Kambi posts 17% full-year revenue growth despite sticky Q4
Sportsbook supplier hit by punter-friendly results in December but customers report 19% turnover increase across the quarter
Kambi this morning posted a 17% increase in full-year revenues despite coming through a difficult Q4 trading period which saw margin hit by a run of customer friendly results.
Total revenues for the year amounted to €56.0m, however, revenues for the final quarter remained broadly flat at €14.3m following adverse sporting results during December which saw margin fall from 23% to 13%.
As a consequence, Q4 EBIT fell 45% to €1.8m and profit after tax was down to €1.2m from the €2.9m posted in Q4 2015. However, the sportsbook supplier reported that customers saw turnover in the period increase by an average of 19%.
With respect to the full-year, margin remained stable at 16%, EBIT was up 19% to €8.8m and profit after tax was up 21% to €7.5m.
“As widely reported across the industry, December produced many events with player-friendly outcomes,” Kambi CEO Kristian Nylen said.
“For our operators, these resulted in lower than average margins in the quarter, which in turn, together with increases in gaming-related taxes, impacted on Kambi’s revenues.
“Despite this, I’m very pleased to report that our operators continued to demonstrate the underlying strength of the Kambi sportsbook and reported solid increases in turnover, even when compared to a strong Q4 2015.”
During the quarter, Kambi added yet another customer to its growing roster of clients, seven of which featured in the EGR Power 50 list last year.
The firm signed an agreement with Mexican media giant Televisa, which will see Kambi make its debut in Latin America, a market which Nylen said would become a focus for the firm.
“I’m excited that Kambi has secured its first full contract in Latin America, with the signing of Mexican media giant Televisa, offering our premium sportsbook across all channels,” Nylen said.
“We are now looking forward to building on this foothold across the region,” he added.
More recently, Kambi signed an agreement with Greentube as part of its recent tie-up with parent company Novomatic Lottery Solutions.
Kambi’s share price was down SEK7.5 to SEK104.25 at the time of writing.