Kambi Group Q2 2023: Strong Revenue Growth and Strategic Milestones

Kambi Group plc, a leading provider of premium sports betting services, has reported its financial results for the second quarter of 2023. The company’s performance demonstrates significant revenue growth and strategic advancements, positioning it favourably in the competitive sports betting industry.

Financial Summary

In the second quarter of 2023, Kambi’s revenue reached €42.9 million, marking a substantial increase of 24% compared to the same period last year when it stood at €34.7 million. For the first half of 2023, the revenue amounted to €86.9 million, up from €71.5 million in H1 2022.

The operating profit (EBIT) for Q2 2023 was €3.7 million, with a margin of 8.6%, compared to €4.9 million and a margin of 14.1% in Q2 2022. For the first half of 2023, the EBIT was €8.2 million, at a margin of 9.4%, compared to €12.2 million and a margin of 17.1% in H1 2022.

EBITA for Q2 2023 was €5.0 million, with a margin of 11.7%, down from €5.2 million and a margin of 15.1% in Q2 2022. For the first half of 2023, EBITA reached €10.8 million, with a margin of 12.4%, compared to €12.9 million and a margin of 18.1% in H1 2022.

Cash flow (excluding working capital and M&A) for Q2 2023 amounted to €0.1 million, and for H1 2023, it reached €3.4 million.

Earnings per share for Q2 2023 were €0.083, down from €0.109 in Q2 2022. For the first half of 2023, earnings per share were €0.190, compared to €0.286 in H1 2022.

Key Q2 Highlights

Kambi achieved impressive revenue growth of 24% year-on-year, driven by a strong operator trading margin of 9.9% and the addition of Shape Games to its portfolio.

The company entered into an exclusive global sportsbook partnership agreement with Bally’s Corporation, a major milestone that replaces Bally’s proprietary sports betting technology with Kambi Complete. This partnership is expected to open up significant opportunities for Kambi in the US and beyond, given Bally’s wide-reaching global footprint.

Kambi made significant progress in the incubation of its cutting-edge AI pricing division, designed to deliver the next evolution of sports trading to the wider industry. The success of the AI-powered trading system has been recognized, and the company envisions its service benefiting not only Kambi’s partners but also those outside the Kambi network.

The Company renewed contracts with key partners BetPlay, LeoVegas, and Paf, solidifying its market leadership position and showcasing the high demand for its Complete sportsbook service.

Kambi repaid also the €7.5 million convertible bond previously held by Kindred Group, securing greater control over its strategic direction and financial operations.

In summary, Kambi Group plc has demonstrated impressive revenue growth and strategic advancements in the second quarter of 2023. With a focus on AI-driven pricing and strong partnerships, the company is well-positioned to maintain its market leadership and deliver value to both partners and shareholders. As it continues to execute its ambitious long-term strategy, Kambi remains optimistic about its future prospects in the dynamic sports betting industry.