The “Future Looks Bright” For Kambi as Q3 Revenue Adds 48%

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Kambi released its latest financial health report last week, and it’s apparent the company is working off a playbook that is delivering success. The Stockholm-listed sports betting tech company reported revenue for the third quarter of $48.1 million, a year-on-year increase of 48% over the $32.5 from Q3 2020. This reflects a dedicated strategy that includes expansion of its technology into new areas, as well as a focus on mergers and acquisitions (M&A) that will play a bigger role in 2022.

Kambi Gains Ground in Sports Betting

Kambi’s performance for Q3 was even more pronounced when presented against the backdrop of the entire year. Since January, and running through the end of September, the company reported combined revenue of $147.5 million, an 80% increase over the $82 million during the same period last year.

EBITDA (earnings before interest, taxes, depreciation and amortization) was $17 million, more than double the $7.5 million a year earlier. Year-to-date earnings are now around $57.8 million, significantly higher than the $11.5 million for the comparable period in 2020.

Part of the increase is attributed to the start of the NFL season, which Kambi indicated has allowed its BetBuilder product to engage “a large number of bettors” and return a “higher average operator trading margin.” This led to a “10% increase in operator turnover with the exclusion of DraftKings.”

Added Kambi CEO Kristian Nylén, “As ever, Kambi is committed to creating the world’s leading sportsbook and we have spent more than a decade focused exclusively on the sports betting vertical, developing a core product that is near impossible to replicate.”

Sports Betting In Front, M&A a Close Second

While becoming a larger player in the sports betting industry is a major target of Kambi’s operations, it isn’t the only one. The company is determined to continue to focus on more M&A alternatives, such as the recent purchase of Abios. Nylén referred to that acquisition as being “in line” with the company’s “longer-term strategy to further modularize” its platform and diversity revenue streams.”

Kambi, which recently entered Arizona’s newly-launched sports betting market, is on a global quest for expansion. It has recently partnered with Island Luck in the Bahamas and BetCity in the Netherlands and, according to the company, is averaging about one new partner a week. Nylén concluded, “Many of us at Kambi have been in this industry for more than two decades, during which time we’ve seen the sports betting market change markedly. This change is reflected in the evolution of Kambi, where we have built a business that thrives in regulated market conditions, grown to become a global leader, and partnered with major brands across the globe, many entering the space for the first time. This experience means we know what it takes to succeed and I am therefore excited by what the coming years hold for Kambi.”

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