Interactive
Malta – Kambi buoyed by World Cup, US ruling and Q2 increase
By Phil - 25 July 2018
The World Cup and the uptick for sports betting following the US Supreme Court ruling were both highlighted by Kambi as huge positives in its second quarter when revenue surged by 25 per cent to €17.6m.
Operating profit for the second quarter came in at €2.4m in the quarter where Kambi signed two US-based customers in DraftKings and Rush Street Gaming after US Supreme Court’s decision to fully repeal its federal sports betting ban.
In Europe, signed Stanleybet Romania in Q2 and ATG and Latvijas Loto in Q3. It also finalised long-term contract renewals with Kindred Group and Mr Green.
The company said: “Although the World Cup began on June 14, of even more long-term significance was a legal judgment handed down one month earlier. On May 14, 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.”
“I’m excited about what we can achieve with both customers, and in the US more generally. However, the state-by-state roll out of regulated sports betting will not happen overnight, therefore our US-facing business should be viewed in the mid-to-long-term.
“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 per cent year-on-year, with revenue growth supported by yet another quarter of above average operator trading margin of 7.8 per cent.”
“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.”
“In early July we finalised our new long-term agreement with Kindred Group, a deal which gives Kambi a secure platform for future growth. Over the years, Kambi and Kindred have developed a strong partnership and I look forward to building on this in the future. Overall, the past few months have produced very positive results for Kambi, both operationally and commercially, and I look forward to continuing this progress throughout the remainder of the year.”
