Kambi reports “historic Q3” on US strength

Sportsbook provider’s revenues climb 39% thanks to New Jersey growth and strong trading margin

Kambi has reported a 39% rise in Q3 revenues to €20.5m, driven by the football World Cup, growing customers and a healthy 8.6% operator margin.

Operating profit (EBIT) for the third quarter was €4.2m, up from €1.1m in the same period.

Kambi said the lofty trading margin primarily influenced by higher-than-expected margins in most football leagues across Europe and the final stages of the World Cup.

The provider also hailed the impact of its nascent US business, where it powers New Jersey market leader DraftKings and Rush Street Interactive brand SugarHouse.

Kambi said it has an approximate 70% market share in New Jersey.

“This time last year I described Q3 2017 as a ‘springboard’ quarter for Kambi, and what’s followed has been a period of sustained growth, leading to what can only be regarded as an historic Q3 2018 for the company,” said Kambi CEO Kristian Nylen.

“Overall, the business has never been in better shape, illustrated by a record quarterly performance. In fact, turnover growth was so strong that Q3 2018 was the first Q3 in which we saw sequential turnover growth during a year featuring a major summer international football tournament.

Nylen said the US remained the US the firm’s strategic focus, but it “continued to grow strongly throughout the network and across multiple markets”.

“I’ve recently returned from a major gaming exhibition in the US where, following our early success in New Jersey, the interest in Kambi was at an unprecedented level,” he added.

“It is for this reason we plan to continue to invest in areas such as talent, technology and licensing so we can maximise the opportunity presented by the gradual state-by-state roll-out of regulated sports betting across the country.”

Kambi’s share price was up almost 10% in early trading.