Kambi Raises Revenue 23% in Third Quarter

Sports betting technology provider Kambi has released its third-quarter results. Revenue rose 23% year on year to 46 million euros (51.7 million dollars). Adjusted EBITA more than doubled.

The company narrowed its full-year earnings guidance and said profitability increased despite challenges in some jurisdictions. However, it is not yet clear whether growth will continue as regulatory conditions in key markets become increasingly difficult.

Nine-month revenue reached 135.4 million euros (152.2 million dollars), up 13.5% from the same period last year. In the third quarter, gross profit rose 16% to 37.2 million euros. The gross profit margin, however, fell from 85.8% to 80.9%. Operating profit came in at 5.1 million euros, compared with 1.6 million euros in the same period last year. Operating expenses remained largely flat at 29.2 million euros.

Adjusted EBITA rose to 7.9 million euros in the third quarter, up from 3 million euros in the same period of the previous year. The margin increased from 8.2% to 17.3%. Adjusted EBITA for the first nine months of the year was 21.2 million euros. Following these results, the company raised its full-year adjusted EBITA forecast to approximately 26 million euros. CEO Werner Becher said the performance reflected the diversified business model, cost discipline and favorable currency movements. Becher also highlighted that the trading operation delivered an operator margin of 11.9% in the third quarter, which he said was the company's second-best quarterly performance.

Kambi also continued its commercial growth. The company signed a 10-year agreement with Station Casinos for sportsbook and player account management services. Pure Casino Entertainment and QuinnBet were added to the Turnkey Sportsbook network. Kambi also supported the launch of several operators in Alberta, Canada. On the other hand, it sharply criticized Brazil's decision to ban online betting. 85% of bets are now processed by the artificial intelligence system the company developed in-house. 59% of live bets are accepted without additional delay. The company aims for this technology to increase trading efficiency and offer users better options. Kambi also adopted "Powerful Network. Proven Edge." as its new slogan. The Abios, Shape Games and Tzerac brands were brought under the parent brand.