
Despite a drop in Adjusted EBITDA for Q3, the group maintained a positive outlook, forecasting a 50% growth in this metric for 2023.
By the end of the nine-month period, Adjusted EBITDA had already seen a 52% increase, reaching $26.1 million.
The agreement with Wells Fargo marks a strategic move for Gambling.com Group, aiming to leverage the financial backing to further its growth ambitions and strengthen its market position.