Kambi acknowledges quarter of strong partnerships, though profit drops

July 26, 2023
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The provider has signed with Bally's, Warhorse Games, Corredor Empresarial and acquired Shape Games, generating revenue of €42.9m.

Kambi Group has posted its Q2 results, where the company generated revenue of €42.9m ($47.5m), marking a 23.6% increase year-on-year. For the first half of the year, Kambi’s total revenue has also risen 21.5% to €86.9m.

For the second quarter, the sports betting provider made an operating profit of €3.7m, which is down slightly from 2022’s Q2 result of €4.9m. The first half of this year was also slightly less lucrative, decreasing 32.8% to €8.2m.

Cash flow, excluding working capital and M&A, for Q2 remained the same year-on-year at €0.1m. EBITA declined slightly from €5.2m to €5m, as well as decreased its margin from 15.1% to 11.7%.

Kambi’s EBITDA, however, rose slightly both year-on-year and from the previous quarter, reaching €12.9m.

The increased revenue has been attributed to the addition of Shape Games and an operator trading margin of 9.9%. Kambi also signed an exclusive global sportsbook partnership with Bally’s in Q2 this year.

Kambi CEO Kristian Nylén commented that this agreement constituted a “tier-one partner signing” and also mentioned the quarter was an “encouraging period” due to “key partner renewals and the continued development of AI trading capability.”

Nylén continued, “Operator turnover growth of 4% was not as strong as revenue, impacted by rising foreign exchange headwinds, the dampening effect of a high trading margin and Penn Entertainment’s year-on-year decline in US market share.”

Nylén also spoke further on the partnership with Bally’s, saying, “Bally’s commands strong brand recognition, a large customer database and expansive global footprint that has the potential to open up significant opportunities for Kambi in both the US and beyond.

“Bally’s decision to replace its proprietary sportsbook with Kambi Complete underlines the current pressures facing many in-house sports betting operations. Demand for our Complete sportsbook service remains high, further evidenced by our sales pipeline and the Q2 renewals of key partners BetPlay, LeoVegas Group and Paf.”

Soccer was the sport generating the most revenue for Kambi in Q2, due to the European Champions League final, with basketball and the culmination of March Madness coming in second. The game between the UConn Huskies and the San Diego State Aztecs was the second-largest turnover event of the entire quarter.

Kambi also recently announced a partnership with Warhorse Gaming, for the first sportsbook launch in Nebraska, as well as a contract extension with Corredor Empresarial in Colombia.

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