Sports betting and technology provider Kambi has published its Q1 trading update today, drawing attention to continued strong progress in the US, with launches across a number of jurisdictions.
Offering a financial overview to investors, the firm reported Q1 revenue of $52.1m (Q1 2020: $33.7m), an increase of 55%, while operating profit (EBIT) was $22.6m ($8.2m), ahead by 173% at a margin of 43.2% (24.5%). Profit after tax amounted to $18.2 ($5.8m).
In terms of operational highlights, Kambi noted strong revenue growth of 55% year-on-year at an operator trading margin of 8.5% and continued US expansion with launches across several states including Michigan, Illinois, Virginia and Arkansas.
CEO Kristian Nylén stated: “I’m pleased to report the exceptional performance we produced during the latter part of last year has continued into 2021, with significant growth across a range of KPIs including operator turnover, revenue and operating margin. We also continued our impressive commercial momentum with new partner signings and extensions in key target markets.
“The operator turnover index surpassed 1,000 for the first time after a record quarter which saw operator turnover more than double year-on-year, with the caveat of the final fortnight of Q1 2020 impacted by COVID-19.
“This strong performance was driven by a busy sporting calendar, including the end of the NFL season and the March Madness college basketball tournament, and more than compensated for the planned migration of a large proportion of 888’s business off the Kambi sportsbook in January.”
Focusing more specifically on the US, he added: “In addition to the launch of Casino Magic, we supported US-facing partners in states including Michigan, Virginia, Illinois and Arkansas, with the latter becoming the 14th state in which Kambi is live and generating revenue.
“Although I’ve said it before, it’s worth repeating our market-leading excellence and reliability in the areas of integrations and launches, often working closely with regulators to ensure our partners are first or among the first to go live.
“Regulation in the US continues to move at pace, with progress seen in a variety of states in recent weeks and months, perhaps most notably in New York, where the state has committed to adding online sports betting to its existing retail market. As the first company to process a regulated sports bet in New York, we’re of course monitoring the developing situation there closely and look forward to the publication of further details concerning the licensing framework in due course.”
On the outlook, Nylén offered: “In the meantime, our teams are busy preparing for what will be a special summer of sports, with major events such as the delayed Euro 2020, Copa America and Olympic Games, as well as the return of annual summer tournaments including Wimbledon and The Open.
“In addition, this year should see a full MLB season played out, with a high volume of games to be played throughout the summer months. As always, our partners will have a first class offering across all sports and competitions, and as sports fans we have a lot to look forward to.”