Kambi posts 76% Q4 revenue rise as US expansion pays dividends
Sports betting supplier operating “like never before” says CEO as full-year revenue, EBIT and profit all leap
Kambi has recorded a 76% year-on-year (YoY) increase in Q4 revenue boosted by the sports betting supplier’s US expansion strategy.
The Stockholm-listed supplier recorded €46.9m (£41.1m) in revenue for Q4 2020, compared to the €26.7m it posted in Q4 2019, with the group citing a busy sporting calendar, operator trading margins and new market penetrations as the core drivers of growth.
In the US, Kambi expanded into Tennessee’s online market, as well as via on-property launches in Michigan and Mississippi, while it secured partnerships with the Belgium National Lottery and Dutch group JVH Gaming in November and December, respectively.
EBIT in the fourth quarter rocketed by more than 200% YoY, with the firm posting €22.2m in Q4 2020, compared to €6.2m in the corresponding period in 2019.
Post-tax profit leapt from €4.6m in Q4 2019 to €17.3m in Q4 2020, while earnings per share in Q4 2020 reached €0.558 compared to €0.152 in 2019.
In terms of full-year results, Kambi recorded increases across revenue, EBIT and post-tax profits from 2019 to 2020.
Full-year revenue came in at €117.7m compared to €92.3m in 2019, EBIT was €32.2m (€14.7m) and post-tax profit was confirmed at €24.1m (€10.4m).
Kristian Nylén, Kambi CEO, said he was “more excited than ever” about Kambi’s future after successfully navigating the difficult circumstances faced by the group in 2020.
Nylén said: “Our strong growth means Kambi is now operating at a scale like never before, which in turn allows the Kambi sportsbook and service to continuously evolve.
“It’s been a year that’s shown that when working together, we can find the right responses to the toughest of challenges. The Kambi model is based on partnership, on sharing, on working together with our partners to ensure they have the best chance of success.
“The model was undoubtedly stress-tested in 2020 but it passed with flying colours, leaving me more excited than ever about Kambi’s future,” he added.
Despite the positive financial results, Kambi shares dipped 1% to SEK477 (£40.80) at the time of writing after hitting SEK488 earlier this morning.