Betting On The Future, Kambi Reports Sterling Q4 Results

Swedish-origin, Malta-based iGaming B2B front-end maestros Kambi have reported a big rise in Q4 revenue and profit, boosted by a chunky contract termination fee and a good World Cup.

Markets responded positively to the news and Kambi shares surged 15 percent yesterday (February 22).

Nevertheless, the company concedes a 20 percent year-on-year drop in EBITDA and only a modest two percent growth in FY2022 revenue of €166 million (£145.96m/US$176.39m).

Quite naturally, the outfit, carved out of Omnichannel Unibet in 2014, is putting a positive spin on fiscal matters. And betting on the future by recommending that stakeholders forgo any dividends this year.

Kambi Q4 EBITDA more than doubled to €27.3 million (£24m/US$29m), while revenue for the quarter grew by an impressive 66 percent, y-on-y, to €57.8 million (£50.82m/US$61.41m).

Revenue stats were considerably boosted by a €12.6 million (£11.07m/US$13.38m) termination fee from PENN Entertainment–in compensation for broaching a 2019 deal and deciding to switch to their own newly-acquired proprietary sports betting platform–and the hefty, universal, add of the Qatar World Cup.

Dedicated Kambi watchers, meantime, will be pleased to note that the Board is sticking with the joint vision of CEO Kristian Nylén and CFO David Kenyon — by recommending that shareholders forgo an annual dividend, and that any spare change is invested for the financial battles ahead.

Betting on Brazil

For example, Kambi is obviously betting big on Brazil, a potentially huge iGaming market, once regulated, by forging a new partnership with the country’s leading fantasy sports operator Rei do Pitaco.

It doesn’t take a huge leap of imagination to appreciate the lip-smacking dynamics of a natural segue to full-blooded sports booking once online is green-lighted in the South American giant.

A deeper dive into Kambi’s Q4 and FY2022, shows that operating profit in the quarter registered €18.7 million (£16.44m/US$19.87m), up 164 percent; although full-year operating profit fell, year-on-year, almost 40 percent to €34.8 million (£30.60m/US$36.97m).

Similarly, fourth-quarter profit-after-tax increased almost 150 percent to €15.1 million (£13.27m/US$16.04m); but declined by 43 percent in the full year to €26.5 million (£23.30/US$28.15m), compared to 2021.

Summarized CEO Nylén: “The year finished with a flourish, with the business delivering across several key areas, providing the perfect springboard into 2023.

“Kambi was able to make significant strategic progress, whether it was securing partnership extensions with Kindred and Parx, the numerous new partners we signed, the leap forward in our UX capability through the acquisition of Shape Games.

“The global economic outlook might be uncertain, but we have a proven, robust business, one which is ready to meet any challenges that lie ahead.

“With a clear focus on the updated strategy we detailed at our Capital Markets Day, we are ready to build towards the financial targets we’ve set ourselves for the coming years.”

Certainly for Kambi it’s a case of full steam ahead.

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