Kambi Group shares its financial results for Q4

Kambi shared its financial results for the fourth quarter of the year and revealed revenue amounted to €34.9m, down 26 per cent year-on-year.

Press release.- Provider of premium sports betting services to licensed B2C gaming operators, Kambi, released its Q4 financial report, showing a 26 per cent revenue decrease to €34.9m.

The company also reported revenue of €162.4m for the period January to December, an increase of 38 per cent when compared to the previous year.

Operating profit (EBIT) for the fourth quarter of 2021 was €7.1m, at a margin of 20.2 per cent and €57.0m, at a margin of 35.1 per cent for the period January to December.

Profit after tax amounted to €6.1m for the fourth quarter of 2021 and €46.4m for the period January to December while earnings per share for the fourth quarter of 2021 were €0.198 and €1.501 for the period January to December 2021

Cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to €4.8m for the fourth quarter of 2021 and €44.6 m for the period January to December 2021.

Key highlights

• Robust financial performance was driven by market expansion and strong underlying network growth. When adjusting for the migration of 888 and DraftKings, and the impact from regulation in the Netherlands, operator turnover was up 38 per cent.
• Received a mobile platform licence in New York, the most populous US state to regulate online sports betting thus far, and subsequently went live in Q1 2022.
• Expanded US partner network with the signings of omnichannel operator Affinity Interactive and tribal operators Desert Diamond Casinos and Saginaw Chippewa Gaming Enterprises.
• Completed 38 launches, including three additional US states – Connecticut, Louisiana and Maryland – and with new partners in Australia, the Bahamas and the Netherlands.
• Following the close of the quarter, extended long-term partnership with Kindred Group until 2026 and have the ability to repay convertible bond held by Kindred.

“The momentum we built in Q3 continued into Q4, helping us finish the year in fine fashion. This positivity has continued into the new year, most notably having recently extended our partnership with Kindred Group, which now runs for the next five years up until the end of 2026, providing us with additional financial strength. Separately, we also have the ability to repay the convertible bond held by Kindred, which when paid at a time of our discretion will provide us with complete freedom to make the right strategic decisions for Kambi’s future, which has never looked brighter.

Looking back at Q4, growth from the Americas continued to be a key driver of our performance. The Americas region was responsible for 58 per cent of operator GGR and is set to increase further with additional markets to regulate and go live this year across Canada, the US, and South America.

One of the key quarterly highlights was the receipt of our licence in New York State, which since launching a few weeks ago has quickly grown to become the largest market in the country. Not only did Kambi secure one of the few licences on offer in New York, the bid we led as a primary applicant also achieved the highest score from the regulator following a competitive application process. Such an achievement is a real testament to Kambi’s reputation in the US and the quality, integrity, and reliability of our sports betting technology.

We signed three new partners in the US during Q4, including a multi-state partnership with US omnichannel operator Affinity Interactive, which operates casinos in three states and the Daily Racing Form, an iconic horse racing news brand. We followed these signings up after the quarter with a multi-state deal with MaximBet and a partnership in Canada with NorthStar Gaming, which is partnered with Torstar Corporation, one of the country’s largest news organisations.

In addition to North America, we made significant progress in Argentina, going live in both Buenos Aires City and Buenos Aires Province, while we also launched new partners in Australia and the Bahamas. Furthermore, in Europe, we launched BetCity and JVH in the re-regulated Netherlands market and have been buoyed by the early performance. We are excited by prospects in the Netherlands, particularly once additional partners are awarded their licence in the coming months.

In summary, Q4 concluded a transformative year for Kambi and as we move into 2022, I am confident the business has never been better positioned for the future. The prospect of further regulation and additional partner signings across the globe is positive and we are firmly established as the go-to provider for the global sports betting market. I look forward to building on our successes this year and beyond to the benefit of both our partners and shareholders alike.”