World Cup impacts positively on Kambi’s latest financial report

World Cup impacts positively on Kambi’s latest financial report

Wednesday, July 25, 2018 Posted by Craig Davies
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VAR makes first impression

Kambi has reported 25 per cent year-on-year revenue growth for the second quarter of 2018, as the firm publishes its financial summary for the period.

Driven in most part by a successful World Cup, and favourable results up until its June 30 cut off, an operator trading margin of 7.8 per cent, also the figure for the first half of 2018, was a substantial boost on Q2 2017’s 6.3 per cent.

Q2 revenues of €17.6m (£15.65m), rising from the previous years €14.1m (£12.54m), helped the group achieve a 20 per cent increase for the first half of of 2018, with figures reaching €34m (£30.2m) from €28.3m (£25.1m).

World Cup betting activity contributed 14 per cent of the Q2 turnover and 19 per cent of total revenue, recovering from punter friendly Champions League results in the latter stages of the domestic football season.

Kambi details Brazil’s opening group stage game, the 1-1 draw with unfancied Switzerland, as its most profitable, whilst Germany’s last gasp winner verses Sweden turned a potential profitable games into “ one of the best results for the players”.

The football spectacle, eventually won by France, also saw the importance of keeping up to date with market trends, as the Video Assistant Referee (VAR) controversially made its debut on the global stage.

Addressing VAR in its interim report, Kambi states: “This year’s World Cup also saw the introduction of the Video Assistant Referee (VAR), which produced a record number of penalties – 29 awarded and 22 scored. By the end of the group phase, we had seen an average of 0.5 penalties per match, up from an expected rate of 0.2 per match.

“This development is just one of many examples of the level of detail that Kambi has to operate and react to. The price of a penalty awarded was shortened dramatically and we also created a number of VAR-related markets, with Kambi offering some of these in-play.”

The group also reported an operating profit of €2.4 (£2.1m) for Q2 with a margin of 14 per cent, and €4.4m (£3.9m) with a 13 per cent margin for the first half of 2018, whilst profit after tax came in at €1.7m for the second quarter of 2018 and 3.2m for H1.

Totally Gaming says: The ability to quickly adapt to market trends is of the utmost importance, something Kambi realised during this summer’s World Cup and subsequently tried to react to and implement. VAR seems to be here for the long term, whether you like it or not, so appropriately related markets could become more and more visible.

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