More Slump Than Crash, Kambi Shares Slide And Dividend Shelved After Stuttering Q1
Citing the unspecified impact of “certain non-recurring costs”, Kambi has delivered a stuttering Q1, with an immediate impact of its share price falling by over 11 percent today and a Board recommendation to shelve a dividend.
While revenue for the Swedish-origin, now Malta-headquartered, outfit rose by 19 percent, year-on-year, to €44 million (£38.95m/US$48.6m), operating profit slumped by 38 percent to €4.5 million (£3.98m/US$4.97m) for the quarter.
And Kambi’s EBITDA also tanked by 24 percent to €5.8 million (£5.13m/US$6.4m).
Kambi shares on the NASDAQ Stockholm took a plus-11 percent hit–and counting–on the news.
The Americas came to the B2B sports betting service supplier’s rescue in the quarter, ending March 31.
“The first quarter was another busy period for Kambi including new market launches in the Americas, the expansion of Kambi’s partner network and a full sporting calendar,” countered Kambi CEO Kristian Nylén.
The company reported particularly successful American football Super Bowl and “March Madness” events, driven by their adoption of broadened AI capabilities.
Kambi’s growing business focus on Latin America was also stressed.
“Latin America is a region of significant long-term potential for Kambi,” emphasised Nylén. “And will become increasingly integral as we look to extend our lead as the number one supplier across the Americas.
“Kambi already has a strong foothold in some of the region’s most established sports betting markets such as Colombia and Argentina, and recent public announcements from the Brazilian Government show positive signs that regulation of sports betting in Brazil is edging nearer in what is projected to become one of the world’s largest regulated markets.”
But the Kambi boss also cautioned: “The road ahead won’t be linear.”
As for the market, evinced by the slide in the stock value, they’ve already hit the Kambi brakes.