In an announcement of its quarterly figures, Kambi has stated that a combination of resilient betting volumes and a gradual return of major leagues and sports, complemented by significant cost reduction measures, have allowed the group to successfully weather COVID-19’s profound impact on the sporting calendar.
Revenue amounted to €14.8m for the second quarter of 2020, a decrease of 32 per cent on 2019’s Q2 result, totalling €42.7m for the first half of 2020. Operating result (EBIT) for the second quarter of 2020 was €-3.4m, at a margin of -22.7 per cent, with an operating profit of €3.5m, at a margin of 8.2 per cent for the first half of the year.
Results after tax amounted to €-3.0m for the second quarter of 2020 and €1.7m for the first half of 2020. Cash flow from operating and investing activities excluding working capital movements amounted to €-2.8m for the second quarter of 2020 and €1.3m for the first half of 2020.
“After what has undoubtedly been a testing period for Kambi, as it has for everyone in our sector, I’m proud of the resilience and underlying strength we have displayed in recent months, which bodes well for our future. Of course, the financial numbers published today aren’t as I would have hoped back when we were planning for 2020, but they do reflect a business able to deliver when faced with both adversity and uncertainty.
“Given the impact the pandemic is having on the sporting calendar, to generate 68% of the revenues of the comparative quarter last year is a great achievement. Furthermore, operator turnover accelerated through the period, finishing with year-on-year growth for June, which tells me we are on the right track as a business and well positioned for the second half of 2020 and beyond.
“Our ability to successfully navigate the COVID-19 crisis was underpinned by the exceptional contribution from our incredible staff around the globe, who continued to provide a fantastic service to our partners and their end users during these difficult times. For the sports available in Q2, we were able to offer a market-leading product, both pre-match and in-play. For example, in golf and UFC we are seeing our high-quality offering engage players like never before, with volumes reaching all-time highs during the quarter.
“The return of top-tier soccer, starting with the German Bundesliga in May, also helped us regain some of the momentum that was abruptly halted in March, delivering encouraging volumes and favourable margin. The third quarter sees the resumption of the main US sports, with the baseball season getting underway last night, basketball to resume on 30 July and the NFL season still scheduled to begin in September. ”
Q2 saw Kambi renew its partnership agreement with the Colombian market leader Corredor Empresarial and its BetPlay brand, alongside continued US expansion with online launches in Colorado and Illinois, supporting Rush Street Interactive in taking the first legal online bets in both states.
Kambi added: “In parallel to our delivery around sports, we extended our run of market firsts when launching online in both Colorado and Illinois, with our partner Rush Street Interactive taking the first legal bets in both cases. Our record of launching multiple partners across various states in the US is something I am proud of and I know sets us apart from our competitors.
“It was also pleasing to secure an extended agreement with Corredor Empresarial and its BetPlay brand. BetPlay has enjoyed great success in the regulated Colombian market, becoming market leader within 12 months of launch, a position it maintains today. While much attention is on the US market, the Latin American market also holds great potential for Kambi.
“Although challenges remain, and an element of uncertainty persists, the past few months have proven Kambi can overcome the toughest of tests, and emerge the other side stronger for it. With sports gradually returning and our ambitious partners keen to catch up on lost time, we’re ready for an exciting second half of the year.”