SPORTS BETTING

Latin America – Kambi sets its sights on Latin America after 19 per cent revenue increase

By Phil - 26 April 2023

The first quarter was another busy period for sports betting provider Kambi including new market launches in the Americas, the expansion of Kambi’s partner network and a full sporting calendar.

These events helped drive a 12 per cent year-on-year increase in operator turnover and a 19 per cent rise in revenue to €44m. EBITA was €5.8m, impacted by a number of factors including foreign exchange movements and one-off costs to improve future efficiency.

Operator turnover and revenue grew by 12 per cent and 19 per cent year-on-year respectively, driven by existing partners and launches into new US states.

Kambi Group CEO Kristian Nylén said: “The business hit several important commercial milestones in Q1 as we continue to make significant progress with the key growth drivers detailed at our Capital Markets Day earlier this year. Among these drivers is to extend key partnerships, and I was delighted to secure renewals during the quarter with two of our largest partners in Rush Street Interactive, one of the leading operators in the Americas, and BetPlay owner Corredor Empresarial S.A. which is the market leader in Colombia with plans to expand across Latin America.”

He highlighted Latin America as a region of significant long-term potential for Kambi and will become increasingly integral as it looks to extend its 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.,” Mr Nylén added.

From a product perspective, Kambi’s expanding AI-driven trading capability is a core component of Kambi’s vision to redefine what’s possible in sports betting. After a successful roll-out for the soccer World Cup in Q4, this industry-leading method of automated pricing, which blends machine learning with vast amounts of data, was extended to all top European domestic soccer leagues, as well as the Champions League and Europa League.

Mr Nylén explained: “As a result, we can now create more bet offers at a faster delivery speed than the rest of the market, as well as deliver a richer Bet Builder, leading to both a better product and greater efficiencies for the business.”

“In short, we remain steadfast in our commitment to setting a new standard for sports betting and to pioneer next generation entertainment that eliminates friction and creates new innovative betting options for operators. 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. With a market-leading sportsbook that continues to remove product boundaries, a strong sales pipeline and the prospect of further regulation in key markets, I look forward to updating the market over the coming quarters.”