Supplier News
UK – Kambi posts 23 per cent increase in revenues
By Phil - 14 February 2020
Sports betting giant Kambi reported strong financial performance in Q4 with 23 per cent year-on-year rise in Q4 revenue and 52 per cent year-on-year increase in Q4 operator turnover, driven by further expansion into new US states and new customer launches.
It doesn’t believe that losing its partnership with DraftKings will affect its revenues in 2020.
Kambi Group plc’s CEO Kristian Nylén said: “2019 ended with news our partner DraftKings had entered into an agreement to acquire its own sports betting technology and therefore will no longer be dependent on Kambi. Our revenues from DraftKings are likely to be unaffected throughout 2020. I remain of the view that DraftKings’ long-term prospects would be better served with Kambi but also that this will increase the appeal of Kambi to an even greater level. We remain firmly committed to the US, where we have a diverse network of partners which have fantastic potential for growth, particularly as more states regulate.”
“We continue to prove that we are the sports betting partner operators can trust to deliver. In Q4, we launched in seven casinos and a variety of online sportsbooks across multiple jurisdictions. I’m particularly proud we were able to launch with our first US lottery, when going live in New Hampshire with DraftKings in December. I was also pleased to make our retail debut in South Africa when we launched the Kambi Sportsbook inside the Sun International-owned Grand West Casino in Cape Town.”
Revenue amounted to €26.7m for the fourth quarter of 2019, and €92.3 (76.2) million for the period January to December 2019 whilst operating profit for the fourth quarter of 2019 was €6.2m.
The quarterly performance contributed to full year 2019 revenue growth of 21 per cent and an operator turnover increase of 37 per cent compared to 2018.
It was quite a quarter for the company, signing with Seneca Gaming Corporation in November and launching in all three of Seneca’s New York casinos in December. It also launched with DraftKings and New Hampshire Lottery when going live online in New Hampshire in late December.
Mr. Nylén said: “I’m delighted to report another strong quarter for Kambi, which rounds off a year in which annual revenues grew by more than 20 per cent and operator turnover by more than a third. Looking back on 2019, it was another great year for Kambi, as we continued to build out a fantastic sports betting product, expanded into multiple new markets, and signed six new partners, all of which leaves us in a great place for 2020.
“In the previous report, I highlighted the momentum we could see building in operator turnover, and this trend continued in Q4 with each month delivering a greater number than the last. In total, Q4 operator turnover increased by 52 per cent year-on-year and 36 per cent sequentially – considerably higher volumes than Kambi has ever seen. While much of this growth was derived from our US partners, we also saw double-digit turnover growth in markets outside of the US, all of which contributed to strong revenue growth of 23 per cent.”
He concluded: “The evolving nature of the sports betting industry means there will always be challenges to overcome but I know we have built a robust business with the capability and strength to withstand these pressures. We operate in a fast-growing market, one which continues to embrace regulation and will therefore present Kambi and our partners with exciting opportunities for many years to come. Be in no doubt Kambi is well positioned both in the US and globally and I look forward to a prosperous 2020.”
