Provider of sports betting services to licensed B2C gaming operators, Kambi Group, has published a Q4 Report for 2019, showing a stable profit growth and positive trajectory thanks to its US expansion and entry into several new markets within the country.
According to the financial report, the group’s revenue incline for 2019 amounted to €92.3 million which is 21.1% higher from the previous year. Kambi’s exponential revenue growth from 2018, when it amassed €76.2 million in total, is mostly driven by the expansion into US, as it started providing services to eight states across entire the territory.
Currently, the group’s hottest market is Pennsylvania, where this B2B provider of sports betting services launched with five online shops and eight retail venues, powered mostly by Rush Street Interactive, Kindred, Parx and DraftKings.
Apart from the Keystone State, the Nasdaq-listed provider of fully managed sports betting solutions is also present in New Jersey, where it operates at four online shops and one retail property. In addition, Kambi is also active in Indiana where is supplies two online betting stores and three land-based sites. In West Virginia, the group caters to one retail and one online hub.
Finally, the Malta-based aggregator of software with front end user interface, odds compiling, customer intelligence and risk management has also become operational in New Hampshire, Iowa, Mississippi and New York to follow.
As stated in the company’s financial Q4 summary, Europe still remains the main source of income. However, thanks to the very successful and ongoing growth in the United States, the difference between these two markets is closing. This assumption can be seen in the fourth quarter, with Europe responsible for 61% of total revenue and US for almost 37%, which represents a huge disparity when compared to 2018.
Despite higher spending to cover the operating expenses including data supplier costs, Kambi managed to post profit growth for the year and increased the entire rollover from operations for 15.6% or €14.7 million. EBITDA (earnings before interest, tax, depreciation and amortization) also improved by 29.3%, reaching whopping €29.1 million.
“Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020,” chief executive Kristian Nylén commented.
“The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures,” explains Nylen further.
The group’s full performance was measured when Kambi highlighted the momentum regarding operator turnover, whose positive trend continued with each month in Q4. Nylen said that the total operator turnover increased by 52% year-on-year, which is considerably higher than any time before.
By operating in a fast-growing market, the software provider also saw a double-digit income which contributed to a strong revenue growth of 23%. The CEO is convinced that the company and its partners will continue to grow in 2020 and position itself better both in the US and other parts of the world.
Source:
“US expansion drives financial growth at Kambi in 2019”, igamingbusiness.com, February 12, 2020.