Kambi shares rally as supplier reveals ambitious €150m 2027 earnings target
The business said its 2027 revenue should be two to three times higher than the amount recorded in 2022. Kambi reported that its 2022 revenue for the first nine months of the year came to €108.2m, though Q4 revenue is likely to be higher than other quarters due to a busy sporting schedule.
As a result, the projected revenue figure for 2027 may be somewhere between €300m and €500m.
Kambi’s earnings before interest and tax, (EBIT), meanwhile, is projected to be €150m by 2027.
With the supplier reporting EBIT of €16.1m for the first three quarters of this year, this would represent very significant growth over the next five years.
Kambi said the main reason for the growth of its revenue and EBIT was an expected expansion of its total addressable market, especially in the US. The supplier expects a global addressable market of around €50 billion GGR by 2027.
Kambi strategy change
Kambi CEO Kristian Nylén also noted the supplier’s new focus on selling modular services rather than an entire sportsbook would play a major role in its growth.
“Kambi is well established as the market-leading B2B sportsbook with a product only few operators can compete with,” Nylén said. “As we look to push product boundaries even further and deliver high-quality modular services, we are in a strong position to evolve our business model and capitalise on the growing revenue opportunity of an expanding global sports betting market.”
Markets responded positively to the announcement, with Kambi’s share price rallying after a collapse earlier this month when US sports apparel business Fanatics revealed it would use technology provided by Amelco to power its sportsbook. After closing at SEK169.15 per share yesterday (19 January), Kambi’s share price rose by more than 10% in the first hour of trading, before settling at SEK180.90 at the time of writing, a 7.0% rise.
Kambi will publish further details of its long-term plan at a capital markets day later today.