benefits from new markets as North American revenue jumps 364%

Maryland sign
Image: Shutterstock has posted strong growth in North America as its focus shifts to take advantage of new sports betting markets.

Publishing its financial results for Q4 and 2022, the affiliate group posted revenues of $21.3m for the final three months of last year, representing an increase of 107% year-over-year. 

This growth was largely driven by progress in North America, where revenues jumped by 364% YoY to $10m. Development was boosted by continued benefits being seen in existing and established US markets and a strong performance from its November launch in Maryland.

Meanwhile, the group reported that its launches in both Ohio and Massachusetts in 2023 have gone well, as it reported 82,000 new depositing customers from those two launches. 

Charles Gillespie, CEO and Co-Founder of Group commented: “We ended 2022 extending our strong record of organic growth with quarterly revenue and adjusted EBITDA reflecting another quarter of solid growth in our established markets and the continued strong ramp-up of our North American operations. 

“Fourth quarter 2022 revenue more than doubled year over year to $21.3m, while our high-margin operating model helped drive a 202% increase in adjusted EBITDA to $6.9m.”

Whilst adjusted EBITDA increased by 202% YoY in Q4,’s sales and marketing expenses rose by 103%, which hampered the firm’s operating profit, coming in at a $305,000 loss compared to a $623,000 profit in Q4 2022.

Looking ahead, the group has acquired the “ultra-premium” domain name, which the group hopes will help them gain new users. 

Providing an outlook for the 2023 financial year, anticipates revenue of between $93m – $97m and adjusted EBITDA of $32m – $36m. 

This outlook assumes no new sports betting launches in 2023 after that of Ohio and Massachusetts, with very little chance of legislation passing this legislative season, except for Kentucky. 

Elias Mark, Chief Financial Officer of Group, added: “Our leading technology, domain names and websites, successful entry into new markets, and strong value proposition to our customers drove a more than 133% increase in new depositing customers in 2022, and yet another year of industry-leading revenue growth with continued strong profitability and cash generation. 

“Looking ahead, we remain committed to delivering profitable growth and consistent positive operating cash flow. With our strong operating cash flow and balance sheet, we have the financial flexibility to continue making return-focused investments in our business to deliver increased scale and attractive top-line and cashflow growth – all while maintaining strong profitability.”