Kambi still looking to recover operating profit, as Q1 revenue rises to €44m

April 26, 2023
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The supplier looks to expand into both AI technology and Latin America, particularly in the Brazilian market.

Kambi Group, sportsbook partner to major operators, has released its Q1 financial report. The supplier’s CEO, Kristian Nylén, has commented that “several important commercial milestones” have already been reached this year.

The company reached a Q1 revenue of €44m ($48.5m), rising 19% year-on-year. Operating profit (EBIT) for this year’s first quarter dropped 38.4% year-on-year, but has risen from 2022’s lowest operating profit (€3.9m) of Q3.

EBITDA also dropped 25% year-on-year to €5.8m, while Kambi's EBITDA margin decreased 20.8%.

Nylén commented that Kambi owed some of its success to key partnerships. “I was delighted to secure renewals during the quarter with Rush Street Interactive in the Americas, and BetPlay owner Corredor Empresarial S.A. in Colombia, with plans to expand across Latin America.”

*As the above graph shows, Kambi’s operating profit recovered in the fourth quarter, but there is also a slight asterisk due to the one-off €12.6m cancellation fee paid by Penn Entertainment (which inflates the numbers). It has fallen once again for Q1 2023.

Nylén continued, “Kambi already has a strong foothold in some of the region’s most established sports betting markets, such as Colombia and Argentina, and recent public announcements from the Brazilian government show positive signs that Brazil is edging nearer to become one of the world’s largest regulated markets.”

The CEO also discussed AI-driven technology as a “core component” of the supplier’s business vision, as well as referencing sporting events increasing operator turnover growth and operator revenue growth year-on-year by 12% and 19%, respectively.

US sporting events, such as the Super Bowl and March Madness, also increased Kambi’s player activity, as did major European soccer league competitions.

Nylén stated the “road towards our long-term financial targets won’t be linear.”  

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