Sports betting services provider Kambi Group has posted a revenue increase for the first quarter of the year, driven by new market launches and successful Super Bowl and March Madness performances. Total revenue amounted to $48.6 million, up by 19%.
“The first quarter was another busy period for Kambi including new market launches in the Americas, the expansion of Kambi’s partner network and a full sporting calendar,” said Kambi CEO Kristian Nylén. “These events helped drive a 12% year-on-year increase in operator turnover and a 19% rise in revenue to $48.6 million.”
However, operating profit (EBIT) for Q1 was down to $5 million from $8 million in the comparable period last year, at a margin of 10.3%. Earnings were impacted by a number of factors including foreign exchange movements and one-off costs to improve future efficiency, the company noted.
The business hit several commercial milestones during the three-month period, including a partnership renewal with Rush Street Interactive. Additionally, Kambi also extended in Q1 its relationship with BetPlay owner Corredor Empresarial, which it called “the market leader in Colombia” and has plans to expand across Latin America.
“Latin America is a region of significant long-term potential for Kambi and will become increasingly integral as we look to extend our lead as the number one supplier across the Americas,” noted Nylén.
“Kambi already has a strong foothold in some of the region’s most established sports betting markets such as Colombia and Argentina, and recent public announcements from the Brazilian government show positive signs that regulation of sports betting in Brazil is edging nearer in what is projected to become one of the world’s largest regulated markets.”
Also during Q1, Super Bowl and March Madness increased player activity, while AI-driven algorithmic trading capability was rolled out to major European soccer leagues and other key competitions, leading to improved product and greater operational efficiencies
“From a product perspective, Kambi’s expanding AI-driven trading capability is a core component of our vision to redefine what’s possible in sports betting,” the company’s CEO added. The product, which saw a first roll-out for the soccer World Cup in Q4, is described as an “industry-leading method of automated pricing, which blends machine learning with vast amounts of data.”
It has now been extended to all top European domestic soccer leagues, as well as the Champions League and Europa League. “As a result, we can now create more bet offers at a faster delivery speed than the rest of the market, as well as deliver a richer Bet Builder, leading to both a better product and greater efficiencies for the business,” he added.
“With a market-leading sportsbook that continues to remove product boundaries, a strong sales pipeline and the prospect of further regulation in key markets, I look forward to updating the market over the coming quarters,” Nylén concluded.
See Kambi’s full Q1 report here.
Original article: https://www.yogonet.com/international/news/2023/04/27/66953-kambi-posts-19-revenue-increase-for-q1-driven-by-new-market-launches-and-partnerships
