Kambi Group publishes Q4 Report 2023 and provides guidance on revenue for the full year 2024

Kambi Group posted a total revenue of €173.3m for the period January to December of 2023 and €44.3m for Q4.

Press release.- Kambi Group has released its financial summary for the fourth quarter of 2023 and the full year. The report highlighted revenue amounting to €44.3m for Q4 2023, down from €57.8m in the same period in 2022. 

For the entirety of 2023, revenue stood at €173.3m, compared to €166.0m in 2022. Operating profit (EBIT) saw a decline, reaching €7.2m for Q4 2023 and €20.0m for the entire year, down from €18.7m and €34.8m, respectively, in the previous year. 

Similarly, EBITA (acq)* dropped to €8.5m for Q4 2023 and €25.2m for the year, compared to €20.5m and €37.6m in 2022. The company’s cash flow also experienced a decline, with €5.5m for Q4 2023 and €15.0m for the full year, down from €17.9m and €25.2m, respectively, in 2022.

Additionally, earnings per share for Q4 2023 were €0.182, a decrease from €0.491 in the same period in 2022, while full-year earnings per share amounted to €0.488, down from €0.861 in 2022. 

Looking ahead, Kambi announced revenue guidance for 2024, estimating it to be in the range of €170m to €180m. Furthermore, the company disclosed a share repurchase program and details regarding its upcoming Annual General Meeting (AGM) scheduled for May 21, 2024.

Key highlights

• Underlying turnover growth of 6 per cent when excluding the impact from Penn Entertainment’s (Penn) online migration
• Excluding the termination fee recorded in Q4 2022, revenue of €44.3m represented a 2 per cent decrease for the quarter and full year 2023 revenue of €173.3m was a 13 per cent increase against tough comparatives including the World Cup in Q4 2022 and the Penn online migration
• Entered into long-term sportsbook platform agreements with Svenska Spel and LiveScore Group to power their respective brands. These partnerships leverage established customer bases and revenue streams, with meaningful financial impact anticipated from H2 2024.
• Secured two additional European sportsbook partnerships, including a long-term deal with fast-growing Dutch online casino operator 711 and a multi-channel partnership with Bingoal to provide superior sports betting technology in Belgium and the Netherlands
• In November, Kambi Co-founder and member of the Board Anders Ström became chair of the Board, succeeding Lars Stugemo
• In January, Kambi’s CEO and Co-founder Kristian Nylén notified the Board of his intention to step down from his current position upon the appointment of a successor

Kambi CEO Kristian Nylén, stated: “As I look back on the year, I have two overriding takeaways, the first being I’m not satisfied with our financial performance. 

“This performance was impacted by lower than anticipated revenue from Shape Games, smaller than expected revenue contributions from two of our largest partners and Bally’s more measured approach to marketing its sportsbook thus far. My second reflection is we made good progress in building the foundations that will ultimately lead to a much-improved financial performance in the future, giving me confidence we’re on the right path for the long-term.

“These foundations include the numerous partner signings and renewals made last year, headlined by the partnerships with Bally’s Corporation, LiveScore Group and Svenska Spel, which we expect to deliver a meaningful revenue contribution from H2 2024. 

“We also continue to work on our modularisation capability and believe with Abios, Shape Games and now Tzeract, the positive commercial conversations we’re having with regards our strong product portfolio will increasingly bear fruit during the year ahead. 

“On Shape Games, we recently took the decision to integrate it further into the business to make the most of the opportunities we see in combining the strengths of the Kambi and Shape Games UX teams. 

“Meanwhile, another important element to financial performance is tight cost control, so it is pleasing today we can communicate a limited year-on-year cost increase for 2024. These are just some of the actions we have taken to put us in a stronger position moving forward.

“Having said that, it is important to note that challenges do continue to exist, including a slower roll-out of newly regulated sports betting markets. The outlook in certain markets has not been as promising as previously anticipated, particularly in California where 2028 now appears to be a more realistic timeline for regulation. 

“In Brazil, we welcome the long-awaited regulation of the country’s sports betting market, but are also mindful that the transition to a fully licensed framework is unlikely before Q3 2024 and that new operators will face tough competition entering what is already a mature grey market with established sports betting brands.

“Meanwhile, in January, I communicated to the market of my intention to step down as CEO in 2024 and a search to find my successor is now underway. I want to emphasise that our long-term strategic direction remains unchanged and I am pleased with the milestones we achieved as a business throughout 2023. 

“While there has indeed been a slowdown in regulatory-driven opportunities, we remain very positive about the long-term trajectory of Kambi Group. Our resilience, strategic progress and commitment to product excellence have set us up well for the future and, as we move forward, we do so with great optimism for the journey ahead.”

Anders Ström, who was appointed chair of the Board in November 2023, provided the following update on appointing a successor to Kristian Nylén: “Following the announcement regarding our CEO in January 2024, the Board of Kambi has initiated the process of seeking a successor. 

“The search is progressing according to plan, with the aim to finalise an appointment prior to the summer period. In the meantime, the company’s progress towards its long-term strategic objectives remains uninterrupted.”