US expansion drives Kambi net profit up 134.5% in 2020
Total revenue for the 12 months through to 31 December amounted to €117.7m (£103.2m/$142.9m), up from €92.3m in the previous year.
Kambi said the majority of 2020 was extremely positive for the business, with a strong start to the year interrupted only by the effects of the novel coronavirus (Covid-19) pandemic, which hindered performance through the cancellation and postponement of sports events in late Q1 and most of Q2.
However, Kambi pushed ahead with expansion in the US, adding market-first launches in Michigan, Illinois and Colorado during the first half.
Kambi followed up on this in Q3, signing partnerships with tribal operator Four Winds Casinos and Churchill Downs Incorporated, as well as launching Penn National Gaming’s Barstool-branded online sportsbook in Pennsylvania.
In Q4, Kambi also went live in Tennessee’s online market and carried out three on-property launches in Michigan and Mississippi, and, outside of the US, struck up a partnership with the Belgian National Lottery. Shortly after the end of Q4, the provider also linked up with JVH Gaming and Entertainment, the largest private casino company in the Netherlands.
“Our strong growth means Kambi is now operating at a scale like never before, which in turn allows the Kambi sportsbook and service to continuously evolve,” Kambi chief executive Kristian Nylén said.
“The powerful partner network we have created, with fantastic partners from around the globe, produces ever increasing amounts of unique data, from which we can draw valuable insights to help us improve and continue to offer a high-performance sportsbook.”
Looking at costs for the year, operating expenses amounted to €85.5m, up 10.1% on the previous year, as Kambi pushed ahead with expansion efforts in the US and elsewhere.
After taking into account finance costs and items affecting comparability, Kambi posted €31.0m in profit before tax, an increase of 127.9% on 2019. Kambi paid €7.0m in tax, and after accounting for losses caused by currency exchange, the provider ended the year with €23.0m in comprehensive profit, up 134.5% year-on-year.
Kambi’s full-year results were helped by a record performance during the fourth quarter, when revenue jumped 75.7% to €46.9m. For the first time, Q4 saw Kambi’s operations in the Americas become its main source of income, with activities here accounting for 58% of gross gaming revenue in Q4.
Operating expenses in Q4 were up 20.5% to €24.7m, and after taking off finance costs, this left a profit before tax of €22.1m, up a massive 268.3% year-on-year.
Kambi paid €4.8m in tax during the quarter and after accounting for positive currency exchange, the provider ended the quarter with a comprehensive net profit of €17.5m, an increase of 272.9% in 2019.
“It’s been a year that’s shown that when working together, we can find the right responses to the toughest of challenges,” said Nylén, who last month reduced his stake in Kambi by 6%.
“The Kambi model is based on partnership, on sharing, on working together with our partners to ensure they have the best chance of success.
“The model was undoubtedly stress-tested in 2020 but it passed with flying colours, leaving me more excited than ever about Kambi’s future.”