Kambi Group has reported its financial results for the first quarter of 2025, posting revenue of €41.5 million, a 4% decrease compared to €43.2 million in Q1 2024. The year-on-year decline reflects the absence of €4.4 million in transition fees received in the prior-year period. Excluding this one-off revenue, Q1 2025 revenue represents a 7% increase.
Adjusted EBITA for the quarter was €2.3 million, down from €5.8 million in Q1 2024, with a margin of 5.6%. Excluding the impact of foreign exchange revaluations, adjusted EBITA was €3.5 million. Operating profit declined to €0.8 million, compared to €4.4 million in the same period last year, resulting in a margin of 2.0%. Earnings per share stood at €0.027, down from €0.107.
Total expenses for the quarter increased by 4% to €40.5 million, which included a foreign exchange loss of €1.2 million compared to a €0.2 million gain in Q1 2024. Cash flow, excluding working capital movements and M&A activity, improved to €7.7 million from €5.4 million, while cash and cash equivalents as of March 31 stood at €56.4 million.
Operationally, Kambi secured several strategic developments during the quarter. The company was selected as the long-term sports betting partner of Ontario Lottery and Gaming Corporation, launched operations on day one of Brazil’s newly regulated market, and went live with partners including Stake, BetMGM, BetWarrior, KTO, and Rei do Pitaco. It also extended its partnership with BetCity and received regulatory approval to offer B2B sports betting services in Nevada.
Kambi will hold its 2025 Annual General Meeting on 19 May.
“In Q1, we continued to build the foundations for long-term success, furthering our mission to develop a stronger, more resilient Kambi” says Werner Becher, CEO of Kambi Group
He continued “While revenue grew 7% when excluding the impact of transitions fees, our financial performance was below what should be expected of a company of Kambi’s standing and far from the future level I aspire to.
“The operator trading margin was delivered despite an almost unprecedented run of player-friendly results in the March Madness basketball tournament. March Madness is one of the largest sporting events in the US and is consistently among the most popular betting events of the year at Kambi. This year saw the top seeds in each region advance to the Final Four, only the second time in history this has happened. These results, which will have been felt by US-facing sportsbooks, resulted in Kambi posting a low single-digit margin for March Madness. However, our growing global network reduces our exposure to such player-friendly outcomes, leading to an operator trading margin of 10.2% for the quarter.
“As set out previously, one of our main aims is to diversify Kambi’s revenue streams and reduce any reliance on a small number of large partners. The percentage of revenue generated by Kambi’s three largest partners has been declining since the inception of the company, recently falling from 45% in 2023 to 39% in 2024, as our total number of partners continues to rise. This is largely the result of continued geographic and product diversification driving revenue, which is more than offsetting known partner losses. In Q1, this partner concentration fell further, and we expect this to decline across the year as we launch additional partners and commercial momentum builds.
“In addition to diversification, we also want to ensure high-quality, sustainable revenue streams. As discussed in our Q4 Report, we were delighted to sign a novation agreement to become the new sportsbook partner of the state-owned Ontario Lottery and Gaming Corporation (OLG), replacing the incumbent FDJ UNITED on a contract running until 2032. Until the re-regulation of the Ontario market in 2022, OLG held the monopoly for sports betting in the province and as such has a prominent brand, a strong retail business with approximately 10,000 retail stores, as well as an online presence with great potential.
“This imminent partnership highlights the exciting potential of forging relationships with state-owned, former state-owned and monopoly operators. Our existing partnerships with ATG, the Belgian National Lottery and Svenska Spel underline our growing reputation in this important space, with operators which we believe provide more longevity of revenue in an otherwise consolidating market. As a result of this growing success, combined with our unmatched levels of corporate probity, Kambi is fast becoming the trusted sportsbook partner of choice to operators within this customer segment, matching the position we hold across the wider market.
“Our commitment to delivering best-in-class sports betting solutions remains unwavering, and we are focused on cultivating long-term, mutually beneficial partnerships. The demand for our core Turnkey Sportsbook, coupled with the broader diversification of our product portfolio and partner network, provides a strong platform for future growth and success.
“In summary, I am confident in our strategic direction, the strength of our premium product suite and the dedication of the entire Kambi team. As we execute on our long-term strategy, I am excited by the potential to not only strengthen our market-leading position but also build a more sustainable and diversified business that delivers increased value to our shareholders.”
