Kambi hails World Cup and SCOTUS in latest interim report

Sports betting technology and software supplier Kambi Group Plc has reported a strong financial performance in the group’s Q2 2018 interim report.

Year-on-year revenues have shown a 25 per cent growth for the second quarter of 2018, reaching €17.6m (15.65m) from the previous years €14.1m (£12.54m), aiding a 20 per cent H1 jump from €28.3m (£25.1m) to €34m (£30.2m).

Addressing the mixed impacts football had on revenue figures, Kambi highlighted favourable World Cup results for itself and operating partners aided something of a recovery after the latter stages of the Champions League provided favourable results for players.

Betting activity on World Cup Russia 2018 (up to 30 June) contributed a total of 14 per cent of total Q2 turnover and 19 per cent of total revenue.

Brazil’s 1-1 draw with Switzerland was the most profitable, whilst Germany’s last-minute victory of Sweden “turned what would have been a very profitable game for Kambi and its operators into one of the best results for the players”.

Operating profit for the second quarter of 2018 stood at €2.4 (£2.1m) with a margin of 14 per cent, and €4.4m (£3.9m) with a 13 per cent margin for H1.

Profit after tax amounted to €1.7m for the second quarter of 2018 and 3.2m for the first half of 2018.

Lauding a number of key strategic manoeuvres during the period, Kambi stressed the importance of long-term platform renewals of Kindred Group and MRG’s Mr Green, complimented by a new market launches with South Africa’s Sun International and Romania’s Stanleybet, as well as signing its first public lottery operator in SJSC Latvijas Loto, Latvia’s national lottery.

Furthermore, steps into the US market have also been seen, with deals agreed alongside DraftKings and Rush Street Gaming, following the US Supreme Court’s decision to fully repeal its federal sports betting ban.

Kambi details that it has “applied for licenses in the states of New Jersey and Mississippi and is preparing its application for other states including New York, Pennsylvania and West Virginia.”

Kristian Nylén, Chief Executive Officer of Kambi, commented: “Although the World Cup began on 14 June, of even more long-term significance was a legal judgment handed down one month earlier. On 14 May, the US Supreme Court ruled the country’s federal ban on sports betting to be unconstitutional, and in doing so handed each state the authority to dictate their own sports betting laws.

“The decision has the potential to create a significant business opportunity for Kambi. In previous quarterly reports we discussed how Kambi had been preparing for such an outcome, and our proactive efforts in the US can already be seen in our recent business wins.

Adding: “Ahead of the World Cup, we launched three new customers into three regulated territories within the space of a week, demonstrating the scalability and capacity of the Kambi platform. We also announced we were in final stage commercial discussions with Swedish horse racing operator ATG, a deal we subsequently closed shortly after the end of Q2.

“ATG, one of the most recognisable brands in the Swedish market, will add a Kambi Sportsbook to its trotting and racing products once the market re-regulates at the beginning of 2019. This is a significant customer win for Kambi and one which will give us an even stronger position.               

“Overall, the past few months have produced very positive results for Kambi, both operationally and commercially, and I look forward to continuing this progress throughout the remainder of the year.”

Source: SBC News