Kambi Q1 Revenues In Line With Expectations

Kambi Group plc, one of the biggest and most respected global sports betting service providers, shared its earnings report on Wednesday. The report described what can only be defined as "flat" revenue figures. Kambi has a partnership with Kindred Group, which owns Unibet. Unibet is exiting the North American market, although its users will be able to pivot to another of our best sportsbooks.

Kambi's first quarter earnings report showed mixed results, which seems to be a theme among global providers. Kindred Group also reported underwhelming growth figures in its revenue report this week.

Despite marginal growth in some sectors and marginal declines in others, Kambi brass signaled that it could meet its expectations for the first quarter of this fiscal year.

Kambi CEO Kristian Nylén commented in the released report, “For the first quarter of the year we posted revenue of €43.2 million, which was in line with our expectations, while expenses were at the lower end of our guidance at €39.0 million."

Highlight from the report

According to Kambi, most metrics showed very slight growth or pullbacks when compared to the same period last year. Q1 totals from 2023 are represented by the figures in brackets in the following breakdown:

• Revenue amounted to €43.2 (Q1 2023: 44.0) million for the first quarter of 2024
• Operating profit (EBIT) for the first quarter of 2024 was €4.4 (4.5) million, at a margin of 10.2% (10.3%)
• EBITA (Earnings before interest, taxation and amortisation on acquired intangible assets) for the first quarter of 2024 was 5.8 (5.8) million, at a margin of 13.3% (13.1%)
• Cash flow (excluding working capital and M&A) amounted to €5.4 (3.2) million for the first quarter of 2024
• Earnings per share for the first quarter of 2024 were €0.107 (0.107)

Other highlights of the report

The Kambi Q1 2024 report highlighted a few positive trends for the sports betting provider going forward. The report touted the extended retail partnership with Penn Entertainment in the North American market, which has ESPN BET under its umbrella through July 2025.

It also drew attention to Kambi's newest project, LiveScore Group, which is the company's offering in Nigeria and also the Netherlands market. As CEO Kristian Nylén said "LiveScore was a pivotal signing for Kambi in 2023 and these launches mark crucial milestones toward our long-term objectives. We look forward to additional launches in the near future, including in its core UK market, ahead of a busy summer of sports with Euro 2024 and Copa America both set to commence in June.” 

Kambi's report also outlined its AI-powered division, Tzeract, in partnership with Kwiff to offer a Bet Builder feature on its European sites. It represents "Tzeract’s first commercial agreement since launching as a standalone division."

Looking into the crystal ball

Kambi continues to be one of the biggest names not only on the North American legal gambling scene, but also across the globe. Growth of legal sports betting and iGaming around the world has created a sense of optimism among Kambi brass. That includes CEO and Co-founder Kristian Nylén who announced that he will be stepping aside from his current role once a successor is found.

At the conclusion of the Kambi Q1 report, he said "In summary, we have continued to build solid foundations for the future. Our commitment to pushing the boundaries of product excellence and innovation, as highlighted by the development of our modular odds feeds, is positioning Kambi as a leader in shaping the future of sports betting technology.”