Kambi’s Revenue Grows by 2% in Q3
Stockholm-based sports betting technology company Kambi Group has released its Q3 trading update, reporting revenues of €43 million, a 2% increase from the same period in 2023 (€42 million).
Kambi’s Q3 2024 Results
Kambi’s management noted that while revenue increased by only 2% year-over-year, excluding transitional fees from Penn Entertainment and one-time licensing revenue from Q3 2023, the adjusted revenue growth was 16%. This growth was primarily driven by an exceptionally high operator trading margin of 10.4%.
Operating profit (EBIT) for Q3 2024 was €3.6 million, down from €4.6 million in the same period in 2023, with a margin of 8.3% compared to 11.0%. Adjusted EBITA (acq) for Q3 2024 was €4.9 million, compared to €6.0 million in Q3 2023, with a margin of 11.4% versus 14.1%.
Cash flow (excluding changes in working capital and M&A) totaled €5.7 million, down slightly from €6.1 million a year earlier. Meanwhile, network turnover increased by 14% year-over-year, reaching €687 million, boosted by new partnerships with LiveScore Group and Svenska Spel.
The increase in betting volume reflected high activity during the 2024 Summer Olympics, UEFA European Championship, and Copa América tournaments. Additionally, customer trading margin rose to 10.4% from 8.8% in Q3 2023, supported by favorable outcomes in Copa América and the early NFL season.
Despite the revenue growth, operating profit was impacted by a lower EBIT margin of 8%, with Q3 EBIT declining to €3.6 million (Q3 2023: €4.6 million). Year-to-date operating profit remained steady at €14.2 million (YTD 2023: €12.8 million).
Kambi’s US Growth
In the U.S., Kambi’s Q3 activities included a new partnership with Hard Rock Digital, providing the Odds Feed+ product to Hard Rock Bet, which operates in eight states: Arizona, Florida, Illinois, Indiana, New Jersey, Ohio, Tennessee, and Virginia.
Additionally, Kambi extended its agreement with Rush Street Interactive to support RSI’s growth across the Americas. The company also launched Bally’s Corporation’s platform in Massachusetts and Maryland during the quarter.
CEO Comment
Kambi CEO Werner Becher commented on the results, stating, “In terms of our financial performance, we saw underlying growth in Q3 with operator turnover up 14% year-on-year. Although Q3 revenue was only up 2% year-on-year, when excluding the Penn Entertainment transition fees and one-off license revenues in Q3 2023, revenue grew 16%, although boosted by the unusually high operator trading margin of 10.4%.”
“Strategically and commercially, we made excellent progress with our modularisation strategy, rolling out our expanded portfolio of premium products and entering several exciting new partnerships. These signings were headlined by the recently announced Odds Feed+ partnership with Hard Rock Digital, one of the leading operators in the US. I believe our Odds Feed+ product has the edge over similar odds feed products in the market and I was encouraged by the interest it attracted at the recent G2E gaming exhibition in Las Vegas,” added Becher.
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