Kambi reports third quarter results
Kambi registered a solid financial performance with 12% revenue and 23% operator turnover growth despite a quiet sporting calendar in the third quarter.
US.- Kambi Group has released its financial report for the third quarter of the year. During that three-month period, the company’s revenue amounted to €23 million, while it generated €65.6 million between January and September.
Operating profit (EBIT) for the third quarter of 2019 was €3.4 million, with a margin of 14.9%, and €8.6 million for the period January to September 2019, with a margin of 13.0%. Profit after Tax amounted to €2.3 million for the third quarter of 2019, and €5.8 million for the period January to September 2019.
Moreover, earnings per share for the third quarter of 2019 were €0.075, and €0.193 for the period January to September 2019. Cash flow from operating and investing activities (excluding working capital) amounted to €2.6 million for the third quarter of 2019, and €4.2 million for the period January to September 2019.
Kambi said that the third quarter featured a solid performance with 12% revenue and 23% operator turnover growth despite a quiet sporting calendar. It also reported a strong operating result despite 2018 comparatives being significantly boosted by the football World Cup.
Kambi’s CEO said in a statement: “Multiple customer launches, new product releases and major commercial agreements all contributed to a successful period for Kambi, as we continued to display a high-level of expertise throughout the organisation.
“The third quarter is traditionally a challenging one for the sports betting industry, particularly in a year with no major summer football tournament. This, along with our ongoing investments to capitalise on the huge US opportunity, was the reason for the year-on-year decrease in operating result. However, despite the tough World Cup comparatives and a relatively quiet July sporting calendar, I’m pleased to report Kambi Q3 revenue grew 12% year-on-year while operator turnover increased 23%.
“I was also pleased to see momentum increase throughout the quarter, culminating in September’s operator turnover, which was up significantly year-on-year and surpassed the previous highest monthly total. This encouraging performance was due to the combination of multiple customer launches, enhancements to the Kambi sportsbook, and a busier sporting calendar, which gives me confidence for the rest of the year.
“We signed two new customers during the quarter, the first being Penn National Gaming, the largest regional gaming operator in North America. With market access to as many as 19 states, Penn National was always a key US target for us. In addition to the land-based establishments Penn National operates, the company has a sports betting philosophy that complements our own, which bodes well for a long and successful relationship.
“We also signed a deal with JACK Entertainment, which covers two retail establishments and an online offering in Ohio. A digital-savvy operator with a strong, local brand, JACK Entertainment is an operator we are excited about working with. Meanwhile, we also secured contract extensions with NagaWorld and DraftKings, the latter of which has already seen us enter a number of additional states as we build upon the partnership’s early success in New Jersey.
“Overall, there were multiple US customer launches to mention in Q3, with online or on-property launches taking place across the states of New York, Iowa, Indiana, Pennsylvania, New Jersey and West Virginia. Among those launches was Unibet, who made its US sports betting debut in New Jersey and then launched retail in Pennsylvania. Once again, this demonstrates our market leading US proposition based on our regulatory expertise and operational capability.
“In general, Kambi remains well positioned for the future and I look forward to building on our successes in Q4 and beyond, a period which has begun well with an industry award win at the recent G2E exhibition in Las Vegas.”
