Sports betting supplier Kambi reported positive results for Q2 2024, with a financial summary that includes:
- Revenue amounted to €45.7 (Q2 2023: 42.9) million for the second quarter of 2024 and €88.9 (H1 2023: 86.9) million for the first half of 2024
- Operating profit (EBIT) for the second quarter of 2024 was €6.2 (3.7) million, at a margin of 13.5% (8.6%) and €10.6 (8.2) million, at a margin of 11.9% (9.4%) for the first half of 2024
- EBITA (acq)* for the second quarter of 2024 was €7.5 (5.0) million, at a margin of 16.4% (11.7%), and €13.3 (10.8) million, at a margin of 14.9% (12.4%), for the first half of 2024
- Cash flow (excluding working capital and M&A) amounted to €8.1 (0.1) million for the second quarter of 2024 and €13.5 (3.4) million for the first half of 2024
- Earnings per share for the second quarter of 2024 were €0.155 (0.083) and €0.260 (0.190) for the first half of 2024
The Group also listed the key highlights of the period:
Entered exclusive nationwide partnership with Choctaw Nation of Oklahoma, one of the largest tribes in the United States
- Multiple partner launches including key completions prior to the UEFA European Championship (Euros) of LiveScore in the UK and Svenska Spel in Sweden
- Industry veteran Werner Becher was announced as successor to Kristian Nylén as CEO
- The Board decided to withdraw its 2027 financial targets following a review of the underlying assumptions as slower than expected progress towards regulation in certain key markets would likely delay revenue
- Completed the fourth share buyback programme and announced a new long-term capital allocation policy with the objective of returning capital to shareholders through buybacks
Regarding the period, outgoing CEO Kristian Nylén commented:
“In the second quarter, operator turnover increased 3% year-on-year, although was up 20% when excluding the impact of the Penn online migration. This was driven by a busy sporting calendar and the growth of new and existing partners. Operator trading margin was 10.3%, boosted by higher than average margin from the June games in the Euros soccer tournament. With operating costs broadly flat, EBIT came in at €6.2 million, up 67% year-on-year."
"In April, we strengthened our US and tribal network through an exclusive US-wide partnership with Choctaw Nation of Oklahoma, operator of Choctaw Casinos & Resorts. While Texas has yet to regulate sports betting, previous attempts to pass legislation would have seen licences tethered to the state’s sports franchises. We expect this will be the case again next year when we anticipate another effort to bring regulated sports betting to what is one of the largest states in the US."
"Ahead of the Euros, we successfully delivered on two major partner launches, with LiveScore in the UK and Svenska Spel’s Oddset brand. These were both important accomplishments, carried out in parallel and requiring various bespoke developments."
"The Euros and Copa America tournaments saw us provide all our partners with a market-leading product, enhanced by the delivery of expanded player props markets and Bet Builder capability via our AI trading division Tzeract. During the second half of June, activity on the Kambi platform was at its highest ever levels in terms of bets processed and number of players per day, with our partners receiving an uninterrupted high-quality service throughout."
"On 1 July, I was pleased that we announced Werner Becher would be succeeding me as CEO from 25 July. With vast experience from the technology and gaming industries, most recently a senior executive at global sports data supplier Sportradar, I have every confidence Werner is the right person to lead Kambi into a new era of multi-product provision. I will be offering my full support to Werner from my new position on the Board of Kambi, where I will also help guide our long-term strategy."
"I would like to take this opportunity to thank all Kambi employees, past and present, for their hard work and dedication during my time as CEO over the past 14 years, as well as everyone else who has supported Kambi along the way. I am proud of what we have achieved together and I firmly believe the foundation we have built positions us for future success.”
Source: GMB
