Sports betting and technology services provider Kambi has reported “solid financial growth” in its Q2 update to investors this week. A rise in revenue amounted to $24m (19.6) for the second quarter of 2019, an increase of 23%, and $47.5m (37.9) for the first half of 2019, an increase of 25%.
Operating profit (EBIT) for the period was $2.8m (2.7), with a margin of 11.7% (13.8%), and $5.7m (4.9), with a margin of 12.1% (12.9%) for the first half of 2019. Post tax profit amounted to $1.8m (1.9) for the second quarter of 2019 and $4m (3.6) for the first half of 2019.
A significant portion of CEO Kristian Nylén’s update was focused on the firm’s activities and accomplishments in the US sports betting sector. He commented:” It was during Q2 last year that the US Supreme Court decided to repeal the country’s federal sports betting ban, a judgment I said at the time would create significant business opportunities for Kambi.
“Looking back over the past 12 months, I’m proud to say we’ve built a robust US-facing business with a fantastic portfolio of partners, and I continue to have great confidence in our future prospects.”
He continued: “The development of the competitive landscape in the US has certainly been dynamic, with operators and suppliers taking a variety of strategic routes. For some, joint ventures or M&A have been the preferred choice, while for our multiple US customers, the decision to partner with Kambi has brought them immediate success, and long may that continue.”
Nylén added that as the number of regulated states steadily increases over the coming years, so too will the number of attractive opportunities. “The fact Kambi has proven its ability to deliver in the US, coupled with our ongoing US investments in people and products, puts us in a good position to convert the best of these opportunities,” he advised.
Talking more holistically about group performance and prospects, he noted: “I’m pleased to report Q2 2019 was yet another positive period for Kambi, delivering solid financial growth despite the lighter sporting calendar, and signing new customer agreements to keep up our positive commercial momentum.”