Kambi has published its financial results for the first quarter of 2022, posting a total group revenue of $39.19m, a 15% decrease year-over-year (Q1 2021: $45.88m).
However, CEO Kristian Nylén stated that operating turnover is up 25% when adjusting for the migration of DraftKings, proving “the underlying financial performance of the business remains strong”.
Kambi reports that the turnover during Q1 was mainly driven by a busy US sports calendar, notably the NFL Super Bowl and the NCAA March Madness basketball tournaments, with operator turnover for each competition up 68% and 49% YoY respectively.
Nylén reflected as well that financial growth has occurred despite “tough Q1 2021 comparatives and the temporary impact of regulatory headwinds in the Netherlands”. The positive effects of its Bet Builder product continued to be felt during the quarter as well.
Per market, the Americas contributed the most GGR at 55% (Q1 2021: 63%), followed by Europe at 43% (Q1 2021: 36%) and the Rest of the World at 2% (Q1 2021: 1%).
Operating profit (EBIT) for Q1 was $7.75m (Q1 2021: $19.86m), at a margin of 19.9% (43.2%), profit after tax amounted to $5.74m (Q1 2021: $16.04m), earnings per share were $0.19 (Q1 2021: $0.52), and cash flow from operating and investing activities (excluding working capital movements and acquisitions) amounted to $5.84m (Q1 2021: $17.52m).
Nylén commented: “The first quarter of the year proved to be another busy period at Kambi as we delivered new partner signings, contract extensions, continued market expansion, and multiple product and technology advancements.
“Operator turnover was up 25% when adjusting for the migration of DraftKings which proves the underlying financial performance of the business remains strong. This growth comes despite being up against tough Q1 2021 comparatives and the temporary impact of regulatory headwinds in the Netherlands, which we expect to ease soon.
“Turnover was driven by a busy US sporting calendar, including the Super Bowl and March Madness, the US college basketball championship, and I was proud to see Kambi provide its partners with a market-leading offering and platform stability unmatched by some of the most high-profile B2C sportsbooks.”
During Q1, Kambi extended its long-term partnership with Kindred Group until 2026 and announced full control over the strategic future, with the ability to repay convertible bond held by Kindred. The group also made significant movements in North America across the US and Canada.
Nylén noted that he was “particularly pleased” with Kambi’s North American momentum during the quarter.
The group completed 11 US partnership launches during the period, with some in the new online sports betting markets of New York and Louisiana, as well as signing two new deals with Canadian sports betting operator NorthStar Gaming, and MaximBet, a sports betting brand owned and operated by Carousel Group in partnership with media brand Maxim.
He stated: “With regulation across North America moving at pace, and states such as California, Texas, and Ohio yet to go live, I have never been more confident in our position to capitalize on the opportunities this vast market presents.”
The CEO was also happy with the moves Kambi made during Q1 in Canada, obtaining regulatory approval in Ontario to provide its sportsbook services to operators on day one of the Canadian province’s online sports betting and igaming market going live.
“In Canada, our excellence in compliance and regulation enabled us to become one of the first sportsbook providers to obtain regulatory approval from the Ontario regulator, ensuring our partners were up and running on day one of single-event sports betting going live in the province earlier this month,” Nylén added.
“Ontario promises to be one of the largest sports betting markets in North America and we look forward to the prospect of additional Canadian partner signings as well as other provinces establishing their regulatory frameworks.”
Kambi also stated that, in response to the war in Ukraine, it has put in place an accelerated job application scheme for people from the country and anyone displaced by the crisis. Almost 100 applications have been received to date.
Looking ahead, Nylén stated that Kambi’s future is bright as it remains committed to strengthening its position in the sports betting industry by delivering “a strong core platform with the crucial flexibility to facilitate localized offerings to satisfy the varying regional demands”, adding that this capability will be “pivotal” for its global success.
The CEO concluded: “With Kambi reaching the milestone of 40 partners during the quarter, the scale of the Kambi network has never been greater nor more diverse, and I believe we have only scratched the surface of what’s possible.”
