Provider of sports betting services to B2C operators Kambi Group has announced its Q4 and Fiscal Year 2021 report. For the Q4 period, revenue amounted to €34.9 million ($39.7 million), a decrease of 26% versus €46.9 million ($53.4 million) in the fourth quarter 2020. 

However, revenue for the whole fiscal year saw a noticeable increase. Revenue amounted to €162.4 million ($184.9 million), up 38% from €117.7 million ($134 million) the prior period January to December.

“The momentum we built in Q3 continued into Q4, helping us finish the year in fine fashion,” the company commented in a press release. “This positivity has continued into the new year, most notably having recently extended our partnership with Kindred Group, which now runs for the next five years up until the end of 2026, providing us with additional financial strength.”

Separately, the company also announced it now has the ability to repay a convertible bond held by Kindred which, when paid at a time “of our discretion,” will provide Kambi with “complete freedom” to make the right strategic decisions for the business’ future, which “has never looked brighter.”

Breaking down figures shows that operating profit (EBIT) for Q4 was €7.1 million ($8 million) at a margin of 20.2%, down from €22.2 million ($25.2 million) and a margin of 47.3%. Profit after tax amounted to €6.1 million ($6.9 million), down from €17.3 million ($19.7 million). Cash flow from operating and investing activities, excluding working capital movements and acquisitions, amounted to €4.8 million ($5.4 million), down from €20.5 million ($23.3 million).

The decrease in Q4 trading is partly credited to tough comparatives, matching against record-setting 2020 figures. Moreover, performance was hit by an unfavorable October, in which clients suffered a series of “player-friendly results.”

Additionally, headwinds in the Dutch market, which have heavily affected several global companies as operators were forced to cease operations while waiting for awarding of new licenses, also took a toll on Kambi. The Americas market, in particular the US, helped the company during the quarter.

“Looking back at Q4, growth from the Americas continued to be a key driver of our performance,” the business further stated. “The Americas region was responsible for 58% of operator GGR and is set to increase further with additional markets to regulate and go live this year across Canada, the US, and South America.”

The quarter concluded “a transformative year for Kambi,” with the business feeling confident of the prospect of further regulation and additional partner signings across the globe. “I look forward to building on our successes this year and beyond to the benefit of both our partners and shareholders alike,” commented Kambi CEO Kristian Nylén.

In contrast, the full year saw improvements in all regards. Operating profit increased to €57 million ($64.9 million) at a margin of 35.1%, up from €32.2 million ($36.6 million) at a margin of 27.4%. Profit after tax amounted to €46.4 ($52.8 million), up from €24.1 million ($27.4 million); while cash flow from operating and investing activities amounted to €44.6 million ($50.8 million), up from €28.7 million ($32.7 million).

Close to the year-end, and within Q4, the company delivered a series of highlights that position it for future growth and business opportunities, including the receipt of a license in New York State which, since launching in January, has quickly grown to become the largest market in the country.

“Not only did Kambi secure one of the few licenses on offer in New York, the bid we led as a primary applicant also achieved the highest score from the regulator following a competitive application process,” Nylén revealed. “Such an achievement is a real testament to Kambi’s reputation in the US and the quality, integrity, and reliability of our sports betting technology.”

Additionally, Kambi accompanied its US expansion with three new partnerships in Q4, including a multi-state partnership with omnichannel operator Affinity Interactive, which operates casinos in three states, and the Daily Racing Form, a horse racing news brand.

These signings were then subsequently followed after the quarter with a multi-state deal with MaximBet and a partnership in Canada with NorthStar Gaming, which is partnered with Torstar Corporation, described by Kambi as “one of the country’s largest news organizations.”

“In addition to North America, we made significant progress in Argentina, going live in both Buenos Aires City and Buenos Aires Province, while we also launched new partners in Australia and the Bahamas,” added the company’s CEO.

Furthermore, in Europe, the company launched BetCity and JVH in the re-regulated Netherlands market, and Kambi has been “buoyed by the early performance.” The business is excited by prospects in the market, particularly once additional partners are licensed in the coming months.

The 2022 annual general meeting (AGM) is set to be held on 17 May 2022. The Kambi Board is proposing that no dividend be paid out.

Original article: https://www.yogonet.com/international/news/2022/02/11/61359-kambi-sees-americas-growth-as-key-performance-driver-revenue-up-38–in-2021

RELATED ARTICLESMORE FROM AUTHOR

LEAVE A REPLY

Please enter your comment!
Please enter your name here