All-change Kambi Looking To Reboot Following Challenging FY23
A leopard can’t change its spots but progressive Swedish-origin iGaming software leaders Kambi, in the best disruptive traditions, are looking to reboot their cut, thrust and shape in 2024 following what can only be described as a “challenging” fiscal year just gone, one which has triggered major corporate upheaval back at Malta HQ.
Kambi Co-founder Anders Ström, a man who launched the multi-million Euro enterprise in a humble basement flat, has assumed a more hands-off role as Chair of the Board; while CEO and fellow Co-founder Kristian Nylén is stepping down from day-to-day action altogether.
Reporting a €14.8 million (£12.66m) drop in 2023 annual operating profit from the previous year to €20 million (£17.11) and an operating margin halving to 16.1 percent, Nylén couragously conceded:
“As I look back on the year, I’m not satisfied with our financial performance.”
While Kambi’s total 2023 revenue stood at €173.3 million (£148.33), compared to €166 million (£142.08m) the previous year, the group’s revenue in Q4 of €44.3 million (£37.91m) was, significantly, €13.5 million (£11.55m) lower than that posted in the same quarter of 2022.
EBITA for Q4 2023 was down to €8.5 million (£7.27m), from €20.5 million (£17.54m) in Q4 2022, and €25.2 million (£21.61m) for the full year, down from €37.6 million (£32.18m) in 2022.
No Dividend
An announcement that no dividend will be paid this year comes with little surprise.
The company now expects its 2024 revenue to be in the range of €170-€180 million (£145.5m-£154m).
Summarising a year which saw Kambi secure long-term sportsbook platform agreements with Svenska Spel and LiveScore Group, and establish partnerships with Dutch online casino operator 711 and Bingoal for sports betting technology in Belgium and the Netherlands, said Nylén (pictured below).
“I am pleased with the strategic progress we made as we continue to build a strong foundation for growth over the coming years.
“[We are] navigating a complex and challenging sports betting landscape.
“As I look back on the year, I have two overriding takeaways, the first being I’m not satisfied with our financial performance.
“This performance was impacted by lower than anticipated revenue from Shape Games, smaller than expected revenue contributions from two of our largest partners and Bally’s more measured approach to marketing its sportsbook thus far.
“My second reflection is we made good progress in building the foundations that will ultimately lead to a much-improved financial performance in the future, giving me confidence we’re on the right path for the long-term.”
Hunt
But Nylén also noted that the outlook in several major potential markets was not as immediately promising as previously anticipated.
“In California, 2028 now appears to be a more realistic timeline for regulation [of online sports betting].
“In Brazil, we welcome the long-awaited regulation of the country’s sports betting market, but are also mindful that the transition to a fully licensed framework is unlikely before Q3 2024 and that new operators will face tough competition entering what is already a mature Gray Market with established sports betting brands,” said the iGaming pathfinder.
“While there has indeed been a slowdown in regulatory-driven opportunities, we remain very positive about the long-term trajectory of Kambi Group.
“Our resilience, strategic progress and commitment to product excellence have set us up well for the future and, as we move forward, we do so with great optimism for the journey ahead.”
Meantime, the hunt for Nylén’s successor is on.
