Home > Finance > Quarterly results > Kambi revenue marginally lower during mixed Q1

Kambi revenue marginally lower during mixed Q1

| By Robert Fletcher
Kambi Group has revealed it was able to meet expectations in the first quarter of 2024, with both revenue and net profit only marginally lower year-on-year.

Revenue for the three months to 31 March was €43.2m (£37.1m/$46.2m). This was only 1.8% behind the €44.0m reported by Kambi in Q1 of last year.

This decline, Kambi says, is in line with expectations for the quarter. It also follows a tricky 2023, during which CEO and co-founder Kristian Nylén said he was “not satisfied” with its financial performance.

However, looking at Q1, Nylén is more upbeat. He highlights the launch of LiveScore Group’s new Kambi-powered sportsbook in Nigeria, followed by a roll-out in the Netherlands, as key highlights for the group.

Nylén went on to say Kambi’s signing of LiveScore in October last year was “pivotal” for the group. Further launches with LiveScore, including in its core UK market, are scheduled for this year.

“The important signing of LiveScore, as well as other key 2023 partner signings, were partly dependent on us delivering on certain product requirements,” the group said. “As part of these product deliveries, we have been integrating external content into the Kambi platform, enabling operators to enhance their offerings and deliver even greater product differentiation. 

“In Q1, for example, we integrated virtual sports, an important and complementary vertical to sports betting, while more recently we enlisted a third party to strengthen our horse racing product. 

“With these deliveries we strengthen our flexible and high-quality solution for partners.”

Incidentally, Nylén’s days at Kambi are numbered, having announced his resignation earlier this year. It is understood Nylén’s decision to resign is driven by his desire to spend more time with his family.

Nylén plans to stand down from his position during the current year, upon the appointment of a successor. Kambi is yet to make any announcements regarding a replacement.

Penn migration hits performance in Q1

Taking a closer look at Q1, Kambi’s Operator Turnover index was 712, compared to 851 in 2023. Kambi uses this tool to measure the performance of its partners in each quarter.

This decline, Kambi said, was predominantly impacted by the migration of Penn’s online business in July 2023. When stripping out Penn’s online contribution in 2023, turnover was up 3.0% across the global network and up 9% in the Americas.

Operator trading margin in Q1 was 9.0%, driven by favourable basketball results. This was also higher than the 8.2% in the same period last year.

Kambi also notes that 95% of sportsbook revenue was derived from locally regulated markets during the quarter.

Net profit marginally down at €3.2m

Turning to costs, total operating expenses in Q1 were 6.7% lower at €29.1m. This came as spending was lowered across staffing, data supply and other operating expenses.

Amortisation and depreciation costs were up year-on-year, while finance costs were largely unchanged. As such, Kambi was left with a pre-tax profit of €4.4m, in line with the amount posted last year.

After paying €1.2m in tax, net profit for the quarter hit €3.2m, only marginally lower than in Q1 2023. In addition, EBITDA for the quarter was 10.2% higher at €14.1m.

What can we expect in the full year?

Alongside Q1 results, Kambi also mapped out certain expectations for the full-year, saying it expects 2024 to be “transitional”.

While continuing to drive strategic initiatives for long-term growth, Kambi said revenue will be impacted by Penn’s online migration, recently renewed contracts with Kindred and several other partners, and delayed regulation of the Brazilian market.

Based on these developments, Kambi estimates revenue for 2024 to be between €170.0m and €180.0m. The group adds that revenue from recent partner signings is likely to materialise towards the end of the year, in addition to organic growth from existing partners. 

“In summary, we have continued to build solid foundations for the future,” Nylén said. “Our commitment to pushing the boundaries of product excellence and innovation, as highlighted by the development of our modular odds feeds, is positioning Kambi as a leader in shaping the future of sports betting technology.”

Subscribe to the iGaming newsletter