Kambi reports record-breaking 2020 results and hails strong US growth

Image source: Kambi

Global sports betting supplier Kambi Group plc has published its 2020 Annual Report and Accounts, showing record-breaking financial results in the trading period, including a 28% increase in revenue alongside a 27% rise in operating margin.

Looking at the headline figures, total revenue in 2020 increased to $138.6m (2019: $108.7m). The increase of 28% year-on-year demonstrates continued growth, said the firm, despite a significant period of the year involving a lack of sporting events as a result of the COVID-19 pandemic. 

Earnings before interest, tax and depreciation and amortization (EBITDA) for the full year 2020 were $58.5m (2019: $34.3m), while profit from operations for the full year 2020 was $37.9m (2019: $17.3m), demonstrating the strength of Kambi’s scalable business model. Post-tax profit for the full year 2020 was $28.4m (2019: $12.3m). 

During 2020, development expenditure of $19.4m (2019: $17.6m) was capitalized. The key elements of capitalized development costs during 2020 were sportsbook enhancement, US product development, market expansion and evolution of the firm’s retail channel. 

Updating investors on stateside developments, CEO Kristian Nylén said in his statement: “Kambi’s continued expansion as more jurisdictions put sports betting frameworks into place illustrates this capability. The growth of the US market is a core driver for the business and remains a significant area of focus for commercial expansion. 

“State-by-state regulatory efforts continue to gather pace, with increasing emphasis being placed on mobile and online in addition to on-property wagering. Our record of delivery in the US speaks for itself. 

“We are now live in 14 states, having achieved market firsts with our partners in 10. We have a diverse group of partners with ambitious plans to capitalize on the ongoing spread of regulation, and we look forward to helping them to make the most of the opportunities this affords.” 

Talking more generally about the firm’s performance and current standing, he added: “As I look back on a year unlike any in living memory, and the world transitions to a ‘new normal’, I am proud to be able to say that the business is in fantastic shape, having passed its toughest of tests. 

“Kambi is the established sportsbook of choice for operators with the ambition to achieve market leadership. Scalability coupled with technological and regulatory expertise have been central to our business model since the company was founded, and our focus on these areas has been vindicated by the strides we have made in 2020 and the position of real strength we occupy. I am excited by the prospect of building on this progress throughout 2021 and in turn delivering shareholder value.” 

US expansion has been ongoing, despite the pandemic, with Kambi adding several new US partners to its global network in 2020, including the Pokagon Band of Potawatomi’s Four Winds Casinos – a US tribal operator with three locations in Michigan and one location in Indiana

In August, the company also signed a multi-year agreement with Churchill Downs Incorporated (CDI), while later in the year it supported the launch of Penn National Gaming’s Barstool-branded online sportsbook in Pennsylvania.