Kambi has finished 2020 with remarkable results with the Americas being the largest market for the supplier by the end of the year.
US Market in the Core of Kambi’s Business
Sports betting provider Kambi has finished 2020 with outstanding results despite the Covid-19 pandemic. The company reported 28% revenue increase to €117.7 million ($138.6 million) in 2020 year-over-year. Quarterly operating margin recovered from the crash in the second quarter and finished the year with a 47.3% increase. Annual operating margin was up 27.4%.
The sports betting supplier experienced a 40% increase in active players in 2020 compared to the previous year. There was a 27% year-on-year growth in the bets placed and 560 million monthly transactions. Other highlights in 2020 include 50 online and on-property partner launches, more than 3 million active online player accounts, and presence in 14 US states with five new additions in 2020.
Earnings before interest, tax, and depreciation and amortization (EBITDA) for the full year 2020 stood at €49.7 million ($58.5 million) compared to €29.1 million ($34.3 million) in 2019. Profit from operations for the full year 2020 amounted to €32.2 million ($37.9 million) compared to €14.7 million ($17.3 million), demonstrating the strength of Kambi’s scalable business model. Post-tax profit for the full year 2020 was €24.1 million ($28.4 million), more than a 130% increase in annual terms.
Commenting on the financial results CEO Kristian Nylén said that operators and regulators across the globe are confident that Kambi is a trusted partner and this is demonstrated by the company’s continued expansion as more jurisdictions launch sports betting.
“State-by-state regulatory efforts continue to gather pace, with increasing emphasis being placed on mobile and online in addition to on-property wagering. We are now live in 14 states, having achieved market firsts with our partners in 10.”
Nylén highlighted the importance of the US market as a core driver for the business and a focus for commercial expansion.
Latin America As a Potential Area of Growth for Kambi
Having a population of more than 650 million people, the Latin American market has huge growth potential in terms of sports betting, Kambi said.
The operator’s opportunity for development is also supported by its leading position in the Colombian market, which became one of the first countries in the region to offer regulated online sports betting in 2017. Kambi is a technology and services supplier for Corredor Empresarial brand BetPlay, and RushBet through its partnership with Rush Street Interactive.
Brazil is another country in the region that is yet to unlock its full sports betting potential. The country has approved a regulation for online and land-based sports betting operators but has not launched the activity yet.
In the case of Argentina, the country is approving sports betting regulation on a case-by-case basis. At the beginning of 2021, Kambi announced a multi-year partnership with Argentinian operator Casino Magic. Under the deal, Kambi will launch an online sportsbook in Neuquén province in the first quarter of the year.
Peru (33 million population) has a draft framework currently under development, while in Chile (19 million), sports betting is controlled by the state monopoly.