Kambi share price dips despite 19% rise in Q1 2023 revenue
Sports betting supplier credits US performance as CEO highlights Latam as the area of highest potential for the firm
Kambi Group has reported a 19% year-on-year (YoY) rise in its Q1 2023 revenue to €44m (£38.93m).
Releasing its financial report for the period, the supplier also confirmed an EBITDA drop of 7% in Q1 to €12.8m, with operating profit (EBIT) falling by 38% to just €4.5m, which was attributed to certain non-recurring costs.
The supplier’s operating margin also fell from 19.9% in Q1 2022 to 10.3% in Q1 2023, with profit after tax (PAT) falling 40% YoY from €5.4m to €3.3m.
Kambi also recorded cash flow, excluding working capital and M&A, at €3.2m, down from €5.5m in 2022.
Following the publication of its results, Kambi’s share price dipped by 10.91% to SEK165.5 in early morning trading on the Nasdaq Nordic Stock Exchange.
Regarding operational achievements, Kambi highlighted its new AI-driven algorithmic trading capability, which launched during the World Cup 2022 in Qatar and has now been extended to all European domestic football leagues, as well as the UEFA Champions League and UEFA Europa League.
Kambi also stated that it had a successful Super Bowl and March Madness, seeing increased player activity and “faultless” service delivery.
Additionally, the supplier has extended its partnerships with Rush Street Interactive (RSI) and Corredor Empresarial S.A. in Q1.
In the report, Kambi CEO Kristian Nylén highlighted Latin America as a key market for the firm as the operator plots further expansion in the region after linking up with Rei do Pitaco in Brazil, as well as its existing strong footholds in Colombia and Argentina.
Nylén said: “The first quarter was another busy period for Kambi, including new market launches in the Americas, the expansion of Kambi’s partner network, and a full sporting calendar.
“Latin America is a region of significant long-term potential for Kambi and will become increasingly integral as we look to extend our lead as the number one supplier across the Americas.
“Kambi already has a strong foothold in some of the region’s most established sports betting markets such as Colombia and Argentina, and recent public announcements from the Brazilian government show positive signs that regulation of sports betting in Brazil is edging nearer in what is projected to become one of the world’s largest regulated markets,” he added.
The revenue increase comes after Kambi adopted its new long-term financial targets for 2027 in January. The firm is expecting revenue of between two to three times the level of full-year 2022, which would amount to between €330m and €500m.
Speaking on the ambitious long-term financial goals for the supplier, Nylén erred on the side of caution: “The road towards our long-term financial targets won’t be linear, but we are carefully putting in place the fundamentals which will enable us to accelerate as we progress.”