Kambi Group posts revenue of €45.7m for Q2

The company also posted a revenue of €88.9m for the first half of the year.

Press release.- Kambi Group has released its financial summary for the second quarter of 2024. The report highlighted revenue amounting to €45.7m for Q2, up from €42.9m in the same period in 2023. Revenue for the first half was of €88.9m

The company also posted an operating profit (EBIT) for the second quarter of 2024 was €6.2m, at a margin of 13.5 per cent (8.6 per cent) and €10.6m, at a margin of 11.9 per cent (9.4 per cent) for the first half of 2024.

Cash flow (excluding working capital and M&A) amounted to €8.1m for the second quarter of 2024 and €13.5m for the first half of 2024.

Earnings per share for the second quarter of 2024 were €0.155 and €0.260 for the first half of 2024.

Key highlights

• Entered an exclusive nationwide partnership with the Choctaw Nation of Oklahoma, one of the largest tribes in the United States
• Multiple partner launches including key completions before the UEFA European Championship (Euros) of LiveScore in the UK and Svenska Spel in Sweden
• Industry veteran Werner Becher was announced as successor to Kristian Nylén as CEO
• The Board decided to withdraw its 2027 financial targets following a review of the underlying assumptions as slower-than-expected progress towards regulation in certain key markets would likely delay revenue
• Completed the fourth share buyback programme and announced a new long-term capital allocation policy to return capital to shareholders through buybacks

Kambi CEO Kristian Nylén stated: “In the second quarter, operator turnover increased 3 per cent year-on-year, although was up 20 per cent when excluding the impact of the Penn online migration. This was driven by a busy sporting calendar and the growth of new and existing partners.

“Operator trading margin was 10.3 per cent, boosted by higher than average margin from the June games in the Euros soccer tournament. With operating costs broadly flat, EBIT came in at €6.2m, up 67 per cent year-on-year.

“In April, we strengthened our US and tribal network through an exclusive US-wide partnership with Choctaw Nation of Oklahoma, operator of Choctaw Casinos & Resorts. Choctaw owns a variety of gaming and hospitality destinations throughout southeastern Oklahoma, close to the Texas border, and is the exclusive casino and resort partner of the Texas Rangers, Major League Baseball’s World Series Champion.

“While Texas has yet to regulate sports betting, previous attempts to pass legislation would have seen licences tethered to the state’s sports franchises. We expect this will be the case again next year when we anticipate another effort to bring regulated sports betting to what is one of the largest states in the US.

“Ahead of the Euros, we successfully delivered on two major partner launches, with LiveScore in the UK and Svenska Spel’s Oddset brand. These were both important accomplishments, carried out in parallel and requiring various bespoke developments. In the case of Svenska Spel, our front-end division Shape Games was also successful in delivering its technology to enable the launch.

“The Euros and Copa America tournaments saw us provide all our partners with a market-leading product, enhanced by the delivery of expanded player props markets and Bet Builder capability via our AI trading division Tzeract. During the second half of June, activity on the Kambi platform was at its highest-ever levels in terms of bets processed and number of players per day, with our partners receiving uninterrupted high-quality service throughout.

“On 1 July, I was pleased that we announced Werner Becher would be succeeding me as CEO from 25 July. With vast experience in the technology and gaming industries, most recently as a senior executive at global sports data supplier Sportradar, I have every confidence Werner is the right person to lead Kambi into a new era of multi-product provision. I will be offering my full support to Werner from my new position on the Board of Kambi, where I will also help guide our long-term strategy.

“I would like to take this opportunity to thank all Kambi employees, past and present, for their hard work and dedication during my time as CEO over the past 14 years, as well as everyone else who has supported Kambi along the way. I am proud of what we have achieved together and I firmly believe the foundation we have built positions us for future success.”