Kambi Revenue Dips in Q3 but Operator Turnover Rises

Kambi, a leading B2B sports betting platform provider for the global regulated gambling industry, released its latest report outlining the company’s financial performance for the third quarter of 2022.

Kambi Releases Unaudited Q3 2022 Results

The company released its unaudited report Monday, showing that its Q3 2022 revenue hit €36.7 million ($36.8 million), marking a decrease of 12% when compared to the €41.6 million ($41.7 million) result from the same period last year. EBITDA for the third quarter this year halted at €10.7 million ($10.7 million), down 47% when compared to Q3 in 2021.

Not unexpectedly, Kambi’s operating profit and profit after tax decreased as well. According to the latest figures, the company’s operating profit in Q3 this year hit €3.9 million ($3.9 million), down 74% when compared to Q3 last year when the operating profit hit €14.7 million ($14.7 million). Similarly, profit after tax halted at €2.6 million ($2.6 million), down 78% from the €11.9 million ($11.9 million) reported for the third quarter last year.

Besides its quarterly figures, Kambi revealed data for its performance since the start of the year. For the period between January and September this year, the company’s revenue hit €108.2 million ($108.5 million). This marked another decrease of 15% when compared to the €127.5 million ($127.9 million) reported between January and September 2021. EBITDA decreased by 45% to €36.1 million ($36.2 million) between January and September this year.

The Company Showed Resilience in Q3

Considering that there are fewer sporting events in general during the third quarter, the latest results are not surprising. However, Kambi was able to partially offset the decrease in revenue by reporting an operator turnover increase of 12%. The company said that this turnover was primarily driven by new market launches and new partnerships with clients. During the third quarter of this year, Kambi expanded its global network of partners by teaming up with ilani, Oaklawn Racing Casino Resort, Mohegan and Ondiss. Additionally, in Q3, Kambi acquired Shape Games in a deal for $78 million. By taking over the front-end specialist, the company sought to boost its technology capabilities and deliver more engaging sports betting experiences.

“The third quarter is always the most challenging for the sports betting industry given the quiet sporting calendar and this year was no exception. It was also a quarter marked by growing global economic uncertainty and higher cost of living, trends which show little sign of subsiding any time soon.“

Kristian Nylén, CEO at Kambi

Kristian Nylén, Kambi’s CEO, commented that the third quarter is a challenging period considering that there are fewer sports events. At the same time, he acknowledged that the results during the quarter were impacted by the ongoing global economic uncertainties in combination with an increase in the cost of living.

“When also taking into consideration the recent start of the US basketball season and a World Cup still to come, we look forward to ending 2022 on a high before embarking on an exciting 2023,“

added Nylén

Still, Nylén pointed out that Kambi was able to achieve operator turnover growth of 12% and prove to be resilient during the quarter. He outlined that the company inked multiple strategic partnerships during Q3 this year which will bring long-term benefits for the company. Focusing on the future, Nylén predicted that the start of the US basketball season combined with the upcoming World Cup will boost Kambi’s performance and bring strong results for the end of 2022.