Kambi reports mixed second quarter, re-signs with 888
Kambi Group has unveiled an extension to its deal with 888 after posting mixed financial results for the three months to June 30.
Revenue in the second quarter came in at €14.1m ($16.4m), which represents an increase of 3% on the €13.7m achieved in the corresponding period last year.
However, operating profit for the three-month period amounted to €300,000, down from €2m in Q2 of 2016, while profit after tax also dropped from €1.8m to €100,000.
Earnings per share in the quarter were €0.0064, compared to €0.060 last year, while cash flow from operating and investing activities, excluding working capital, fell from €100,000 to a loss of €500,000.
Despite the mixed results, Kambi cited extending its partnership with 888sport and signing a deal with Corredor Empresarial in Colombia as key highlights from the second quarter.
Kristian Nylén, chief executive of Kambi, said: “I am pleased to report that Q2 was a successful trading period for Kambi; not only has the day-to-day performance of the business remained strong, but Kambi has managed to further strengthen its foundations for future growth.
“We are very pleased to have secured a multi-year extension with one of our key customers, 888sport; we believe the longer term benefit from securing 888sport for years to come, far outweighs the shorter term impact the re-negotiation has on our financial results.
“I am also delighted that Corredor Empresarial has chosen Kambi as its trusted partner for the launch of a sportsbook in its home market of Colombia.
“The global sports betting market has a total value of more than €50bn in GGR2 and a rapid growth rate with many countries moving towards regulation.
“This makes us confident we will be able to increase our growth and market share further with both new and existing customers.”
In a separate announcement, Kambi said it has agreed a multi-year extension to its contract with 888 Holdings, which will see Kambi extend its premium sportsbook and technology services to the operator's 888sport brand.
This multi-year deal recognises Kambi as the provider of 888's sportsbook, supporting 888's growth and development in the sports vertical.
Nylén said: “We are delighted to continue building on the successful partnership we have had with 888sport over the last four years and look forward to further contributing to its future growth.
“During this time, 888sport has seen a massive increase in its sportsbook revenues, showcasing the quality of the Kambi Sportsbook services.
“This contract extension is proof of the quality, relevance and stability our scalable Sportsbook offers our customers as we continue to invest to improve the best B2B Sportsbook in the market.”
Related article: Kambi signs sports betting deal with Latin American giant Corredor Empresarial