Kambi secures FY22 revenue record following stellar Q4 performance
Sports betting supplier’s year ended strong as revenue shot up 66% following World Cup success driven by third-generation algorithmic trading
Kambi Group reported a 66% year-on-year (YoY) rise in its Q4 2022 revenue, which increased to €57.8m (£50.91m), having been boosted by a €12.6m termination payment from PENN Entertainment.
The termination from PENN comes as the operators looks to move to it in-house tech stack, with the pair agreeing a $27.5m package in early termination and transition fees.
For the same period, the supplier posted an EBITDA uptick of 104% YoY from €13.4m to €27.3m.
The firm also announced an operating profit boom of 164%, recording €18.7m in Q4 2022.
Profit after tax also rocketed by 148%, increasing from €6.1m in Q4 2021 to €15.1m in Q4 2022.
Operator turnover rose by 20% YoY and 43% from Q3 2022, with the firm attributing the increases to a busy US sporting calendar.
Commenting as part of the earnings report, Kambi CEO Kristian Nylén said: “The year finished with a flourish with the business delivering across several key areas, providing the perfect springboard into 2023.
“The World Cup was also an important event for us during the period. Overall, player engagement was excellent, with the World Cup final the highest turnover for a soccer game in Kambi’s history. However, the trade-off was a significant reduction in domestic soccer fixtures as top leagues took a mid-season break.
“A key World Cup highlight was the strength of our product, driven by our third-gen algorithmic trading capability, which we discussed in depth at our recent Capital Markets Day,” Nylén added.
Speaking further on the third-generation algorithmic trading which debuted during the World Cup, Nylén added: “This new method of trading automation has been in development for a few years, with the World Cup providing us with the perfect opportunity to stress-test it at scale and we couldn’t have been happier with its performance.
“Powering our entire pre-match offering, this proprietary capability leverages the full power of data to deliver an even greater product, with more betting opportunities presented to the player in a quick and cost-efficient way.”
Nylén went on to explain how the product has developed: “Since the World Cup, we have fully automated the pre-match pricing to deliver a World Cup standard product across many of the top domestic leagues and will continue the roll out across the year to realise more of its benefits, including the automation of in-play pricing.”
During Q4, Kambi concluded a deal with Brazilian daily fantast sports operator Rei Do Pitaco, while post-Q4 the group secured partnerships with Rush Street Interactive and land-based operators in Ohio, New York and South Africa
Alongside its Q4 2022 results, Kambi shared its full-year results for 2022, returning an all-time record high for full-year revenue.
The provider’s full-year revenue rose 2% YoY to €166m, but operating profit fell 39% to €34.8m.
Kambi’s EBITDA also fell, by 20%, from €79.2m to €63.4m. Profit after tax was hit by a 43% decrease from €46.4m to €26.5m.
Following the results’ release, Kambi’s share price rose by 7.15% on the Nasdaq Nordic Stock Exchange to SEK208.6 (£16.66).