Malta-based sports betting technology provider Kambi Group released its Q1 trading update today posting impressive growth in sportsbook operations.
Exceptional Financial Performance
Total revenue for the Stockholm-listed group for the first quarter of 2021 amounted to €43.2 million, up 55% compared to €27.9 million registered in the first 3 months of 2020, as the company’s turnover index exceeded the ‘1,000 mark for the first time’ since 2014 to indicate the 10x growth achieved.
“I’m pleased to report the exceptional performance we produced during the latter part of last year has continued into 2021, with significant growth across a range of KPIs including operator turnover, revenue and operating margin.”Kristian Nylén, CEO, Kambi Group
Operating margin in the first quarter of 2021 increased to 43.2%, from 24.5% in Q1 2020 to contribute to earnings before interest and tax (EBIT) of €18.7 million, an increase of 173% compared to €6.9 million for the first 3 months of the prior year.
“This strong performance was driven by a busy sporting calendar, including the end of the NFL season and the March Madness college basketball tournament, and more than compensated for the planned migration of a large proportion of 888’s business off the Kambi sportsbook in January.”Kristian Nylén, CEO, Kambi Group
New Partnerships and US Expansion
The quarter saw new sportsbook network partnerships with Racing & Wagering Western Australia and Casino Magic, and an extension of the agreement with Napoleon Sports & Casino in Belgium.
In the US, Kambi launched its sportsbook products in Michigan, Illinois, Virginia, and Arkansas, to make the total number of regulated US jurisdictions in which the sports betting technology supplier provides sportsbook products 14. US expansion was the main driver behind Kambi’s 2020 growth.
“Regulation in the US continues to move at pace, with progress seen in a variety of states in recent weeks and months, perhaps most notably in New York, where the state has committed to adding online sports betting to its existing retail market.”Kristian Nylén, CEO, Kambi Group
Kambi registered profit after tax of €15.1 million for the quarter, up 215% from €4.8 million for the first quarter in 2020, boosting cash flow to €16.5 million compared to €4.1 million in Q1 2020, while earnings per share capital came at €0.487, a significant improvement from the €0.156 for Q1 in the prior year.
Kambi CEO Nylén concluded the trading update on a positive note, outlining the busy sports schedule for the upcoming summer, featuring major events including the delayed Euro 2020, Copa America, the Olympic Games, and the return of annual summer tennis tournaments Wimbledon and The Open, in addition to the high volume of summer games from the MLB.