Kambi Publishes Q4 Results, Highlights Strategic Progress

Kambi Group, a provider of betting services to the regulated gambling industry, has published its Q4 report. In addition, the leading supplier posted its guidance, saying that it expects FY 2024 revenue of between EUR 170 million and EUR 180 million ($183.6-$194.4 million).

Revenue for Q4 amounted to EUR 44.3 million ($47.8 million), representing a noticeable decline from EUR 57.8 million in Q4 2022. In the meantime, FY 2023 revenue stood at EUR 173.3 million ($187.1 million), exceeding the EUR 166 million recorded in the prior year.

Kambi reported a Q4 operating profit of EUR 7.2 million ($7.8 million) at a margin of 16.1%. FY 2023 operating profit, on the other hand, reached EUR 20 million ($21.6 million) at a margin of 11.5%. In addition to that, Kambi reported Q4 EBITA of EUR 8.5 million ($9.2 million) at a margin of 19.2% and FY EBITA of EUR 25.2 million ($27.2 million) at a margin of 14.6%. All of these figures show declines from 2022.

Kambi reported a cash flow of EUR 5.5 million ($5.9 million) for Q4 and EUR 15 million ($16.2 million) for the year. Its earnings per share stood at EUR 0.182 ($0.20) for the final quarter and at EUR 0.4888 ($0.53) for the period January to December of 2023.

Another Q4 highlight includes the launch of a still-ongoing share buyback program that will run until May 21, 2024, and see Kambi repurchase up to EUR 2.8 million of its own shares. The company will hold the 2024 AGM following the conclusion of the program. Its board proposes that no dividend be paid out.

Kambi Is Optimistic Despite the Setbacks

Additional highlights included Kambi reporting underlying turnover growth of 6% when excluding the impact of Penn Entertainment’s online migration. Furthermore, excluding the termination fee recorded in Q4 2022, the Q4 revenue represented a decrease of only 2%.

Kambi also penned important sportsbook platform agreements with Svenska Spel and LiveScore Group to power their respective brands. The company also signed sportsbook partnerships with 711 in the Netherlands and Bingoal.

Kambi’s co-founder and chief executive officer, Kristian Nylén, said that the company is pleased with its strategic progress. He said that Q4 was an important period for Kambi’s strategy and noted that the company had to navigate the increasingly complex and challenging sports betting landscape.

Nylén said that he was not satisfied with his company’s financial performance. However, he added that the company made good progress in building the foundations that will enable it to improve its financial performance in the future.

Nylén is aware that challenges will continue to exist but is hopeful that Kambi will be able to face them.

The CEO concluded that he is pleased with Kambi’s business milestones in 2023 despite the difficulties and said that he remains very positive about the company’s long-term trajectory.

Our resilience, strategic progress and commitment to product excellence have set us up well for the future and, as we move forward, we do so with great optimism for the journey ahead.

Kristian Nylén, CEO, Kambi Group

Nylén is set to depart from the company in the near future. According to chairman Anders Ström, the Kambi is still looking for a suitable successor.