Kambi Group plc has released its Q3 2024 financial results, revealing stable growth and key strategic developments within its business. Revenue for the third quarter reached €43.0 million, a slight increase from €42.1 million in Q3 2023. For the January to September 2024 period, revenue totaled €132.0 million, compared to €129.0 million during the same period in 2023.
The company reported an operating profit (EBIT) of €3.6 million for Q3 2024, representing an 8.3% margin, compared to €4.6 million at an 11.0% margin in Q3 2023. EBIT for the year-to-date period reached €14.2 million, with a margin of 10.7%, improving from 9.9% in 2023. EBITA (acq) for Q3 2024 was €4.9 million, yielding an 11.4% margin, compared to €6.0 million at 14.1% in the prior year’s quarter. Cash flow, excluding working capital and M&A, was €5.7 million in Q3 and €19.2 million for the first nine months, up from €9.5 million in 2023.
Earnings per share stood at €0.083 for Q3 2024 and €0.345 for the January to September period. Additionally, Kambi announced a share repurchase program, set to run from November 6, 2024, to May 20, 2025, with a total value of up to €12 million.
Key developments in Q3 included notable growth in operator turnover, which rose 14% year-on-year, and the signing of several partnerships that align with Kambi’s modularisation strategy. A landmark partnership with Hard Rock Digital introduced Kambi’s new Odds Feed+ product, highlighting a pivotal step in this strategic approach. Kambi also entered an online sportsbook partnership with KTO Group, a prominent Brazilian operator, in anticipation of Brazil’s regulated market launch in January 2025.
Further, Kambi extended its multi-year agreement with Rush Street Interactive, reinforcing its presence in the Americas, and secured an Odds Feed+ partnership with Rei do Pitaco, transitioning from a turnkey agreement set to expire in 2025.
On July 25, Kambi welcomed Werner Becher as CEO. Becher’s leadership and deep industry expertise are expected to guide the company through its next growth phase, positioning Kambi to capitalize on new opportunities and expand its global footprint.
Werner Becher, CEO of Kambi commented: “I am honoured to present this report, my first as CEO of Kambi Group. I joined Kambi as I believe it is a company of great potential. Having spent the past three months immersing myself in the business, that view has only been strengthened. Realising this potential will require us to navigate certain challenges, but first my thoughts on a very busy time for Kambi:
“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.
“While we have been expanding the range of products we can offer the market, we continue to see exciting opportunities for our Turnkey Sportsbook, underlined by the partnership with KTO, one of the fastest growing operators in Brazil. KTO will be transitioning to Kambi ahead of the expected launch of Brazil’s regulated market early next year, having selected Kambi over its incumbent supplier. We also extended our Turnkey Sportsbook partnership with Rush Street Interactive and we look forward to supporting its continued growth across the Americas over the coming years.
“Looking ahead, Kambi’s customer base will continue to evolve with, for example, Kindred and LeoVegas moving away from our Turnkey Sportsbook and adding a variety of new partners across our wider product portfolio. One of my observations prior to taking this role was that although Kambi had seen some large operators move away in recent years, it still delivered growth, albeit modest, during this time. This gives me great confidence that, through the ongoing diversification of our products and partner roster, we will increasingly reduce the potential impact of future partner movement and create a much more stable base for long-term growth.
“In the meantime, however, we must deal with the challenges that losing partner revenue brings. This is why I am particularly happy with the recent progress we have made in modularising our sportsbook and expanding our revenue streams, aiming to come up to scale with these products within a couple of years. We are also carefully considering our cost base and have identified areas in which we believe we can operate even more efficiently moving forward. This includes realising additional synergies from acquisitions and further assessing the use of artificial intelligence across the business, to reduce our underlying costs.
“In short, although we have some difficult near-term headwinds, I see a bright future for Kambi as we become the industry’s home of premium sports betting solutions. We have some exciting opportunities ahead of us, such as the great potential of our new products and the prospect of a regulated Brazilian market around the corner. I am sure once we get through this period of transition, we will have a more diverse, sustainable and faster growing business.”
