Kambi, in Q1 2024, reported a revenue of €43.2 million, a slight 2 percent decrease compared to the same period in the previous year. The majority of this revenue, approximately 90 percent, was generated from sportsbook operations, with the remaining portion attributed to modularised odds feeds.
Despite the slight dip in revenue, Kambi’s EBITDA increased by 10 percent year-on-year, reaching €14 million. The operating profit for the quarter was €4.4 million, a 2 percent decrease from the previous year, with a margin of 10.2 percent. The earnings per share for the quarter were €0.107, and the board proposed no dividend payout.
Kambi’s operator turnover index, a measure of its clients’ quarterly turnover, decreased by 16.3 percent compared to Q1 2023. This was primarily due to the migration of Penn’s online business in July 2023. However, excluding Penn’s online contribution in Q1 2023, turnover increased by 3 percent across the global network and by 9 percent in the Americas. The operator trading margin in Q1 was 9 percent, driven by favourable basketball results, compared to 8.2 percent in the same period last year.
In Q1, Kambi extended its retail sportsbook partnership with Penn until 31 December 2025, replacing the previous agreement set to end in July 2024. Kambi also partnered with Inspired Entertainment, a provider of virtual sports products, to integrate the company’s offering into its sportsbook platform. This is in line with and deliver for partners through third-party services.
Kambi CEO Kristian Nylén, (pictured above) who announced his intention to step down once a successor is appointed, expressed satisfaction with the Q1 results. He highlighted the successful launch of LiveScore Group’s Kambi-powered sportsbook in Nigeria and the Netherlands. Looking ahead, Nylén anticipates further launches, particularly in the UK, in preparation for upcoming sporting events like Euro 2024 and Copa América.
Nylén mentioned that Kambi has made good progress in opening up its platform to provide greater flexibility and choice for partners. An initial step in this process was integrating external content into the Kambi platform to meet product requirements for certain partner signings in 2023. In Q1, Kambi added Inspired Entertainment’s virtual sports games to the platform, creating an additional revenue stream. More recently, the firm integrated racing provider BetMakers, enhancing Kambi’s horse and greyhound racing products.
As part of the ongoing modularisation strategy,n Tzeract’s first commercial agreement with operator kwiff. This will enable Kambi to provide modular odds feeds via a single API integration, granting operators access to Kambi’s full library of sports odds.
Although Nylén suggested Kambi had “built solid foundations for the future”, the company expects 2024 to be a “transitional year.” The supplier said revenue will be impacted by Penn’s online migration, recently renewed contracts with Kindred and several other partners. Kambi is also reviewing its 2027 financial targets due to a slowdown in sports betting regulation. Despite these challenges, Kambi remains optimistic about its future prospects.
