Strong Q2-2018 performance from Kambi Group

Q2-2018 has brought good news for the sports betting industry, according to Kambi Group plc, which released its latest quarterly result Wednesday, reporting strong performance figures.

The success of the World Cup football and the optimism around US sports betting following the overthrow of PASPA by the US Supreme Court in May have all contributed to a brighter business outlook, with the company reporting highlights of:

* Q2-2018 revenue up 25 percent y-o-y at Euro 17.6 (14.1) million;

* H1-2018 revenue up 20 percent at Euro 34 (28.3) million;

* Q2 operating profit at Euro 2.4 million (Euro 300,000) with margin at 14 percent (2 percent);

* H1 operating profit of Euro 4.4 million (1.6 million) with margin at 13 percent (6 percent);

* Profit after tax of Euro 1.7 (0.1) million for the second quarter of 2018;

* Profit after tax in H1 at Euro 3.2 (1.2) million;

* Cash flow from operating and investing activities (excluding working capital) at Euro 1.9 (-0.5) million for the second quarter of 2018;

* Cash flow from operating and investing activities in first half Euro 2.5 (0.3) million.

Key developments included:

* Signed two US-based customers in DraftKings and Rush Street Gaming after US Supreme Court’s decision to fully repeal its federal sports betting ban;

* Signed Stanleybet Romania in Q2 and ATG and Latvijas Loto in Q3;

* Finalised long-term contract renewals with Kindred Group and Mr Green.

CEO Kristian Nylén said that the US Supreme Court’s overturn of PASPA created the potential for significant business for Kambi, which was prepared and moved quickly following the ruling to partner with two US operators.

“I’m excited about what we can achieve with both customers, and in the US more generally,” Nylén said. “However, the state-by-state roll out of regulated sports betting will not happen overnight, therefore our US-facing business should be viewed in the mid-to-long-term.

“In parallel, we continue to focus on our core business, which was boosted in June by the early stages of the World Cup.

“Ahead of the World Cup, we launched three new customers into three regulated territories within the space of a week, demonstrating the scalability and capacity of the Kambi platform. We also announced we were in final stage commercial discussions with Swedish horse racing operator ATG, a deal we subsequently closed shortly after the end of Q2.

“In early July we finalised our new long-term agreement with Kindred Group, a deal which gives Kambi a secure platform for future growth. Over the years, Kambi and Kindred have developed a strong partnership and I look forward to building on this in the future.

“Overall, the past few months have produced very positive results for Kambi, both operationally and commercially, and I look forward to continuing this progress throughout the remainder of the year.”

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