Kambi CEO Kristian Nylén has confirmed that the Americas accounts for 50% of all revenues made in Q3, driven by the new deal with Bally’s Corporation.
Updating investors on Q3 trading, Kambi declared revenues of $44.7m, up 15% on Q3 2022 comparatives of $39.4m. This is despite losing the contribution of Penn Entertainment, which switched over to its proprietary technology and finished its payments to Kambi in July.
Kambi highlighted the positive contribution of Shape Games, the provider of front-end technology solutions for sportsbooks that it acquired last year, which generated fixed licensing fees of $2.8m.
The sportsbook platform provider stated that it has a strong balance of geographic revenue sources. Breaking down global activity, 94% of revenues come from locally regulated markets, with 50% of that coming from the Americas, largely the US.
Another 47% of total GGR comes from Europe, and 3% from the Rest of the World.
Nylen singled out the US as a country in which Kambi has a strong brand which allows it to gain high-profile contracts such as Bally’s.
He explained: “If you look at the US I think we have an amazing brand recognition now. It becomes easier when you have a strong brand, for sure. So getting fast reference customers into new markets is very important. But we have quite a big footprint. I think we are clearly the most recognized sports betting supplier brand, both in Europe, and North America, and also getting there in Latin America.”
Nylen was asked about future growth across global markets, to which he stated that Latin America will be a key region to focus on. Whilst he noted that Europe is its fastest-growing market currently, he did indicate that if the 2024 legislative season is kind, then North America could be a key source of geographical growth.
The CEO added: “I do believe that LatAm at the moment is probably the market we will see the most growth in. At some point, I really hope that the movement will happen in California and Texas, and then North America will become the largest growth market.”
Meanwhile, Kambi is preparing to launch a new AI-powered trading tool named Tzeract. The tool will allow Kambi to offer better pricing on markets across several sports. Initially provided on soccer markets, Kambi is seeking to roll Tzeract out in other sports such as tennis next year.
“The impact Tzeract is having on our pricing and product is tremendous and we believe we can unlock even greater value by offering Tzeract as a standalone module, similar to Abios and Shape Games and in line with our long-term strategy. With a test customer in place, ongoing discussions with a range of other operators and having already earned multiple industry accolades, I believe Tzeract has an exciting future.”
Finally, Kambi reiterated confidence in reaching its long-term 2027 goals that it has previously laid out, but the CEO warned that the process would not be linear.
The provider is aiming to make revenues of $350m-$530m – representing a two-to-three-fold increase on FY2022 performance, with a target EBIT of $160m.
Nylen concluded: “The road to our 2027 goals won’t be linear and the partner signings announced in recent weeks will only be reflected in the numbers from the second half of next year. The long-term picture looks bright and we remain confident in our ability to deliver on our aims and cement Kambi’s position as the number one sportsbook supplier in the world.”