Sports betting and technology provider Kambi Group has published an upwardly mobile set of Q4 2019 financials this week, with a heavy emphasis on its rapidly expanding US activities.
The firm cited a strong financial performance, with 23% year-on-year rise in Q4 revenue and 52% year-on-year increase in Q4 operator turnover, driven by further expansion into new US states and new customer launches.
In terms of headline figures, Q4 revenue amounted to $29.1m ($23.7m), and $100.1m ($83.2m) for the period January to December 2019. Operating profit (EBIT) for the fourth quarter of 2019 was $6.6m ($4.6m), with a margin of 23.1% (19.2%), and $16m ($13.9m) for the period January to December 2019, with a margin of 16% (16.7%)
In his Q4 summary, Group CEO Kristian Nylén told investors: “I’m delighted to report another strong quarter for Kambi, which rounds off a year in which annual revenues grew by more than 20% and operator turnover by more than a third.
“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% year-on-year and 36% 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%.”
The CEO also addressed partner DraftKings’ decision to acquire its own sports betting technology. “Our revenues from DraftKings are likely to be unaffected throughout 2020,” he predicted.
“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.”
He added: “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.”
On new tribal links, Nylén commented: “I’ve spoken previously about the strengths of Kambi’s retail product and our ability to roll out at speed. These assets were both on display during Q4 when we successfully signed a new customer in Seneca Gaming Corporation and subsequently launched in its three New York casino properties within a matter of weeks. Seneca is a great customer signing for us.
“Not only is it an organisation which shares our values of trust and collaboration, but the fact it is owned by one of the most respected US Native American tribes ensures it is a partnership that will resonate within the tribal community nationwide.”
With regard to the outlook for the firm, Nylén said: “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.”