Kambi Group posts revenue of €42.1m for Q3
Kambi Group today announced its financial results for the third quarter of 2023.
Press release.- Kambi Group today announced its financial results for the third quarter of 2023. The company reported revenue of €42.1m, an increase from the previous year’s €36.7m. This strong performance extended to the entire January to September period in 2023, with revenue reaching €129.0m, compared to 2022’s €108.2m.
The financial summary also highlighted Kambi’s operating profit (EBIT), which stood at €4.6m for Q3 2023, resulting in a margin of 11 per cent. Over the nine-month period from January to September 2023, the company recorded an operating profit of €12.8m, achieving a margin of 9.9 per cent.
EBITA (acq)* showed impressive figures as well, with Q3 2023 displaying €6.0m and a margin of 14.1 per cent, and the January to September period recording €16.7m with a margin of 13.0 per cent.
In terms of cash flow, Kambi reported €6.1m (Q3 2023) and €9.5m (January to September 2023), excluding working capital and M&A. Earnings per share reached €0.117 for Q3 2023 and €0.306 for the January to September 2023 period.
*EBITA (acq) = Earnings before interest, taxation and amortisation on acquired intangible assets
Key highlights
- Underlying turnover growth of 9 per cent when excluding the impact of Penn Entertainment’s (Penn) online migration
- Revenue growth of 15 per cent year-on-year, boosted by certain non-recurring fees in relation to Penn and Shape Games. Please see further details in the report.
- Signed contract extensions with long-standing partners ATG and Rank Group which will continue to leverage Kambi’s Complete sportsbook
- Entered into a long-term sportsbook platform and front-end agreement with the leading Swedish operator Svenska Spel, benefiting from its established customer base and revenue streams
- Signed a long-term sportsbook partnership with sports media and betting operator LiveScore Group to power its established LiveScore Bet and Virgin Bet brands, with a meaningful revenue impact expected from the second half of 2024
Kambi CEO Kristian Nylén, stated: “The landmark signings of Svenska Spel and LiveScore Group are Kambi’s most significant partner agreements with existing sports betting revenue in our history and represent a major step forward towards our long-term strategic goals. As well as being fantastic agreements in their own right, these partnerships reflect the wider demand we see for our Complete sportsbook service, with them coming shortly after the signing of Bally’s Corporation, along with seven other partner signings during the year.
“This demand is, in part, due to the enhanced differentiation capabilities we have built over the years. Both LiveScore Group and Svenska Spel are established operators with strong brands, large customer bases and meaningful existing revenue, therefore it was crucial for them to be able to offer their sportsbook their way, aligned with their brand and packaged specifically for their customers. It’s also worth highlighting the operators’ commitment to and belief in the outsourced sportsbook model, laying the foundation for long and successful partnerships.
“LiveScore Group’s media product is the go-to live streaming and scores app for more than 50 million monthly users across the world. The operator is leveraging this popular platform to further engage users with exciting sports betting opportunities in various markets, with its LiveScore Bet and Virgin Bet brands among the fastest growing in the UK. LiveScore Group will soon complement its media-led acquisition channel with Kambi’s Complete sportsbook platform, better equipping the company to retain players and expand into additional markets. LiveScore Group has ambitious growth plans and we look forward to being part of this exciting journey.
“Svenska Spel is one of the most prominent brands in Sweden and represents a major partner win for Kambi. Svenska Spel has faced increased competition since the 2019 re-regulation of the Swedish market and plans to address this by transitioning to Kambi’s leading sportsbook. The operator will also be utilising the front-end expertise of Kambi Group’s Shape Games to enable greater product differentiation, making this an even more significant partnership for Kambi.
“Although these signings won’t deliver revenue straight away, we do expect to see a meaningful revenue impact from H2 2024. Meanwhile, Kambi’s financial performance in Q3 2023 was robust with a 15% year-on-year revenue rise, which included certain non-recurring revenues from Penn and Shape Games. Operator turnover was up 9% when adjusting for the online migration of Penn.
“As discussed in Q2, we are moving forward with the incubation of our innovative AI-powered trading unit, which from today will be known as ‘Tzeract’. Tzeract is already powering much of our pre-match soccer pricing and in the coming months will expand to offer live soccer and tennis. The impact Tzeract is having on our pricing and product is tremendous and we believe we can unlock even greater value by offering Tzeract as a standalone module, similar to Abios and Shape Games and in line with our long-term strategy. With a test customer in place, ongoing discussions with a range of other operators and having already earned multiple industry accolades, I believe Tzeract has an exciting future.
“Overall, I am pleased with the progress we are making with our long-term plan, across commercial and product. As I have said before, the road to our 2027 goals won’t be linear and the partner signings announced in recent weeks will only be reflected in the numbers from the second half of next year. The long-term picture looks bright and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world.”
