Kambi announces revenue growth
Kambi has released its financial results from 2019, and showed a 21% increase in revenues.
US.- Kambi has released its fourth quarter and full 2019 financial results, which show that the company has experienced a successful year. Revenue amounted to €92.3 million for the period January-December 2019.
Operating profit for the fourth quarter was €6.2 million, with a margin of 23.1%, and €14.7 for the full 2019, with a margin of 16%.
Profit after Tax, including €500k of impairment charges, amounted to €4.6 million for the fourth quarter of 2019, and €10.4 million for the period January to December 2019. Earnings per share for the fourth quarter of 2019 were €0.152, and €0.345 for the period January to December 2019.
Kambi experienced strong financial performance with a 23% year-on-year rise in Q4 revenue and 52% year-on-year increase in Q4 operator turnover, driven by further expansion into new US states and new customer launches.
The quarterly performance contributed to a full-year 2019 revenue growth of 21% and an operator turnover increase of 37% compared to 2018. It signed Seneca Gaming Corporation in November and launched in all three of Seneca’s New York casinos in December. It also launched with DraftKings and New Hampshire Lottery when going live online in New Hampshire in late December. A record 11 Kambi partners named in the prestigious EGR Power 50 ranking, which lists the industry’s most powerful operators.
Kristian Nylén, Chief Executive Officer: “I’m delighted to report another strong quarter for Kambi, which rounds off a year in which annual revenues grew by more than 20% and operator turnover by more than a third. Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020.
“In the previous report, I highlighted the momentum we could see building in operator turnover, and this trend continued in Q4 with each month delivering a greater number than the last. In total, Q4 operator turnover increased by 52% year-on-year and 36% sequentially – considerably higher volumes than Kambi has ever seen. While much of this growth was derived from our US partners, we also saw double-digit turnover growth in markets outside of the US, all of which contributed to strong revenue growth of 23%.
“While the year was pleasing for many reasons, 2019 ended with news our partner DraftKings had entered into an agreement to acquire its own sports betting technology and therefore will no longer be dependent on Kambi. Our revenues from DraftKings are likely to be unaffected throughout 2020. I remain of the view that DraftKings’ long-term prospects would be better served with Kambi but also that this will increase the appeal of Kambi to an even greater level. We remain firmly committed to the US, where we have a diverse network of partners which have fantastic potential for growth, particularly as more states regulate.
“We continue to prove that we are the sports betting partner operators can trust to deliver. In Q4, we launched in seven casinos and a variety of online sportsbooks across multiple jurisdictions. I’m particularly proud we were able to launch with our first US lottery, when going live in New Hampshire with DraftKings in December. I was also pleased to make our retail debut in South Africa when we launched the Kambi Sportsbook inside the Sun International-owned Grand West Casino in Cape Town.
“I’ve spoken previously about the strengths of Kambi’s retail product and our ability to roll out at speed. These assets were both on display during Q4 when we successfully signed a new customer in Seneca Gaming Corporation and subsequently launched in its three New York casino properties within a matter of weeks. Seneca is a great customer signing for us. Not only is it an organisation which shares our values of trust and collaboration, but the fact it is owned by one of the most respected US Native American tribes ensures it is a partnership that will resonate within the tribal community nationwide.
“The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures. We operate in a fast-growing market, one which continues to embrace regulation and will therefore present Kambi and our partners with exciting opportunities for many years to come. Be in no doubt Kambi is well positioned both in the US and globally and I look forward to a prosperous 2020.”
