Kambi Group publishes 2017 report

Kambi Group publishes its financial report addressing operations in Q4 of 2017.

Malta.- Kambi Group released this week its complete financial report covering operations in the fourth quarter of 2017. Revenue amounted to €19.0 (14.3) million for the fourth quarter of 2017, and €62.1 (56.0) million for the period January to December 2017. Operating profit (EBIT) for the fourth quarter of 2017 was €5.0 (1.8) million, with a margin of 26 per cent (13 per cent), and €7.7 (8.8) million for the period January to December 2017, with a margin of 12 per cent (16 per cent).

Profit after Tax amounted to €3.9 (1.2) million for the fourth quarter of 2017, and €5.9 (7.5) million for the period January to December 2017. Earnings per share for the fourth quarter of 2017 were €0.131 (0.042), and €0.198 (0.253) for the period January to December 2017. Cash flow from operating and investing activities (excluding working capital) amounted to €3.8 (1.0) million for the fourth quarter of 2017, and €4.7 (4.1) million for the period January to December 2017.

The company highlighted its strong performance with 33 per cent year-on-year revenue growth producing record quarterly revenues, as well as the signing of long-term contract extensions with LeoVegas, Paf and Napoleon Games, and the signing of a multi-channel deal with South Africa-based casino group Sun International – the eighth consecutive quarter in which Kambi has added at least one new customer.

The period’s headline figure was the 33 per cent increase in revenues to €19m, Kambi’s largest quarterly revenue to date. This sizeable increase was primarily due to an extended run of favourable sporting results, which started in Q3 but continued into Q4 with even greater regularity, resulting in a high operator trading margin of 9.7 per cent.

Chief Executive Kristian Nylén commented: “While the Q4 result is pleasing, it is important to view operator trading margin with a long-term perspective. Our 12-month operator trading margin was 7.4 per cent, a figure more in line with our previously communicated expected range of 6.5-7 per cent. Therefore, just as we weren’t overly concerned by below average margins in the first two quarters of 2017, we are not getting carried away with the higher than average margins of recent quarters.

“A consequence of a higher operator trading margin is lower operator turnover growth – when results favour operators, as they frequently did in Q4 – players have less money in their betting accounts to play with. Despite this suppressing factor, Kambi turnover grew year-on-year.

The quarter also saw Kambi continue its run of new business wins, with the signing of Sun International making it eight consecutive quarters in which Kambi has signed at least one new customer. As one of the largest and most respected land-based casino operators in the southern hemisphere, Sun International is a great addition to the Kambi network. Sun International also operates a South Africa-facing online sportsbook which, once switched to Kambi in the coming months, will increase the campany’s regulated footprint to six continents, making Kambi a truly global sports betting supplier.”