Kambi stock price falls on lower-than-expected 3Q22 results
Kambi Group Plc, a B2B provider of sports betting services to licensed B2C gaming operators, said its 3Q22 revenue fell 12 percent, hurt in part by the quieter sporting calendar.
Revenue heavily impacted by DraftKings migration
In its earnings report for the third quarter, the company stated revenue in the third quarter stood at €36.7 million, that represents a fall of 12 percent from the same period last year. Its revenue year-to-date stood at €108.2 down 15 percent. The decline was strongly impacted by the migration of DraftKings onto its own platform during Q3 of 2021.
The company’s operating profit (EBIT) for the third quarter of 2022 was €3.9 million – a plunge of 74 percent, while earnings per share for the third quarter of 2022 stood at €0.084.
Kambi Group CEO Kristian Nylén commented the third quarter is always the hardest for the sports betting industry given the quiet sporting calendar.
Expanding partnership network
“It was also a quarter marked by growing global economic uncertainty and higher cost of living, trends which show little sign of subsiding any time soon. Despite this, Kambi proved its resilience once more and I am pleased to report another busy quarter for the business with operator turnover growth of 12 percent,” he said.
The company added it expanded its partner network in the Americas with four new signings of ilani, Mohegan, Oaklawn Racing Casino Resort and Ondiss, and has acquired front-end specialist Shape Games, a profitable and fast-growing business that will provide Kambi with market-leading native front-end technology
Kambi stock fell by 11% after the announcement.
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