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Affiliate Monitor Company-by-company Q1 results analysis
ODDS HOLDINGS
Gillespie emphasised that the acquisition was part of a deliberate M & A strategy:“[ It ] expanded our footprint in the online gambling ecosystem, providing another strong growth catalyst while increasing the overall proportion of our consumer and enterprise recurring subscription revenue.”
He likened it to the earlier acquisition of Freebets. com, saying it“ demonstrates once again that we can put forth a clear framework and vision for M & A and then precisely deliver within those parameters.”
The acquisition is seen as immediately accretive and aligned with long-term strategic goals, including the drive toward $ 100 million in annual adjusted EBITDA.
The group said it expects $ 14.5 million in incremental adjusted EBITDA from Odds Holdings in 2025, implying strong profitability.“ We remain confident in our ability to grow incremental adjusted EBITDA from these businesses by at least 20 % this year.” The company also estimates circa 50 % contribution margins, indicating a highly efficient revenue model.
Importantly, the acquisition of Odds Holdings brings a subscription-based revenue stream, marking a key strategic shift away from relying on performance marketing alone:“ OddsJam’ s current subscriber base is highly profitable and we are confident we can grow this
“ While OddsJam is the larger business today … the growth opportunity for OpticOdds is substantially larger still”
CHARLES GILLESPIE, GAMBLING. COM GROUP
space while maintaining margins,” said Gillespie.“ We are pacing for recurring subscription revenue to
account for more than 20 % of total group revenue this year.”
This diversifies the business and provides a more stable, recurring revenue base, especially within North America.
Within the Odds Holdings deal, Gambling. com sees particular potential in the enterprise SaaS opportunity afforded by the OpticOdds proposition.“ While OddsJam is the larger business today … the growth opportunity for OpticOdds is substantially larger.”
Gillespie compared its utility for sportsbooks to how Bloomberg terminals are used on Wall Street:“ They need to know where their peers are at to just do basic risk management and that’ s what they get with this OpticOdds product.”
OpticOdds’ value proposition centres on solving a critical risk-management challenge for operators, making it well-suited for long-term, high-value contracts.
Cross-sell will also be vital. Odds Holdings was initially US-focused and Gambling. com Group plans to leverage its 500 + operator relationships, especially in Europe. The OpticOdds team is already working from the company’ s Malta office to expand reach:“ We are … extremely positive about the combination of our international operator relationships and their product,” Gillespie added.
OddsJam data has already been integrated into GDC’ s ownedand-operated sites. It powers new features like odds widgets, oddsdriven content and same-game parlay tools.“ Now that we own the company that has the single best data in the world, obviously we’ re going to use that to power those internal tools.”
Gillespie also noted a promising early signal:“ Average revenue per user on the B2C OddsJam business and the average revenue per client on the OpticOdds B2B side is also up year-on-year.”
MORE DEALS TO COME
Gillespie reiterated that the company continues to see M & A as a core growth lever – when iGB Affiliate Monitor