Revenues rise at Kambi Group throughout 2018
Kambi Group Plc, a B2B supplier of sports betting services, has released its trading update at the end of the second quarter (Q2) of 2018.
The financial summary for Q2 and the first half (H1) of 2018 is full of positive news for investors, with strong revenue growth and further expansion in the US among the key highlights.
Revenues at the group have risen 25% on the year, climbing to €17.6m for Q2 2018. Revenue for H1 of this year also grew by 20% to €34m.
Operating profits (EBIT) were €2.4m with a 14% margin for the quarter and €4.4m with a 13% margin for the first half of the year. Those figures rose from 0.3m and 1.6m on the year respectively.
That brought profit after tax to €1.7m for Q2 (up from €0.1m) and €3.2m (up from £1.2m) for H1 2018.
Earnings per share were €0.055 for the quarter and €0.107 for the first half of the year.
In the press release announcing the results, the firm’s CEO, Kristian Nylén, was quick to credit two factors for recent successes, saying:
Although the World Cup began on 14 June, of even more long-term significance was a legal judgment handed down one month earlier. On 14 May, the US Supreme Court ruled the country’s federal ban on sports betting to be unconstitutional, and in doing so handed each state the authority to dictate their own sports betting laws. In parallel, we continue to focus on our core business, which was boosted in June by the early stages of the World Cup. Revenues in Q2 were up 25% year-on-year, with revenue growth supported by yet another quarter of above average operator trading margin of 7.8%.– Kristian Nylén, CEO Kambi Group
The future also looks bright for Kambi. In June, the group finalised a deal with Kindred Group. Kambi will also add a sportsbook to the Swedish operator ATG in 2019, as Nylén explains:
Ahead of the World Cup, we launched three new customers into three regulated territories within the space of a week, demonstrating the scalability and capacity of the Kambi platform. We also announced we were in final stage commercial discussions with Swedish horse racing operator ATG, a deal we subsequently closed shortly after the end of Q2. ATG, one of the most recognisable brands in the Swedish market, will add a Kambi Sportsbook to its trotting and racing products once the market re-regulates at the beginning of 2019. This is a significant customer win for Kambi and one which will give us an even stronger position.– Kristian Nylén, CEO Kambi Group
Towards the US expansion, the group is currently working on acquiring licences with five US states.