Kambi registers revenue increase in second quarter

The sports betting supplier Kambi has reported a 23% increase in revenues to €21.6 million in the second quarter of the year.

US.- Kambi Group announced this week its financial results that detail activity from the second quarter of the year, ended June 30. The company said that revenue amounted to €21.6 million during the three-month period, which represents a 24% increase when compared to the €17.6 million registered a year before.

Operating profit for the second quarter of 2019 was €2.5 million with a margin of 11.7%, up from the €2.4 million and a 13.8% margin from 2018. Profit after tax totalled €1.6 million for the three-month period. These numbers come despite tough comparatives including the FIFA World Cup in 2018.

Moreover, the company posted €42.6 million in revenue for the first half of the year, which represents a 25% increase. Operating profit was €5.1 million during that period, with a margin of 12.1%, while profit after tax amounted €3.6 million.

Kambi CEO Kristian Nylén said: “I’m pleased to report Q2 2019 was yet another positive period for Kambi, delivering solid financial growth despite the lighter sporting calendar, and signing new customer agreements to keep up our positive commercial momentum. It was during Q2 last year that the US Supreme Court decided to repeal the country’s federal sports betting ban, a judgment I said at the time would create significant business opportunities for Kambi. Looking back over the past 12 months, I’m proud to say we’ve built a robust US-facing business with a fantastic portfolio of partners, and I continue to have great confidence in our future prospects.

“The development of the competitive landscape in the US has certainly been dynamic, with operators and suppliers taking a variety of strategic routes. For some, joint ventures or M&A have been the preferred choice, while for our multiple US customers, the decision to partner with Kambi has brought them immediate success, and long may that continue.

“As the number of regulated states steadily increases over the coming years, so too will the number of attractive opportunities. The fact Kambi has proven its ability to deliver in the US, coupled with our ongoing US investments in people and products, puts us in a good position to convert the best of these opportunities,” added Nylén.

“Although much focus is on the US, Kambi continues to explore opportunities globally. In this regard, I am delighted we signed another new customer in Q2, with BetWarrior the latest to join the Kambi network. Although a new operator, BetWarrior is led by an experienced and ambitious management team, one which plans to target countries in Latin America, a region where we’ve seen positive regulatory developments of late.

“I’m also pleased that we strengthened our partnerships with the National Lottery and the Rank Group. National Lottery has taken the Kambi sportsbook into Moldova, having enjoyed strong growth in its home country of Bulgaria. Meanwhile, Rank will soon add the Kambi Sportsbook to its Spain-facing Enracha brand, and we’ll continue to power its Grosvenor Sports brand in the UK. This remains an exciting time for Kambi and I look forward to seeing what the second half of the year brings.”