Kambi reports 15% revenue spike as CEO talks up recent deals

Kambi has attributed certain non-recurring fees in relation to PENN Entertainment and Shape Games as key drivers behind a 15% year-on-year (YoY) rise in Q3 2023 revenue to €42.1m (£36.6m).

The sports betting supplier saw Q3 revenue boosted after securing a fixed fee of €3.4m from PENN for transition services while netting a non-recurring licence fee of €2.6m in relation to its Shape Games business.

Kambi said football was the highest turnover sport of the quarter, with tennis coming in second place. Despite just three weeks of NFL games in the reporting period, Kambi said American football was the fourth-highest turnover sport.

Elsewhere, EBITDA surged 30% to €13.9m, with operating profit (EBIT) rising 19% YoY to €4.6m.

Profit after tax went up by 37% for the supplier, from €2.6m in 2022 to €3.5m in 2023.

During Q3, Kambi completed 24 partner launches and finalised two partner signings, including with Eyas Gaming to power its Lance! Betting brand in Brazil.

The supplier also signed an agreement with Prairie Band Casino & Resort to launch the first tribal sportsbook in Kansas. 

Post-Q3, Kambi secured major sports betting supply deals with Swedish operator Svenska Spel and LiveScore Group.

Both deals are expected to have a meaningful financial impact for Kambi from H2 2024.

Elsewhere, Kambi has rebranded its AI-powered trading unit to become Tzeract. The tech will be offered as a select and modular product ahead of plans for a full commercial launch in Q1 2024.

Kambi CEO Kristian Nylén hailed the recent partnerships with Svenska Spel and LiveScore in his comment alongside the report.

He said: “The landmark signings of Svenska Spel and LiveScore Group are Kambi’s most significant partner agreements with existing sports betting revenue in our history and represent a major step forward towards our long-term strategic goals.

“As well as being fantastic agreements in their own right, these partnerships reflect the wider demand we see for our Complete sportsbook service, with them coming shortly after the signing of Bally’s Corporation, along with seven other partner signings during the year,” he added.

Nylén concluded: “Overall, I am pleased with the progress we are making with our long-term plan across commercial and product. As I have said before, the road to our 2027 goals won’t be linear, and the partner signings announced in recent weeks will only be reflected in the numbers from the second half of next year. 

“The long-term picture looks bright, and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world.”

Kambi’s shares rose by 2.7% to SEK164.3 in early morning trading on the Nasdaq Nordic Stock Exchange.