Kambi Group Plc has highlighted its diverse market make-up for helping the sportsbook systems provider maintain year-on-year growth, despite the pandemic impacting its commercial pipeline.
CEO Kristian Nylén has noted that the growth which the group has made across the Americas during the fourth quarter has been a ‘key driver’ in its strong performance to end the year.
Publishing its Q4 trading update, Kambi registered corporate revenues of $39.8m, a 26% decrease YoY on 2020’s results of $53.5m.
Q4 trading was matched against record-breaking 2020 comparatives for sportsbook clients. Performance was further affected by an unfavorable October that saw clients suffer a series of ‘player-friendly results’.
Kambi was also unable to escape Dutch market headwinds, as major clients were forced to cease operations while waiting for license approvals to participate in the newly launched KOA regime.
However, significant European challenges were mitigated by a ‘full-swing’ of US NFL and college football wagering that saw clients take full advantage of Kambi’s Bet Builder product to engage customers.
CEO Kristian Nylén commented: “Looking back at Q4, growth from the Americas continued to be a key driver of our performance. The Americas region was responsible for 58% of operator GGR and is set to increase further with additional markets to regulate and go live this year across Canada, the US, and South America.”
Trading against peak like-for-like comparatives, Kambi posted a Q4 EBIT of $8.0m, down significantly on 2020’s $25.0m, with operating profits of $6.9m (Q42020: $19.7m).
Despite a tough end-of-year trading period, the group’s full-year performance was not derailed, registering double-digit percentage improvements across all key operating metrics.
Kambi recorded a full-year revenue of $184.4m, a 38% increase YoY (FY2020: $134.3m) as the performance was buoyed by an operating margin of 35%, a big improvement on 2020’s 27%.
Matching the scale demands of new clients in North and South America, and Australia, the group accomplished a 77% EBIT increase to $64.9m in FY2021 (FY2020: $36.4m). It also anticipates profits after tax of $52.4m, a 93% growth on FY2020’s $27.3m.
Year highlights saw Kambi complete its first M&A, acquiring leading esports data and odds provider ABIOS for $14.8m. Whilst supporting future growth directives, the group has increased its net cash position to $81.9m.
The group underlined a successful end of year for its commercial pipeline that will be strengthened by the new customers of Maximbet and Affinity Interactive in the US – NorthStar Gaming in Canada – and BetCity and JVH that have launched sportsbook properties in the Netherlands re-regulated marketplace.
Nylén ended: “In summary, Q4 concluded a transformative year for Kambi and as we move into 2022, I am confident the business has never been better positioned for the future.
“The prospect of further regulation and additional partner signings across the globe is positive and we are firmly established as the go-to provider for the global sports betting market. I look forward to building on our successes this year and beyond to the benefit of both our partners and shareholders alike.”