Severe operating margin declines have impacted Nordic Nasdaq-listed sports betting platform supplier Kambi Group Plc’s Q2 2017 corporate performance.
Despite maintaining improved group revenues of €14.1 million, up 3% on corresponding 2016’s €13.7 million, Kambi would report operating profits of €300,000 (Q1 2016: €2 million).
Updating investors, the company detailed that its group operating margin had declined to 2% (Q1 2016:14%, in what has become a tough six month opening to 2017
Closing its Q2 2017, Kambi governance would declare a profit after tax of €100,000 (Q2 2016: €1.8 million).
Kambi leadership acknowledged the tough quarter performance but pointed to ‘long-term’ commercial gains achieved during the period.
The technology firm highlighted that it was able to renew its 888Sport lead platform supplier contract. The renegotiation had seen Kambi record a ‘€1 million effect on revenues for the first six months of 2017’.
Furthermore, during the period Kambi continued to grow its commercial pipeline, having further secured a Latin America supplier contract with Corredor Empresarial in Colombia.
Looking forward Kambi CEO Kristian Nylén stated “I am pleased to report that Q2 was a successful trading period for Kambi. Not only has the day-to-day performance of the business remained strong, but Kambi has managed to further strengthen its foundations for future growth.
We are very pleased to have secured a multi-year extension with one of our key customers, 888sport. We believe the longer term benefit from securing 888sport for years to come, far outweighs the shorter term impact the re-negotiation has on our financial results. Together we have enjoyed a very successful partnership, with 888sport having seen a near 500% increase in sports betting revenues since switching to Kambi in 2013.
I am also delighted that Corredor Empresarial has chosen Kambi as its trusted partner for the launch of a Sportsbook in its home market of Colombia. We believe this deal will lead to significant business opportunities for both parties.
Kambi identified Corredor Empresarial as a key strategic partner in Colombia. With its vast retail reach of more than 25,000 outlets, as well as its new BetPlay online brand, we believe Corredor Empresarial has the potential to become the country’s number one sports betting operator.
Together with Grupo Televisa in Mexico, Kambi has managed to secure two major players in the two largest regulated Latin American markets, which not only speaks to the strength and scalability of the Kambi Sportsbook, but also places us in a strong position to win further customers in the region.”
