Kambi’s impressive 2022 financials have given the group sufficient leeway to sort out its capital and achieve improved flexibility, aiding its objectives and providing additional shareholder value. The two recent measures should make the company significantly more attractive to investors and enable it to pursue its goals on its own terms.
The Company Secured Its Independence
The leading sports betting technology and solutions supplier recently made two notable press releases, shedding light on the group’s shareholder-related strategy. The first details Kambi’s repayment of the €7.5 million ($8.3 million) Kindred Group convertible bond issued in 2014 when the two companies split ways. Kambi took over the B2B sector, while Kindred focused on its customer-facing brands like Unibet and 32Red.
The payment allows Kambi to fully guarantee its independence, shedding all of Kindred’s remaining influence. According to the bond terms, the operator retained limited control over Kambi’s financial decisions and could have converted the sum into shares, gaining a controlling influence. With such dangers eliminated, shareholder confidence should receive a significant boost.
According to the press release, the repayment will not impact the current partnership between the two companies. The deal was renewed in 2022, bolstering Kindred brands with Kambi’s cutting-edge sports betting solutions. Their respective management teams retain a close relationship and have committed to lasting cooperation.
Rising Revenues Proved Instrumental
The Kambi Group board also announced a share buyback program of up to €7.2 million ($7.9 million) between 3 May 2023 and 31 May 2023. Carnegie Investment Bank AB will carry out the initiative, abiding by all relevant regulations. As per Kambi’s 30 June 2022 Extraordinary General Meeting, the company can repurchase no more than 10% of its shares.
While costly, such an initiative carries significant long-term benefits. With increased control over its total shares, Kambi will improve its control over its capital structure, allowing for more flexible decision-making. The company will also gain the opportunity to create additional value for its shareholders, bolstering overall investor confidence.
These two strategic moves were only possible thanks to Kambi’s stellar 2022 financials. The company exceeded Kindred’s financial performance criteria and revealed an ambitious five-year plan, aiming for €50 billion in gross gaming revenue (GGR) by 2027. The recent moves to secure its independence and overall value put Kambi in the perfect position to further capitalize on its success.