With Falling Revenue Across Q2/H1, Kambi Gives it the Soft Shoe Shuffle
Despite falling revenues, premium sports betting platform provider Kambi has attempted to put a positive spin on its disappointing Q2/H1 financial results.
Indicating the continuing impact of the newly-regulated Dutch market, the recent migration of top US sportsbook DraftKings from the Kambi sportsbook platform to its own proprietary technology, and even the later-than-traditional staging of this year’s FIFA Football World Cup, Kristian Nylén, Kambi Group CEO, argued:
“When adjusting for the migration of DraftKings, Kambi delivered another positive quarter with underlying growth remaining healthy and operator turnover up 16 per cent.
“This performance was achieved despite a quieter than usual sporting calendar, particularly with the soccer World Cup taking place later in the year, outside its usual Q2 starting slot.”
Yet nothing can detract from the stark fact that Kambi’s revenue fell 18.2 per cent in Q2 to €34.7 million (£29.21m/US$35.22m), year-on-year — this following a 14.6 per cent drop in Q1, compared to the same period in 2021.
Six-monthly revenue, accordingly, slid 16.8 per cent to €71.5 million (£60.20m/US$72.58m), y-on-y. Q2 earnings fell by six per cent against Q1.
But nevertheless, like any good leader in tough times, Nylén, reiterated his confidence and support in his back room team.
“As we communicated in the previous quarter, we have been focused on separating pricing functionality from our core platform. And in recent weeks we were pleased to soft launch our first standalone pricing functionality for a limited number of low-tier soccer leagues.
“This functionality leverages Kambi’s recently developed Trading Gateway, serving the Kambi platform as well as potentially operators outside the Kambi network, and presents partners with an opportunity to take even more control of their offering should they wish,” said the Kambi boss.
Meantime, a number of business developments in the North American market were a bright spot on the Kambi horizon, the company said in its financial report.
“This is an exciting time for Kambi,” concluded Nylén. “The product journey we are on today, along with our healthy balance sheet and positive underlying financial performance, means we are on a strong footing for the future.”