Kambi scraps 2027 financial targets due to slow pace of regulation
Supplier intends to reassess future aims with new CEO Werner Becher as group bemoans factors outside its control
Kambi Group has reneged on 2027 financial targets following the appointment of former Sportradar executive Werner Becher as the group’s new CEO.
In a brief update released this morning, 4 July, the sports betting supplier said “slower than expected progress towards regulation” had led to a review of company aims.
First announced in January 2023, Kambi’s 2027 financial targets were for revenue to be 2x to 3x full-year 2022 levels, around €330m to €500m, and for EBIT to be in excess of €150m.
As detailed in Kambi’s Q1 2024 report, these targets were based on five key pillars for growth: utilise platform flexibility to retain key partners; roll out AI-powered pricing; extend lead as number one supplier in the Americas; sign tier-one operators; and launch in a major regulated Asian market.
The Stockholm-listed firm confirmed it had commenced a review of these targets in February of this year.
In the group’s original thesis for the 2027 targets, the company said: “The assumptions include the regulation of sports betting in certain key markets, continued partner retention and acquisition and the successful execution of its product strategy.
“In addition, Kambi estimates a potential increase in its global addressable market to approximately €50bn GGR by 2027.”
However, in the statement released today, Kambi said: “The board concluded that Kambi has made progress in areas within its control, however, slower than expected progress towards regulation in certain key markets would likely delay revenue from such markets.
“The board believes that Kambi should have in place long-term financial targets. Such targets will be evaluated with the new CEO and communicated when appropriate.”
As per this year’s Q1 results, the group had pegged full-year 2024 revenue to land between €170m (£144m) and €180m as part of a “transitional year” for the company.
At the time, bosses pointed to the loss of PENN Entertainment as a partner and the delayed regulation of the Brazilian market as key bugbears.
Kambi said the board’s core focus would now be on providing Becher with its “full support” to deliver on the group’s long-term strategy.
Becher will officially take on the top job from 25 July, replacing incumbent CEO Kristian Nylén.