Finance

Kambi records 55% Q1 revenue increase as profit soars

| By Nosa Omoigui
Kambi has posted Q1 revenue of €43.2m (£37.6m/$52.2m) for 2021, representing a 55.1% increase on last year thanks to continued growth of the US market and a busy American sporting calendar.

The supplier said 87% of this revenue was generated from locally regulated markets, while operator turnover grew 122%.

The Americas proved to be the company’s most reliable revenue stream contributing just over 60% (€25.9m) of the total figure, while Europe pulled in just under 40% (€17.3m) of revenue in the first quarter of 2021.

2021 saw Kambi sign deals worldwide, ranging from a long term partnership with Racing and Wagering Western Australia, to an agreement with Casino Magic which saw the debut of a new sportsbook in Argentina, as well as an extended partnership with Napoleon Sports & Casino.

Kambi is now also live in 14 US states, with Michigan, where it powers five online skins and seven retail properties, and Pennsylvania (seven online skins, nine retail properties) in particular gaining major traction.

College basketball proved to be the biggest contributor to operator turnover, approximately equal to that of the NFL
and NBA combined. The final stages of March Madness generated more turnover than the entirety of the 2018 World Cup, despite being played at the end of the reporting period in April.

Kambi CEO Kristian Nylén said: “I’m pleased to report the exceptional performance we produced during the latter
part of last year has continued into 2021, with significant growth across a range of KPIs including operator turnover, revenue and operating margin.

“This strong performance was driven by a busy sporting calendar, including the end of the NFL season and the March Madness college basketball tournament, and more than compensated for the planned migration of a large proportion of 888’s business off the Kambi sportsbook in January.”

Operating costs rose to €24.5m. Staff costs totaled €12.8m, amortisation contributed €3.6m, data supplier costs were €3.4m, and other expenses came to €4.8m

The company’s operating profit came to €18.7m with a 43.3% operating margin.

The business paid €3.5m worth of income tax.

Profit after tax amounted to €15.1m compared to €4.8m this time last year – a substantial 216% increase, thanks in part to a full schedule of sport after suspensions affected the comparative quarter.

Post Q1, Kambi also aided in the launch of Casumo’s sportsbook in Spain, whilst its partner Churchill Downs Incorporated launched sports betting products in Colorado, Indiana and Pennsylvania.

Looking forward, the business said major sporting events present massive opportunities: the MLB season will reach completion, tennis sees the return of Wimbledon and the French Open, football has Euro 2020 and the Copa America on the horizon, and NBA and NHL have finals coming up in Q2.

Nylén added: “As always, our partners will have a first class offering across all sports and competitions, and as sports fans we have a lot to look forward to.”

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