Kambi reports 24% surge in 2023 Q2 revenue

Kambi Group plc reported the results of its 2023Q2 with the following highlights:

• Revenue growth of 24% year-on-year driven by an operator trading margin of 9.9% and the addition of Shape Games
• Entered into exclusive global sportsbook partnership agreement with Bally’s Corporation, replacing the global operator’s proprietary sports betting technology
• Significant progress in incubation of cutting-edge AI pricing division which will deliver the next evolution of sports trading to the wider industry
• Signed contract extensions with key partners BetPlay, LeoVegas and Paf
• Repaid the €7.5 million convertible bond previously held by Kindred Group and repurchased 381,476 shares for a total of €7.2 million

Regarding the period results, CEO Kristian Nylén commented: “The second quarter of the year was another encouraging period for Kambi as we made significant strategic progress towards executing our long-term growth strategy, including a tier-one partner signing, key partner renewals and the continued development of our AI trading capability."

"During the quarter we delivered strong revenue growth of 24 per cent year-on-year, driven by new customers, the addition of Shape Games and a high operator trading margin. Operator turnover growth of four per cent was not as strong as revenue, impacted by rising foreign exchange headwinds, the dampening effect of a high trading margin and PENN Entertainment’s year-on-year decline in US market share. Excluding the impact of foreign exchange movements, EBITA (acq) increased by €2.8m year-on-year.”

“From a commercial perspective, we were delighted to welcome Bally’s Corporation to the Kambi network in Q2. As we further solidify our market leadership position, this partner win is a major milestone for the business and comes on the back of our flexible product strategy. As one of the world’s leading gaming operators, Bally’s commands strong brand recognition, a large customer database and expansive global footprint that has the potential to open up significant opportunities for Kambi in both the US and beyond,” he added.

Nylén concluded: “Bally’s decision to replace its proprietary sportsbook with Kambi Complete underlines the current pressures facing many in-house sports betting operations. Indeed, demand for our Complete sportsbook service remains high, further evidenced by our sales pipeline and the Q2 renewals of key partners BetPlay, LeoVegas Group and Paf.”

“Kambi’s offering is only getting stronger as we pioneer next generation betting entertainment, highlighted by the success of our award-winning AI-powered trading. Recognising the powerful benefits this unique method of pricing delivers for our partners, we also see an exciting future for this service as a module, powering odds for those outside of the Kambi network. In Q2, we made significant progress in incubating the unit with a view to it operating as a distinct division in the future, similar to Abios and Shape Games. We are confident our AI-driven pricing is uniquely positioned to meet the growing demand for trading services.”

Source: GMB