Kambi Group announced its financial results for the second quarter of 2023.
The company reported revenue growth of 24% to €42.9 million, driven by an operator trade margin of 9.9%.
The company also reported that operating profit (EBIT) for the second quarter of 2023 was €3.7 million, with an 8.6% margin, and €8.2 million, with a 9.4% margin in the first half. .
EBITA for the second quarter of 2023 was €5 million, with a margin of 11.7%, and €10.8 million, with a margin of 12.4%, for the first half of 2023.
Cash flow (excluding working capital and mergers and acquisitions) totaled €3.4 million for the first half of 2023.
Partnerships
During the second quarter of the year, Kambi also entered into an exclusive global betting partnership agreement with Bally’s Corporation, replacing the global operator’s proprietary sports betting technology.
The deal is a significant win for Kambi as it gives the company access to Bally’s extensive customer base and distribution channels.
Additionally, Kambi has made significant progress in incubating its cutting-edge AI pricing division.
The division is developing the next evolution of sports trading technology, which will be used by Kambi’s partners to deliver better odds and more personalized experiences to their clients.
The company has also signed contract extensions with major partners BetPlay, LeoVegas and Paf.
It was also reported that Kambi had repaid the €7.5 million convertible bond previously held by Kindred and had repurchased 381,476 shares for a total of €7.2 million.
Kambi Group CEO Review
Kambi CEO Kristian Nylén stated, “The second quarter of the year was another encouraging period.”
“We have made significant strategic progress in executing on our long-term growth strategy, including signing a tier-one partner, key partner renewals and continuing to develop our AI trading capability.”
“During the quarter, we delivered strong 24% year-over-year revenue growth, driven by new customers, the addition of Shape Games and a high carrier trade margin.”
“The operator’s 4% turnover growth was not as strong as revenue, impacted by increasing currency difficulties, the dampening effect of a high commercial margin and PENN Entertainment’s year-over-year decline in US market share ”.
“Excluding the impact of currency movements, EBITA increased by €2.8 million year-on-year. From a business standpoint, we were pleased to welcome Bally’s Corporation to the Kambi network in Q2.”
“As we further solidify our market leadership position, winning this partner is an important milestone for the business and underpins our flexible product strategy.”
“As one of the world’s leading gaming operators, Bally’s commands strong brand recognition, a large customer database and an expansive global presence that has the potential to open up significant opportunities for Kambi in the US and beyond.”
“Bally’s decision to replace its proprietary sportsbook with Kambi highlights the current pressures faced by many in-house sportsbook operations.”
“Indeed, demand for our full sports betting service remains high, further evidenced by our sales pipeline and Q2 renewals from leading partners BetPlay, LeoVegas Group and Paf.”
“Kambi’s offering is only getting stronger as we pioneer next-generation betting entertainment, highlighted by the success of our award-winning AI-powered trading.”
“Recognizing the powerful benefits this unique pricing method offers our partners, we also see an exciting future for this service as a module, increasing the odds for those outside the Kambi network.”
“In Q2, we made significant progress in incubating the unit so that it will operate as a distinct division in the future, similar to Abios and Shape Games.”
“We are confident that our AI-driven pricing is uniquely positioned to meet the growing demand for trading services.”
“In summary, I am pleased with the strategic progress made in the second quarter and believe that Kambi is in a fantastic position going forward.”
“Having repaid the convertible bond held by Kindred during the quarter, we are in full control of our strategic direction as we continue to execute on our ambitious long-term strategy which I am confident will deliver value for partners and shareholders alike,” added the CEO of Kambi Group.
