Why do iGaming companies rely so heavily on adjusted EBITDA?

The sector has high regulatory and deal volatility (fines, market exits, acquisitions, restructurings) that hits statutory profit but isn't representative of ongoing trading. Adjusted EBITDA tries to show the underlying operating business. Investors generally accept this for trend analysis while still tracking statutory profit for cash and tax reality.

Are there standard adjustments?

There's no formal sector standard. Most groups exclude M&A and integration costs, restructuring, share-based payments, exited or paused markets, and exceptional regulatory items. Some also exclude impairment and FX. The reconciliation table in each earnings release is the authoritative reference for that operator.

Commercial

Adjusted EBITDA

Definition

A non-statutory profitability measure widely used in operator and supplier earnings, excluding items such as M&A costs, restructuring, share-based payments, and exited markets.

Why it matters

Adjusted EBITDA is the dominant profitability metric in iGaming earnings releases because the sector has so many one-time items that distort statutory EBITDA. Listed groups regularly carry M&A integration costs, restructuring charges from market exits, regulatory fines that management classifies as non-recurring, and stock-based compensation that is real but not cash. Stripping these out gives a cleaner read on the operating business.

The risk is that "adjusted" can be stretched. Investors and equity analysts pay close attention to which items get excluded and whether the same exclusions repeat year after year, which would suggest they're not really one-offs. Sector convention is to disclose the reconciliation from statutory EBITDA to adjusted EBITDA line by line in earnings releases. The gap between the two is itself a discussed metric in some operators' presentations.

Frequently asked questions

Why do iGaming companies rely so heavily on adjusted EBITDA?
The sector has high regulatory and deal volatility (fines, market exits, acquisitions, restructurings) that hits statutory profit but isn't representative of ongoing trading. Adjusted EBITDA tries to show the underlying operating business. Investors generally accept this for trend analysis while still tracking statutory profit for cash and tax reality.
Are there standard adjustments?
There's no formal sector standard. Most groups exclude M&A and integration costs, restructuring, share-based payments, exited or paused markets, and exceptional regulatory items. Some also exclude impairment and FX. The reconciliation table in each earnings release is the authoritative reference for that operator.