Sports betting services provider Kambi Group has clocked €44.3 million ($46.78 million) in revenue for the fourth quarter of 2023 and €173.3 million ($187.25 million) for the full year of 2023. While the quarterly revenue saw a decline from €57.8 million ($62.45 million) in the same period last year, annual revenue grew from €166 million ($179.37 million) in 2022.
Operating profit for the fourth quarter of 2023 was €7.2 million, down from €18.7 million in Q4 of last year, at a margin of 16.1% (32.3% in Q4 2022), and €20 million for the period January to December of 2023, down from €34.8 million in 2022, at a margin of 11.5% (20.9% in 2022).
Cash flow (excluding working capital and M&A) amounted to €5.5 million for the fourth quarter of 2023 (€17.9 million in Q4 2022) and €15 million for the full year of 2023 (€25.2 million in 2022). Earnings per share for the fourth quarter of 2023 were €0.182 (€0.491 in Q4 2022) and €0.488 in 2023 (0.861 in 2022).
Kambi said it estimates revenue for the full year 2024 to be in the €170 – €180 million ($183.7-194.52 million) range. It also announced a share repurchase program, up to a total of €2.8 million ($3 million), running from 5 December 2023 to 21 May 2024, the date on which the 2024 AGM will also be held. There will be no dividend payout.
The company said its underlying turnover growth is about 6% when excluding the impact of Penn Entertainment’s online migration, which terminated its agreement with Kambi to begin using its own proprietary technology.
Excluding the termination fee recorded in Q4 2022, the revenue of €44.3 million ($47.87 million) represented a 2% decrease for the quarter, and full year 2023 revenue of €173.3 million ($187.2 million) was a 13% increase against tough comparatives including the World Cup in Q4 2022 and the Penn online migration.
During the year, the company entered into long-term sportsbook platform agreements with Svenska Spel and LiveScore Group, which it anticipates will result in a meaningful financial impact from H2 2024.
It also signed two additional European sportsbook partnerships, including a long-term deal with Dutch online casino operator 711 and a multi-channel partnership with Bingoal to provide sports betting technology in Belgium and the Netherlands.
“As I look back on the year, I have two overriding takeaways, the first being I’m not satisfied with our financial performance. This performance was impacted by lower than anticipated revenue from Shape Games, smaller than expected revenue contributions from two of our largest partners, and Bally’s more measured approach to marketing its sportsbook thus far,” Kristian Nylén, Kambi CEO and Co-founder.
“My second reflection is we made good progress in building the foundations that will ultimately lead to a much-improved financial performance in the future, giving me confidence we’re on the right path for the long-term.”
Nylén also noted a series of challenges, including a slower roll-out of newly regulated sports betting markets. The outlook in certain markets has not been as promising as previously anticipated, he said, particularly in California, where 2028 now appears to be a more realistic timeline for regulation.
In Brazil, Kambi welcomed the long-awaited regulation of the country’s sports betting market but is also mindful that the transition to a fully licensed framework is unlikely before Q3 2024 and that new operators will face tough competition entering what is “already a mature grey market with established sports betting brands.”
In January, Nylén notified the Board of his intention to step down from his current position upon the appointment of a successor.
Original article: https://www.yogonet.com/international/noticias/2024/02/21/70930-kambi-records-187-million-in-2023-fullyear-revenue-ceo-nylen-calls-results-unsatisfactory
