Kambi implements cost-saving measures as Q4 revenue hits €44.5m

Kambi has reported Q4 revenue of €44.5m (£36.9m), up from €44.3m in Q4 2023, as management laid out a cost-saving programme for the next 12 months.                                                                                                                                       

The sports betting supplier said the scheme had already begun to “realise cost synergies and operational efficiencies across the business”.

The efficiency drive has seen around 65 employees and consultants made redundant, with Kambi also noting “material savings” in infrastructure and software licensing.

“Kambi remains committed to actively managing costs while strategically investing in key areas to maintain a premium product, ensuring long-term quality for both existing and future operators and securing future revenue streams,” the Stockholm-listed firm added.

Kambi’s shares are down almost 5% at the time of writing to SEK114.0.

Returning to fiscal performance, EBITA for Q4 slipped from €8.5m to €7.1m, with a corresponding margin of 16%.

EBIT dipped from €7.2m to €5.9m as post-tax profit declined from €5.5m to €5.1m.

Kambi said operator trading margin sat at 10.1% for the quarter despite some customer-friendly NFL results, compared to 8.3% in Q4 2023.

The supplier added: “[The margin was] driven by favourable results in European soccer, particularly in the English Premier League and Champions League, as well as increased engagement with higher-margin products and Kambi’s ability to trade these complex products through AI.

“The financial benefit of the higher margin versus Q4 2023 was offset by the new commercial terms of certain renewed contracts which came into effect in 2024, as previously communicated.”

The Americas accounted for 47% of Q4 revenue, with Europe at 49% and the Rest of the World on 4%.

However, on a full-year 2024 basis, Kambi’s financial performance was stronger, with revenue up 2% to €176.4m from €173.3m.

Full-year EBITA was flat at €25.3m, with EBIT also flat at €20.1m. Post-tax profit ticked up 4% to €15.4m.

Key commercial deals with LiveScore, Svenska Spel, KTO Group and Stake were all mentioned by the supplier, with those efforts also expected to support 2025 growth.

The KTO and Stake deals are for turnkey sportsbooks in the newly regulated Brazil market. Bosses also pointed to the success of the OddsFeed+ product in the geo.

Werner Becher, Kambi CEO, said the efforts made in 2024 would put the company in good stead for what could prove to be a headwind-heavy 2025.

He said: “These new signings, in combination with those launched during 2024, will provide a tailwind for driving revenue in the year ahead, including full-year contributions from LiveScore and Svenska Spel for the first time and growth in the Brazilian market.

“I’m also confident we will continue to build a more diverse portfolio of partners across our product suite, further improving revenue as well as reducing the impact of inevitable customer churn.

“However, this year won’t be without significant challenges, with 2025 presenting a particular set of headwinds, which we expect to ease going forward.

“These include certain partners, particularly Kindred and LeoVegas, migrating away from our turnkey sportsbook, as well as rising taxes such as the recently proposed temporary VAT in Colombia.

“The foundations we are building today will enable us to emerge stronger, more agile and well-positioned for long-term growth.”