Kambi hails record performance as Q3 revenue hits €20.5m

Kambi hails record performance as Q3 revenue hits €20.5m

Monday, October 29, 2018 Posted by News Team
Finance
Supplier benefits from US expansion and European customer growth

Kambi Group has reported a 39% year-on-year increase in revenue for the quarter ended September 30th, aided by strong growth in operator turnover. 

Revenue grew to €20.5m, with operator turnover rising 31% from Q3 2017. This growth in turnover helped Kambi report quarter-on-quarter growth in revenue, marking the first time the supplier has seen sequential revenue growth in a year with a major summer football tournament.

Operator trading margin for the quarter was 8.6%, significantly higher than the 7.5% reported for the prior year, and stemming from results in the final stages of the World Cup and the start of the European football leagues.

“This time last year I described Q3 2017 as a ‘springboard’ quarter for Kambi, and what’s followed has been a period of sustained growth, leading to what can only be regarded as an historic Q3 2018 for the company,” Kambi chief executive Kristian Nylén said.

“Overall, the business has never been in better shape, illustrated by a record quarterly performance.”

The company also saw revenue boosted by a number of operators going live during the quarter. During Q3 MRG’s RedBet brand launched its Kambi-powered sportsbook offering, while DraftKings, Rush Street Interactive and 888sport all debuted in the New Jersey gaming market.

The company also signed up three new clients in Q3, agreeing deals with AB Trav och Galopp (ATG), Latvijas Loto and Global Gaming. 

“In August, Kambi made its US debut and in doing so created history when becoming the first company to process a legal online bet in the country outside of Nevada, following the launch of New Jersey’s regulated market,” Nylén continued. “We are already live with three brands in New Jersey – DraftKings, SugarHouse (Rush Street Interactive) and 888sport – which is not only a great achievement in itself but, according to the regulator’s recently released September figures, equates to Kambi-powered operators having a c.70% share of the online market.”

The customer launches and new customer sign-ups contributed to growth in operating expenses, which rose 19% to €16.3m. This growth is expected to continue in Q4, as Kambi makes strategic investments to capitalise on new market opportunities. 

This led to operating profit leaping from €1.1m to €4.2m, with profit before tax up to €4.1m after finance costs were taken out. Once tax of €0.8m was paid, Kambi posted a €3.3m post-tax profit. 

For the first nine months of the year, Kambi generated total revenue of €54.5m, and a post-tax profit of €6.5m.

Following the end of the quarter, Kambi signed a commercial agreement with White Hat Gaming to launch a full omni-channel turnkey solution combining the Kambi sportsbook with White Hat’s modular platform and casino content. This, Kambi noted, could aid growth in customer sign-ups in future quarters. 

Kambi also expects to increase its US sports betting client base, following its successful New Jersey roll-out and having seen “unprecedented” interest in its solutions during October’s Global Gaming Expo. 

“With our existing business as strong as it ever has been, and Kambi establishing itself as the pre- eminent sports betting supplier in the developing US market, these are certainly exciting times for all involved with the business.”

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