Kambi's revenue soars to over $36 million in Q3 2023

During Q3 2023, Kambi Group achieved corporate revenues of $36.7 million (€42 million), marking an increase of 15% compared to Q3 2022, when revenues stood at $38.97 million (€37 million).

The growth in revenue was achieved despite Kambi facing a lower operator turnover index during this period, which was down 6% year-on-year to 602. The decrease was primarily attributed to the exit of US partner Penn's online business in July. Despite this development, Kambi secured $3.58 million (€3.4 million) from Penn for transition services.

One of the noteworthy contributors to Kambi's positive performance during Q3 was the addition of new asset Shape Games. Shape Games is a provider of front-end technology solutions for sportsbooks, and it generated fixed licensing fees of $2.74 million (€2.6 million), helping stabilize Kambi's revenue.

The company also reported operational enhancements in its Sportsbook network, leading to increased profitability. The Q3 operating profit (EBIT) rose to $4.84 million (€4.6 million), compared to $4.11 million (€3.9 million) in Q3 2022, with a margin of 11.0%. Additionally, EBITA improved to $6.32 million (€6 million) from $4.42 million (€4.2 million), achieving a margin of 14.1%.

Kambi highlighted its "better balanced geographical diversification," with 94% of sportsbook revenue derived from locally regulated markets. The breakdown showed 50% of revenues coming from the Americas, 47% from Europe, and 3% from the Rest of the World.

Looking at year-to-date figures, Kambi reported a Gross Gaming Revenue (GGR) of $135.85 million (€129 million). This amount reflects a 19% increase compared to YTD 2022 when GGR stood at $113.74 million (€108 million).

Despite the increase in GGR, Kambi's YTD operating margin was slightly lower at 9.9%, resulting in an operating profit (EBIT) of $17.59 million (€16.7 million), which is 2% down from the 2022 figure of $17.90 million (€17 million).

Kambi underlined the significance of the technology contracts it secured during Q3, which strengthened its sportsbook network. Renewals include agreements with ATG Sweden and Rank Group, while primary sportsbook technology agreements signed with Svenska Spel and LiveScore Group were termed as "landmark deals."

These new technology agreements are set to make a transformative impact on Kambi's revenue, starting in the second half of 2024, according to the company. The significance of these contracts was highlighted by Kambi CEO Kristian Nylen, who stated that they are "the most significant partner agreements with existing sports betting revenue in our history."

The company discussed its long-term outlook for 2027, a year in which Kambi has set revenue targets ranging from $347.5 to $526.55 million (€330 to €500 million), representing a two-to-three-fold increase on FY2022 GGR performance, and a target EBIT of over $157.97 million (€150 million).

Kambi also highlighted the role of its AI-backed trading unit, now named Tzeract, which is set to expand its scope to cover live football and tennis, adding to its current focus on football trading.

Nylen expressed satisfaction with the progress the company is making with its long-term plan, both in commercial and product aspects. “As I have said before, the road to our 2027 goals won’t be linear and the partner signings announced in recent weeks will only be reflected in the numbers from the second half of next year," he stated.

“The long-term picture looks bright and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world," the executive added.