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Kambi Group continues Covid-19 recovery as revenue and profit rocket in H1

| By Robert Fletcher
Sports betting solutions provider Kambi Group has reported a significant year-on-year rise in revenue and net profit for the first half of its 2021 financial year, primarily due to a return to the traditional sports calendar following the novel coronavirus (Covid-19) shutdown in the same period in 2020.
Rivalry Q1

Revenue for the six months to 30 June amounted to €86.0m (£73.5m/$101.2m), up 101.5% from €42.7m in the corresponding period last year.

Kambi said this increase was down to its improved performance from March onwards, with the same period last year significantly hit by the suspension and cancellation of sports events as a result of Covid-19.

The operator was also helped by its expansion in the US market, with Kambi now having a presence in 13 states. As a result, the Americas region was responsible for the majority of revenue in H1, ahead of Europe and other markets.

Kambi said it intends to launch in more states across the US, highlighting New York, Florida, Arizona and California as potential new markets, as well as Canada following the passage of new laws to legalise single-event sports betting in the country.

In addition, Kambi agreed a deal to provide its technology and services to NG Gaming to support the launch of its new Olimpo.bet online sports betting brand in Latin America.

“We’re very excited about what the future holds at Kambi,” Kambi’s chief executive Kristian Nylén said. “In June, we held a virtual Capital Markets Day, which enabled us to present our strategy for the future, including our position in markets with strong potential for growth, the global opportunities ahead and how we plan to capitalise on those opportunities. 

“I believe that Kambi, more than anyone else in the market, has what it takes to be the world’s number one sportsbook provider in today’s increasingly regulated and competitive landscape.”

Turning to expenses for the half, operating costs were 27.3% higher at €50.7m, leaving an operating profit of €35.3m, up by 908.6% year-on-year. Earnings before interest, tax, depreciation and amortisation (EBITDA) also jumped 281.5% to €45.4m in H1.

Profit before tax hiked 993.8% to €35.0m and after paying €6.5m in income tax, Kambi ended the half with a profit of €28.4m, up 1,570.6% year-on-year.

Looking at the second quarter – the period in which Kambi was most impacted by Covid-19 shutdowns in 2020 – revenue was 189.2% higher at €42.8m. 

Operating costs for the three months to 30 June were up 44.8% to €26.2m, but the spike in revenue meant EBITDA rocketed 2,080.0% €21.8m for the quarter. 

Profit before tax significantly improved from a loss of €3.5m in 2020 to a €16.6m profit this year, while after accounting for €3.0m in income tax payments, overall profit the quarter amounted to €13.4m, compared to a €3.0m loss in 2020.

“We have a leading product, a fantastic network of partners and talented and passionate staff,” Nylén said. “Meanwhile, our success in recent years provides us with a strong balance sheet, giving us the ability to expand when and where needed, expedite our global growth plans, and create further shareholder value.”

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