Kambi Posts Stable 2024 Report But Modest Guidance Alienates Investors

Kambi Group has published its Q4 and FY 2024 results, highlighting a slight increase in revenue. Despite that, the company’s modest guidance caused its shares to take a dip.

Kambi’s Results Were Mostly Stable

In its report, Kambi reported revenue of EUR 44.5 million ($46.6 million) for Q4 and EUR 176.4 million ($185 million) for the entire year. Both results exceeded the figures recorded in the respective prior-year periods when the company reported Q4 revenue of EUR 44.3 million and FY 2023 revenue of EUR 173.3 million.

EBITA for the fourth quarter, however, decreased from EUR 8.5 million in 2023 to EUR 7.1 million ($7.4 MILLION) in 2024. EBITA for 2024 stood at EUR 25.3 million ($26.5 million) at a margin of 14.3%, marking a modest increase from the previous year.

Operating profit for Q4 reached EUR 5.9 million, falling short of EUR 7.2 million in the prior-year period. Operating profit for 2024 barely exceeded the figure recorded in 2023 (EUR 20 million) at EUR 20.1 million ($21 million) at a margin of 11.4%.

Kambi added that its total expenses for Q4 and FY 2024 stood at EUR 38.5 million ($40.4 million) and EUR 156.3 million ($164 million) respectively, both marking slight year-on-year increases.

Cash flow excluding working capital and M&A amounted to EUR 6.7 million ($7 million) for Q4 and EUR 25.9 million ($27.2 million) for the full year.

Earnings per share stood at EUR 0.170 ($0.18) for Q4 and EUR 0.515 ($0.54) for FY 2024.

The Company’s Modest Guidance Alienated Investors

In addition to that, Kambi announced that it expects EBITA (acq) to be EUR 20-25 million ($21-26.2 million) for 2025. This projection would mean that EBITA would remain stable at best and highlights the company’s concerns about the headwinds it currently faces.

The conservative guidance did not inspire shareholder confidence as Kambi’s shares plummeted in the wake of the report. The company’s stock is worth SEK 110 apiece as of the time of this writing, down from SEK 124.50 on the day before the report.

Kambi Made Some Progress

Despite the setbacks, Kambi made some stable progress in 2024. Among other things, the company signed a landmark Odds Feed+ partnership with Hard Rock Digital, one of America’s biggest online gaming and betting companies. Speaking of America, Kambi secured licensing approval to offer its B2B products to operators in Nevada.

In addition to that, Kambi formed partnerships with multiple partners in Brazil’s fresh online gaming market, including Stake and BetMGM, among others. Elsewhere, the company entered a contract novation agreement to assume FDJ Group’s sportsbook partnership responsibilities to Ontario Lottery and Gaming Corporation.

Kambi also raised its long-term operator trading margin to 9.5-11%.

CEO Becher Admitted There Would Be Challenges

CEO Werner Becher commented on Kambi’s achievements, saying that the company will continue to diversify its revenue streams and expand its global footprint. He commented on Kambi’s latest deals, saying that they will provide a tailwind for driving revenue in 2025.

Despite Becher’s optimism, he admitted that Kambi does expect certain challenges in 2025. Among other things, this includes notable partners such as Kindred and LeoVegas which will be departing from its Turnkey Sportsbook. Another challenge cited by Becher was the rising taxes in markets such as Colombia.

Looking further ahead, the strategic initiatives we have undertaken – advancing AI innovation, expanding our product portfolio and initiating a cost-efficiency program – along with our various partner signings, provide a solid platform for the future. The foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.

Werner Becher, CEO, Kambi

In other news, Kambi named Mattias Frithiof as senior vice president of investor relations.