Sports betting platform provider Kambi saw underlying growth in Q3 with operator turnover up 14%per cent year-on-year. Although Q3 revenue was only up 2.1% year-on-year, when excluding the Penn Entertainment transition fees and one-off license revenues in Q3 2023, revenue grew 16%.
New Kambi Group CEO Werner Becher talked up the supplier's strategy of transitioning to a modular product range, but admitted the company faced "near-term headwinds" to build a faster growing business. On July 25, Becher assumed his new role, bringing extensive experience and deep industry knowledge to lead Kambi’s next phase of growth.
“I am honoured to present this report, my first as CEO of Kambi Group. I joined Kambi as I believe it is a company of great potential. Having spent the past three months immersing myself in the business, that view has only been strengthened. Realising this potential will require us to navigate certain challenges, but first my thoughts on a very busy time for Kambi,” Becher commented.
The company signed a landmark partnership with leading US operator Hard Rock Digital for new Odds Feed+ product, marking a significant milestone in Kambi’s modularisation strategy and entered into online sportsbook partnership with fast-growing Brazilian operator KTO Group ahead of regulated Brazil market launch in January 2025.
Kambi agreed a multi-year extension with Rush Street Interactive, a key partner in the Americas and signed an Odds Feed+ partnership also agreed with Rei do Pitaco, with long-term deal superseding previous turnkey deal set to expire in 2025.
“While we have been expanding the range of products we can offer the market, we continue to see exciting opportunities for our Turnkey Sportsbook, underlined by the partnership with KTO, one of the fastest growing operators in Brazil. KTO will be transitioning to Kambi ahead of the expected launch of Brazil’s regulated market early next year, having selected Kambi over its incumbent supplier. We also extended our Turnkey Sportsbook partnership with Rush Street Interactive and we look forward to supporting its continued growth across the Americas over the coming years,” explained Becher.
“In the meantime, however, we must deal with the challenges that losing partner revenue brings. This is why I am particularly happy with the recent progress we have made in modularising our sportsbook and expanding our revenue streams, aiming to come up to scale with these products within a couple of years. We are also carefully considering our cost base and have identified areas in which we believe we can operate even more efficiently moving forward. This includes realising additional synergies from acquisitions and further assessing the use of artificial intelligence across the business, to reduce our underlying costs.”
“In short, although we have some difficult near-term headwinds, I see a bright future for Kambi as we become the industry’s home of premium sports betting solutions. We have some exciting opportunities ahead of us, such as the great potential of our new products and the prospect of a regulated Brazilian market around the corner. I am sure once we get through this period of transition, we will have a more diverse, sustainable and faster growing business,” Becher concluded.
Source: GMB
