Date: 05.07.2024

by Adam Dworak

Kambi Group Withdraws 2027 Financial Targets Amid Regulatory Delays

Kambi Group plc’s Board of Directors has recently decided to withdraw its 2027 financial targets. This decision follows a comprehensive review of the underlying assumptions that formed these targets, which were initially communicated in January 2023.

Review of 2027 Financial Targets

In February, Kambi commenced an in-depth review of the assumptions behind its 2027 financial goals. These targets aimed for revenue levels 2-3 times that of FY2022, translating to approximately €330 – €500 million, and an EBIT exceeding €150 million. The review was prompted by several factors, including changes in market dynamics and the regulatory landscape.

Progress and Regulatory Challenges

The Board has recognized that while Kambi has made significant strides in areas within its control, progress has been slower than anticipated in certain key markets due to regulatory delays. These delays are likely to push back the anticipated revenue from these markets, impacting the feasibility of the previously set financial targets.

Leadership Change and Strategic Focus

Earlier this week, Kambi announced the appointment of Werner Becher as the new CEO. The Board’s decision to withdraw the 2027 financial targets is partly aimed at providing Becher with the flexibility to implement the company’s long-term strategy without the constraints of previously set financial expectations. The Board emphasized its commitment to supporting Becher in extending Kambi’s lead as the world’s premier sports betting provider.

Future Financial Targets

The Board maintains that long-term financial targets are essential for Kambi’s strategic direction. However, these targets will be reassessed and developed in collaboration with the new CEO. The updated targets will be communicated when deemed appropriate, ensuring they align with the company’s evolving strategy and market conditions.

Kambi Group’s decision to withdraw its 2027 financial targets is a prudent move, given the changing regulatory environment and market conditions. By reassessing its financial goals, Kambi is positioning itself for more realistic and achievable growth. The appointment of Werner Becher as CEO is a significant step, bringing fresh leadership and perspectives to the company.