Kambi is not slowing down on its expansion across Latin America, as CEO Kristian Nylén has highlighted the country of Brazil as a “big focus” in the company’s recent conference call.
Earlier this week, Kambi published its financial results for Q2 and H1 2022, reporting year-over-year revenue and operating profit declines in both measuring periods.
Despite the losses, Nylén has stated the firm has “delivered another positive quarter with underlying growth,” especially since Q2 was quieter than usual and that last year’s numbers were before the DraftKings migration.
Kambi’s Brazilian ambitions
When asked during Kambi’s Q2 conference call about the company’s position in Latin America and if there are any new possibilities in the region, Nylén highlighted the moves the company has already made, as well as its stance on Brazil, which is yet to regulate sports betting.
The CEO said about Latin America: “That is a region we look at very positively. We have a very strong position in Colombia. We have partners in Peru and in Argentina already. We keep on looking at more and more partners in Latin America.
“The big thing that is a big focus for us now is to find the suitable partners for opening of Brazil.”
Well-positioned to enter Brazil
Kambi also noted in its Q2 report that, in Brazil, while “no moves to initiate regulation will be made” before October’s election, the original implementing statute requires the market to launch by December, so “there is hope that any incoming regulation will try to launch as close to this date as possible”.
The sports betting services provider added that it is “well-positioned” to enter the Brazilian market once regulated thanks to its expansion across Latin America and its “strong soccer product”.
Q2 and H1 Financials
For Q2, Kambi recorded $35.1m in revenue, a 19% drop YoY from the $43.3m reported in Q2 2021.
Operating turnover in Q2 grew by 16% when adjusted for the migration of DraftKings, due to strong US partner growth, launches in several new states including Arizona, Connecticut, and Louisiana, several partner launches in Ontario, Canada, as well as growth from existing and new partners.
Per geographical location, the Americas had the biggest contribution towards the total operator GGR during Q2 of 54% (2021: 58%), followed by Europe at 43% (2021: 40%) and the Rest of the World at 3% (2021: 2%).
For the year-to-date (YTD), Kambi has achieved a revenue of $72.5m, a 17% decline YoY on H1 2021’s $87.2m.
Operating profit (EBIT) for Q2 came in at $4.96m, a 70% fall YoY (2021: $16.8m) at a margin of 14.1% (2021: 38.8%). For YTD, operating profit is $12.4m, a 65% decline YoY (2021: $35.8m) at a margin of 17.1% (2021: 41%).
Profit after tax for the quarter came in at $4.58m (2021: $16.6m), while for the YTD, profit after tax is currently at $11.7m (2021: $35.4m).
