Kambi Group posts revenue of €43m for Q3
Revenue was up from €42.1m in the third quarter of 2023 to €43m in the third quarter of 2024.
Press release.- Kambi Group has released its financial summary for the third quarter of 2024. The report highlighted revenue amounting to €43m for Q3, up from €42.1m in the same period in 2023. Revenue for the first nine months of the year was €132m.
The company also posted an operating profit (EBIT) for the third quarter of 2024 was €3.6m, at a margin of 8.3 per cent (11 per cent) and €14.2m, at a margin of 10.7 per cent (9.9 per cent) for the first nine months of the year.
EBITA (acq) for the third quarter of 2024 was €4.9m, at a margin of 11.4 per cent (14.1 per cent), and €18.2m, at a margin of 13.8 per cent (13 per cent, for the period January to September of 2024.
Cash flow (excluding working capital and M&A) amounted to €5.7m for the third quarter of 2024 and €19.2m for the first nine months of 2024. Earnings per share for the third quarter of 2024 were €0.83 and €0.345 for the first nine months of the year.
Kambi today (November 6) announced a share repurchase programme running from 6 November 2024 to 20 May 2025, up to a total of €12m.
Key highlights
- Growth in underlying business with operator turnover up 14 per cent year-on-year
- Signed landmark partnership with leading US operator Hard Rock Digital for new Odds Feed+ product, marking a significant milestone in Kambi’s modularisation strategy
- Entered into online sportsbook partnership with fast-growing Brazilian operator KTO Group ahead of regulated Brazil market launch in January 2025
- Agreed a multi-year extension with Rush Street Interactive, a key partner in the Americas
- Odds Feed+ partnership also agreed with Rei do Pitaco, with long-term deal superseding previous turnkey deal set to expire in 2025
- On 25 July, Werner Becher assumed the role of CEO, bringing extensive experience and deep industry knowledge to lead Kambi’s next phase of growth
Kambi’s CEO Werner Becher said: “I am honoured to present this report, my first as CEO of Kambi Group. I joined Kambi as I believe it is a company of great potential. Having spent the past three months immersing myself in the business, that view has only been strengthened. Realising this potential will require us to navigate certain challenges, but first my thoughts on a very busy time for Kambi:
In terms of our financial performance, we saw underlying growth in Q3 with operator turnover up 14 per cent year-on-year. Although Q3 revenue was only up 2 per cent year-on-year, when excluding the Penn Entertainment transition fees and one-off licence revenues in Q3 2023, revenue grew 16 per cent, although boosted by the unusually high operator trading margin of 10.4 per cent.
“Strategically and commercially, we made excellent progress with our modularisation strategy, rolling out our expanded portfolio of premium products and entering several exciting new partnerships. These signings were headlined by the recently announced Odds Feed+ partnership with Hard Rock Digital, one of the leading operators in the US. I believe our Odds Feed+ product has the edge over similar Odds Feed products in the market and I was encouraged by the interest it attracted at the recent G2E gaming exhibition in Las Vegas.
“While we have been expanding the range of products we can offer the market, we continue to see exciting opportunities for our Turnkey Sportsbook, underlined by the partnership with KTO, one of the fastest-growing operators in Brazil. KTO will be transitioning to Kambi ahead of the expected launch of Brazil’s regulated market early next year, having selected Kambi over its incumbent supplier. We also extended our Turnkey Sportsbook partnership with Rush Street Interactive and we look forward to supporting its continued growth across the Americas over the coming years.
“Looking ahead, Kambi’s customer base will continue to evolve with, for example, Kindred and LeoVegas moving away from our Turnkey Sportsbook and adding a variety of new partners across our wider product portfolio. One of my observations prior to taking this role was that although Kambi had seen some large operators move away in recent years, it still delivered growth, albeit modest, during this time. This gives me great confidence that, through the ongoing diversification of our products and partner roster, we will increasingly reduce the potential impact of future partner movement and create a much more stable base for long-term growth.
“In the meantime, however, we must deal with the challenges that losing partner revenue brings. This is why I am particularly happy with the recent progress we have made in modularising our sportsbook and expanding our revenue streams, aiming to come up to scale with these products within a couple of years. We are also carefully considering our cost base and have identified areas in which we believe we can operate even more efficiently moving forward. This includes realising additional synergies from acquisitions and further assessing the use of artificial intelligence across the business, to reduce our underlying costs.”
“In short, although we have some difficult near-term headwinds, I see a bright future for Kambi as we become the industry’s home of premium sports betting solutions. We have some exciting opportunities ahead of us, such as the great potential of our new products and the prospect of a regulated Brazilian market around the corner. I am sure once we get through this period of transition, we will have a more diverse, sustainable and faster-growing business.”
