Kambi revenue reaches $46.2M in Q1, in line with company expectations

Sports betting services provider Kambi Group has reported that its revenue for the first quarter was €43.2 million ($46.2 million). While this was 1.8% behind the €44 million reported by Kambi in Q1 of last year, the company said that this decline is in line with expectations for the period. 

Operating profit for the first quarter of 2024 was also marginally lower at €4.4 million ($4.7 million), down from €4.5 million in Q1 of last year, at a margin of 10.2% (10.3% in Q1 2022). 

Meanwhile, earnings per share for the first quarter of 2024 were €0.107, the same as in Q1 2023. What did increase was Kambi's EBITDA for the quarter, which was 10.2% higher at €14.1 million ($15.08 million). 

Speaking of the period's highlights, Kristian Nylén, Kambi CEO and Co-founder, highlighted the launch of LiveScore Group's new Kambi-powered sportsbook in Nigeria, followed by a roll-out in the Netherlands, as key milestones for the group. 

According to Nylén, Kambi's signing of LiveScore in October 2023 was "pivotal" for the group. He detailed that further launches with LiveScore, including in its core UK market, are scheduled for this year. 

"The important signing of LiveScore, as well as other key 2023 partner signings, were partly dependent on us delivering on certain product requirements. As part of these product deliveries, we have been integrating external content into the Kambi platform, enabling operators to enhance their offerings and deliver even greater product differentiation," Nylén noted.

"In Q1, for example, we integrated virtual sports, an important and complementary vertical to sports betting, while more recently we enlisted a third party to strengthen our horse racing product. With these deliveries we strengthen our flexible and high-quality solution for partners," he added.

Kristian Nylén

It should be noted that in January Nylén notified the Board of his intention to step down from his current position during the year, upon the appointment of a successor. Kambi has yet to make any announcements regarding a replacement and in the meantime, Nylén has expressed confidence in Kambi's future endeavors.

"Having made great strides in opening up our platform to deliver on these partner requirements, we are now picking up the pace with modularisation. This sharpened focus means we are preparing to provide modular Kambi odds feeds to those operating on their technology and outside of our network," the CEO said.

"This means operators can, via a single API integration, access our full suite of sports odds, including those powered by Tzeract and Abios. This enables them to select their desired mix of sports, events, and product types from a single source. Our market research shows demand for such a flexible and powerful solution, with operators today having to integrate with multiple suppliers with varying degrees of quality," the CEO explained.

Alongside Q1 results, Kambi also mapped out certain expectations for the full year, saying it expects 2024 to be "transitional". 

While continuing to drive strategic initiatives for long-term growth, Kambi said revenue will be impacted by Penn’s 2023 online migration, recently renewed contracts with Kindred and several other partners, and delayed regulation of the Brazilian market. 

The group estimates revenue for 2024 to be between €170 million and €180 million ($181.8 million and $192.5 million). Kambi added that revenue from recent partner signings is likely to materialize towards the end of the year, in addition to organic growth from existing partners. 

"In summary, we have continued to build solid foundations for the future. Our commitment to pushing the boundaries of product excellence and innovation, as highlighted by the development of our modular odds feeds, is positioning Kambi as a leader in shaping the future of sports betting technology," Nylén concluded.