Strong US performance helps drive significant Q3 gains for Kambi

Image source: Kambi

Sports betting technology firm Kambi has posted its Q3 2021 report, citing a robust performance in the US sector which helped drive a 48% year-on-year increase in quarterly revenue to $48.2m. Revenue for the first nine months of the year was $147.8m, eclipsing the total for the whole of 2020.

Operating profit (EBIT) for the third quarter of 2021 was $17m ($7.5m), at a margin of 35.4% (23.3%), and $58m ($11.6m), at a margin of 39.2% (14.2%) for the period January to September

The firm reported profit after tax of $13.8m ($5.9m) for the third quarter of 2021 and $46.7m ($7.9m) for the period January to September.

CEO Kristian Nylén, updating investors, noted: “I’m pleased to report another excellent quarter for Kambi, with strong financial results against tough 2020 comparables, which is a testament to our robust business model and the hard work of our staff across the world. 

“Kambi Q3 revenue was up 48% year-on-year, operating margin was once again strong at 35% and we continue to be highly cash generative. Excluding DraftKings, operator turnover was up 10% year-on-year, highlighting the underlying growth in the business.

“We had a strong start to the new NFL season, which kicked off on 9 September, with our platform outperforming the competition and our market-leading Bet Builder product engaging a large number of bettors and returning higher average operator trading margin. 

“Furthermore, revenue in Q3 was boosted by our continued US expansion, including day one launches in Arizona, the 15th state in which Kambi has launched. In total, Kambi completed approximately one launch per week on average throughout the quarter.”

Referring to Penn National Gaming’s decision to acquire Canadian sports media company theScore, Nylén added: “It’s incredibly difficult, as well as costly, to build, maintain, and continue to develop a first-class sportsbook, as we’ve seen with unsuccessful efforts of others in the past. 

“In the meantime, we’ll continue to support their growth with our fantastic platform and service we have built over many years, which remains very much of interest to our growing list of prospective partners.

“In summary, we’ve performed well, and the future looks bright. We currently have a sales pipeline as strong and varied as I’ve known it. As the global trend of regulation continues, we are in a great position to capitalise on future opportunities as and when they arise, and we have announced the implementation of a share buyback scheme.”