During the third quarter of 2020 Kambi posted record revenue after a 22 per cent increase and a 62 per cent growth in turnover.
UK.- Kambi has revealed its financial results for the third quarter and reported a 22 per cent increase to reach a record quarterly performance at €28.1 million. The figure was also up €5.2 million for the period from January to September after reaching €70.8 million.
The company’s operating profit (EBITDA) for the quarter was €6.5 million, at a margin of 23.3% in comparison to last year, while it grew 1.2 per cent to 14.2 per cent for the first nine months of 2020. Profit after tax, on the other hand, was more than doubled after reaching €5.1 million in the quarter and rose €1 million to €6.8 million between Janyary and September.
Earnings per share were €0.164 during the three months to September 30 (€0.220 Jan-Sep) and cash flow from operating and investing activities (excluding working capital movements) amounted to €6.9 million for the quarter (€8.2 million Jan-Sep).
Kambi not only showed its financial performance, but also highlighted it has expanded its partner network through the signing of major US operator Churchill Downs Incorporated and its BetAmerica sports betting brand, while it has also signed a long-term extension with LeoVegas Group, cementing the partnership and extending the agreement to cover additional brands.
It has also continued to deliver for partners with 17 launches throughout the quarter, including the online launch of Penn National Gaming’s Barstool Sportsbook in Pennsylvania.
The company invited interested parties to participate in a report presentation at 10.45 (CET) with Kambi Group plc’s CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.
Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in this link.
Read Kambi’s full statement below:
“The difference between Q2 and Q3 couldn’t have been starker and underlines the ability of the business to quickly and efficiently respond not only to the lockdown situation, but also ensuring resources were in place for when sports returned. It’s reassuring for our partners to experience the capability and inherent flexibility Kambi has to adapt and thrive under testing conditions and we are confident in our ability to handle any potential future impacts that may arise from the virus. It’s also been reassuring to see that, despite some heightened local restrictions, there’s been no impact on high-level sports.
Momentum gained late in Q2 carried through to Q3, with Kambi posting record quarterly revenue of €28.1m. Operator turnover was also up significantly to an all-time high, rising 62% year-on-year. The gradual return of sports drove greater volumes throughout the period, particularly during September, which produced 43% of the operator turnover for the quarter. This positive trend has continued into the start of Q4.
During the quarter, we were able to complete two important pieces of business. Firstly, we signed a new partner in Churchill Downs Incorporated (CDI), a large US multi-state company and operator of the BetAmerica sportsbook brand. We are already live on-property with BetAmerica in two states and will launch online in the near future. CDI has already enjoyed digital success with its TwinSpires horserace wagering business and has the ambition to turn BetAmerica into a similar success story.
Secondly, the extension of our partnership with the LeoVegas Group. The agreement will see Kambi continue to provide our services to the LeoVegas Sport brand and carry on what has been an exciting journey so far. In addition, we will also provide our sportsbook to additional brands within the Group.
It was also another busy quarter in terms of launches, culminating in the much-anticipated launch of Penn National Gaming’s (PNG) proprietary Barstool Sportsbook app in Pennsylvania in mid-September, which has delivered promising early performance numbers. The app, 100% of which was developed in-house by PNG, is just the latest example of what’s possible when using Kambi’s empowering technology.
As we near the end of 2020, the cautious optimism of earlier in the year has been replaced with growing confidence, as we finish the year in great shape. Looking ahead, having successfully come through our toughest challenge, more exciting opportunities await us.”