Kambi Group Reports Modest Revenue Growth in Q3 2024 Amid Cost Management Initiatives

Financial Performance Highlights

Kambi Group reported a 2% increase in revenue year-on-year for Q3 2024, bringing in €43 million ($46.3 million). For the first nine months of the year, revenue rose by 2.3% to €132 million.

Despite this growth, the company’s operating profit (EBIT) decreased significantly by 21.7% to €3.6 million, with the EBIT margin dropping to 8.3%.

Earnings per share also saw a decline, down 29.1% to €0.083 for the quarter, though January-to-September earnings per share rose 12.7% to €0.345.

Kambi also announced a €12 million share repurchase program, which will run from November 2024 to May 2025 as part of its capital management strategy.

Strategic Partnerships and Market Expansion

Kambi secured several key partnerships and renewals in Q3, enhancing its presence across various markets. Notably, a multi-year deal with Hard Rock Digital in the US will incorporate Kambi’s new Odds Feed+ product, part of its modularisation strategy.

Additionally, Kambi extended its partnership with Rush Street Interactive in the Americas and entered a new agreement with KTO Group in Brazil, positioning itself for the regulated sports betting market launch there in early 2025.

Expanding Global Footprint Through Platform Launches

The third quarter was marked by multiple platform launches across the Americas and Europe. Kambi facilitated Bally’s Corporation’s entry into Maryland, Massachusetts, and Tennessee, as well as enabling 711’s launch in the Netherlands and two brands for Paf in Spain.

After Q3, Kambi supported further launches, including Bally’s in Tennessee, Olimpo.bet by Nexus in Peru, and BetMGM by LeoVegas in Sweden.

Operational Metrics and Sports Event Impact

Kambi’s operator turnover index rose by 14% to 687, largely driven by high-profile events such as UEFA Euro 2024 and Copa América.

The operator trading margin also increased to 10.4%, reflecting favorable outcomes in sports, particularly soccer, American football, and tennis.

Product Development Focused on Modularisation

Continuing its modularisation approach, Kambi launched Odds Feed+, allowing operators to access betting odds via a single API.

This product complements Kambi’s Managed Trading and Bet Builder services and has already attracted new clients, including Brazilian fantasy sports operator Rei do Pitaco.

Outlook and Cost Management Strategy

Kambi CEO Werner Becher outlined a cost-management approach focused on operational efficiencies and potential synergies from recent acquisitions. The company is exploring the application of artificial intelligence to further reduce costs.

Despite the quarterly profit decline, Kambi projects full-year revenue in the range of €172.5 million to €175.5 million, with total expenses expected to be between €155 million and €157 million.

Q2 2024 Comparison and Regional Growth

In Q2 2024, Kambi reported a 6.5% revenue increase to €45.7 million, a higher growth rate than Q3.

During Q2, Kambi also expanded its US footprint by partnering with Choctaw Nation of Oklahoma and launched services with LiveScore in the UK and Svenska Spel in Sweden, solidifying its growth in multiple regions.