Publishing its Q3 2023 trading update, Kambi Group achieved corporate revenues of €42.1m, up 15% on Q3 2022 comparatives of €36.7m. The company overcame the loss of Penn Entertainment to deliver year-on-year growth across divisions during the third quarter.
During the three months to 30 September, the Group saw turnover grow by 9% when excluding the impact from Penn’s online migration. The US operator terminated its agreement with Kambi and began using its own propriety technology in July 2023.
The business saw revenue growth of 15% year-on-year, boosted by non-recurring fees in relation to Penn and Shape Games. Revenue during the quarter was at €42.1m compared to €36.7m in Q3 2022.
Kambi completed 24 partner launches during Q3, including eight in the US for new partner Bally’s Corporation in the states of Arizona, Colorado, Mississippi, New Jersey, Ohio and Virginia.
Outside of the US, Kambi continued to extend its reach in Latin America with the launch of Eyas Gaming’s Lance! Betting brand in Brazil and further releases for BetWarrior in Argentina. It also went live in the UK with the BetMGM brand in partnership with LeoVegas Group.
“The landmark signings of Svenska Spel and LiveScore Group are Kambi’s most significant partner agreements with existing sports betting revenue in our history and represent a major step forward towards our long-term strategic goals,” commented Kristian Nylén, CEO and Co-founder.
“Although these signings won’t deliver revenue straight away, we do expect to see a meaningful revenue impact from H2 2024. Meanwhile, Kambi’s financial performance in Q3 2023 was robust with a 15% year-on-year revenue rise, which included certain non-recurring revenues from Penn and Shape Games. Operator turnover was up 9% when adjusting for the online migration of Penn,” he added.
Regarding future plans, he commented: “As discussed in Q2, we are moving forward with the incubation of our innovative AI-powered trading unit, which from today will be known as ‘Tzeract’. It is already powering much of our pre-match soccer pricing and in the coming months will expand to offer live soccer and tennis. The impact Tzeract is having on our pricing and product is tremendous. With a test customer in place, ongoing discussions with a range of other operators and having already earned multiple industry accolades, I believe Tzeract has an exciting future.”
“Overall, I am pleased with the progress we are making with our long-term plan, across commercial and product. As I have said before, the road to our 2027 goals won’t be linear and the partner signings announced in recent weeks will only be reflected in the numbers from the second half of next year. The long-term picture looks bright and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world,” Nylén concluded.
Source: GMB
