Kambi Group reported significant revenue and profitability increases for the third quarter of 2023. The company's revenue climbed 23% year-on-year, reaching €46 million, while its adjusted EBITA surged by 161% to €7.9 million.
The third quarter concluded on September 30, coinciding with the FIFA World Cup and the launch of new partnerships. Despite this growth, lower operator trading margins in August and September constrained revenue potential. Kambi also unveiled a rebranding aimed at emphasizing its commitment to AI, network data utilization, and more dynamic betting offerings.
CEO Werner Becher commented on the company’s transformation: "As a result of this exercise, we now operate as a leaner, more agile organization, as well as one which is fully focused on leveraging the data advantages of our vast network and proprietary AI trading system to strengthen our position as the world’s leading AI-powered sports betting network."
Kambi attributed a substantial portion of its Q3 revenue to the FIFA World Cup, which took place in July and included a €4.2 million markup. While these costs impacted gross margins, the renegotiation with partners mitigated any effects on profit margins.
Key contributors to growth included new partnerships with organizations such as the Ontario Lottery and Gaming Corporation and PMU. Additionally, favorable exchange rates, particularly the rising value of the Colombian peso, contributed an additional €1.7 million to revenues.
The total quarterly sportsbook turnover increased by 3% compared to the previous year. However, sports results during the World Cup had a mixed impact on overall turnover. The share of turnover from regulated markets rose slightly to 98.5% from 98.4%. In the Americas, turnover saw a 6.7% increase, totaling 59.9%, while Europe experienced a decline of 3.1%, capturing a 36.4% share. The remainder came from other markets.
Following its successful Q3, Kambi set a revised adjusted EBITA guidance of €26 million, up from an initial projection of €23 to €27 million. Becher expressed optimism about the future, stating, "The momentum generated over recent quarters, combined with our expanding partner network, continued product innovation and operational discipline, gives us confidence in the future."
At the time of reporting, Kambi's shares saw an increase of over 5%.
